Brand Management

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Description of Brand Management. Explanation.




Definition Brand Management. Description.

Brand Management (BM) refers to the managerial activities related to increasing, maintaining, or rationalizing the value of a brand through managing its tangible and intangible aspects.

For service brands the tangibles are to do with the customer experience - the retail environment, interface with salespeople, overall satisfaction, etc. For product, service and corporate brands, the intangibles are the same and refer to the emotional connections derived as a result of experience, identity, communication and people.

Strong brands can be legally protected, are easy to pronounce, easy to remember, easy to recognize, attract attention, suggest product benefits or usage, support the company or product image, distinguish the product's positioning relative to the competition.


Changes in Emphasis of Brand Management

Initially brand management emphasized a product- and company-centric perspective that considered customers as passive recipients. Nevertheless, their seem to be a shift in paradigm in which brands are now seen as a portfolio of meanings built by personalized experiences of multiple stakeholders that are co-created in relations, interactions and brand touch points. As a result of this paradigm shift, the tasks of brand managers have now changed in several ways:

  1. MULTIPLE STAKEHOLDER PERSPECTIVE: Although brand managers used to take into account customers’ perception of brands, they are now forced to also consider the multiple stakeholders’ perceptions and interpretations of brands; this is a multiple-stakeholder perspective in which brands are seen customer-employee and a company-stakeholder interface. Actually, the company becomes the brand in this case.
  2. MORE ACTIVITIES: Because of the wider perspective of brand management, additional activities besides the traditional ones (advertising, communication) should be considered. The reason is that now brand perceptions depend on the question whether brands are able to meet their promises and give a superior impression by stakeholders throughout the process of contact and interactions they will have. This will create commitment and brand loyalty.
  3. DECREASED CONTROL: As a result of the paradigm shift, customers’ opinions about brands are affected by the multiple stakeholders’ perceptions, who are able to share their perceptions through the use of social networks. Indeed, social networks become increasingly powerful in constructing the brand meaning and perceptions; brand managers have lost some of their control over their brand as a result of this power shift.

Source: Iglesias, O. And E. Bonet (2012). “Persuasive Brand Management: How managers can influence brand meaning when they are losing control over it.” Journal of Organizational Change Management, Vol. 25

The Internet has become an important channel for managing brands and the Online Corporate Reputation.

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