Now that we have fallen back an hour for daylight savings and the holiday season is getting closer, many companies are preparing for the end of their fiscal year and planning the budget for 2009 has begun, many of our clients ask us what is brand management and why is it so important to our future? Well, it is sort of like the football game on Saturday, you may have a strong shot, but if your carry through is inconsistent, even though your the favorite it doesn’t always mean you have the ability to hold on to the ball and beat out the competition. With that said here are a few basics to help up your game in 2009!
First let’s define Brand Management:
Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product’s perceived value to the customer and thereby increase brand franchise and brand equity.
How we apply brand management to your business:
Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with future purchases of the same product. This may increase sales by making a comparison with competing products more favorable. It may also enable the manufacturer to charge more for the product.
What it can mean for your company:
he value of the brand is determined by the amount of profit it generates for the manufacturer. This can result from a combination of increased sales and increased price, and/or reduced COGS (cost of goods sold), and/or reduced or more efficient marketing investment. All of these enhancements may improve the profitability of a brand. Brand Management is often viewed in organizations as a broader and more strategic role than Marketing alone.
The bottom line:
The annual list of the world’s most valuable brands, indicates that the market value of companies often consists largely of brand equity. Research by a global consulting firm, suggested that strong, well-leveraged brands produce higher returns to shareholders than weaker, narrower brands.
