Brand Management
The techniques of brand management is the
application of marketing to identified product lines, or brands. Designed
to increase a product's perceived value to the end user thereby increasing
brand equity.
Brand management improves
the level of quality customers expect from a brand and will continue
with present and future purchases of the same product. Thus increasing
sales by making a favorable comparison with competing products.
Brand management also enables the manufacturer to charge more for the
product. Brand value is determined by the profit it generates for the
manufacturer. Resulting from a combination of increased sales and increased
price.
Business Weeks annual list
of the world’s most valuable brands, indicates that the market value
of companies often consists largely of brand equity. Research suggested
that strong, well-leveraged brands produce higher returns to shareholders
than weaker, narrower brands.
Brand management shows
that a premium brand typically costs more than other products in the
category. An economy brand is a brand targeted to a high price elasticity
market segment. A fighting brand is a brand created specifically to
counter a competitive threat. When a company's name is used as a product
brand name, this is referred to as corporate branding.
When one brand name is
used for several related products, this is referred to as family branding.
When all a company's products are given different brand names, this
is referred to as individual branding. Brand management shows when a
company uses the brand equity associated with an existing brand name
to introduce a new product or product line, this is referred to as brand
leveraging.
When large retailers buy
products in bulk from manufacturers and put their own brand name on
them, this is called private branding, store brand, or private label.
Private brands can be differentiated from manufacturers' brands (also
referred to as national brands). When two or more brands work together
to market their products, this is referred to as co-branding.
When a company sells the
rights to use a brand name to another company for use on a non-competing
product or in another geographical area, this is referred to as brand
licensing. An employment brand is created when a company wants to build
awareness with potential candidates. In many cases, such as Google,
this brand is an integrated extension of their consumer.
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