Introduction
Brands have existed since ancient times, as evidenced by the fact that individuals have always used unique marks to distinguish their products from those produced by other individuals. However, the main reason for branding in ancient times was to prevent the theft of property. Despite the origins of branding, its main purpose shifted to enhancing the visibility of products as humans engaged in increased commercial activity with each other (Hampf and Lindberg-Repo, 2011, p. 1). Consequently, the concept of brand development arose. Brand development refers to the efforts taken to increase the success of a brand in the market by making changes to it periodically to ensure that its popularity among customers does not wane. In this way, brand development helps companies to achieve the objective of adapting to changes in the market to keep up with evolving customer tastes and preferences. Given the importance of brand development to the success of businesses, managers are required to have an adequate understanding of brand management theories. This report explores the theories of brand management and examines brand development and its related concepts.
Brand management theory
Brand management refers to the techniques that are used to improve the perception of a brand among consumers in the market. The theories of brand management fall under two paradigms, which include the positivist and the constructivist paradigm, otherwise known as the traditional and holistic approaches respectively (Ropo, 2009, p. 20). The positivist paradigm views the marketer as the owner of the brand. In this paradigm, the consumer is a passive recipient of communication that is controlled by the marketer. Additionally, the marketer is viewed as the creator of brand equity, with the brand being perceived as a lifeless artifact that can be manipulated (Heding, et al., 2009, p. 21). On the other hand, the interpretive paradigm focuses on the brand’s nature. Furthermore, the interpretive paradigm views brand equity value as the result of the marketer’s interaction with an active consumer.
The two paradigms provide the basis for the seven brand approaches in brand management. It is important to note that the seven approaches are discussed in the chronological order in which they entered into the field of brand management. The first approach is known as the economic approach. In this approach, the brand exists as a component of the traditional marketing mix. Furthermore, the economic approach views brand value as being affected by various factors such as promotions, modification of prices and changes in channels of distribution. It is also worth noting that the economic approach applies a functionalist brand perspective, and is based on the idea of the economic individual. Consequently, the consumption decisions of the economic individual are based on rational considerations (Berz, 2016, p. 19). Additionally, the consumer’s interaction with the brand is taken to involve a few isolated transactions.
The second approach is referred to as the identity approach, which links the brand to corporate identity. The identity approach focuses on organizational identity, and the brand is viewed as the property of the marketer. However, recent years have seen a change in this perception. According to the identity approach, it is imperative for the brand to be integrated on all levels of the organization (Burmann and Arnhold, 2008, p. 43), with the marketer being tasked with the creation of brand value. It is important to note that the key influences of the economic approach are the organizational culture processes and the corporate view of identity.
The consumer-based approach, which is the third approach, links the brand with customer associations. In the consumer-based approach, the brand is seen as a mental construct of the consumer. Therefore, consumers make favorable mental associations with strong brands. In contrast with the first two approaches that focus on the marketer as the source of brand communication, the consumer-based approach focuses on the consumer as the recipient of brand communication. Consequently, the consumer-based approach bestows brand ownership on the consumer (Kavaratzis, et al., 2014, p. 236). Over the years, the consumer-based approach has come to dominate all the other approaches in brand management.
The fourth approach, known as the personality approach, ascribes human qualities to the brand. The emergence of the personality approach was prompted by a study that revealed that consumers tend to bestow human personalities on brands. According to the personality approach, the personalization of brands by consumers allows them to express themselves (Verma, 2006, p. 59). A notable attribute of the personality approach is its association with the fifth approach, which is the relational approach. Furthermore, the personality approach is a precondition of the relational approach.
As mentioned previously, the relational approach is the fifth approach of brand management. The relational approach builds on the ideas presented in the personality approach. According to the relational approach, the brand is an important relationship partner of the consumer (Güse, 2011, p. 118). Despite expanding on the ideas of the personality approach, the relational approach led to fundamental changes in the field of brand management. The changes occurred because the research method roots of the relational approach are radically different from the research method roots of the previous approaches to brand management.
The sixth approach is known as the community approach, in which the brand is viewed as the center of social interaction. The community approach emerged after researchers conducted studies into brand communities. According to the community approach, the brand communities facilitate the creation of brand value, where the brand is the key social interaction point for consumers. The community approach made an important contribution to brand management by increasing researchers’ understanding of the social aspect of consumption. In fact, this understanding is necessary in the management of multiple brands. Marketers in the community approach deal with independent consumer groups, which can collectively affect the actions of marketers (Elliott and Percy, 2007, p. 145). Consequently, consumers have the potential to take control of the brand and set it on a path that is different from the marketer’s intended direction.
The seventh and final approach of brand management is the cultural approach. In this approach, the brand is considered to make up a segment of the wider cultural fabric. Since the cultural approach views the brand as an artifact of culture, it has led to the emergence of rhetoric that is against branding. Aside from this, the cultural approach adopts a macro perspective, which shifts attention away from the marketer-consumer transaction (Nielsen and Klett, 2009, p. 61). In this regard, the cultural approach provides an explanation of the effect of branding on a macro-level culture.
Formulation and justification of brand development decisions
Effective brand management requires marketers to formulate important brand development decisions. One such decision is to improve the recognition of the brand among consumers. Advertising is the most effective way of boosting customer recognition of the brand. Since the cost of extensive advertising can be prohibitive for most small organizations, they can rely on other publicity measures such as taking part in corporate social responsibility initiatives to improve their brand recognition (Kazmi and Batra, 2009, 224). The justification for the brand development decision to increase the brand’s recognition lies in the fact that it helps the organization to build customer trust. This is because individuals are more likely to trust familiar names as compared to unfamiliar names.
Another important brand development decision is to cultivate a favorable perception of the brand among consumers. Potential customers can view a brand favorably if they perceive it to be able to meet their needs. In light of this, organizations can indicate various ratings or provide metrics that show the performance of the brand. Such information enables consumers to learn if the brand is adequate for their needs, which creates a favorable perception of the brand. In case of brands that have no ratings or performance metrics, marketers can add messages that emphasize positive aspects of the organization, such as showing environmental concern (Ferrell and Hartline, 2013, 388). The decision to cultivate a favorable perception of the brand is justified because it helps the brand to increase its market share, which increases sales for the organization.
Marketers also need to make the brand development decision to make their brand distinctive from other competing brands in the market. The distinction of a brand from similar products makes it unique, which makes the brand memorable among consumers. To put it otherwise, the creation of a unique brand appearance helps it to appeal to the emotional side of the consumer. Consequently, consumers are likely to remember the brand whenever they have to fulfill a need that is catered for by the brand. The decision to make the brand distinctive is justified because it helps the brand to stand out from its competitors (O'Guinn, et al., 2014, p. 19). Since individuals are naturally curious about things that seem different from the norm, consumers will be more likely to choose the unique brand over other ordinary brands that serve a similar purpose. Therefore, a unique brand appearance can help the organization to draw customers away from its competitors.
The final decision in brand development is to ensure the consumption of the brand in the market while maintaining customer satisfaction. Constant purchases of the brand imply a stable market share and contented customers. The decision to secure the continued consumption of the brand in the market is justified because it supports planning within the organization. This is because the organization is able to increase the accuracy of its predictions about its financial performance in the future. Aside from this, maintaining customer satisfaction encourages consumers to make referrals about the brand (Schultz, et al., 2015, p. 105). Consequently, the organization is able to increase its customer base and reap the attendant benefits.
Appraisal of the role of the marketing mix in supporting a successful brand
Marketing mix refers to the combination of ingredients that is necessary highlight and promote the unique selling points of a product or brand. Another term that is used to refer to the marketing mix is the 4P’s of marketing, where the 4P’s stand for product, price, promotion and place. According to the 4P’s, marketers need to understand their product before setting a price for it (Iacobucci, 2014, p. 5). After the price of the product has been set, it needs to be promoted to provide consumers with information about it. Finally, marketers need to identify the ideal place to locate the product to ensure that consumers have access to it.
As seen from the above, the marketing mix plays an important role in supporting a successful brand. For instance, the first P, which stands for product, supports the organization in the creation of a brand identity in the market. This is because the first P involves defining the product and its features to provide customers with a clear image of the brand. Consequently, the marketing mix helps the organization to establish a clear brand identity, which distinguishes its brand from similar products offered by its competitors (American Marketing Association, 2003, p. 285). Therefore, the marketing mix supports successful brands by helping them to maintain their visibility in the market through their unique features that form the basis of their brand identity. This helps organizations to avoid losing sales revenue because of customer purchases of rival brands, which stems from confusion about their appearance.
Brand identity can be better illustrated using the Brand Identity Prism, which views brand identity holistically. Jean-Noel Kapferer developed a model known as the Brand Identity Prism, in which he identified six attributes of brand identity as physique, culture, reflection, personality, self-image and relationship. The model concluded that the synthesis of the six attributes was critical to the success of a brand (Schroeder, et al., 2006, p. 120). Additionally, the six attributes were defined in the context of brand identity. According to Kapferer, physique refers to the tangible aspect of the brand while personality refers to the character of the brand. With regard to culture, Kapferer defined it as the system of values and principles that form the basis of the behavior of the brand. On relationship, Kapferer viewed it as the symbolism that might exist between the brand and human relationships. In concern to reflection, Kapferer argued that it portrayed the consumer as the most stereotypical purchaser of the brand. Lastly, Kapferer viewed self-image as the consumer’s best persona (Aggarwal, 2008, p. 38). It can be argued that the knowledge provided by the Brand Identity Prism highlights the importance of the marketing mix in supporting a successful brand by initiating the development of a brand identity.
Aside from providing customers with information about the attributes of the brand, the marketing mix plays a role in supporting a successful brand by enabling marketers to set an appropriate price for the brand. This is because the price of the brand is one the main considerations that guide the purchase decisions of consumers. Individuals can easily ignore a brand irrespective of its attributes if they perceive the price as being unacceptable (Hoyer, et al., 2012, p. 253). Therefore, the marketing mix helps organizations to ensure that the price of the brand remains affordable for the customers in the target market. Finally, the marketing mix supports a successful brand by making it easy for consumers to find the brand when they need it. This is because individuals are unlikely to make a considerable effort to search for brands that are hard to find in the market because of the inconvenience associated with such an endeavor.
Formulation of a brand and associated brand strategy
The formulation of a brand begins with an idea of how to solve a specific problem that is faced by customers. During the formulation of a brand, marketers strive to create a personal connection between the brand and the customers. With this in mind, marketers need to have information about their target customers, the most important of which is information about the customers’ tastes and preferences. This information is critical to ensuring that the marketer does not create a brand that lacks any practical use in the market. In light of this, Egan and Thomas (2010) propose that a successful brand strategy must go through several steps. The first step is to conduct research into the trends in the industry and competitors. This enables the marketer to identify if anyone has devised a solution to the problem identified as affecting customers. Next, the marketer needs to research the buyer persona to ensure that the brand is closely connected to the customers. The third step is to devise the strategies of developing the brand. This includes evaluating the cost of developing the brand, identifying the sources of funding for the project, as well as the personnel and other resources required to create the brand. Furthermore, the marketer sets the goals of the brand strategy, which guide the activities to be undertaken in the development of the brand.
On completion of the third step, the marketer begins the creation of the brand, which is the fourth step. Also included in the fourth step is the implementation of the strategies identified in the previous step. The fifth step involves the development of customer service capabilities in the organization. According to Egan and Thomas (2010), this is important for the marketer to be able to address any potential questions and concerns from the customers when the brand is launched in the market. Finally, the marketer is able to market the brand and realize sales. In short, a successful brand strategy begins with preparation, survey and setting of objectives, which is followed by the brand strategy development. Afterwards, the process moves to the creation and the execution of the strategy. The process concludes with the internal alignment of the organization to cater for the new brand, which is finally adopted and delivered to the customers.
In conclusion, the concept of branding has evolved to keep up with the changes in human society. This is also reflected in the evolution of brand management theories, which led to the development of seven approaches based on two paradigms. The paradigms are known as the positivist and the constructivist paradigm while the seven approaches include the economic, identity, consumer-based, personality, relational, community and cultural approach. Understanding the seven approaches enhances the ability of marketers to formulate brand development decisions. It is important to note that marketers are required to formulate brand development decisions to come up with effective brand management strategies, which contribute to the success of a brand in the market. In addition, the marketing mix supports the success of a brand by helping in the development of a brand identity. This perspective is reinforced by the Brand Identity Prism, which shows the central role that brand identity plays in the success of a brand.
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