What is Brand Management?

Brand management is a function of marketing that uses techniques to increase the perceived value of a product line or brand over time. Effective brand management enables the price of products to go up and builds loyal customers through positive brand associations and images or a strong awareness of the brand.

Developing a strategic plan to maintain brand equity or gain brand value requires a comprehensive understanding of the brand, its target market, and the company's overall vision.

• Brand management is a function of marketing that uses techniques to increase the perceived value of a product line or brand over time.

• Effective brand management helps a company build a loyal customer base and helps fuel a company's profits.

• A brand manager ensures the innovation of a product or brand, creating brand awareness via the use of price, packaging, logo, associated colors, and lettering format.

• Brand management is usually centered around fostering the brand recognition, brand equity, and brand loyalty of a product.

• Brand equity refers to the value a company gains from its name recognition, enabling it to be the popular choice among consumers

Benefits of Brand Management

• Distinguished Products. According to the most recent U.S. Census data, there were over 250,000 full-service restaurants in the United States as of 2019.1 Strong brand management is necessary if any of these restaurants want to be recognizable apart from their competitors.

• Strong Employee Engagement. Brand management begins with the internal buy-in of the values, principles, and perception of a product. By ensuring all people in a company are part of the brand management process, employees may be more likely to buy into the strategic plan of the brand and company.

• Increased sales quantity. Though never a given, stronger brand management that drives brand loyalty and brand equity may drive stronger sales quantities. As more consumers are tied to a brand or positively recognize a brand, they are more likely to choose it over an unfamiliar alternative (all else being equal).

• Increased CLV. Customer lifetime value. In addition to greater sales quantities, brand management drives stronger value over the lifespan of a customer. Customers are more likely to repeat purchases if they have a positive experience and may be more likely to buy different products along the same product line if they forge strong brand loyalty with a single brand.

• Leveraged Pricing. If a company has a strong reputation with the market, their brand management may be leveraged to other products. This means a company can sell products at a premium if their brand invokes a strong enough connection to consumers (i.e. Apple).

• Less Volatile Market Position. Though companies always risk depressed financial results during market downturns, companies with stronger brand management may be able to weather the storm easier. This is because consumers may find it non-negotiable to deviate from companies they have strong, positive associations with even during inclement financial times.

Brand Management vs. Marketing

Brand management and marketing both appear to do the same thing; after all, both departments influence how external stakeholders perceive the company's or product's brands. However, there are subtle differences between the two.

Marketing Initially Leads, Brand Management Follows

When companies or products are launched, those companies or divisions may not have a fully dedicated team for brand management. Instead, they more often have a collection of marketing professionals that guide the initial external management of public perception. That marketing team may own many initial aspects of brand management, though their role often entails much more than simply honing in on a branding strategy.

Marketing Is Broad, Brand Management Is Specific

As a product line or company matures, the brand in question may receive more resources, especially if the brand has been successful. At this point, the brand management team documents, defines, and formalizes the brand strategy. This plan is much more detailed than the initial plans laid out by the marketing team. In addition, the brand management team will be more likely to collect information from other departments to ensure a broader, company-wide adoption of the brand management implementation plan.

Marketing Is More External, Brand Management Is More Internal

The marketing team of a company is primarily focused on the outside interactions. This includes communications, event presence, public perception, and public relations. Though these aspects may play a part in crafting the brand, brand management is more internally-focused on strategically devising the course of action. Brand management is more likely to outline the strategy and internal buy-in, whereas marketing is more likely to implement the external strategy and external acceptance of the brand.

Our team at Miami Biz News can further explain and design a comprehensive Brand Management Plan.

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