A survey by Deloitte found that 60% of executives believe that brand is the most important asset for their company. So what is brand management? Brand management is the process of creating, developing, and maintaining a brand to ensure that it is perceived positively by its target audience. It involves various activities such as brand positioning, messaging, design, and communication.
The ultimate goal of brand management is to build brand equity, which refers to the value a brand brings to a company beyond its physical attributes or functional benefits. This value can include consumer recognition, loyalty, and emotional connection.
Effective brand management requires a deep understanding of the target audience and a clear brand strategy that aligns with the company’s overall goals and values.
A study by Accenture found that 63% of consumers prefer to buy products and services from brands that share their values and beliefs. Building and maintaining a strong brand is more important than ever in today’s highly competitive business environment. Effective brand management can help companies to differentiate themselves from competitors, build customer loyalty, and drive business growth.
- Brand Recognition: Effective brand management can help to establish and enhance brand recognition. This means that consumers can easily identify and remember a brand, leading to increased customer loyalty and repeat business.
- Competitive Advantage: A well-managed brand can give a company a competitive advantage. A strong brand can differentiate a company from its competitors and help create a unique market position. A study by Kantar Millward Brown found that brands with strong emotional connections to their customers outperform their competitors by 85% in sales growth.
- Increased Customer Loyalty: Effective brand management can help build a strong emotional connection with customers, increasing customer loyalty. Loyal customers are more likely to recommend the brand to others and become advocates for the company. A Study by Forbes found that companies with strong brands have a higher level of customer loyalty, with 64% of consumers saying that shared values are the primary reason they have a strong relationship with a brand.
- Premium Pricing: A strong brand can command a premium price in the market. Consumers are often willing to pay more for a brand they perceive as having higher quality, reliability, and value. According to a survey by Deloitte, 49% of consumers are willing to pay more for products and services from brands committed to social and environmental responsibility.
- Brand Extensions: A well-managed brand can be extended into new products and services, which can help to expand the company’s offerings and revenue streams.
- Improved Marketing Efficiency: Effective brand management can lead to more efficient marketing efforts. A well-established brand can reduce the need for expensive marketing campaigns, as consumers are already familiar with the brand and its values.
- Attracts top talent: A strong brand reputation can attract top talent to your company, making recruiting and retaining high-quality employees easier. A study by McKinsey & Company found that companies with a strong brand purpose could attract and retain top talent more effectively than companies without a strong brand purpose.
- Enhances partnerships and collaborations: A strong brand can also help attract potential partners and collaborators, leading to new business opportunities and increased revenue.
- Increases shareholder value: A strong brand reputation can enhance shareholder value by improving the company’s financial performance and growth prospects. According to a study by Forbes, strong brands outperform weak brands by nearly 20% in terms of stock market performance.
- Facilitates innovation: A strong brand can provide a foundation for innovation by providing a clear sense of purpose and direction for the company’s efforts.
- Mitigates risk: Effective brand management can help mitigate the risks associated with negative publicity, crises, or other reputational threats, by providing a strong foundation of goodwill and trust with customers and stakeholders. A survey by WPP and Kantar Millward Brown found that brands that maintained strong and positive connections with their customers during difficult economic times outperformed their competitors in terms of financial performance.
- Increased Revenue Growth: A study by Brand Finance found that companies that invest in brand management have higher market capitalization and revenue growth than companies that don’t invest in brand management.
With all these benefits, it’s no wonder that in a survey by HubSpot, 89% of marketers said that brand awareness is their top goal, followed by lead generation (84%) and sales (78%).
5 Parts Of a Brand Management Strategy
A survey by Deloitte found that 88% of executives believe that brand is important for driving sales and revenue growth. So what does a brand management strategy include? Brand management requires more than just designing a logo and creating marketing campaigns. It involves a comprehensive approach incorporating brand strategy, messaging, identity, and engagement.
- Brand strategy development: This step involves defining the brand’s vision, mission, values, and positioning and creating a strategic plan for achieving these goals.
- Brand identity development: This step involves creating a unique and recognizable visual and auditory identity for the brand, including elements such as the logo, tagline, packaging, and other design elements.
- Brand messaging development: This step involves developing clear and compelling messaging for the brand, including the brand promise, value proposition, and key messaging points.
- Brand launch and communication: This step involves launching the brand and communicating its message to the target audience through various channels, such as advertising, social media, PR, and events.
- Brand monitoring and management: This step involves monitoring the brand’s performance and reputation and making necessary adjustments to the brand strategy and messaging to ensure continued success.
Overall, the brand management process is a complex and intricate approach involving strategic planning, creative development, and ongoing monitoring and management to build and maintain a strong and successful brand.
If your business needs help building your brand management strategy or defining your brand values, please get in touch with our founder directly.