What do you know about brand management?


What do you know about brand management?

In a world full of brands, staying in the market and capturing the largest share of it depends on the ability of each company to manage its own brand.

Brand management strategies

It is clear that achieving all the ideal conditions to create an exciting brand is no longer sufficient, but then requires systematic management of that brand in order to achieve growth and convince more consumers to turn to it.

What is brand management?

Brand management is the set of processes that contribute to creating and conveying brand value and identity to the public, building awareness of that brand, and enhancing customer loyalty over time. Just as companies are first created and then managed, a brand is built first and then needs to be managed; With the aim of continuing to be in front of customers regardless of the company's market value and its reputation. Before jumping into the basics of brand management, you must first know the origins of a brand and what they mean?

Brand Origins

Brand assets refer to their face value in the market and include components that the public can see and interact with such as the brand name, logo, and colors, its advertising personality, packaging, marketing channels, and other determinants that vary based on what the company offers and how to present it.

The higher the value of a brand's assets, the more customers are willing to pay for the products or services you offer. The nominal value of the brand is described as an asset because it may be profitable or a loser, depending on the effect the brand has on consumers either by benefiting them or causing their dissatisfaction and loss.

The first objective of brand management is to consolidate its assets in the market and turn them into profitable assets. Often, most companies compete for control of a higher value within the market so that their product is the largest acquirer. To understand this, let's look at the following example. A person is looking for a fast sports car to buy. What are the first expected answers that will ring in his ear? Lamborghini, right? Here comes the second question, why Lamborghini and not Mercedes?

Now the answer is, customers looking for a sporty and fast car are more than willing to pay for a Lamborghini, while customers looking for comfort go to Mercedes! Therefore, when a car company launches a new advertising campaign, it does not claim that it has all the advantages; This is because its brand assets have a certain value offered to a dedicated audience. The result is that customers' decisions are influenced by those differences when they go to pay for a particular product.

The customer who wants to buy a sporty and fast car pays a huge amount of money to buy a Lamborghini, even though Mercedes produces sporty and fast cars. But when he went to buy, he aimed his goal at the company whose brand has the most valuable assets in the world of fast cars!

Brand Management Basics

The basics of brand management are the first steps to achieving successful brand management and expanding market share. It is important for business owners and marketers to be aware of it, as its importance is that it precedes the development of appropriate strategies to achieve growth goals, and these basics are as follows.

1. Brand awareness

Brand awareness is the first step to achieving its management component. It is represented in the knowledge that consumers have about the brand so that no one will go to buy a product that they do not know anything about. In order to spread awareness of a brand, it is necessary to define its distinctive characteristics. Does it have a specific size and color? What is its nature? Is it a drink? Natural drink or energy drink? Simply put, the customer must know all the information about the product he is buying in order to be aware of it.

2. Brand awareness

Brand awareness is the customer's ability to recognize it just by seeing its name, logo, or product. This realization keeps the brand always present in the minds of the masses so that it becomes a priority for them when they go to the buying process.

Brand awareness is different from brand awareness. For example, awareness of Coca-Cola products is knowing their taste, price, and sizes, while awareness of Coca-Cola means that the customer recognizes them just by seeing the logo in an advertisement, for example. Here comes the importance of designing a strong logo that contributes to creating a lasting visual connection between the brand and the audience.

3. Brand value

Brand value is the view consumers have of a brand based on their experiences or perceptions of it. The higher that value, the more the owners of the companies can raise the prices of their products until the matter turns from selling a product only to selling the product and the brand name; Of course, Starbucks is a famous example of this.

How do you enhance brand value then? Providing a quality product is definitely the number one factor. In addition to paying attention to improving the customer's experience, and providing the advantages that benefit and attract him to buy the brand's products. For example, Starbucks offers free internet and a suitable environment to get some tasks done. The customer then not only gets a cup of coffee but also accomplishes his work and is able to form relationships and interact with people.

4. Brand loyalty

Brand loyalty is formed when customers continue to buy and interact with its products. It is one of the most powerful goals that companies pursue to boost their profits. A customer who frequents products frequently costs much less than trying to attract a new customer and also spends more money because they trust the brand.

There are many customer loyalty programs, whether by using points systems, offers, and other means, but in the end, all of them aim to make the customer frequent the products.

5. Brand reputation

Lots of companies are criticized and others praised, and the greater proportion of both makes up the brand's reputation. Companies that are subject to constant criticism are known for their bad reputation among the public, and vice versa. Brand reputation affects the impressions consumers have of the brand when they are first exposed to it.

And that reputation develops by improving the quality of services provided by the company and minimizing problems as much as possible. A company's customer service is also on the front lines that affect its reputation, and the better it is at solving customer problems and listening to them, the better the company's reputation.

How does brand management affect your company's results?

Target goals in Business examples

There are few companies that can properly implement brand management strategies. Which explains why most of the big companies control a huge share of the market without even owning a website or launching advertising campaigns with huge amounts of money. So how can brand management affect corporate results?

Brand recognition

In a world of competition, it is likely that big brands will emerge with nearly equal market shares. In order for each sign to distinguish itself, it must have a special impact on the masses. Through successful brand management, brands can enhance brand awareness and make it easier for consumers to perceive them; This makes it easier for customers to distinguish it from other brands.

Compete in crowded markets

Gaining a foothold in a market full of competitors may seem impossible. But the seasoned entrepreneur knows what to do in this case, which is to look for a competitive advantage, that is, see what needs can be presented to customers differently from those companies, and build their audience around them. Here comes the role of brand management by putting those features to the fore, this is the only way to grow in crowded markets.

gain confidence

Many young entrepreneurs who have launched new online stores notice that most customers stop at the checkout process. That is, the customer searches for the product, adds it to the cart, goes to the checkout page, and then leaves, what happens in this case?

The reason revolves around the customer’s trust in the online store, although he may be holding the electronic payment card and about to pay, he thinks in his mind “Why do I buy it from this store and not buy it from or Amazon?”; It comes down to the customer's trust in big brands that are more reliable than others.

Accelerate your purchases

Customers go through a number of successive stages before they decide to purchase. It starts with brand awareness and awareness, to test its reliability. For brands that are still novices or have not gained mass acceptance, their customers will face these stages every time someone decides to purchase products. But by fulfilling the previous conditions - which are the basics of brand management - the consumer quickly skips these stages and proceeds to the payment process directly, which speeds up the purchase process.

Pay customers to spend more

It's easier for customers to buy multiple products from a famous brand than to test the new one! Customers are satisfied with the brands they have tried or that have a good reputation and reliability in the market. This leads them to spend more money without fearing that the products will not be suitable for them afterward.

Reduce costs

Start-up companies spend huge amounts of money on marketing and hire a large team of employees, in order to build the right audience. After that, the most important advantage of building a successful brand become is to increase its attraction to customers with its large size, that is, it becomes magnetic, thus reducing the costs of marketing campaigns compared to profits.

And let's not forget that customers do not stop talking to each other, and for companies with a huge brand share, the consumer is both a customer and a marketer.

staff retention

Employee retention may seem a little strange here, but having a strong brand increases employee loyalty as much as it increases customer loyalty. The more loyal employees there are, the more productive the company is. Where a loyal employee works with an efficiency that may reach times the efficiency of employees who are still in the middle of the road, which is what every company definitely wants.

But losing the company's employees is costing it a lot. Because of the training costs, you incur to develop their skills, as well as the other costs that HR workers spend looking for other employees.

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