Retail / Brand management|
Brand management is the application of marketing techniques to a specific product product line, or brand. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity. Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with present and future purchases of the same product. This may increase sales by making a comparison with competing products more favorable. It may also enable the manufacturer to charge more for the product. The value of the brand is determined by the amount of profit it generates for the manufacturer. This results from a combination of increased sales and increased price.
A good brand name should:
A premium brand typically costs more than other products. An economy brand is a brand targeted to a high price elasticity market segment. A fighting brand is a brand created specificlly 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. 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 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.
Brand rationalization refers to reducing the number of brands marketed by a company. Companies tend to create more brands and product variations within a brand than economies of scale suggest they should. Frequently they will create a specific product or brand for each market that they target. They also do this to gain precious retail shelf space ( and also reduce the amount of shelf space allocated to competing brands). But this can be a very inefficient strategy so a company may decide to rationalize their portfolio of brands from time to time. They may also decide to rationalize their brand portfolio as part of an overall corporate downsizing.
A recurring issue for brand managers is "How to build a consistant brand image while keeping the message fresh and relevant." Most brand managers agree that it is easier and less costly to build on the equity established in an existing brand than to start a new brand from nothing.Repositioning a brand (sometimes called rebranding), wastes the brand equity built up in the past, and also confuses the target market with multiple brand positions. But old brand images may get stale with time. The challenge for the brand manager is to revitalive the brand using the existing brand equity as leverage.
There are several problems associated with setting objectives for a or product category.
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