-- The sum total of all the characteristics, tangible and intangible, that makes a company unique.
is the application of marketingtechniques 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 thelevel of qualitypeople have come to expect from a brand will continue with future purchases of the same product. This may increase sales by making a comparison with competing productsmore 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 can resultfrom a combination of increased sales and increased price, and/or reduced COGS (cost of goodssold), and/or reduced or more efficient marketing investment. All of these enhancements mayimprove the profitability of a brand, and thus, "Brand Managers" often carry
accountability for a brand's P&L (Profit and Loss) profitability, in contrast to marketing
manager roles, which are allocated budgets from above, to manage and execute. In this regard,Brand Management is often viewed in organizations as a broader and more strategic role thanMarketing alone.The annual list of the world¶s most valuable brands, published byInterbrandand
,indicates that the market value of companies often consists largely of brand equity. Research byMcKinsey & Company, a global consulting firm, in 2000 suggested that strong, well-leveraged brands produce higher returns to shareholders than weaker, narrower brands. Taken together, thismeans that brands seriously impact shareholder value, which ultimately makes branding aCEO responsibility.The discipline of brand management was started atProcter & GamblePLC as a result of afamous memo by Neil H. McElroy.
Principles of brand management
be protected (or at least protectable) under trademark law.
be easy to pronounce.
be easy to remember.
be easy to recognize.
be easy to translate into all languages in the markets where the brand will be used.
suggest product benefits (e.g.:Easy-Off ) or suggest usage (note the tradeoff with strongtrademark protection.)
suggest the company or productimage.
distinguish the product'spositioningrelative to the competition.
stand out among a group of other brands.