Recently, the importance of reputation has become increasingly apparent, as companies such as BP and Toyota have had to cultivate their responses to crises in order to maintain the reputation and standing of their companies to the world.If an organization has a good reputation in the marketplace, consumers may have a preference for that company even if there are similar businesses offering the same products or services at different prices. The reputation of an organization can enable a company to differentiate its product in highly competitive markets, allow it to have premium pricing, and can become the ultimate factor in whether a customer decides to patronize one business over another.Research shows; for example, that due to an increased demand for healthier foods, organic products, and more environmentally friendly food, companies have begun to distinguish their products through food labeling, and are noticing that consumers are willing to pay a premium price for labels that are considered to have more of a prestigious reputation than others.Maintaining the reputation of a company through social media takes time and requires educating stakeholders within the organization, making them aware of a company’s internal values and key messages that need to be conveyed as well as creating a united, consistent voice.
In the past, businesses relied on word of mouth by their stakeholders in order to establish, build and maintain their reputations. In this modern age of social networking, websites, and other methods of instant communication, businesses must be conscientious of their reputations on a constant basis and be responsive to any crisis that may have an impact on their reputation.While an intangible concept, having a good reputation can benefit a business in a multitude of ways including consumer preference; support for an organization in times of crisis or controversy; and the future value of an organization in the marketplace.
The aim of branding is to convey brand message vividly, create customer loyalty, persuade the buyer of the product, and establish an emotional connectivity with the customers. Branding forms customer perceptions about the product. It should raise customer expectations about the product. The primary aim of branding is to create differentiation.
Brand management begins with having a thorough knowledge of the term “brand”
It includes developing a promise, making that promise and maintaining it. It means defining the brand, positioning the brand, and delivering the brand. Brand management is nothing but an act of creating and sustaining the brand. Branding makes customers committed to your business. A strong brand differentiates your products from the competitors. It gives a quality image to your business.
Brand management includes managing the tangible and intangible characteristics of the brand.
In case of product brands, the tangibles include the product itself, price, packaging, etc. While in case of service brands, the tangibles include the customers’ experience. The intangibles include emotional connections with the product/service.
Branding: is assembling of various marketing mix medium into a whole so as to give you an identity. It is nothing but capturing your customers’ mind with your brand name. It gives an image of an experienced, huge and reliable business.
Strong brands reduce customers’ perceived monetary, social and safety risks in buying goods/services. The customers can better imagine the intangible goods with the help of brand name. Strong brand organizations have a high market share. The brand should be given good support so that it can sustain itself in long run. It is essential to manage all brands and build brand equity over a period of time. Here come importance and usefulness of brand management. Brand management helps in building a corporate image. A brand manager has to oversee overall brand performance. A successful brand can only be created if the brand management system is competent.
The following are the important concepts of brand management:
- Definition of Brand
- Brand Name
- Brand Attributes
- Brand Positioning
- Brand Identity
- Sources of Brand Identity
- Brand Image
- Brand Identity vs Brand Image
- Brand Personality
- Brand Awareness
- Brand Loyalty
- Brand Association
- Building a Brand
- Brand Equity
- Brand Equity & Customer Equity
- Brand Extension