Friday, 7 May 2010

Brand Management

Brand management is the implementation of marketing techniques to a specific product or brand. It seeks to increase a product's perceived value to the customer and increase brand franchise and brand equity. The brand should be seen in a way that convinces customers and promises them quality and consistency. This may increase sales by making a comparison with competing products more favorable. This can be done by making the product look more appealing to the eye as well as ensuring product quality.  It may also enable the manufacturer to charge more for its product. The value of the brand is determined by the amount of profit it generates for the manufacturer. This may give rise to increased prices or reduced cost of goods sold. All these augmentations may improve the profitability of a certain brand. Brand management is often perceived in companies and organizations as a broader and more strategic role than Marketing on its own. 

 Research by McKinsey and Company suggested that," strong, well-leveraged brands produce higher returns to shareholders than weaker, narrower brands." Taken together, this means that brands seriously impact shareholder value, which makes branding a CEO responsibility. 

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