Unit 1: Basics of Brand Management

Lesson 1: What is Brand and Brand Management

1. Why should we pay attention to brands?

Brands are valuable assets, and if they are managed properly, they can provide a guaranteed, steady stream of expected revenue. A survey by the United Nations Industrial Program shows that famous brands account for less than 3% of all product brands, but their market share is more than 40% and sales account for more than 50%. In the 21st century with intensified economic integration, competition among multinational companies is more often characterized by brand competition.

1. Definition of brand

A brand is a name, term, mark, symbol or pattern, or a combination thereof, used to identify a certain consumer or a certain consumer group. products or services and differentiate them from those of competitors. A successful brand is identifiable and adds meaning to itself in such a way that the seller or user perceives relevant, unique, sustainable added value that is most likely to meet their needs.

First of all, this definition emphasizes "successful brand". Developing a successful brand takes time and money, it's actually an investment that, if managed properly, will yield huge profits. But it's difficult to build a successful brand if you take a short-term approach to your brand investments and then cut investments or change your brand strategy without seeing a quick return.

Secondly, this definition emphasizes the "recognizability" of the brand. One of the functions of a brand is to make people recognize it quickly. Brands are effective cognitive tools as well as differentiation tools. But please note that a brand is different from a “trademark”. A trademark is a name, logo or symbol used to distinguish the products and services of one business from those of other businesses. It can consist of words (e.g. "Unilever"), letters (e.g. "Pamp; G"), numbers (e.g. "No. 5"), symbols (e.g. McDonald's golden arches) or shapes (e.g. the pyramid of Toblerone chocolates) shape) composition. A brand differs from a trademark in that it provides functional and emotional value.

Third, the definition mentions “relevant value”. That is, in order to transform a product or service from a simple commodity to a branded commodity, efforts must be made to increase the value of the commodity and add value to the core offering. Fourth, another key word in the definition is “continuous”. Product-based brands need to maintain advanced technology, and service-based brands must always maintain excellent delivery processes. Maintaining the functional value of a brand is a difficult task.

The multi-faceted nature of the brand

Brand is a multi-faceted concept. A great tool for understanding the nature of your brand is the “Brand Iceberg”. The exposed 15 is used to distinguish the name or slogan of the products or services provided by the company, while the underwater 85 is a guarantee of constant quality levels. First, what is often talked about is the visible part of the brand (the name or slogan) rather than the invisible value-adding process within the organization that gives the brand its competitive advantage. Second, the competitive advantage of a brand not only revolves around marketing, but also includes other internal factors of the company, including company employees, R&D capabilities, customer service, logistics, etc.