A recognisable brand is vital asset for any company. A strong brand management strategy ensures that a company can compete effectively in the globalised world, both on- and offline.
Good brand management generates customers
The term brand management refers to the process of developing a brand and includes techniques that seek to promote, enhance and maintain a brand’s reputation. In a sense, brand management fills the gap between brand and branding.
Brand management is often equated with the term marketing. In fact, they are two different concepts which are closely linked. Brand management is about fundamental strategic orientation. Steering the value system with which the brand is intrinsically linked.
Marketing describes the practical implementation of this approach. The goal of brand management is to achieve high recall value, good reputation and satisfied customers. For the overall value of a company, its brands are therefore indispensable.
According to statistics from 2020, more than half of the people in the German-speaking population agree that brands are often a good guide when making purchases. Furthermore, 23.3 million people said they would stay with a brand if they were satisfied with it.
Consumers are willing to spend more money on established brands and this has a significant effect on sales. And not only that: if customers are satisfied with a product or a brand, they often share their experiences with others. Brand strategist Karsten Kilian confirms this thesis. He explains: "Weak brands do customer advertising; for strong brands customers do the advertising”
Globalisation and digitalisation have greatly increased the range of products on offer. In order for a company to remain competitive and to stand out, it needs strong and effective brand management.
5 tips for strong brand management
Great brand management can increase a brand’s value because it generates customer loyalty. Here are five steps to consider when it comes to effective brand management.
- Develop a clear brand identity
A clear brand identity (link to the article Brand Identity) is essential for good brand management. If it is well articulated, strong brand management can communicate this successfully to the outside world.
- Define the target audience
Targeted outreach requires a company to define its target audience. This involves identifying the needs and factors which affect the target group’s decision making process.
- Nurture brand assets
A brand has many different assets which include visual elements such as the logo and layouts, brand message and social media presence. Constantly maintaining these means that you can check whether these assets reflect the brand's identity and are authentic for customers.
- Create the perfect customer journey
Globalisation and digitalisation are creating new opportunities and challenges for businesses. The competition is only a click away. This makes it all the more important to stand out from the crowd and win and retain customers.
The customer journey, from the first contact to the purchase of a product, must be designed in such a way that delights the target group and builds a connection with the brand. It is helpful to seek dialogue with the consumer group, ask for feedback and share their experiences. With the insights gained, companies can take action to meet the wishes of their customers.
- Keep a finger on the pulse
Active trend monitoring ensures that companies meet the needs of their customers. In today's world, interaction between the customer base and the company often takes place in the digital space and with the Corona pandemic customer expectations of the digital capabilities of companies have increased.
Companies should aim to provide their customers with a digital infrastructure that offers an easy and convenient way to purchase and receive assistance. Diversity and sustainability also play a big role in today’s world.
According to a study by Salesforce.com, over 40 per cent of consumers surveyed would turn away, at least in part, from brands that do not demonstrate diversity, and over 80 per cent of customers believe that companies have a responsibility to the environment. It is important to keep a finger on the pulse and constantly check on consumer priorities.
Customer satisfaction and a good brand reputation are every company's goal. Effective brand management can increase brand awareness, opens up better pricing opportunities and leads to increased customer advocacy which has a positive effect on sales. Good brand management is not only essential in large corporations; smaller start-up companies can also benefit from this approach.
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Zitat Karsten Kilian:
Sources 5 Tips: