Impact of brand management on the business performance
Building on the notion that consumers usually employ marketing mix variables as extrinsic brand quality nod, a stream of literature on the effects of marketing mix variables on brand equity has found that marketing mix variables can have very different, sometimes even opposite, effects on brand equity (Yoo, Donthu, and Lee, 2000; Buil, de Chernatony, and Martinez, 2013).Based on a “grounded-in-practice” approach to BMS, a comprehensive formative BMS scale is developed and its validity is assessed. In order to be able to survive in this highly competitive environment both manufacturers as well as retailers have continuously employed marketing mix elements in extreme ways. Prior research has demonstrated not only that marketing mix variables significantly
contribute to brand sales, but also that the contribution varies across product categories (Fader and Lodish, 1990; Narasimhan, Neslin, and Sen, 1996). Different researches conducted across the world in order to try and identify category level moderators have been very fruitful. Taking an example like, advertising expenditures and distribution channel expansion are positive brand quality cues and thus encourage the growth of brand equity, while frequent price promotion is a negative brand quality cue and thus undermines brand equity.
B2B buyers are people, and people are driven by emotions. People largely make decisions relying on their first impressions of stored memories, images and feelings. These emotions impact economic decision making. In one sense, brands inherently operate on an emotional level by stimulating that part of the brain that stores emotional reactions. If one is able to nurture these feelings of the customers in the right way then they can almost close the deal even before the selling has started. The trust that is highly required can be achieved by becoming the dominant player in the market you are playing or by achieving thought leadership much prior in the buying cycle. Because brand-influenced emotional reactions impact buyer decision making, those companies with strong brands usually achieve better financial performance.
Advertisements have been identified as major tools for a firm to build customer-based brand equity (Keller and Lehmann, 2003; Sriram and Kalwani, 2007). The content and frequency of advertising affect different elements of brand equity. By using various content appeals, a brand can communicate its functional and emotional value to consumers and build strong, favourable brand associations' in consumers' minds.
There are enormous numbers of benefits that one can acquire by building a strong brand. Some are as follows :
Customer recognition : This is one the most important feature that one acquires while building a strong brand in the market. It means when a customer is searching for a particular product or considering a company to perform a particular service they are going to recognize your company with more priority amongst others in the market.
Competitive edge in the market : You must remember that your customers are your assets, for the company to run successfully as well as flourish in the future. They are going to recognize and back your brand that will boost your position in the market. The more recognition you get and the more you build your brand you will find your brand at a more elevated level compared to others giving you a competitive edge in the market.
Easy introduction of new products : When you have built a strong brand and have a big base of loyal customers, introduction or launching of new products are often easier and less expensive. If you are able to build a loyal consumer base then they even help you to anticipate the new products when they are launched.
Enhanced credibility and ease of purchase : Having a well-known brand enhances your credibility with customers, your industry, and the marketplace as a whole. Once you are able to build your credibility you will be able to build recognition, loyalty and competitiveness. Customers always want to buy from companies they like, know, and trust. If your brand is credible, you’re far more likely to get the sale.
Brand management is all about continuously developing a positive perception amongst your target audience or market, about your company. Obviously a brand cannot be established in one night, but requires time and efforts. No matter your brand’s industry, age, or size, brand management is instrumental in continued success. While it's important for potential customers to know your brand in order to buy it, your brand also needs to know its customers to reach them. In effective brand management, brand managers know their target market very well, and its spending and consumption habits, and tailor the placement of marketing and advertising accordingly. Strategic brand management is meant to support companies in getting (or improving) brand recognition, boosting revenue, and achieving long-term business goals. By being able to establish a proper brand strategy that will uphold your company's overall goals and processes, you can make it sure that your business grows in a way that's ultimately benefitting your business in the long run.