Importance of Branding as a Marketing Tool

This document discusses the importance of branding as a marketing tool and its emergence in business practice. It explores the key components of brand strategy and how they contribute to building and managing brand equity. The document also provides insights into different strategies of portfolio management, brand hierarchy, and brand equity management.

Brand Management
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Contents
INTRODUCTION......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Describe importance of branding as a marketing tool and its emergence in business
practice...................................................................................................................................................3
P2 Key components of brand strategy which contributes in building and managing brand
equity......................................................................................................................................................5
TASK 2.......................................................................................................................................................7
P3 Describe the different strategies of portfolio management, brand hierarchy and brand
equity management..............................................................................................................................7
TASK 3.....................................................................................................................................................10
P4 Evaluate how brands are managed collaboratively and in partnership both at a domestic
and global level...................................................................................................................................10
TASK 4.....................................................................................................................................................12
P5 Evaluate different types of techniques for measuring and managing brand value using
specific organizational examples......................................................................................................12
REFERENCES........................................................................................................................................15
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INTRODUCTION
Brand management is the process of supervising the various activities of
advertising in order to promote the products or services of brand ( Keller, Parameswaran
and Jacob, 2011). It involves planning and analysis the market trends and situations in
order to develop the brand image of the company. Branding involves product,
packaging, labeling, price and many other factors that how brand will be viewed in the
marketplace. Brand management is basically the function of marketing in which various
tools and techniques are used by the marketing department in order to increase the
brand value of products or services of company. The organization taken for this report is
Monsoon accessorize ltd. The company was established in year 1973 by Peter Simon.
The headquarters of company is in London, UK and is dealing in high street fashion and
clothing. The topics covered in the report are importance of branding, key components
of brand strategy, different strategies of portfolio management, brand management in
collaboration and partnership and different techniques for measuring and managing
brand value.
TASK 1
P1 Describe importance of branding as a marketing tool and its emergence in
business practice.
The brand is define as the symbol, design, term or any other feature which play
very crucial role in the company as it make the organization different from others in
terms of products and services. The word brand in context of organizations is used in
marketing department specially in marketing and advertising activities (Rosenbaum-
Elliott, Percy and Pervan, 2015). Branding helps the company in differentiating itself
from other competitors by a specific name or slogan. It is one of the most important
activity in order to make customer aware about the products and services of company
and to attract the potential customers. The reason why it is important for the business
unities as it is the only feature which can make the company stand out in the
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marketplace. Moreover it becomes easy for customers to recognize the products and
services of company through symbols and logos.
In context of Monsoon accessorize, the company is belonging to high street retail
industry dealing in fashionable accessories and clothing. They are operating in UK
market with more than 150 stores at prime locations. They are providing street style and
fashionable cloths to women and kid’s at affordable prices. The company is using
branding in form of company logo in order to differentiateitself from other business
unities. This has helped the company in segmenting its products according to needs
and taste of customers in different locations of UK and also helped in increasing the
sales and profit volume. Moreover branding also contributes in improving the
satisfaction of its employees as working with known and branded company helps in
enhancing their career objectives. Hence, they work most effectively and efficiently in
order to provide better results to company and take pride in their job roles.
Importance of branding
Branding is important as it has its impact on the overall performance and goodwill
of the company (Hanna and Rowley, 2011). Branding can change the perceptive of
people regarding the products and services of company and lead to drive new sales and
increase brand awareness.
 Recognition- Through branding company get recognition in the marketplace and
customer comes to know about the products and services of the organization.
Basically branding is the face of the business unities.
 Increases value of business- Branding is important for those business who
want to do well in the coming future and increases the value of business.
 Helps in generating new customers- Strong branding helps in creating positive
impression on the customers where they come to know about the companies and
its products and services. Thus helps in generating new potential customers and
increases the profit of company.
The concept of branding has taken place and is quite important in current scenario for
all the business unities. This concept has evolved because of the high level of
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competition in the marketplace where many businesses are dealing in same products
and services such as hospitality sector, courier services, clothing industry and many
more. So this has created the need for brand name in order to stand out or make
themselves different from other business unities. Moreover branding become popular
with the use of mass media as earlier the companies need to invest a huge amount in
the promotional activities. The use of mass media has made things simple and cost
effective for the companies to carry out promotional activities. With the emergence of
social media it become easy for small business to carry out promotional activities (Jin,
2012). As people are spending their most of time on various social media platforms, so
for every business unities whether it be a small or large scale business to conduct their
marketing campaigns and make people aware about their existence. With the help of
various social media channels such as snapchat, you-tube, instagram, facebook, etc
companies can reach to people across the globe.
The practice of branding has taken place in the business practices of the
organizations as the motive of large scale companies is to expand their business in
different areas across the globe. Moreover in order to relay with the industries the
companies need to come out of their comfort zone and traditional ways of marketing
and should focus on new innovate and technology base methods. Branding is the
cost effective and time saving techniques which provides effective results to
business organizations. Hence from the above concept it can been said that
branding has become an important element in the operations of business as it helps
in making people aware about the products and services, generate new customers,
build trust among the customers and builds good image of company in marketplace.
P2 Key components of brand strategy which contributes in building and
managing brand equity.
Brand strategy is define as the process which focus on the long term success
and growth of the business where plans and strategies are been formulated after
analyzing market trends in order to attain the future goals of the company ( Zenker and
Braun, 2010). Proper formulation of strategies and plans helps in influencing various
aspects of the business and contributes in customer satisfaction that is company is able
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to meet the needs and desires of its customers. Moreover company need to come up
with the most effective and efficient brand strategies in order to make itself different
from other competitors and stand out in marketplace. Thus effective brand strategy
helps in gaining the trust of customers and converting them into loyal ones by
establishing strong relation with customers. Whereas brand equity is define as worth
which customer drives with the products and services of the company. Basically brand
equity is the value which is determined with the response of customers that is how’s
their experience with the company, are they satisfy with their services and what’s their
perceptive about the company. The key components of brand strategy which helps in
building and managing the brand equity are as follow-
Target Audience- Target audience refer to those people who company are
targeting that is to whom they want to sell their products and services. Basically they are
those customers who are most likely to purchase the goods and services of the
company. In context of Monsoon, they are targeting women in the age group of 20-45
and the kid’s in the age group of 1-15. The company has focus on the current market
trends and conditions and accordingly formulated various strategies which has helped
them in gaining the trust of its targeted customers. Hence, it is important for business
organization to develop effective business strategies which help in accruing new
potential customers and also help in retaining the old and existing customers. In order to
get desire results it’s important for company to closely observe the customers and
understand their purchase behavior and other factors which contributes in influencing
them to buy the products and services. As this provide grate support at the time of
development of strategies. Thus, target audience is one of the important factor for the
business organizations in brand strategy and act as key component.
Digital Marketing- It is the component of the marketing where internet and other
online technology is been used by the company in order to carry out its promotional
activities. Digital marketing is one of the popular method used by company in order to
enhance the brand strategy and increase the productivity level with the motive of
increasing the sales and profit volume (Phan, Thomas and Heine, 2011). In context of
Monsoon, they have able to build strong presence on various digital platform such as
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facebook, you-tube, instagram and many more where they are putting fresh context and
latest trendy cloths to attract customers. Moreover this practice is contributing in making
customer aware about the products of company and engaging them which helped in
increasing the sales of the company.
Social media- With the advancement and development in technology the
emergence of social media has provided great opportunity to business organizations to
enhance their business. People are spending their free time on various social media
platforms hence, it is one of the most valuable tool for the companies to carry out its
promotional activities and make people aware. It is one of most engaging platform
where company can engage its potential customers and can increase its sales volume
(Veloutsou and Guzman, 2017). Moreover by using various social media channels
company can expand its business and can enhance its productivity.
Public Relations- Public relation is also one of the most important factor as it
has ability to build or can negatively impact the brand reputation of the company. The
company must have proper and clear understanding of the its target audience in order
to build the effective relation with them. The company should properly arrange its
product and services and segment them clearly in order to develop strategy according
the needs and interest of its target customers. Thus, the public relations and the brand
strategy functions together and is use to engage the customer and develop interest in
customers to purchase the products and services of the company.
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Figure 1 Brand equity 2020
Role of marketing in building brand equity and brand positions and techniques-
Aaker Brand: Aaker brand equity model is been introduced by David Aaker where focus
was on brand awareness, brand loyalty and brand associations which is been combined
in order to provide value to customers by the range of company’s product or services.
The focus is on product,organization, person and symbol in order make the products
and services of the organization known and formulate the brand image of the company.
In context of Monsoon accessorize ltd the company is focusing on all the factors in
order to attract the customers and to engage them.
Keller’s CBBE model- This model helps in identifying the needs and preferences of
customers as with the revolution customers has become the main focus of the
companies. It is basically a pyramid which is been used by monsoon accessorize ltd as
it provide guidance regarding building brand equity by identifying and understanding the
needs of the customers.
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TASK 2
P3 Describe the different strategies of portfolio management, brand hierarchy and
brand equity management.
Portfolio management is term as the process in which decisions are taken by the
management of the company regarding various policies and areas where they should
made investment (Braun and Zenker, 2010). Here are some strategies of portfolio
management-
Passive Management- This strategy of portfolio management is meant for those
investors who are ready to accept the returns in the marketplace where passive
management is used for tracking the market portfolios. In context of Monsoon, they can
use this strategy as they can track the performance of its external index. The main
motive behind adopting this strategy is to generate and get the return according to the
index of the company. This will helps in providing get support to the company as it will
be able to achieve its desire goals.
Active management- This is the kind of portfolio management in which investors
play major role as they try to fulfill the objective by asset allocation process of
investment. The investors who belong to the active management focus on different
trends of the market and the changing conditions in the economy which will affect the
functions and operations of the company. The main motive behind choosing this
strategy is to provide better outcomes to the organization in comparison to passive
management. With the adoption of this strategy frequent changes take place in the
operations and the strategies of business operations according to the changes and
prevailing situation in the marketplace.
Value Investment- It is a type of portfolio management where investors buy the
stocks of the company which are trending at less value than its actual value. The value
investors generally consider and buy those stock which are at low value and are
underestimated in the marketplace (Iglesias and Bonet, 2012). For analyzing the market
value the investors use financial analysis technique and become the long term investors
of the reputed companies.
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Brand hierarchy is define as the business approach where the overall branding
strategy is been analyses according to the various products and services of the
company. Its various strategies are describe below-
Corporate branding- It is define as the process in which various strategies are
been used by the company in order to promote its brand name in the marketplace. This
strategy helps in focusing on the most desirable segment in order to offer its products
and services. In context of Monsoon, they follow this strategy in its range of products. In
corporate branding various strategy is been adopted by the company on the bases of
the market situation as the preferences and taste of customer shifts frequently. So it
becomes important to function according to the present trend in order to get the desire
results.
Individual Branding- This strategy is used by those companies which has wide
range of products and services (Spence and Essoussi, 2010). Mainly special and
different products which are not linked with the existing range of product are given
name. Moreover with the use of individual branding company can create its brand
reputation in the marketplace quickly and provide effective results. Individual branding
provide effective results as with various name the company is been known by its
potential customers which helps in increasing the sales volume.
Brand Extension- This is most common strategy in which company uses the
name of brand in different way which is already popular and preferred by the people.
This strategy helps in identifying and evaluating the various opportunity options in
context of products of the company. Moreover it help in increasing and enhancing the
brand image of the company as they need to put less efforts in creating awareness
about the product and services because customer are already familiar with the name.
Brand equity management is defined as the process in which strategies and
decisions are taken by the company on the bases of the research study in order to
provide correct and accurate information to the company regarding market trends and
conditions. The different strategy of brand equity management is communication,
awareness, coordination and many more. The primary motive of these strategies is
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same that is to increase the brand equity of the company by formulating its efforts in
attracting new customers and retaining the old customers which will result in increasing
the overall productivity and sales of the company. Effective communication helps in
carrying the business operation in the correct way and in the right direction. If there is
improper communication then it will lead to misunderstanding and company need to
suffer. Creating awareness in the marketplace is important as there is high competition
in the marketplace. In order to stand out and to make the brand reputation in the
marketplace it’s important to make customer aware about the products and services of
the company. By adopting various marketing channels and campaigns company should
engage the potential customers and attract them. The company can get effective results
by working in coordination with each other as while working together they would be able
to perform better and can take better decisions. Brand equity and brand extension helps
in strengthening the company’s image and make its position strong in the
marketplace.As it provides the right direction which helps in increasing its brand
awareness and sales of the company. Moreover the focus is on reinforce and revitalize
brands through innovation as it helps in attracting the new potential customers and
provide the tough competition in the marketplace which also helps in increasing brand
value and sales of the company.
TASK 3
P4 Evaluate how brands are managed collaboratively and in partnership both at a
domestic and global level.
It is important for organization to consider different techniques and approaches in order
to manage brand significantly and effectively (YAKOUBI, 2020). Brand can be described
as the mark, logo, name, and symbol and so on which is different from other company.
It is essential for organization to develop the image of brand as well as carry out
business practices in order to successfully and effectively manage brand in both
domestic as well as global level. Monsoon accessorize ltd is a well established and
known company that is providing its products and services in different part of the world.
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This company has developed it unique brand value and image by adopting different
elements. These are significant for providing high quality services to customers as well
as gaining their trust in order to sale more products and services. It is essential for
respective company to effectively and efficiently manage its brand collaboratively and in
partnership while providing its products and services in both domestic as well as global
market area. Monsoon accessorize ltd company needs to create and develop strong
brand value by provide high quality products to customer as well as meet with their
needs and wants. There are various methods and approaches that could be consider by
organization in order to successfully manage brand in collaborative and in partnership
with both at domestics and global market area. Brand extension can be describe as the
strategy which is consider by employees in order to enhance brand offering in order to
successfully meet with the demand of customers. In fit and leverage brand extension
strategy company will focus on searching the successfully and effective brand extension
point in which categories customers will accept the brand.
Brand partnership is effective technique and approach that is significant for
providing guidance and direction to collectively promote and enhance brand in market
area. This is significant for attracting and influencing large market area as well as
improving the brand image (Kegoro and Justus, 2020). There are number of
organization such as Red Bull and Gopro, BMW and Louis Vuitton, Levi’s and Pinterest,
Nike and Apple as well as many other companies which are consider partnership
branding strategy in order to successfully enhance the image of brand in market area as
well as providing its products and services to large customer base. Co branding can be
describe as technique that is consider by business in order to increase brand image. In
this strategy organization are working together as a part of strategic alliance with the
motive of enhancing brand image and value in market area. This includes various
strategies such as global branding and positioning strategy. This is significant for
enhancing overall performance and capabilities of business to successfully promote
organizational products and services to large number of customers. There are various
benefits and advantages that could be attain by Monsoon accessorize ltd organization
by considering co branding and partnership strategy in order to improve brand and
manage it successfully at domestic and global level (Lund, Scarles and Cohen, 2020).
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Different advantages and benefits of Co brand for Monsoon accessorize ltd is mention
below in detail –
 Co branding strategy is significant for respective organization as it will help
respective company to successfully manage the cost of business. Through this
approach this organization is able to reach at larger market area and attract more
audiences.
 With the support of co branding technique, Monsoon accessorize ltd company is
able to successfully manage the marketing expenses. Due to partnership
branding, Monsoon accessorize ltd and other organization will be able to market
its product successfully in domestic and international market area. Through this
strategy Monsoon accessorize ltd will gain benefit of performing marketing
practices in less expenses as well as attracting large number of people with in
organization.
 Co branding strategy is significant for providing benefit for market share
improvement Through the technique of partnership branding as well as co
branding approach Monsoon accessorize ltd will be able to gain advantage of
large market share. Through partnership at both domestic and global level
respective organization is able to maintain and develop the image of new or
different market area which will help company to influence more customers.
It is essential for Monsoon accessorize ltd company to consider innovation while
performing and conducting business practices (Eugenio-Vela, Ginesta and Kavaratzis,
2020). This will also assist this organization is successfully managing brand image at
both domestic and global market area. Co branding with other companies will lead to
provide various benefits to business and successfully performing business practices.
TASK 4
P5 Evaluate different types of techniques for measuring and managing brand
value using specific organizational examples.
Monsoon accessorize ltd organization should use correct and accurate
techniques as it will lead to have direct impact on overall performance of business.
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Brand value is very crucial for organization as it will assist in attracting large number of
customers towards business and successfully carry out business practices. High brand
value of organization will assist respective company in gaining competitive advantage
over other rival companies. Different techniques which is consider by Monsoon
accessorize ltd in order to successfully manage as well as measure the brand value is
mention below –
Brand awareness – This can be describe as the process that is consider by
organization for in order to increase the awareness of company and its products in
market area (Majerova and Kubjatkova, 2020). Brand awareness is significant
techniques that are consider by Monsoon accessorize ltd company in order to enhance
the information and awareness about its products and services in market area. This
techniques includes –
 Survey – Monsoon accessorize ltd company is conducting survey in market area
with the motive of increase the awareness of its products in market area.
Through this technique this company is able to determine the views of customer
about company and its products. Search engine queries – This is create ve approach that is used in modern time
in order to identify the value of brand and customer awareness about the
products and services of organization. Search engine queries helps Monsoon
accessorize ltd customer to find out relevant answer to quires.
Market share – This is another effective technique and approach that is consider by
organization in order to identify its value and image of brand in market area. Market
share can be describe as the method through which company is able to identify the
actual market captured by company. Through this method Monsoon accessorize ltd
company will be able to identify its customer base and market in which company has
more brand value.
 Market share maintenance – This is significant technique that will help
organization to increase its market share as well as increase maintenance of its
brand image. Monsoon accessorize ltd is correctly using its resources and
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technology in order to provide high quality products to customer as well as meet
with the need of customers. Market share building – This is refer as the technique which is consider by
organization in order to grow and develop market share. It is effective way that
will help company to increase the profitability as well as sustainability through the
use of new and creative approach. Monsoon accessorize ltd is considering
market share building approach by providing its products and services in creative
and innovative manner.
Customer attitude – It is important for company to identify and analyze the needs and
wants of customers in order to successfully meet with their capabilities. Customer
attitude towards organizational products and services will lead to impact over its sales
and profitability. It is essential for Monsoon accessorize ltd company to consider the
attitude of customers in order to take correct decision for enhancing business practices.
This will assist respective company to correctly manage or measure the brand value in
order to significantly develop positive attitude of customer towards business.
Feedback - Through this respective company will be able to determine the perception of
customers. Respective company is considering the feedback of customers while
developing and offering its products and services (Oh, Lee and Lee, 2020). This helps
in creating positive attitude of customers towards for Monsoon accessorize ltd business.
Brand value – It is the monetary sum your image is worth. While brand esteem depends
on a sum on the accounting report, brand value is the estimation of a brand dependent
on how significant a client sees that brand. Brand value can influence an organization's
income and the general market.
 Market based – The brand value of company can be effective determined on the
basis of its image in market area. This is effective approach in order to determine
accurate brand value.
 Cost based – This is the technique through which brand value of company will
be able to determined. The overall cost of business is significant for providing
information about brand value.
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 Income based – Through this technique brand value of company will be bases on
the overall income level.
CONCLUSION
From the above report it can be concluded that brand image is very crucial for
organization as it will lead to impact over its business performance and profitability. It is
essential for organization to consider different approaches and techniques in order to
manage brand image and increase its value. Brand image is consider as one of the
most effective marketing tool and it will lead to attract more customers towards
business. There are various components that are significant for creating successful
brand strategy in order to manage brand equity. It is crucial for organization to consider
effective strategies of portfolio management, brand equity and brand hierarchy
management. It is beneficial for company to manage brand collaboratively in order to
enhance its functioning at domestic and global level. Apart from this, there are number
of techniques that will assist organization in successfully managing and measuring the
brand value in significant manner.
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REFERENCES
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place brand management.
Phan, M., Thomas, R. and Heine, K., 2011. Social media and luxury brand management: The
case of Burberry. Journal of Global Fashion Marketing. 2(4).pp.213-222.
Veloutsou, C. and Guzman, F., 2017. The evolution of brand management thinking over the last
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& Brand Management.
Braun, E. and Zenker, S., 2010.Towards an integrated approach for place brand management.
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YAKOUBI, S., 2020. BRAND MANAGEMENT.
Kegoro, H.O. and Justus, M., 2020. Critical Review of Literature on Brand Equity and
Customer Loyalty. International Journal of Business, Economics and
Management, 7(3), pp.146-165.
Lund, N.F., Scarles, C. and Cohen, S.A., 2020. The brand value continuum: Countering
co-destruction of destination branding in social media through storytelling. Journal
of Travel Research, 59(8), pp.1506-1521.
Eugenio-Vela, J.D.S., Ginesta, X. and Kavaratzis, M., 2020. The critical role of
stakeholder engagement in a place branding strategy: A case study of the
Empordà brand. European Planning Studies, 28(7), pp.1393-1412.
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Oh, H., Lee, M. and Lee, S.A., 2020. Global or local brand? Hotel selection in global
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Powell, S.M., 2020. Journal of Brand Management: year end review 2020. Journal of
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