Effective Branding Techniques for Business Success

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Brand Management
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Table of Contents
Introduction................................................................................................................. 3
LO1............................................................................................................................. 4
LO2............................................................................................................................. 8
LO3........................................................................................................................... 10
LO4........................................................................................................................... 12
Conclusion................................................................................................................ 14
Reference List...........................................................................................................15
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Introduction
Brand management is the process of budding a brand for meeting with the needs of
the target clients. The main motive of brand management is to understand the
perception of brand in the operational market. Brand management leads to
development of healthy relationship with the target market and it enables the
company to meet with the marketing requirements. The study will focus on the
different techniques that could be deployed for developing the brand. It will assist in
the process of pricing the product in a better way. The study sheds light on the use
of brand strategy that is used for building and developing brand equity. The company
that will be selected is Marks & Spencer that operates from the United Kingdom
(marksandspencer.com, 2019).The company is a fashion retail store and they
develop their products to provide customers with various styling options.
This study will analyse the different methods that are used by Marks & Spencer for
management of their brand portfolio, brand equity and brand hierarchy. The running
of brands on domestic and global level is analysed in the study. The methods used
for measuring brand value will be done and it helps to accomplish the requirements
of the assignment authentically.
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LO1
P1 Explain the importance of branding as a marketing tool and why and how it
has emerged in business practice
Branding is regarded as a marketing practice that allows companies to develop a
symbol that could be easily identified as belonging to the company. The process of
product identification can be easily done (Rosenbaum-Elliottet al.,2015). The
necessities of branding lies in the detail that it helps the organisation to have a long
lasting idea in the mind of the consumers and they have a clear understanding of
their expectations from the company. The significance of branding as a marketing
device can be seen in the following ways:
Helps to gain recognition
The companies take recourse to branding because it allows them to gain recognition
in the market andthey become known amongst the customers. As a result, it is
important for the organisation to have a well-developed logo, so that it acts as the
face of the organisation. Therefore, it allows creating a long-lasting notion in the
consumers’ mind and helps to increase their sales in the market.
Business value is increased
The impact of effective branding allows the organisation to increase their business
worth. Besides this, it helps them to operate with a certain amount of advantage
(Hedinget al.,2015). As a result, it might seem to be an interesting investment
opportunity for sponsors.
New customer generation
In most of the cases, it was observed that organisations look to undergo the process
of branding, as it helps them to gain new customers and retain their old ones. The
company should understand that their process of branding is strong, as it will help to
have a positive impression in the customer’s mind. If the organisation is able to
develop their brands in a better manner, they can use word of mouth for promoting
their brand amongst customers.
Employee satisfaction is improved
The employees often feel satisfied with their work, if they are working for a company
that has a strong brand reputation. As a result, the employees take the initiative to
support their brand and they generate pride out of the same. Due to this, the
employees consider their jobs quite fulfilling and enjoyable (Atwal and Williams,
2017). This helps the management of the organisation to make use of promotional
merchandise.
Helps to support advertisement
The use of important advertising strategies is crucial for the administration, as it
helps them to portray the brand in a desired manner. Therefore, it will provide the
company with enough scope for advertising about the services and products that
they are offering. As a result, it allows the organisation to attain their branding goals.
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The emergence of branding has taken place over the passage of time. In majority of
the cases, it is important to understand that companies have a clear idea about the
ways in which branding can help the organisation. Therefore, companies look to
implement the processes of branding in the workplace for gaining competitive
advantage over the other companies. The supervision of the organisation can make
sure that branding allows them to generate high amounts of revenue. As a result,
Marks & Spencer is able to embrace the requirements of branding and look to
implement the same in the workplace. Moreover, the process of branding helps to
boost the level of employee motivation. This enables them to conduct their work to
the best of their abilities.
P2 Analyse the key components of a successful brand strategy for building
and managing brand equity.
Having well-developed strategy of brand allows the organisation to build and
manage brand equity. The key mechanism of successful brand strategy that assists
in brand equity management has been listed below:
Target Audience
Knowing the target customers is important for the organisation, as it helps them to
have an idea about the customers that are most likely to purchase their products.
However, if the organisation is able to reach out to their respective target audience,
they can manage brand equity in a successful manner (Kellyet al., 2015). The
decision-making of the brand equity depends on the management authority of Marks
& Spencer.
Brand Promise
There are times, when the organisation develops a particular memorandum that
generally conveys to the potential customers. With the help of these messages, the
customers can understand about the quality of the products that the organisation is
offering. As a result, the consumers know what to expect from the product that they
purchase. This allows the organisation to manage their brand equity. It ideally
depends on the perception of the clients towards the brand.
Brand Perception
In order to know about the perception of the brands in the minds of the consumers, it
is necessary for the management of the organisation to conduct surveys for their
customers. As a result, they will know about the brand image in the consumers’ mind
(Qian, 2014). This is effective, as it allows the organisation to modify their brand
management strategy in the workplace.
Brand Value
The brand value of the organisation ideally depends on their reputation in the
market. The value that a customer pays in terms of purchasing a brand is known as
brand value. It assists the administration to manage their brand equity in an
authentic manner. The company is able to know about the ways in which their brand
is able to generate more revenue than the product itself.
Brand Voice
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There are certain instances, when the organisation conducts promotional events and
speaks to the target audience about their brands. This assists them to measure their
brand personality. It is important for the organisation to make sure that they are
providing their customers with enough scope that will allow them understand the
brand that are being offered to them.
Brand Positioning
The customers have a certain technique for perceiving about the quality of the brand
that the company offers. The company should make sure that they position their
brands in a proper manner, so that it allows them to reach out to the customers. for
positioning their brand successfully, it is compulsory that the company develops a
proper logo and packages their products accordingly (Du Preez and Bendixen,
2015). For doing these, the use of brand strategy is very essential, as it allows them
to increase the consumer perception of the brand.
Therefore, it could be understood that having a successful brand strategy will permit
the organisation to maintain their brand equity. It will further assist them in the
process of meeting with the requirements of managing a brand successfully.
M1
In order to understand the management of brands with time, relevant theories could
be used in the workplace. This section discusses the different theories that could be
applied. Some of the theories of effective brand management are as follows:
Theory of Brand Loyalty
The theory of brand loyalty is a crucial theory for brand management. The theory
aims to explain the association of the brand with that of the customer’s psychology.
The theory helps to understand the perception that a customer has towards a
particular brand of the business (Zhang, 2015). It aids to understand the emotional
attachment that the customer has towards the product developed by the company.
The customers should look to have a positive perception towards the products and
this will allow them to stay loyal to the organisation.
The Branding Theory
The theory helps to provide suitable assistance to the different components of brand
management. The theory helps to provide a specific name to the brands, so that it
helps to portray the business standards to their customers.It can be used to make
the consumers aware of the survival of the brand in the market. Besides this, the
management authority of the organisation looks to provide the customer with their
basic requirements (Brownet al.,2017). The organisation should focus on developing
their relationship with the customers and should look to expand accordingly. It is
imperative for the organisation to make sure that they do not compromise in any
aspect of brand development.
M2
During the process of business operations, Marks & Spencer faced issues in terms
of their brand management. The issue gave rise to losing their loyal customer base
in the market. As a result, it was important for them to include successful brand
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management strategy and theories in the workplace, as it will help them to overcome
the challenges in the best way possible. Due to this, the managers of Marks &
Spencerlooked to implement theory of brand loyalty in their workplace. With the
inclusion of this theory, they were able to retain their customers and operate in a
successful manner (Eagleet al.,2014). Therefore, they can ensure that the
employees develop emotional attachment with the products that they are offering.
This has allowed them to overcome the branding issues in the best possible way
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LO2
P3 Analyse different strategies of portfolio management, brand hierarchy and
brand equity management.
The use and implementation of different strategies for brand hierarchy, brand equity,
and portfolio management should be analysed in a way that it helps to understand
the organisation’s capabilities in the market. One of the most important strategies for
management of portfolio is Active Portfolio Management Strategy. The strategy
aims to explain that the organisation can make use of any particular style for
managing portfolio to have a positive impact on their generation of profit in the
market (Hajliet al.,2017). The investment made in the process of active portfolio
management is quite high, as compared to the market standards. There are certain
areas of inefficiencies existing in the market and the strategy aims to take complete
advantage of the same.
Marks & Spencer could use the active portfolio management strategy. As a result,
they have to make huge investments in the business and look to earn profit in the
market. The management of the organisation should look to identify the loopholes
existing in the market and take advantage of the same to gain competitive advantage
over other companies.
Brand hierarchy is the process that allows the company to summarise the different
types of brand strategies by portraying the number and nature of common and
distinctive elements of brand across the products manufactured by the organisation.
The use of an appropriate brand hierarchy strategy will allow the organisation to
function in the right manner.Brand Architecture Strategy is used in terms of
managing the hierarchy of the brands (Kohliet al.,2015). Brand architecture is
considered a strategic, logical, and relational structure that exists for the variety of
brands that exist in the portfolio. The implementation of this particular brand
hierarchy strategy allows the company to gain customers that can relate to the
brands at various levels.
Therefore, Marks & Spencer should look to implement the aforementioned strategy
in their workplace, so that they can manage their brand hierarchy authentically. They
are able to develop a strong customer base in the market and enhance their overall
business process.
Developing positive brand equity is considered quite easy for the organisation, as it
depends on the response of the clients. However, it is difficult to maintain the brand
equity in the market. As a result, it is essential for the organisation to make sure that
they are implementing important brand equity strategies that will help them to
operate in a better manner. Therefore, the use of communication strategy is
considered important for the organisation (Araiet al.,2014). Due to extensive
competition, it is significant for the organisation to have powerful communication
strategy in the workplace for maintaining brand equity properly. With the aid of
successful communication amongst the employees, the management will be able to
make them aware of the market requirements for managing the level of brand equity.
The management of Marks & Spencer should focus on having effective
communication in the workplace for enabling the successful maintenance of brand
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equity. It will allow them to resolve the legal matters relating to management of brand
equity. Moreover, the employees will be able to operate in a collaborative manner
and enhance the level of brand equity of the organisation.
M3
In the words of Selase Asamoah (2014), Dow Theory is an essential theory for
portfolio management. This theory mainly develops three major aspects of portfolio
management namely primary movements, secondary reactions, and minor
movement. The primary movements are usually long-term decision made by the
organisation to manage their portfolio in a significant manner. The secondary
reactions are used to make corrections in the process of business. They are
incorporated for a short time span. Besides this, the minor movements in the market
are the daily fluctuations that take place. It does not have any significant impact on
the organisational development.
According to Pinaret al. (2014), the Hierarchy-of-effects theory could be ideally
used for managing the brand hierarchy for the customers. This theory is effective to
understand the ways in which the consumers decide on purchasing a particular
brand. With the aid of this, Marks & Spencer is able to recognize the decision-
making process of the consumers. The aim of the theory is to provide advertisement
messages to the customers and looks to increase their sales.
As opined by Fatmaet al. (2015), “Keller’s Brand Equity Model” is considered an
essential theory that assists in control of brand equity. Four different steps are ideally
included in the mentioned model. “Brand identity, brand meaning, brand
response, and brand resonance” are four steps included in the model. These four
steps help to determine the level of brand equity that organisation develops.
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LO3
P4 Evaluate how brands are managed collaboratively and in partnership both
at a domestic and global level.
Brand extension can be regarded as the process of using an recognized brand given
name for initiation a new product or service in the market. This can be done with the
aid of leveraging the name of the product by communicating about the brand to the
target customers. Brand diversification is one of the most important strategies that
could be used for brand extension. In most of the cases, it has been seen that
companies look to increase their profit generation. As a result, they take recourse of
the diversification of their brands. This is done with the help of launching a
completely a new product category for the customers. It provides the organisation
with enough scope that helps them to recognize the specific needs of the clients
(Kaiseret al.,2015). Moreover, they will be able to price their products according to
the market standards.
“Fit and leverage” are two of the important components of brand extension. The
“fit component” states about the category of products that the customers are most
likely to accept from the brand. The “leverage component” highlights the distinctive
qualities owned by the brand that will permit them to gain competitive advantage
(Dinnie, 2015).
There are times, when the organisation feels the need to reinforce and revitalise
brands in the market. As a result, it is imperative for the management of the
company to make sure that they keep the employees aware of the changes that are
about to be implemented in the workplace. It means that the organisation will be able
to perform their regular tasks in a better and easier manner. Moreover, they will be
able to decrease the price of their business process (Chandra, 2017). It is imperative
for the administration to know about the mindset of the customers. As a result, they
can develop a certain level of intimacy amongst their customers and the products
that they purchased. In order to revitalise their brands, it is necessary for the
organisation to measure the way in which their brands might assist the customers.
Therefore, brand management on “domestic and global level” is important for the
organisation. They have to use identical strategies that could benefit them to gain the
attention of the customers and ensure that they can perform in an authentic manner.
They will face certain differences in terms of their operations in the global level. As a
result, it is necessary for them to perform extensive brand management for reaching
out to the global customers successfully.
M4
Marks & Spencer should focus on different types of techniques that could be
deployed to extend the brand operational market. Line extension is one such
technique. This helps the company to make sure that they are launching a new item
for consumption in the same product class and the brand name of the product is
used for the same. As a result, the product gets recognition in the market and the
organisation is able to reach out to the target customers.
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Product extension is another such technique that can be applied in the market to
extend the brands in an authentic manner (Keller, 2014).This happens when the
organisation looks to develop a completely new service or product in the market.
Customers already have an idea about the quality of the brand and therefore, they
look to purchase the new manufactured goods that has been launched. With the
usage of these techniques, the company is able to meet with the brand extension
needs of the organisation.
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LO4
P5 Evaluate different types of techniques for measuring and managing brand
value using specific organisational examples.
It is significant for the organisation to make sure that they are being able to measure
the value of their brands appropriately. This will allow them to know about the
importance of their brands in the market. The organisation should look to check the
traffic in their website. In most of the cases, customers use the company’s website
for looking for their brands (Keller and Brexendorf, 2017). Besides this, the
organisation should look to analyse their presence in the media. Media plays a
major role in terms of gaining popularity for the products. It is necessary for the
organisation to make sure that they develop external links in terms of their
business. It will assist in the process of gaining new customer in the market and help
to augment the overall brand awareness of the services and products offered by the
company. The organisation should focus on their social engagement with their
customers. This allows them to develop their brand image socially and enhance the
functioning of their business (Choiet al.,2014). Besides this, since most of the
customers are using social media, it can be regarded as an important method to
reach out to these customers.
For managing the brand value successfully, it is essential for the organisation to
build a strong relationship with the media. This will have a positive impact on the
way they portray their brand in the market. As a result, positive feedback from the
media will allow the organisation to gain the attention of the customers. Apart from
this, it is vital for Marks & Spencer to keep with the existing trends in the market.
This allows the organisation to know about the requirements of the customers and
hence they look to develop their products from customer-specific angle (Nget
al.,2014). There are times, when the organisation is faced with numerous crises in
the market. These crises could hamper the smooth functioning of their business
operations. As a result, it is important for the managers to apply important strategies
in the workplace that will assist them to overcome the situation and operate in a
flawless manner.
Having a proper and well-developed promotional campaign is an significant factor
that assists the administration to meet with the workplace requirements. Promoting
the services and goods will allow the organisation to reach out to their potential
customers. As a result, it becomes easier for them to gain the customer’s attention
and they are able to boost their profit generation.
M5
In the words of Lin (2015), social media is considered one of the most essential
aspect that could be used for measuring and managing brand value in a successful
manner. He further stated that the use of social media plays a vital role in terms of
idealising the brands manufactured by the organisation. It has been observed that
the organisation values their social media acquaintances in such a manner that it
helps them to know about the response of their customers and their perception about
the brand that they are offering. The company has to measure the amount of positive
or negative response that they have received from the customers. If they receive
positive response, then they can focus on developing a strong brand.
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