Brand Management: Equity, Naming, and Consumer Knowledge

Roles and Objectives of a Brand Manager

Brand management, sometimes called product management, is one of the principal areas of corporate advertising and has become one of the dominant fields of marketing in recent decades, often driving advertising development. Brand management is usually part of the marketing or sales department. The brand manager concept was established in the 1930s by the giant packaged-goods corporation Procter and Gamble and has since been adopted by many companies, particularly those that manufacture food, packaged goods, and a wide variety of products and brands.

Corporations that use the brand management system assign one person to a specific product or product group. This executive, often with his or her own staff, handles all the work needed to advertise and market the product. In many ways, each product is treated as if it were a separate company or "profit center" (Sen, 1998) — a kind of company within a company. In addition to advertising and sales promotion, the brand manager's responsibilities can include marketing strategy, business planning, profitability studies, and market research (Lancaster, 1979). Coordinating advertising is only part of the brand manager's job, but it is an important part. The life and death of a product can depend on the effectiveness of its advertising (Lewis, 2009).

The brand manager works closely with account services and the creative services staff at the corporation's advertising agency. In the early stages of an advertising campaign, the brand manager plays a crucial role in interacting with the agency. From the brand manager, the agency gains direction and an understanding of the client's goals regarding advertising for that particular product (Sen, 1998). Brand managers are heavily involved in the development of ideas presented by the agency early on, and later they may step back and allow the agency to do its work, checking in periodically to ensure the work aligns with the company's objectives (Lant et al., 2005).

Success in brand management, however, has more to do with being a good business executive than with being able to create advertising. A brand manager is fundamentally a marketing-oriented professional running a business within a business, selling one product (Alpert, 2005), with advertising being one facet — albeit an important facet — of that business. A person in this position is also involved with product development, product improvement, packaging, marketing strategy, and a host of other details that evolve in the course of selling a product (Baum & Mezias, 2002).

Measuring Brand Equity in a Hotel Company

Like many businesses facing competitive pressure, Arnies Hotel — a small group of fine-dining seafood restaurants and accommodations in the Northwest — was losing market share. In this case, however, the aging customer base for this seafood chain was literally dying off. The challenge was to find a way to appeal to a younger demographic while still catering to the needs of its valued older customers (Rivera, 2004). The restaurant chain had much to offer: a loyal customer base, great locations with water views, and personal, caring service. The food preparation, however, was old-fashioned, and the menu desperately required updating (Kirmani et al., 2000).

After conducting research on the attitudes of both existing customers and prospects in the desired age group, Arnies determined that its brand principle was centered on the idea of Pacific Northwest favorites. Its brand incorporated the best aspects of the Northwest — the hospitality, events, water, salmon, mountains, and food indigenous to the area. Pacific Northwest favorites allowed Arnies to span generations by focusing its brand on what all its customer segments valued about the restaurant, as illustrated in Arnies' Pacific Northwest logo (Lant et al., 2005). The concept could also be extended to include the restaurant chain itself: Arnies could be promoted as a Pacific Northwest favorite and a tourist destination for regional residents and their out-of-town guests (Bergsman, 2000).

Implementation followed. The company installed new signage, redecorated the restaurants to appear more friendly and casual in order to attract younger guests, and revamped both cooking techniques and the menu to reflect Pacific Northwest cuisine with a contemporary appeal (Wyckoff & Earl, 2003). At the same time, the company was careful to retain elements favored by its older clientele, such as early-evening specials and the wait staff's gregarious attitude and willingness to accommodate special requests. The brand was integrated into all company actions — from food preparation to table service — and the result was an increase in revenues at all three locations, with guests under the age of forty now accounting for 40 percent of all diners (Hart et al., 2009).

Arnies prospered while a competitor faltered as a direct result of how closely each company mapped its brand back to its core strengths and what customers valued. Whereas Arnies listened to current and potential customers and discovered that their needs intersected the company's strengths at Pacific Northwest favorites, the competitor completely ignored both sides of the brand equation (Baum & Mezias, 2002).

Brand management such as that practiced by Arnies has been a cornerstone of major success stories in this century — from Coca-Cola to Procter & Gamble. These companies have used their resources to build brand equity — the value customers assign to a brand that consistently keeps its promises. The reason brand has such a strong impact on human behavior is that it mirrors human nature and the way people interact with the world. It fits into the spaces where we define our hopes, beliefs, aspirations, and friendships. We are relationship-oriented beings who seek to form relationships with almost everything we encounter, from people to companies to products (Lasswell, 2010). In the Integrated Branding Model, purchasing a product becomes a relationship-building activity — often with a profound impact on self-image — rather than merely a utilitarian way to meet a need.