Sunday, January 31, 2010

Brand Management Part-2 Brand Equity & Brand Franchise

Brand Equity
Regarding my previous post about What is Brand management? here is some more details about Brand equity & Brand Franchise today. Brand equity refer to the marketing effects or outcomes that grow to a product with its brand name compared with those that would grow if the same product do not have the brand name. At the base of these marketing effects is consumers' knowledge. We can say in other words, consumers' knowledge about a brand makes manufacturers/advertisers respond differently or adopt properly expert actions for the marketing of the brand.

Brand Franchise:

An arrangement between a brand name producer and a wholesaler or vendor that gives the wholesaler or vendor the private right to sell the brand producer's product in a exact territory. This arrangement is usually done by contractual agreement over a period of time. A brand franchise allows the wholesaler or vendor to sell the product in a noncompetitive market and therefore to set price boundaries as the traffic will bear.

Thursday, January 28, 2010

"What is Brand Management"???

Today while having a cup of coffee, one of my friend asked me that what is brand management, and his question awake me to think on it. I found that are very low awareness about this topic so I decide to write something what I know about the brand and brand management.

Well, Brand management is nothing but the application of marketing techniques to a specific product or brand. To show the value of product to customers it is required to increase brand franchise and brand equity. The people expect quality products, from a brand name and they continue the future purchase with the same brand, same way marketers see a brand as an implied promise that the level of quality should be maintain for the same product.

Now question arise here what is brand Franchise and brand equity? In my next post I am going to cover these two topics in detail.

Here is the Basic Idea about Brand Management.

Brand management is just an application of Marketing the Product or Brand.

In a competitive market, while making a comparison it may increase the sales more. The manufacturers may get more charge for the product. The value of the brand is determined by the amount of profit it generates for the manufacturer. This can result from a combination of increased sales and increased price, and/or reduced COGS (cost of goods sold), and/or reduced or more efficient marketing investment. All of these enhancements may improve the profitability of a brand, and thus, "Brand Managers" often carry line-management accountability for a brand's P&L (Profit and Loss) profitability, in contrast to marketing staff manager roles, which are allocated budgets from above, to manage and execute. In this regard, Brand Management is often viewed in organizations as a broader and more strategic role than Marketing alone.