Introduction to Brand Management
By: Marina Lin
Brand management can help cut losses, increase profits, and get your brand out there. Nike, a well-known and respected brand in the athletic industry takes their brand management skills to the next level. Ask yourself if you’ve ever paid for a shirt with a nike logo. If yes, you know Nike is doing it right.
There are countless ways that brands are secretly promoting their image without actually paying for anything. Can you think of any? That guy at the gym who paid $69.99 for a shirt with a tick mark logo is one example.
The global spending on marketing and media is forecast to rise at a compound annual rate of 5.1 percent during the next five years – to $2.1 trillion in 2019, from $1.6 trillion in 2014. However, if companies are lucky enough, they’ll be able to cut down these expensive costs and increase their profit margins. That is if they can effectively incorporate brand management into their marketing operations.
So the big question is, what is brand management? In marketing, brand management is the analysis and planning on how that brand is perceived in the market. Developing a good relationship with the target market is also essential for brand management. For instance, a company that has had successful brand management include Coca Cola and Nike since both companies understand their consumers and position their products accordingly.
Let’s go back to the first example about a guy wearing the Nike logo shirt. This scenario shows that Nike has developed superior brand management. Why? Because the multi-millionaire company has not only engaged consumers in purchasing their top-quality athletic products, but understands consumers so well that they’ve managed to convince people to take out money from their pockets just to wear the logo of a brand. Nike knows that their consumers (young athletes, runners, or even the fashion conscious individual) perceives the company to be a top-tier brand in the world of athletics and uses this to their advantage. Now that is called brand management.
If you’re looking to start a business, you might consider investing a fair amount of money into the brand management aspect of marketing. Remember that the creation of a strong image among Nike’s teenage customer base are one of the reasons why the multi-national company has generated over 27.8 billion U.S dollars in 2014.