GLOBAL PRINCIPLES OF BRAND MANAGMENT
УДК 658.012.32
Паншин М.Ю., студент 1 року ОС магістр
ХНЕУ ім. С. Кузнеця
The brand of the product is a unique image that exists in the mind of the consumer. It arises as a result of the combination of many components that are perceived by the consumer as a whole. In the mind of the consumer, this image is created from: the name, packaging, price, style of advertising, from the nature of the product.
The main components of the brand are: name (brand name); descriptor; slogan; system of visual and verbal identification (trademark, corporate identity, packaging, special sounds etc.); communication media that reflects and translates the idea of a brand.
It is evident that the creation and maintenance of a product brand is a long process, which requires not only the production of a high quality product, which will be advantageous to differ from competitors.
The technology of brand creation and implementation has been called branding. Branding is a philosophy of company management, product flows and human resources etc., based on socio-psychological laws that allow you to manage the consciousness of consumers in order to increase the profitability of the company through the brand name, its name, packaging, history, reputation and advertising style [4].
The main brand models are: the brand wheel, the Thompson Total Branding (TTB) technique, the Unilever Brand Key (UBK) model and the Brand Name Development Services model.
The use of branding in the formation and implementation of the competitive potential of the company involves the development of a set of measures aimed at increasing the strength of the brand, optimizing the expansion of the family of trademarks of the company, the general conclusion of which is to maximize profits, increase the shares in the mastered markets, seize new markets and increase total volumes sales [2].
Basic stages of branding: analysis of the market situation, the target audience (the current status of the brand, if it has already been created); planning (formulating the essence of the brand, positioning, developing a strategy for brand management); brand building; promotion of the brand (use of integrated marketing communications to create strong relationships between consumers and the brand); brand monitoring and performance evaluation [1].
The high level of previous failures of the only manufactured goods makes it possible to increase the attractiveness of brands with goods that were previously well known on the market. Brands that have long and faithful users are more predictable in terms of profitability. New or unsuccessful trademarks, while releasing their products still have to fight for survival. This, in turn, necessarily affects the level of profit, because advertising and promotion aimed at conquering new consumers require extremely high costs compared with measures to retain existing customers. According to some studies, the conquest of new consumers costs six times more than the maintenance of existing ones.
The misconception is that branding itself is a marketing strategy, as some researchers think [3].
In the domestic scientific literature and in practice there is a problem of misunderstanding of the difference between the “brand” and “trade mark” categories. In my opinion, such delimitation is fundamentally important, and therefore in our study we consider it necessary to clearly define the difference between these concepts. Conceptual for us is the understanding that each brand is a trademark, but not every brand is a brand: “A trademark becomes a brand only when the” Product-Buyer "communication of a particular product becomes stronger and more stable compared to similar communications of competitor products [5].
Brand-oriented enterprise management is used to reflect the strategic significance of brand concepts. The latter involves managing the enterprise, whose purpose is to form and maintain a holistic brand image through all elements of the marketing mix by orienting the activities of all units of the company to achieve the parameters of the brand concept.
The following strategies for brand development are offered:
- The linear expansion strategy uses the already existing successful brand name to refer to additional products of the same product category with new flavors, shapes, colors, additional ingredients, or in packaging of a different size. There are two types of linear expansion of the brand: the horizontal and vertical expansion of the brand.
- Categorical expansion of the brand. This strategy uses an existing brand name to enter new product categories. Extensions of the mark can go in two ways: through the umbrella brand (brand umbrella) or through a common brand. Separately, a category such as an umbrella brand, under which one understands either the product line brand or the corporate brand, provided that it covers a diversified product portfolio. There are several varieties of common brand: brand promotion, component brand, and innovative joint brand.
- Strategies for creating new brands. Quite a large number of new brands have entered existing markets or relying on their predecessors, or declaring new values. It is important to realize that a high-quality brand is the cornerstone of business, as it constantly creates the image desired by the consumer.
If earlier, the marketing strategy had a course of accompaniment of the product in the stages of its life cycle, then in the new conditions, when its basis became the brand, the strategic competitive objective is the constant expansion of the brand. The marketing strategy no longer accompanies the product and does not accompany the brand, but develops it, forms a set of tactical marketing decisions that will increase the brand’s strength.
REFERENCES
Petrovich Y.M. Economics and Finance of the Enterprise [Text]: Teach. manual / J.M. Petrovich, L.M. Prokopyshin-Rashkevich. – Lviv: Magnolia, 2014. – 408 p.
Vlasenko O.O. New approaches to creating a new brand and bringing it to the market // Problems of science. – 2007. – No. 2. – P. 39-42.
Lukyanets T.I. Marketing Communication Policy: Manual. – K.: KNEU, 2003. – 524 p.
Науковий керівник
старший викладач Решетняк І.О.