This sample will let you know about:
- Explain about the importance of the brand marketing.
- Discuss about the Key components of brand strategy.
Brand management can be defined as functions of marketing which are used as tools for enhancing core value of products line. In simple word, brand management is the procedure of building, maintaining and developing a brand. It is important tool of the marketing because it initially analyses positioning of the brand in the market. It introduces plans for improving brand value. If brand already possess an objective, in that state management organized plan and introduces various strategies continuously, so that brand achieves own objective. There is an example of the Samsung Company which uses brand management as marketing tool. It is South Korean multinational conglomerate company which is headquartered in Samsung Town, Seoul.
This organization offers worldwide services to customers. Samsung offers wide variety products i.e. apparel, automotive, electronics, medical components etc. and services i.e. advertisement, construction, medical care, communicational technology etc. The net income of the organization is US$37.1 billion while revenue approximately US$208.5 billion (Samsung Electronics' revenue by quarter from 2011 to 2019 (in trillion KRW / billion U.S. Dollars)*, 2019). This report covers significance of branding as marketing tool. It includes key components of successful brand strategy for building and managing brand equity. Order assignment help from our experts!
P1 Significance of branding
Importance of the branding
Branding refers as marketing practices that company uses for creating a name, logo which can determine as belonging of the business. It supports to recognize products and services and differentiates products from other competitive products and services. It is crucial not only for influencing brand value but also permits customers for expecting advance quality in the brand from the organization.
Branding as marketing tool
It is an effective way of differentiating brand name from other competitive brand and helps organization by offering effective strategy which makes brand best in global market. Branding plays vital role in the business because it guides organization how to get identification and becomes popular for the consumers. Here, logo is essential factor of branding because it gives shape of the company.
Advantage: Marketing tool helps brand to emerge into business practices because it generates future business and builds brand name. That improves commercial value by offering more leverage to organization in the industry. Therefore, branding is important for the business growth.
Bonding: Initially branding builds brand name and establishes brand value. When brand name is established well-formed and becomes familiar for each customer, in that state branding generates new customers.
Presence: Strong branding of company boosts employee confidence and improves their pride as result comes satisfaction from the job and company (Piehler, Grace and Burmann, 2018). High standard strategic branding supports organization for building trust among customers and to reach potential customers and client which can give sustainable growth in the business. In simple term it supports to create trust on the company within market.
Relevance: Advertisement an important part of the branding because commercialism techniques gives reflect to brand and express desirable portrait in the market. Commercialism techniques like promotion techniques which promotes product or company popularity. These techniques create trust on brand and attracts different type of customers for purchasing products or services.
Performance: Branding techniques provides impression of the company or products expertness and makes customer feel as they can belief on the organization, products. Product services which offers by organization in this way that handles own business position in competitive market. Thus, marketing tools are emerged in business practices.
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M1 Brand Management Model
Keller's model can use for understanding that how brands are managed successfully over the time. Keller's model also known as Keller's brand equity model. It supports Samsung to build image of brands in customer minds and helps to implement strategies for continuous alleviating business over the time. The main goal of model to build team which enhance brand equity of a company. Samsung applies this model for managing brand equity over the time. This model is elaborated into brand equity pyramid which is classified into four levels such as-
Level 1- Brand identity
Brand identity can be defined as visual element of the brand i.e. colour, design, logo, packaging which is identity of brand and differentiates the brand in the mind of customers. In simple words, brand identity is well-defined image of the brand. To make brand familiar of customer requires building brand identity. Brand identity is the primary step in Keller's model which is most important step because it prepares platform of the brand. Brand identity assists company to influence brand awareness in customers and distinguish product from other products. To introduce new brand in market, Samsung uses slogan or message for influencing brand awareness.
Level-2 Brand Meaning
It is second step of the Keller's brand equity model which gives carve to brand and defines meaning of the brand as result for building brand loyalty within public. Brand meaning not only express brand quality, price which is offered by the company but also leads brand establishment within market (Borkovsky and et.al., 2017). Organization builds meaning of the brand by number of different things such as giving loyalty, claiming of 100% guarantee for product quality and commitment for audience services. The main goal of the brand meaning to provide reason of the public of their purchasing so that they come to visit again. Samsung company claims about electronic quality which differentiate company from other. Thus brand meaning leads brand performance and brand image in market which pulls customer towards company for buying products.
Level-3 Brand Response
When products are purchased by the customers, they build their expectation with the company for the brand so that they get reason to come back again for the products. For example, if organization meets their expectation and offers highly featured product to customers that means customer is totally attached with the company and organization gets opportunity to grow business and gets success. On the other hand, if organization unable to meet their expectation that leads negative response of the customers i.e. doesn't purchase products and break trust on brand. Due to bad response organization unable to recover brand image over extend period. Samsung focuses on customer demands which meets organization from their objectives. That's why organization requires building positive response, so which creates opportunity for the organization to get their objectives.
Level-4 Brand resonance
It is fourth stage of the Keller's brand equity pyramid which is main foundation for the brand equity. Brand resonance refers as relationship which is most important for the organization because it creates community across the ownership of their branded products Ofek and Schwalb, 2018). In simple word purchaser of the products feels connection to each other because they dedicate for the same brand. Samsung offers wide variety products to customers and meets their objectives by offering desirable products. To establishes good relation Samsung offers website and customer care services where customers can contact directly to seller about brand issues. While seller resolves their issues and make them happy. Samsung influences brand value which improves purchasing behaviour of the customers. To establishes good relation with community organization offers them feedback facilities for raising their engagement in the brand. Company offers them customer care services where customer can share their issues relevant to brand quality or services. On other hand organization resolves their issues which establishes good relation with them and creates brand loyalty. Thus, Keller's model helps brand to get own aim over the time in industry.
Brand management model helps Samsung to influence brand name well-formed in global market. Samsung company concluded various level in the brand management model i.e. brand identity, brand meaning, brand response and brand resonance. These levels improve brand power and supports to give brand equity in competition market.
Brand revitalization: It is used by marketer of Samsung company to maintain sales and profit of the company. Samsung was specialized in semiconductor but in few years expanded its business in home entertainment equipment and mobile phones. It is able to retain customers and enhance sales by investment in advertisement and sponsoring events such as Olympics games.
Brand reinforcement: Samsung company is able to create reinforcement of its product by creating awareness among people about the performance of brand, its benefits and develop new innovate products to satisfy needs of customers. Need Assignment Samples?Talk to our Experts!
P2, M2 Key components of brand strategy
Brand strategy mentions long-term program which is used for improving brand success in term of meeting specified objectives. Brand strategy helps company to understand customer needs and builds good relation by fulfil their requirements. It also assists organization to take competitive advantage from competition market. It has goal to lead brand positioning in high scale as result generates sustainable growth in the company. Brand strategies are the actions which company takes to distinguish product from other brands (Du Preez, Bendixen and Abratt, 2017). Samsung is multinational company which offers wide variety products to customers but it is famous for the electronic products. Company applies brand pyramid model strategy for building and managing brand equity across the world. Brand strategy helps organization to enhance brand loyalty on specified brand. Customers loyalty directly generates high revenue of the company. There are various components of a successful brand strategy-
Idea: It refers as brand creativity which drives any company or modify brand positioning which differentiate brand from others. Samsung has goal to create brand equity across the world which leads sustainable growth in the company. To manage brand equity organization, execute sustainable products which enhances brand power.
Target audience: Samsung uses market segmentation strategy where organization categorizes customers in order to age, gender, occupation, income and perceptions. To manage brand equity, organization targeted people from age 15-45 because they follow the latest technology. Based on the customer segment, organization offers various products such as electronics item, telecommunication equipment, medical components, apparels etc. along with wide variety services i.e. financial services, entertainment, hospitality services. Organization attracts customers by offering product line on different prices that manage brand equity. Thus, organization uses customer segment strategy for focusing particular audience.
Brand promise: it is type of message which uses for target audience. Even it also express customers that what expectation should keep from the purchasing of the products (Rauschnabel and et.al., 2016). Samsung is the most trustable brand in the global market due to brand promise. Samsung has aim to make organization as world leading company and selects best team of HR and technology for organizing advance products and service. Such kind brand promise of the Samsung helps organization to enhance brand existence in market. By the help of experts, organization fulfil customers’ demands, therefore organization enables to focus all products of Samsung on same platform.
Brand perception: It is third component of the brand strategy which is utilized by the Samsung. Organization analyses market to know about brand positioning and customer’s reviews about products quality. Brand perception strategy aware about market competition and potential customer which can lead sustainable growth in the company. Customers perception about brand helps Samsung to understand their needs and expectations. Eve company get what product of company can lead profitability in the company. That's why organization offers wide varieties products on different prices.
Brand value: Brand value guides organization to take appropriate decision which improves brand power. To enhance brand value organization, invest high funds on the R&D department which gives high standard quality products (Keller, 2017). Currently organization launches Samsung Galaxy 10e model which possess various advance features rather than previous Samsung galaxy models. Electronics products also launches by the Samsung. Thus, organization improves brand value by introducing standard quality products along with affordable price.
Brand Voice: Samsung has aim to become world leading company, that's why organization focuses on brand price and varieties, so that each type of customers enables to buy products. To influence brand voice between audience, organization offers chat-box, own website services to customers where they can direct communicate with the seller and can inquiry about products. Customer demands about Samsung products improves working efficiency of the employees in the company. To manage brand demand organization launches different products like home applications, medical equipment etc. Thus, Samsung establishes good relation with them and raises brand equity between public.
Brand positioning: it refers as the position which brand keeps in the customer’s mind. In simple term strength and weakness of the company which they can use to promote specific area and take competitive advantage from the competitors. This component guides organization that how to keep brand on higher position, so each product of the Samsung comes in single platform. Generally, Samsung applies positioning strategy for promoting brand position in higher scale. Thus, this component manages brand equity.
Analysis different strategies of portfolio management, brand hierarchy and brand management
Brand portfolios defines as collection of different brand of company under single brand that is used by it to satisfied needs of different people of the society. Brand strategies includes plans and action, activities of company that need to be performed for achievement of predetermine organisational goals. Effectively brand strategies is important as it helps Samsung in expanding its business across various nation by offering quality product and services to its customers.
Importance of brand portfolio
It is important because it helps in creating awareness among customers and catering needs of different customers.
Company can easily expand its share in different market segment and also helps in enhancing credibility of newer brand by associating with parent brand.
Portfolio Management strategies: It includes decision-making about investment mix and allocation of resource to maximize return on investment (Ansoff and et.al, 2019). Thus, it means investment in assets should be such a way that maximize return and minimize risk. Portfolios management is further divided into active and passive portfolio's management strategy.
Active Portfolio Management strategy: It is investment strategy that maximize portfolio values as manager and investor both use various techniques to evaluate financial securities (Pappu and Christodoulides, 2017). By evaluating various financial securities manager and investor are able to choose the best portfolio's that yield greater returns (Figueroa and et.al, 2019). Samsung manager and investor continuous evaluate financial securities to get maximum return on its investment.
Passive Portfolio management strategies: It is also known as index fund management as manager analysis and track return of particular market in order to get maximum return on its investment. Samsung has also use passive portfolio's in order to grow and survive in unstable market and to maintain and increase its profitability.
Both passive and active portfolio management strategies helps Samsung company in getting advantages in stable as well as unstable environment.
Brand hierarchy: It is summary of brand strategies by explaining number and nature of brand across various products in order to differentiate on the basis of brand elements.
Branded house: It is most common and basic brand architecture that is used by mostly company to promote its product under name of parent company. It helps in increasing sales of new launch product due to well- established brand image of the company in the market (Carolino Sousa Santos Junior, 2018). Each product brand cannot not operate independently and are known by parent company name. Parent company name is identified by using logo at back of the product or at its packaging. Reputation risk is involved as if some product does not meet customers expectancy than whole brand image will be negatively impacted as they will start associating with new products,
House of brands: On the other hand, house of brand differ from branded house as it provide single brand name in order to maintain consistent brand. Company has various brand name and each operating independently with one another. Thus, each brand name different look and feel to different customers. This strategy is used by companies that wants specific brand name for different products of the company. It requires more capital and resources to be invested as each brand has its specific marketingstrategies and identity.
Hybrid branding: Whereashybridbranding is a mixture of two or more brand architecture it is used when the company is merging with another company. It is done by company to preserve old brand name in order to make customers happy and satisfied and used for future offers. Try to avoid hybrid brand strategy as they are compromise and are useful in certain specific situation where business case require mix.
Comparison of hybrid branding and branded house: Samsung company has use branded house and it better than hybrid branding because it reduces confusion as every offering is under parent brand name rather than mix branding of various products.
Comparison of house of brand and branded house : Samsung brand strategic is effective as it uses branded house in which one marketing strategy and one code are used to cater needs of different individual. It also better Samsung has well- established brand image in the market that helps in increasing sales of new products by using parent brand.
Strategy used by company Samsung has use branded house in its brand hierarchy as it promotes its product by using parent brand name. It aware consumer about brand name of company by writing Samsung at the back of the mobile phone (Balmer and et.al., 2017). Thus, it helps in maintaining and developing customer’s loyalty and satisfaction for achievement of company goals.
Brand equity management model: This model is used to develop strong brand image of company in order to maintain and retain customer’s satisfaction. Keller Brand equity management model is followed by Samsung:
Brand identify: Company has effectively identified brand image by creating awareness about Samsung product and services it offers to customers. It has aware about the brand image of company by using Samsung word at the back of mobile (Calantone and Nguyen, 2018). Thus, by using Samsung word it is able to effectively promote various product and services and enhance its sales.
Brand meaning: Company has explained its meaning to customers by providing and maintaining quality of services in order to retain customer’s loyalty. Customers are fully aware that Samsung provide creative and innovative product.
Brand response: Samsung has continuous conduct research related to customer’s preference in order to gain competitive position and thus innovate its product continuous (Veloutsou and Guzman, 2017). Customers response on Samsung is that it provides quality, innovate and credible product that satisfy their needs beyond their expectancy.
Brand resonance: Samsung by continuous innovating its product and services is able to retain customer’s loyalty. Samsung by building strong relation and satisfying needs of customers beyond their expectancy is able to expand its market share. It helps in repeated sales and promote growth and sustainability of business in long run.
Thus, Samsung company by effective using brand strategies is able to grow and expand its business in long run and able to attract large number of customers.
P4 Collaboration and partnership of Samsung with others
Collaboration refers as the procedure of cooperation in which two or more people or organizations works together for accomplishing aim. While partnership can be defined as formal arrangement where two or more parties collaborates for managing and operating an individual business and shares their profit together. To understand this concept better Samsung electronics is a brand under Samsung which is selected in present context. Samsung launches electronic products, therefore organization collaborates with other brands which helps organization to improve product equality. Samsung has goal to improve brand equity and value, therefore organization collaborates with other brands and comes in partnerships such as-
Partnership b/w Samsung and Microsoft
Microsoft is famous for the software and also has brand value but lesser from the Samsung. Microsoft and Samsung keeps closer partnership for android mobile app. Microsoft company updates new software apps i.e. android text message, notification and large screen to Window 10 PC in Galaxy S 10e. Thus, Microsoft gives new features in the latest mobile, Samsung builds OneDrive Sync support which is directly attached into gallery android app. Through the OneDrive Sync support app, photos can see directly by the cloud storage services. On other hand Microsoft gets permission from Samsung for selling the Galaxy Note 10 from own stores. This partnership helps Samsung company to cover domestic level.
Partnership b/w Samsung and Apple
Currently Samsung collaborates with the apple company for covering global market. The main goal of the partnership to improve brand power and market share by the help of Apple company. Apple announces that it offers iTunes film and TV shows on Samsung television sets (Atwal and Williams, 2017). As same Samsung helps apple to introduces apple products on low prices. Both partnership Samsung and Apple improves brands value of the Samsung because they able to retail their products across the world.
Partnership b/w Samsung and google
Partnership between Samsung and google helps company to alleviate brand positioning in both level domestic and global market. Samsung and google announces that they work together and offers high quality smartphones messaging experience and offers rich communication services in the Samsung mobile. Thus organization gets advance facilities in mobile services.
Partnership between various companies at national, international has adversely impact on Samsung as it has to share its resources and its specialisation with other companies to achieve objectives. It is not known as independent brand thus it means brand name can be used by companies such as google, apple and Microsoft to attract customers. Sumsung phone can be sold by Microsoft also thus authority is shared among both the companies.
M4 different techniques for the leverage and extend brands
It is an approach for developing new products for current customers. Samsung uses this strategy for introducing additional features in the same product category which is undertaken by the same brand. Samsung Galaxy S 10e is the latest products of the Samsung in which offers various advance features i.e. large screen, long battery life, new apps feature, high storage like iPhone etc. This latest mobile is more advanced from previous galaxy mobile. Thus, organization applies product line strategy for extension brand popularity in the global market. It has drawback because line extension leads complexity in brand equity managing because to keep all products in same position, doesn't possible for the company.
It is another technique for influencing brand leverage. Brand stretching refers as the procedure of using popularized own brands name and launches different products which is unrelated to product category. Samsung uses brand stretching strategy where offers varieties of products like Samsung TV, Samsung Galaxy Mobile, medical equipment, Samsung laptop, Home application equipment etc. to customers. The main goal of the brand stretching influences brand positioning in customer's mind. Brand stretching strategy helps organization to cover domestic market and influences purchasing behaviour of each type customers in the market (So, Wu, L., Xiong, L. and King, 2018). Disadvantage of brand stretching to company is that it has to keep varieties of products which lead to high maintenance. Even it requires high funds in R&D department for introducing different category products. Thus increases production cost and impact adversely on profitability of company.
Uniqueness in priorities
Organization uses this strategy to differentiate brand from other brands that why organization focuses on customer’s demands and their expectation. To fulfil their demands organization offers standard quality products along with affordable prices so that each customers gets enables to buy products. Currently organization offers Samsung Galaxy 10e model which is similar to iPhone n term of features. Even organization offers this latest mobile on lees price rater than iPhone. Therefore, customers prefer to buy Samsung galaxy mobile rather than iPhone. It keeps some drawbacks for example organization have to invest more funds on R&D department because to keep brand priority in global market doesn't easy. It requires expert team for changing in their products. don't worry get coursework help from UK's leading assignment helpers.
P5, M5 critically evaluates differents types of techniques for measuring and managing brand value
Samsung is multinational company which offers worldwide services to each type of customers. Organization uses various techniques to influence brand value across the world. Company has goal to maintain brand recognition in the world which leads sustainable growth in competitive market.
Customer awareness: Samsung use this technique for measuring and managing brand value. To influences brand awareness in customer’s mind. Organization focuses on customer’s demand by the customers' segmentation strategy. To aware customer’s organization offers online advertisement strategy where they alert customers about new products so that customers attracts. Through the market analysis, organization enable to measure brand demands. Based on the demand organization manages brand value in both level global and domestic (Leijerholt, Chapleo and O’Sullivan, 2019) level. This technique possesses negative impact because organization focuses to customer’s demands and expectation, that's why organization have to change their products continuously as result organization unable to brand equity of the products in the market.
Preference metrics: it is powerful factor and essential for the analysing the brand value and equity. Customer preferences measures through targeted group, sales data, accessibility of products and their services. Organization uses this technique for focusing on accessibility of various products and achieving targeted customers.
Financial matrices: it is also played significant role for measuring brand value. Samsung uses this strategy to measure sales performance of products. Based on the selling scale organization launches other products which influences purchasing behaviour of the customers.
Brand tracking technique: Samsung works effectively for holding the strong brand position (Lee, O'Cass and Sok, 2017). This technique can be differentiated into two forms quantitative and qualitative. Quantitative refers analysis of IDIS and focus on targeted group which helps organization to understand consumer purchasing behaviour while qualitative techniques helps to measure satisfactory and loyalty of the customer on the brand. Thus, organization uses this technique for managing brand equity in the global market. This technique requires experts for measuring and managing brand value which is the main drawback of the company.
Brand awareness: Organization uses various technique to measure brand awareness i.e. survey , website traffic etc. are the best source to measure brand awareness. Organization survey by the email, own website that express customer's craziness about brand. Thus, company can measure brand awareness.To measure brand popularity, organization applies brand awareness technique which helps company to know about brand popularity in the public. This technique doesn't more effective because it diverts mind of the employees to improve selling behaviour. Second organization doesn't get appropriate statistics for estimating brand awareness in global market.
Market share: To determine market share company can take helps of mathematical formula as technique. In which total sale is divided by company's total sales over the business period. Thus, this technique gives the idea about company size. Market share is effective technique which helps organization to measure brand value. Statistic data of market share gives estimation about organization contribution in the market share. Due to market share techniques organization have to face competitors like Apple Inc.
Cost based: It is most of the easiest approach as in it brand value of conmpany is calculated by identifying cost incurred by company to build and maintain brand image in the market. Advantage of it is that it can be easily calculated by adding total cost of R&D department, promotion of product and market testing. It is disadvantage is that it use concrete cost to estimate brand value.
Market based: In it values of similar brand is used that is sold or purchase in the market to calculate brand value of company. Thus, it is not the best method for everyone as both brand value differ as per quality product and services given by company. But at the same time easy method to get rough idea of value of brand.
Finance Based: In it cost incurred in raising fund, various source of fund raise are used to evaluate bran vale of company which is not appropriate.
Brand value of Samsung company is high as it is sixth most valuable global brand this year approx $61.1 billion thus increase Up to 2%. It has been listed among 100 best global brands in inter brand and brand value surpassed $50 billion in 2016.
It can be concluded importance of branding as marketing tool in the report. Key components of successful brand strategy for building and managing brand equity has been concluded. Different strategies of the portfolio management, brand hierarchies and brand equity management can be summarized in the report. It can be concluded different techniques which is used to leverage and external brands. Different type of techniques which is used for managing brand value for developing strong brand.