Principles of Brand Management
Brand management is comprised of both tangible and intangible components. We’ll discuss the tangibles in the following section. The intangible components, however, include the principles that help you measure your brand management efforts and achieve those brand management success indicators that we discussed above. You’ll also note that each of these principles can influence the others on this list. For example, heightened brand awareness can contribute to brand reputation, and increased brand loyalty can affect brand equity.
Brand Awareness
Brand awareness is how familiar the general public and your target audience is with your brand. Brand awareness is important because consumers can’t engage with or purchase products or services from your brand if they’re not aware of it.
Brand Equity
Brand equity is how consumers value your brand based on their experiences, perceptions, and associations. (This concept goes hand-in-hand with brand valuation, which is the commercial value of your brand as perceived by the market.) Brand equity is important because a valuable brand can support higher prices and increase your merit among investors, shareholders, and potential buyers.
Brand Loyalty
Brand loyalty refers to how consistently your customers and followers engage with and purchase from your brand. While your marketing can’t necessarily influence this, your customer service department can — focusing on satisfaction and relationship-building can bring customers back time and time again. Brand loyalty is important because it creates brand ambassadors who do your marketing for you.
Brand Recognition
Brand recognition is how well a consumer, ideally in your target audience, can recognize your brand — through your logo, tagline, packaging, etc. — without seeing your brand name. This concept goes hand-in-hand with brand recall, which is the ability to think of a brand without seeing or hearing any branding prompts. Brand recognition is important because, by recognizing and recalling your brand, consumers keep your brand top-of-mind and are more likely to choose your brand above the competition.
Brand Reputation
Brand reputation refers to how the general public and your target audience perceive the character, status, and quality of your brand. Your reputation can be influenced by internal factors (customer service, product quality, etc.) and external factors (customer reviews, WOM marketing, news mentions, etc.). Brand reputation is important because it can be some consumers’ first impression of your brand.