BUS631 Study Guide
Unit 1: The Principles of Strategic Brand Management
1a. Evaluate how struggling brands can recover from declining competitive positioning
- How can a company restore its brand?
- Why would a brand be struggling with competition?
- What can a company do about brand competition?
It is important to consider brand management as companies continue to struggle with building, measuring, and maintaining their brand as competition floods the marketplace. Once a brand is established, then a company may go into maintaining or managing that brand equity. There is always the risk of a company losing some of that branding position, and then they need to potentially recover that position. If the company can focus steadily on brand management, then it may never lose its place in the market.
As more and more competition moves into the market, companies must be proactive in protecting and promoting their brand. By creating marketing that differentiates products from others on the market, a company might control their own market share and protect the brand.
Restoring a company brand may occur in several ways, and not every way will work for specific companies and their brands. A few things that a company might do to restore its brand may be lowering prices, updating products, or spending additional money on the promotion of the brand.
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1b. Create the blueprint for a multi-brand company's strategic plan
- What is a brand strategic plan?
- Why is it important to develop a multi-brand strategic plan?
- How can you develop a multi-brand strategic plan?
Brand strategy is an important part of a strategic marketing plan, and for companies that have multi-brands, it is important to have a separate plan for each brand. Brand managers know that brand strategy measurements include growth and market share, and this will drive consumer loyalty in favor of their brands. Understanding strategic planning for multi-brands will be important to you as a brand manager.
When a company promotes numerous products, and each has their own brand, a multi-brand strategic plan is necessary, and as a brand manager, you will need to understand the process. By understanding the market and creating a place in the market share for the product, you can then promote the product and brand by creating unique and focused marketing. It will also be useful to create an appealing visual identity for the brand itself.
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1c. Analyze an iconic brand from the perspective of its commitment to ethical practices
- Can you name one iconic brand that has a commitment to ethical practices?
- What makes a brand iconic?
- Why might a brand want to commit to ethical practices?
Iconic brand marketing sticks with us. The Nike swoosh, the Disney logo, or even those toothpaste commercials that demonstrate sparkling, white teeth. These are advertisements that remain with us through decades of marketing. These brands have matured and, over time, have become iconic. Even though these brands are established, they still need to be maintained and move with the current times and must consider consumers changing attitudes.
Many companies today have made ethical practice commitments when revising or updating their brands. Because times have changed and more people are demanding that companies be more responsible about their products, companies have been forced to change to reflect today's consumer attitudes about those brands. One example may be when Starbucks makes promises to have all recyclable materials in their stores by a year soon. Patagonia develops an entire brand about its commitment to ethical practices.
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1d. Evaluate the basis of a multi-level consumer brand's strategic growth
- How does a company grow its multi-level brands?
- Why does strategic growth matter to a brand?
- What can you do to develop strategic brand growth?
Most companies review the strategic growth of their brands and create a plan for strategic growth when developing a new brand. This is important because the company wants to improve its product or service offerings and turn a profit. When a company has multi-level brands, it is important to be constantly reviewing each brand and their strategic growth over the years.
Companies may grow their strategic brands by promoting the product, changing or making updates to products, or creating additional products. It is also important that once a brand has reached their maturity level, the brand is still being reviewed so that they can maintain market share. Having a strategic growth plan will assist with this process.
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1e. Analyze how a mature brand can grow consumer sales
- What does brand maturity mean?
- How can a mature brand grow consumer sales?
- Why should a company focus on growing consumer sales for mature brands?
Mature brands have been around for a while. Some may be fading, while other brands remain strong and competitive in the marketplace. By ensuring that these brands are maintained and updated, they can continue to grow consumer sales. It is important for companies to change with the current times, and brands must consider consumers changing attitudes over time, and they must change with the times.
Nike is an example of a mature brand that has continued to expand and grow consumer sales. By consistently changing with the current times, Nike has been able to grow their product listings, continue marketing that is clever and timely, and they have maintained products that have been on the market for decades. By consistently reviewing where they are with brands, marketing, and strategy, Nike has been able to keep consumer sales high.
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Unit 1 Vocabulary
This vocabulary list includes terms you will need to know to successfully complete the final exam.
- brand strategy
- branding position
- ethical practice commitments
- grow consumer sales
- iconic brand marketing
- mature brands
- multi-level brands
- restoring a company brand
- strategic growth