BRAND BUILDING

Brand Building



Brand Building

Introduction

The branding literature has developed considerably over the past decade or two, with considerable understanding of the nature of branding and in the formulation of effective branding strategies. More recently, the emphasis has moved to branding metrics; that is, to measuring the performance impact of brands. The current paper focuses on the performance impact of brand-orientation, through undertaking a quantitative study.

Most of the previous literature on brand orientation has been conceptual. It has focused on corporate and marketing planning around a brand. A brand becomes the centre point in the whole planning process. In finding a competitive advantage in the marketing planning stage, the attitude towards the brand orientation plays a critical role as to whether a brand is to be utilised. Urde (1999) defines brand orientation as “an approach in which the processes of the organisation revolve around the creation, development, and protection of brand identity in an ongoing interaction with target customers with the aim of achieving lasting competitive advantages in the form of brands.” By using brands as a starting point in the formulation of company strategy, brand orientation should be created as a precondition, with well-established brands able to enhance the ability of companies to compete as well as generating growth and profitability (Urde, 1994; Wong and Merrilees, 2005, 2007). Brand orientation is thus a choice of strategy that would determine firms' competitive edge with consequence of their future survival in the long term.

Brands become an unseparated part of a firm's value and an important strategic asset. It could even be the driver of the whole marketing planning process. Going beyond a tactical level in the marketing planning process, a brand could become a competitive advantage for firms. Mosmans (1996), recognising the strategic importance of a brand, argues that a brand can be considered as an integrated marketing idea driving the business. Mosmans and van der Vorst (1998) further advance that firms should shift from brand strategy to brand based strategy that plays a critical role in selecting and maintaining a strategic direction for a company. That means strategic decisions should be driven by the brand, which is a central focus of a firm. In fact, it is argued that senior management should be responsible as the custodian of brands (Capon et al., 2001). Douglas et al. (2001) go one step further to suggest that brands can play a critical role in establishing a firm's visibility and position in international markets. The potential importance of brand orientation has been well documented in the literature. The literature on brand orientation is built upon both conceptual development (Simoes and Dibb, 2001; Urde, 1999) and case studies that suggest that brand orientation can enhance firm's performance (Urde, 1994; Wong and Merrilees, 2005). While a number of models advocate understanding brand orientation, there is lack of empirical evidence to examine the performance outcomes.

Brand barriers

Developing a successful brand needs resources, efforts and a belief in the concept of branding. In lack of one of these could become ...