Corporate Brand

Management
TOPIC – Brand Approaches
Introduction
This topic will present Seven brand approaches /school of
thoughts.
These seven ‘schools of thought’ represent fundamentally
different perceptions of the brand, the nature of the
brand–consumer exchange, and equity is created and
managed. how brand
 Understanding the seven brand approaches separately provides a
deep insight into the strengths and weaknesses of each
approach and hence the potential of brand management as a
whole.
 This comprehensive understanding will enable you to create
customized brand strategies matching the unique
challenges and possibilities facing a brand at any time
Overview: Brand Management
 How brand management as a scientific
discipline has evolved over time
 Two overriding paradigms have been
present in the academic world of
brand management:
 one with a positivistic point of
departure
 knowledge gained through observable
and measurable facts
 Independent of the viewer
 one of a constructivist or
interpretive nature
 reality is socially constructed
 Knowledge exists within self and its
constructed by individuals as they
interact
 there is no single reality – different view
of the world
The positivistic stance
The positivistic stance implies a notion of:
The brand is seen as: ‘A manipulable lifeless artefact
(product plus that is created by its owners/managers
and that can be positioned, segmented and used to
create an image)’ (Hanby 1999, p. 12).
The brand being ‘owned’ by the marketer, who controls
the communication to a passive recipient/consumer.
The Brand equity is perceived to be created by the
marketer
The interpretive/constructive paradigm
The interpretive paradigm reflects on :
the nature of the brand and the value of brand
equity as something created in the interaction
between marketer and an active consumer
‘As a living entity (with a personality with which we
can form a relationship and that can change and
evolve over time)’ (Hanby 1999, p. 12).
The seven Brand Approaches
 Understanding the seven brand approaches separately provides a deep
insight into the strengths and weaknesses of each approach and hence the
potential of brand management as a whole. The seven approaches are:
i. The economic approach: the brand as part of the traditional
marketing mix.
ii. The identity approach: the brand as linked to corporate identity.
iii. The consumer-based approach: the brand as linked to consumer
associations.
iv. The personality approach: the brand as a human-like character.
v. The relational approach: the brand as a viable relationship partner.
vi. The community approach: the brand as the pivotal point of social
interaction.
vii. The cultural approach: the brand as part of the broader cultural fabric.
Overview of Brand Management
Presentation of the 7 approaches
The seven approaches are presented in the
chronological order
Going through the period of time of the study which is
divided it into three sections.
 The first period of time is 1985–92,
the second is 1993–99 and
the last one begins from 2000 and onwards
The first period of time 1985–1992:
company/sender focus
 The research focuses on  The research of the economic
approach
the company as sender of  is centered on the possibilities of the

brand communication. company to manage the brand via the

marketing mix elements: product,
 This focus forms the placement, price and promotion, and
 how the 4Ps can be manipulated to
background of the two affect consumer brand choice.
first approaches in brand  In the identity approach
 research focuses on how the identity
management; of the company as whole can shape a
i. the economic coherent brand message that is
communicated to all shareholders.
approach  It is assumed that the brand is

ii. the identity ‘owned’ by the company and that the

brand is communicated in a linear
approach. fashion from the company to the
consumer
The first period of time 1985–1992:
company/sender focus
The economic approach assumes that attributes
related to the Four Ps of marketing (product, price,
placement and promotion) are the main mechanisms
behind the creation and management of brand equity.
The identity approach brings into focus the creation
of a unified, visual and behavioural identity. It is
assumed that consumers attribute identity
characteristics to companies and that people form
images of companies based on the total experience of
the company. This places the corporation and its
employees at the centre of brand equity creation
The first period of time 1985–1992:
company/sender focus
The economic approach:
 The brand as part of the traditional
marketing mix
 The creation of brand value is
investigated as influenced by
changes in e.g. distribution
channels, price modifications and
promotions
 The marketer is definitely in
charge of brand value creation, and
hence consumers are believed to
‘receive’ and understand the
messages ‘sent’ to them from the
marketer exactly as intended.
The identity approach:
 The brand as linked to corporate identity
 Focusing on corporate identity, the brand is
also primarily perceived as an entity ‘owned’
by the marketer
 The marketer (as corporation) is in charge of
brand value creation.
 Processes of organizational culture and
corporate construction of identity are key
influences.
 Central character. It should capture the
essence of the organization.
 Claimed distinctiveness. Distinguish the
organization from others.
 In the earlier days of the identity approach it
was believed that brand identity could be
managed and controlled entirely by the
corporation
The Second Period 1993–1999:
human/receiver focus
The shift in attention towards the receiver of brand
communication
The humanistic and individualistic approaches
namely;
i. the consumer-based approach
ii. the personality approach
iii. the relational approach
The Second Period 1993–1999:
human/receiver focus
The consumer-based approach turned the spotlight
on the consumer,
The personality approach and the relational approach
further constituted brand value as something co-
created in a dialogue between marketer and
consumer
The Second Period 1993–1999:
human/receiver focus
The consumer-based
approach:
 The consumer is the ‘owner’ of the
brand in this approach
 The brand as linked with consumer
associations
 It is assumed that a strong brand
holds strong, unique and favourable
associations in the minds of
consumers.
 In this fashion, attention shifts from
the sender towards the receiving end
of brand communication.
 The marketer is seen as in charge of
communications
The personality approach:
 personality traits are important drivers of emotional
bonding between brand and consumer
 Human beings attach meaning to possessions because we
regard possessions as part of ourselves- extended self’
 Consumers use brands to play out their personal stories
about their lives and identities
 The brand as a human-like character
 This study shows that consumers have a tendency to endow
brands with human-like personalities.
 Introvert, extrovert , cultured, agreeable,
The relational approach:
 The brand as a viable relationship partner
 The brand has to act as a true friend
 Brand loyalty
 The notion of the brand being a viable relationship partner
builds on the same human brand metaphor as the
personality approach.
2000–2006: cultural/context focus
Technological and cultural changes have profoundly
changed the rules of the game in brand management
in the last period of time.
Two approaches can be identified in this period of
time:
i. the community approach and
ii. the cultural approach
2000–2006: cultural/context focus
The community approach
 Brand value is created in the communities
 The brand as the crucial point of social
interaction among consumers
 consumers must interact, not only with the
brand, but also with each other
 sharing a dislike for competing brands
 Shared rituals and traditions’
 sense of moral responsibility
 connect consumer to brand, and consumer to
consumer
 The marketer deals with ‘autonomous’
groups of consumers who are able to
collectively influence marketing actions
and potentially ‘take over’ the brand and
take it into a direction not at all intended by
the marketer.
The cultural approach
 The brand as part of the broader cultural
fabric
 explores how brands are an inherent part of
our culture
 marketers use cultural forces to build
strong brands
 the brand is regarded as an important part
of and contributor to mainstream culture
 The literature deals with the way marketers
can use cultural forces to build strong
brands (ultimately brand icons) and what
brands and branding do to culture.
 The attention has shifted from the
transaction between a marketer and a
consumer (or groups of consumers) to a
macro perspective.
Interconnection
Weaknesses of one approach often lead to the
development of a new one
The seven approaches can be seen as links in a
continuous evolution that slowly but surely has
changed the field of brand management, making some
approaches more relevant than others in a given time
frame.
The birth of one approach does not imply the end of
the ‘previous’ one(s).
Test your understanding
Briefly describe the three periods of brand
management, explain how the seven approaches of
brand management are anchored in them.
Understanding branding basics
https://www.youtube.com/watch?v=ala1XYmWp3g
Watch the video
https://www.youtube.com/watch?v=ala1XYmWp3g
https://www.youtube.com/watch?v=ala1XYmWp3g
Enough for today. . .