Brand Management: directorates-general and strategic guidelines

Summary

Management means, in the vision of specialists, a science that deals with the processes and
relationships management which shall be laid down in an organization, to identify principles
and laws governing, with the aim of designing new systems, methods and techniques of
management designed to ensure greater effectiveness.( Draguin , 2003, p14)
Management as a science shows the benefits of a rational systematic activity, based on
knowledge of laws and principles governing the phenomena dynamics.
1. Brand Management: conceptual delimitations

Law No 84/1998 relating to trademarks and geographical indications, published in the

Official Gazette No April 161 1998 mentions: "brand is a sign capable of graphical
representation, serving to distinguish products or services of a natural or legal person of those
belonging to other persons. May constitute trademarks distinguishing signs such as: words,
including names of persons, drawings, letters, numerals, figurative elements, three-dimensional
forms and, in particular, the shape of goods or of their packaging, combinations of colors, as well
as any combination of these signs". According to AMA (American Marketing Association):
"brand is a name, a term, a design, a symbol, or a combination of these elements, with the aim
identification of goods or services of a seller or group of sellers and differentiation of goods or
services from those of its competitors".
Brand Management necessitates the creation and deployment of marketing campaigns
and activities to build, coordinate and measure brand capital. Distinctive competence of
professional marketers within any company must be, therefore, their ability to create, maintain,
develop and protect brands.
Organizations need to manage their brands carefully to protect their potential. Mark
must also be the principal coordinator to be reflected in all decisions or action taken.(
Serbulescu, Bondrea , Grdan , 2006)
The creation and use of marks has become a priority of marketing; trademarks of success
require a market price and enjoy the fidelity, and new brands imagination delight consumers and
financial community.
It is therefore appropriate to impose management efficiency of the mark together with a
long term vision of the decisions of marketing. This vision will result in proactive strategies are
intended to maintain and to increase in capital time mark seen through the prism customers, both
in front external changes in the environment of product marketing, as well as for those internal,
which have arisen in its objectives and marketing programs.3
Often brands provides essential elements to distinguish between the different competitive
bidding and, from this point of view, they are essential for success. Therefore, it is important that
the management of the brand to be addressed in a strategic perspective. Brands play a pivotal
role in expanding internationally of any company. Carrying out a structure of brand consistent at
international level is a key component of the entire strategy of worldwide marketing of the

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company, as it proposes a structure on the other brands powerful for entry into other markets, for
the assimilation of marks acquired and the adaptation of the strategy of the company's brand
internationally.4
Strategic Management trade mark is defined as a process of design and implementation of the
activities and marketing programs are intended to create, and access and manage assets of marks,
so as to maximize the value. The process of strategic management trade mark consists of four
stages:
- identify and implement brand positioning;
- marketing planning and implementation mark;
- evaluation and interpretation of the data for the performance mark;
- an increase and sustain value brand.
In choosing brands, consumers use two key dimensions: the rational brand to evaluate
the features to meet the basic needs (that means functionality) and the second is represented by
the size to assess the potential emotional brand to transmit something about consumer(linked to
its personality; your mood, membership of a particular social group, status, etc).
Emotional component is based more on their own feelings and impressions, being more than
internal nature. These two traits are independent of each other, but he seldom consumers selects
desired mark considering only one of the two components.5
The most powerful brands in the world have in common ten attributes: 1. excel in trade
mark provision of benefits that consumers really wish.
2.The mark shall be maintain relevance - knowledge of consumer tastes, current situation
and the market trends.
3. The strategy of pricing is based on customer perceptions of value - optimize price, cost
and quality to meet or exceed customer expectations.
4. Brand is positioned correctly - the criteria necessary and competitive parity in relation
to its competitors, as well as elements of differentiation feasible.
5. Brand has a coherent picture - messages are not contradictory.
6. Portofolio of brands and their ranking are logical and rational - brand corporate
identity should create a uniform umbrella for all brands of portfolio; appropriate hierarchy of
trade marks.
7. Repertoire of marketing activities relevant coordinate for creating brand capital -
exploiting all the options for the communication in such a way that trade mark significance to be
represented consistent and uniform brand managers.
8. I don't understand what means brand to the consumer - the creation of profiles portrait
of the clients concerned on the basis of the data in the field of research and identify what they
like it or not.
9. Brand is supported viable and appropriate - successes and failures marketing programs
need to be understood correctly in order to be exchanged; support brand awareness by research
and technological development company research.
10. Opportunities to enhance the brand capital - the establishment of a book-regulation to
be defined the meaning and the value of the capital, the manner in which the mark is to be
treated, the allocation of responsibilities for monitoring and protecting brand capital. Creating a
strong brand requires a high degree of difficulty whereas the company must ensure customers
that type of experience with the products, services, and marketing programs that will give rise
structures appropriate knowledge of the mark.

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 2.Strategies on the construction of successful brands

Powerful brands are distinguished by the other through a better understanding of needs,
wishes of consumers and the development of marketing campaigns that go beyond customer
expectations. Brand success is the one that the customer considers "a trusted friend", which
enables it to form a clear picture of what is, to identify reasons for which is special, Face Dancer
superiority.
The company must identify the ways suitable for powerful associations for registration
of the trade mark to be created with the best effects of marketing. Brand integration in itself in
the campaign must be carried out in such a way as to be maximized its contribution to the
construction of the capital brand.7
Brand strategy adopted reflects the number and nature of the components of common and
distinctive mark, applied to the various products sold by the company. Development of the
strategy of the brand is supposed to decide the type of existing and proposed trade mark to be
applied to the products existing and newly introduced.8
A contact with a trade mark may be defined as any experience(positive or negative) bear
information, which feels a customer or a potential customer with a trade mark in question, with
the category of products or with the market of which it is part the product or service in question.
Creating contacts with brand and reinforce brand capital can be done by several ways: clubs and
communities of consumers, trade fairs and exhibitions, marketing events, sponsorships, visits at
the factory, public relations and communicated to the 12 press, 1304 marketing social causes.12
Brand positioning on the market - "positioning can be defined as placing marketable objects
(products, services, organizations, personalities, etc. ) in a multidimensional market model in
order to ensure a well determined in consumer psyche".
Any marketing strategy must be based on segmentation, sight and positioning (STP).
Positioning is action to devise their offer and company image, in such a way as to take up a
distinctly on the part of the public in the market-to-target. 10 By means of a positioning clarify
Brands Tenets, objectives and ensure the success by way of a proposal worksheets customer
focused, the public-to-target having a compelling reason to buy the product.
Fundamental purpose of positioning must be established - in a manner strategic and
active - a place of the mark in the relevant market. Positioning has in view correspondence
between brand, the vision and the values.11
3.Positioning characteristics

Positioning shall be carried out in customer's mind. Positioning is considering what he

thinks the customer about the brand, starts to the expectations, the perspective, and customer
perception and not to the company that originated the angle mark. Customer perception is the
result combination between reality (date of the attributes, characteristics, and product
characteristics, the price, the distribution channels, the type of needs) and the image created
through advertising, PR, sales promotion, etc. and by emotional processes of the customer which
may be granted, even unreasonably sometimes, qualities on which the products under a certain
brand don't have it, they ignore them on some and they exaggerate on others. Real elements and
those imagined by the customer shall assist each other, the effect of this greater synergies
contributing to increasing brand value perceived by the customer. The most important part is the

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type of customer. The quality oriented will assess just premium quality products under a certain
brand and will have to be paid, regardless of price. Customer facing quantity will follow to
purchase as much of the product under a certain brand, at a low price.
Positioning is based primarily on convenience and the insured customer, for the trade
mark. This means that a good position well supported of features, attributes, qualities of the
product, and your personality and brand image can be turned on them at advantages and benefits
to customers. Sum of these advantages and benefits shall be converted, in its turn, in value for
customers. Efficiency and distinct Position sends them customers a clear picture and offer them
for reasons justified and clear to purchase brand organization because they perceive as having
expected of them.
Positioning is a relative concept- relative positioning character derives from the fact that
the trade mark shall be placed in relation to those already known, available on the market. A
price that is to be reported to the prices rival brands, unique design that cannot be compared with
the other marks may not be judged correctly by the customers. Top of Form
In addition price competition there will be no low, no great, and the design will not be
considered as a single if it does not have basis for comparison. Therefore, the positioning should
pursue differentiation from known brands.
It is a strategic position, placing in the context concerns about the long-term. Endorsing
and occupying a different position should be prepared for a long moment. Positioning itself,
which means communication and employment place, it is a process in the short term, especially
with the help of communication campaigns and promotion. Positioning well done allows a
different position on the market, which provides high-capacity support and subsequent
exploitation, over a long period of time. Furthermore, positioning, and its outcome, which is the
position occupied, can be developed, and sometimes changed over time, in relation to the life
cycle of the market and of the product, i.e. brand, which provides dynamic positioning a
character. Positioning is the anticipatory and competitive nature. Load center of brand
positioning is employment on the market in the future and in its competitive field, in order to
determine direction for the development and use of a mix of marketing effectively and according
to the objectives set by the company.
Positioning is structured on three levels:
* Positioning check is carried out using tangible and intangible elements of the product
under the trade mark in question. It has in view of the way in which the customer appreciates
product performance( specific problems which they resolve brand as well as fuse or the level of
technology).
* Positioning mark emotional uses images, at the time of purchase or its use. Many times,
at this level will be met needs and expectations determined by membership of a social group and
which is projected on a place in the group or in the company, as is social status. Symbology, for
example, becomes decisive factor which is used in the strategy of positioning and source of
income, as it happens in case football player David Beckham.
* Sensorial positioning is based on sensory experiences as a result of sensory attributes of
specific brand, such as taste, the fragrance, the design, etc. , in order to meet your needs and
expectations empirical, relating principally to the feeling variety, of new stimuli and so on and so
forth.12
The key to obtain competitive advantage is to differentiate your products or services. The
offer may be differentiated by five elements: the product, services, personnel, distribution

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channel or the image. Of these components of differentiation to be detailed following which we
have considered most important: the product, staff and the image.
In the article entitled The discovery of new possibilities of differentiation", Jan C. Macmillan
and Rita Gunther McGrath claim that, if the companies would examine carefully the customer
experience with a product or a service - chain consumption - would not be found occasions to
launch tenders in ways that neither they, nor their competitors would not have thought possible.
The two authors suggest a list of the questions which can be used to identify new points of
differentiation of their products from those of its competitors, such as: How do people become
aware that they need the product or your service? "; "How do I find your quote consumers? ";
"How can they make consumers final selection? "; "How command and purchasing your product
or service? "; "how to make the payment for the product or service you? "; "What is the purpose
in which they use real consumers your product? ", etc. Any company must engage in an honest
dialog and permanent employees. Successful organizations have established programs of internal
dialog, "at the firm to employee", which they apply by intranet corporations and by other means.
Internal Promotion of the mark refers to ancillary activities and processes for employees are
informed and encouraged to support a brand. It is vital that all employees have a vision current
and depth in the trade mark and its promise. The attachment of the brand appears when
customers perceive that the company honors brand promise.
Brand promise will not be honored unless everyone in your company incorporate brand
in the real world. One of the most influential commission on the manner in which is levied on a
brand experiences of clients in contact with your staff. A company gains competitive advantage
redoubtable by having a well-trained personnel. It has six distinct characteristics: competence -
have skills and professional knowledge required, vanity mirror - are friendly, respectful and
careful not to offend his ambition, credibility - are trustful, serious - carrying out the service in a
consistent manner and error-free; showman - respond promptly to requests and questions raised
by customers; communication - shall endeavor to understand the customer and communicate
clearly with it. Following is an example in the banking sector linked to inspect a sabotage device
employees about brand image was taken from the study "Exploring brand sabotage in retail
banking", carried out by the authors E. Wallace, L. Chernatony. In accordance with the
conclusions of the two authors employees in the banking sector they feel they are over-worked,
neglected and consider priority objectives of a financial nature it must achieve in accordance
with tasks, and not on those related to the performance of our customers. To these are added the
frustration and things cannot go on like this anymore due to a very low flexibility of work done
which lead to a poor quality of the services provided; professional enthusiasm drops, and so we
get to inspect a sabotage device for the trade mark.
Involved factors: stress, negativity, confusion. The incapacitation of answering the
expectation of clients is a primary cause of frustration, employees feeling obligated to adopt a
certain behavior they may not always agree with, added with the feeling of lack of security and
limited received trust. Although, brand sabotage is the result of stress and not malice, although
managers recognize the job specific pressure and express their sympathy towards the employees,
the perception and the attitude of the staff, regardless of their intentions, may negatively impact
evaluations made by clients of this job category.
Most banking marketing department are responsible for creating an exceptional
impression about their bank, which will attract the top clientele. The target is though, the
consolidation of this image on the website of the bank, though email and in all mass media
written communications, by television, radio and internet, so that current and potential customers

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form a consistent perception of what the respective bank represents. This process may evolve by
building the bank brand around the employees they should primary attract first. This may be a
win-win strategy as the purpose of awaking the interest of potential customers targeted for
buying the products of the companys products or services. This includes the general public but
may, also, include future employees.
With all these, most marketing campaigns are exclusively targeting external clients
without any internal potential. By including employees in the public target, a new way of
presenting the bank on the market is born. The perks of the bank will be found across the board
for all involved parties, including employees, clients and shareholders.
*By including staff in the brand, a recruitment brand is produced. Talent scouting is the
greatest challenge for all companies. Its an opportunity that must be seized through which public
image reflect internal personality. Creating a marketing campaign send future and current
employees an important message: that they are valued and that they are important for the success
of the bank they work for.
*Shaping the message broadcast to include the employees compels the drawing the line
to build a strong base of human capital for the external target in order to attract investors/
qualified prospects for developing affairs.
*Companies that prove that their employees are important are slightly better regarded on
the market. This becomes obvious when it is easier to attract that certain type of people the
company needs.
The image of the brand
Client perception and preference towards a certain brand may be obtained with the help
of various associations and amassed related to the respective brand. The image will the result of
the following elements:
- the nature of the associations regarding the brand. This plays is a decisive factor
regarding the creation of the brand image;
- the associations capacity of creating advantages is, on her own, an important factor of
the image brand. This means that, generally, favorable associations of the respective brand by
comparison with other brands that may attract a significant image of the brand;
- the impact of associations regarding the brand is important, because the higher or lower
the power of the brand depends on how often the clients receive information, the length of time
during which these are provided and how often the clients use them;
- the exclusiveness of the associations with the brand influences, at his own, the image of
the brand. When a brand is distinguished from other brands of the same category as a result of an
asset with a decisive role, the phenomenon also depends on the exclusiveness of the profile of
the brand and the possibility of it being exchanged with other by consumers.
Distinction by image counts on the different reaction of buyers at the image of the
company and the brand. We must make a distinction between the identity and the image. The
identity is the way a company is looking to identify or position itself or its own product. The
image the way the public perceives the company of its products.
An effective identity accomplishes three things:
- establishes the defining characteristics of the product and the proposal value to the
customer
- conveys of these characteristics in a defining way;
- conveys an emotional impact that exceeds the mental representation.

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 For the identity to have the above effects it must be conveyed by all means of
communication available. It must be aired in commercials, in annual reports of the company, by
brochures, catalogues, packaging and the design of calling cards of the company. Companies
may build an eloquent image by inviting the existing and potential clients to visit their well build
and efficient workplace. Companies as Hallmark built their museums at the main headquarters
where they miraculously present to the public, the history of their company and the work to
design and marketing of their own products.
This way, the brand may fulfill complex needs and wishes, the remaining challenge is the
direction they are heading and the concrete measures that need to be embrace according to their
perception they identify themselves as. The brand identity must, in itself be visualized and
treated as a product that needs to be conceived as a product according to the needs of the
customer. By focusing on needs, the current status-quo will not be described, but a strategic
result will be pursued in order to impose the brand.
An eloquent example referring to identity may be the one with which every banks is
facing during fusions and acquisitions. The national identity of the one who purchases and the
acquired brand will play an important role with the decision of possibly reconstruction of the
brand. In case if the national identity of the purchased brand is stronger it is very unlikely that
the one who acquired it will change it. It may be opted for a marketing strategy of approval,
leaving the purchased brands with their original name but adding names to the acquiring
societies as an approval. In some cases the acquired brands keep their visual identity, but in
others they are aligned in accordance with the identity of the bank that make the acquisition. The
brand will be projected to allow each brand unit to maximize its brand capital. Also a mixed
brand strategy can be pursued. Although it cannot be allowed that the new acquisition remain an
independent identity from the brand, in some cases the brand is conceived to bring new synergies
between different levels of the brand hierarchy and the purchasing company is a strong business
center.
The infamy of the brand defined as the ease with which users remember or remind
themselves of the brand, in different conditions. Infamy is influenced by personality as well as
the image of the brand. Together with the image, infamy represents the . Dimensions of
knowing the brand by consumers. Under a strategic aspect, the known degree of a brand by
consumers is important for the marketing actions which target the better acquaintance of the
respective brand. The degree of recognition in both component, image and infamy, can be
identified with the help of networks or semantic schemes.
The strategy regarding the conveyance of the long term success of the brand is based on
five laws: The use of all conveyance strategies to obtain the general strategy of the company and
a brand vision. defining the vision, establishing the objectives, the discovery of the impact of
the brand upon the vision; expectations should be reasonable and realistic.
-the image and brand positioning must the ones that dictate the best conveyance strategy
as an example the MasterCard Priceless campaign targets the relations between people
couting on the emotional component and without a financial target, it indicates that MasterCard
eases man\s life, letting them concentrate on the things that matter which cannot be bought with
money, as a pleasant conversation with the child.
- Utilizing an integrated marketing strategy to obtain maximum profit for the investment -
a message consistently transmitted, prepares all those involved to think IMC (integrated
marketing communication), the creation of multimedia campaigns but not bases on a sole
instrument; the identification of new opportunities to use various communication instruments

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varies in order to increase sales; the comparison analysis for a better administration of
expenditures with each instrument; the creation of a philosophy for capacities and efficiency of
each conveying instrument used.

- The implementation of the communication strategy in the entire organization.

- Internal involvement, education and the measurement of communication its necessary
to pick key attributes that permit measuring performance, to be reusable and to allow
organizational making decisions efficient. Brand communications should be meant to build
stable relationships with consumers and finally lead to ending the process of effective
acquisition; for this the scope, the target audience and scope should be determined and finding
the most effective way to reach the target and using the conscience, understanding, probation,
preference and loyalty.
Applying brands is impulse by firms though marketing programs and assumes the
creation of mental structures and help consumers organize their knowledge about products and
services in a way that clarifies the decision making process of and in the same time the value of
the firm.

Brand audit to increase the performance of the company.

A brand audit analysis is an approach focused on consumer, materialized in a series of
procedures meant to evaluate the brands viability, discovering their capital source and to
suggesting ways to improve and value its capital.
Brand audit can be used to set the strategic direction to brand evolution.
As a result of this strategic analysis, can be developed by a marketing program able to maximize
the long term capital of the brand.
The managers must decide which of the bands dimensions are more suitable depending
on the activity environment, relative to the brand extensions based on the functional or
representative characteristics so that the perceived performance and image related measures are
relevant. In essence, the relative band attribute affect its strength which will reflect on the
financial value of the brand.
The core values of the brand must be communicated, to preserve and to be recognized
by consumers. Managers should consider brand components as integrated synergic parts in it
representing a holistic entity.
Estimating the value of the brand represents a way of appreciating the total financial
value of the brand. There are companies that are founding their growth on acquiring and
consolidation of a rich brand portfolio.
A performant brand management will contribute to the success of the company on the
international market, so the most valuable brands in the world, based on the market value, are
best identified with the help of the methodology used by Interbrand Group. The Interbrand
methodology used for calculating the external value, of market, of the brands and classifying
them, calls for information about every brand in the last ten years and makes future projections.
Every analyzed brand receives points in seven different criteria, respectively the market
quotation held and the place in the hierarchy, brands stability, product stability, international

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character, market trends for the product category, advertising and promotional support and legal
protection of the mark.
The model made by Interbrand suggests that the brand position is the result of internal
and external factors. Internal factors such as vision and values of the brand, is part of the brand
identity. External factors such as brand personality and competitive positioning, brand image is
at the origin, the way that the brand is seen by customers.
Brand performance, on the other hand, refers to the success of a brand recorded in the
market. The aim is to measure a brand 's strategic achievements. Awareness, reputation and
loyalty are of the most important brand performance. Given the many purchasing decisions that a
person should do every day, many of whom may choose products and related promotional
messages, a client is based mostly on consumer habit , that will buy marks that have proved
satisfactory in the past. Therefore brand performance is an indicator that should be considered .
Trade policy-oriented organization should coordinate activities related to brand closely
with internal organization; so that the culture aproch of the organization that is intended to be
implemented and the financial and human resources involved are found in a strategy BAM -
brand asset management. BAM is translated as follows: clarity decisions and expectations, profit
and higher incomes, good market quotation, ability to set premium rates, levers to attract the best
employees, customer loyalty, clear differentiation, valued and supported over the competition;
overall confidence in the company; higher incomes for stakeholders and a more comprehensive
for market possible mistakes.
A BAM culture vision involves understanding by all that are involved, accepting brand
image, positioning, brand implementation strategies chosen, co-participation of employees in the
strategy development, including their involvement in management, protection and even holding
it.
If we take into consideration the current situation in the banking sector, we can highlight
some relevant aspects of an assessment mark incomplete and deficient that will highlight the
importance accorded to brand management at any company strategically organized.
Like other industries, the banking sector had to react to the recent economic downturn to
continue to be effective. As a result of losses incurred by the brokerage and investment units,
banks are turning to their consumer divisions / retail for obtaining profit. As a result, customers
are charged higher fees and there is a lower quality of services provided. Some banks have even
adapted the fee structure to encourage customers to use ATMs instead of direct transactions by
human operations.
The lack of human contact was thus surpassed by modern technology. While many basic
banking transactions can be made out either at an ATM or a bank website, customer
dissatisfaction and frustration can not be expressed directly by them. Unfortunately, banks rely
more on markets for technology services and bank staff have basic knowledge in relation to
specific tasks and can not come in resolving customer issues quickly and efficiently when it
actually comes at the bank location. Maintaining unique brand value is quite difficult to aquire,
as aforesaid, plus new challenges and mergers of banks, especially for the acquiring bank.
Regardless of all the changes needed to survive and achieve financial goals, or the number of
brands owned by mergers and acquisitions, brand management must ensure the mark of his
office to make banking products and services to be recognized and memorable.

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 Managers should be aware that at some point, there will be a crisis invited the brand. In
general, as far as the corporate image is stronger - in terms of public respect to reliability and
honesty company - the company is more likely to overcome the crisis well. However, it is
important to have a good preparation and a program management crisis situation well managed.
The key to successfully overcome a crisis is successful in convincing consumers that company
reaction was so prompt and sincere.
As much as the crisis management marketing takes more, the consumers are more likely
to form negative impressions, as a result of unfavorable media coverage, and oral advertising.
Consumers can find that actually do not even like the brand in issue, opting permanently for
other brands or alternative products.
Secondly, prompt action must appear before the public as sincere. The more the company
reaction is sincere - in terms of public recognition of the gravity effect on consumer product and
availability of the company to take all necessary and feasible measures to resolve the crisis - the
more the risk lowerd for the public consumers to form a negetive associations for the brand.
It is necessary, therefore a periodic evaluation and permanent of the brand to verify the
strategies that have been successful and to know the profit generated by investment in the brand.
This requires understanding the concept of brand equity / brand, knowledge and application of
appropriate strategies depending on the stage of the life cycle of the product / service, continuous
monitoring of progress and identify and develop new strategies.

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