Journal of Marketing Management, 2013

Vol. 29, Nos. 9–10, 973–980, http://dx.doi.org/10.1080/0267257X.2013.817768

Brand orientation: Past, present, and future

The articles in this special issue contribute to the advances and development in the
scholarship of brand orientation. They encompass a wide range of sub-topics, and
collectively offer a unique insight into the still-emerging concept and new paradigm
of brand orientation. In the process, they show how researchers across the world
are contributing to the advancement of theory and practice. Our open-minded Call
for Papers yielded fruitful cross-fertilisation and innovative perspectives. This special
issue can thus be claimed to be a milestone in the enhanced understanding of the
concept of brand orientation, and we are delighted to have had the privilege of being
its Guest Editors.

Past: The genesis of this Special Issue

As essential background to the contributions collected here, we would like to
remind you of an article by one of us in the Journal of Marketing Management,
‘Brand orientation: A mindset for building brands into strategic resources’ (Urde,
1999), which was one of the first to challenge the paradigm of market orientation.
There, brand orientation was defined as ‘an approach in which the processes of
the organisation revolve around the creation, development and protection of brand
identity in an on-going interaction with target customers with the aim of achieving
lasting competitive advantages in the form of brands’ (p. 117). The new concept
challenged one that had been a paradigm in the field of management for more than
50 years, during which managers had been exhorted to ‘stay close to the customer’, to
‘put the customer at the top of the organisation chart’, and to define the purpose of a
business as the creation and retention of satisfied customers. Placing the customer
at the centre had since become something of a mantra for many theorists and
practitioners.
For the international companies studied in Urde (1999), market orientation
constituted a requirement of competition; that is, a necessity for simply being able
to exist in the marketplace. Nestlé, Nicorette, Volvo, DuPont, and Tetra Pak were
examples of companies with an orientation that could not be subsumed under the
label of market orientation. The wants and needs of customers were no longer
perceived to be the only natural basis for the company’s marketing strategy – or
more precisely its brand development strategy. In these brand-oriented organisations,
the objective is – within the framework of the brand – to create value and meaning.
The brand had become a strategic platform for interaction with the target group
and was thus not limited to being an unconditional response to what was demanded
by customers at any given time. The case histories showed managements striving to
develop and protect their brands as strategic resources by acting within the room for
manoeuvre allowed by the brand identity. The mission and the vision of the firm set
an overall direction for the core-value-based development of its brand.
Calling into question such edicts as ‘the customer is always right’, ‘everything for
the customer’, and the ‘the only valid business purpose is satisfied customers’ was
© 2013 Westburn Publishers Ltd.
974 Journal of Marketing Management, Volume 29

at the time highly controversial in academic circles but less so among practitioners.
Naturally, the wants and needs of customers were not ignored, but were not allowed
to be the sole drivers of brand development and identity. This is a strategic issue for
those firms characterised by motives for their brands that go beyond the satisfaction
of customers’ wants and needs. Prioritising the brand in the organisation gives it
integrity in relation to customers’ wants and needs and to the actions of competitors,
but also in internal strategic processes. The experiences reported in the case studies
demonstrated that integrity and brand competence are essential for the creation,
development, and protection of brands that have an identity and not just an image.
Urde’s Journal of Marketing Management article concluded, with respect to the
strategic and operational implications of a brand-oriented approach, that:
For organisations that have lived in the belief that they produced and distributed
products, with brands only equal to names or labels, brand orientation might
likely lead to a new conception of reality. It is no longer only a question of
innovative products, clear positioning, and attractive image, but also of identity,
integrity, core values, and mission. The organisation’s values, attitudes, visions
and general approach to brands make a difference – a world of difference.
Learning to see intangible values and symbols as resources is a necessary step in
brand orientation. We must accept the notion that a company’s foremost assets
can consist of something other than iron, bricks, and mortar. (Urde, 1999, p. 132)
When the three of us started our collaboration in 2010, we saw the opportunity
and the necessity to explore, compare, and integrate brand orientation and the
classical market orientation further. The intent was to go beyond the ‘tug of war’
between the two paradigms and, rather open-minded, explore other possibilities
and combinations of brand orientation and market orientation. Before this time
period, all of us conducted research separately on brand orientation. Mats Urde
(1994, 1997, 1999) together with Frans Melin (1997) established the concept of
brand orientation and developed the theoretical foundations. Bill Merrilees and his
co-author Ho Yin Wong conducted qualitative and quantitative research on brand
orientation in different sectors (Wong & Merrilees, 2005, 2007, 2008). Carsten
Baumgarth developed, on the basis of the general corporate culture model by Schein
(2004), a brand orientation model and tested this model in the media (2007), art
(2009), and business-to-business sectors (2010).
We described the former as an inside-out, identity-driven approach that sees
brands as the hub of an organisation and its strategy; the latter is, on the other hand,
an outside-in, image-driven approach. Superficially, brand orientation and market
orientation appear to be two separate strategic options. Synergistic combinations of
the two are, however, possible, and yet had not been explored in previous theories,
nor discussed as part of branding practice and philosophy. The specification of a
new type of orientation – a hybrid between brand and marketing orientation – was
among the key outcomes of our study. The paper describing it articulates typical
trajectories for evolving that orientation and thereby facilitating a more dynamic
view (Baumgarth, Merrilees, & Urde 2011; Urde, Baumgarth, & Merrilees 2013).

Present: Overview of the special issue

At the end of 2011, the Call for Papers for the Special Issue was published
in the Journal of Marketing Management. The intent was to have a synopsis of
 Editorial 975

current knowledge in one outlet. Overall, 31 papers were submitted to this special
issue. In a first step, we selected 15 papers for the review process. More than
40 reviewers supported our special issue with their time, constructive comments,
and thought-provoking ideas (thank you very much!). On the basis of the first
and second round of reviews, we finally selected seven papers for this special
issue (acceptance rate 22.6 %). We would like to thank all authors for their
submissions.
The seven articles we present to you here admirably reflect the variety and
breadth of current research into brand orientation. The first four examine diverse
approaches to the complex implementation of brand orientation in relation to
leadership and management, providing insights into the internal aspects of brand
orientation and an organisation’s processes. The three articles that follow them
broaden our understanding of brand orientation into different contexts, for example
not-for-profit and the public sector.
In the first article, Punjaisri, Evanschitzky, and Rudd study the role of leadership
in building brand capacity among employees who interact with customers, to
improve their service recovery performance. Brand-specific transactional leadership
was found to be ineffective in fostering brand-building behaviour, but brand-specific
transformational leadership did powerfully influence trust in the corporate brand,
brand identification, and ultimately service recovery performance. It is concluded
that leaders are clearly a critical apex of any brand-orientation system (see also the
brand leadership studies of Merrilees & Frazer, 2013; Morhart, Herzog, & Tomczak,
2009; Vallaster & De Chernatony, 2006).
The second article by Wallace, Buil, and De Chernatony likewise starts with
managers’ brand mind-sets and their views about the relationship between market
and brand orientation. The emphasis is on managers’ perceptions about the role
of brand values as resources in creating a brand orientation. A large-scale study of
front-line employees examined the degree of agreement with brand values, and the
differences in brand ‘buy-in’ across employee clusters. The study provides tentative
support for the Urde et al. (2013) hybrid market and brand-orientation approach,
though with managers being closer to the brand end of the spectrum and employees
closer to the market-orientation end.
The contribution by Ndubisi and Matanda examines the influence of employee
perceived goal congruence, specifically its moderating effect on the link between
internal branding and internal customer orientation on person–organisation fit. This
article is a cross-over with the contribution by Wallace, Buil, and De Chernatony
and deepens our understanding of internal branding and internal brand strength (see
also Baumgarth & Schmidt, 2010), which could be seen as the ‘micro perspective’ of
brand orientation.
Next, Gyrd-Jones, Helm, and Munk study the extent to which the existence
of ‘functional silos’, associated with different managerial mind-sets, contributes to
the failure of new-brand strategy. This challenging analysis transports us to the
‘dark side’ of brand orientation, where the outcome can be failure rather than
success.
In the distinct second batch of articles in this Special Issue, brand orientation is
explored in different contexts by way of case studies. The first of those, by Kerr,
Clarke, and Baxter, enhances our understanding of multiple identities by considering
‘place branding’, a complex context involving many relevant stakeholders. The
authors focus explicitly on internal stakeholders, the ‘voices from within’ (see
also Merrilees, Miller, & Herington, 2009), demonstrating how valuable such
976 Journal of Marketing Management, Volume 29

longitudinal case studies can be in assessing changes to place identities and the
internal effectiveness of brand implementation.
Gromark and Melin next study the migration of the brand-orientation concept
into the public sector, which the authors describe as a courageous move to make
at the time. They find that while market orientation has definite advantages in that
sector, it concentrates too much on the customer, is myopic, lacks true interaction, is
mechanistic, and places too much emphasis on economic values. Brand orientation is
suggested as an interesting alternative, providing a holistic and balanced perspective
(see also Reid, Luxton, & Mavondo, 2005; Reijonen, Laukkanen, Komppula, &
Tuominen, 2012; Urde et al., 2013).
Lastly, Lee turns our attention to the non-profit sector. This study of re-branding
in that context (see also Miller & Merrilees, 2013) offers a first-hand view of the
complexity encountered in balancing and maintaining relationships with various
stakeholders, especially with respect to the aligning of image and identity, stakeholder
access and dialogue, and the balancing of market requirements against organisational
identity.

Future: Suggestions for further research

Neither the perceived importance of brands nor the interest in brand management
shows any sign of diminishing among practitioners or academics. In principle,
we think that brand-orientation research could be focused on: (1) the paradigm,
mind-sets, approaches, and drivers; (2) leadership and management of brands; and
(3) performance, measurement, and implementation (see Figure 1).

Figure 1 Brand orientation as a field of research with related concepts, processes, and
frameworks illustrated by cases.

Leadership and
The paradigm, management of
mindsets, brands
approaches and
drivers
Brand orientation

Performance,
measurement and
implementation
 Editorial 977

Cases studies of brand orientation in different contexts

We view case studies as an important source for better understanding of the relevance
of brand orientation for business and not-for-profit organisations. A first suggestion
for future research derives from the non-profit sector in brand-orientation research
in practice: see for example the fifth, sixth, and seventh articles in our selection.
Other articles by Ewing and Napoli (2005), Hankinson (2001, 2002), and Napoli
(2006) also illustrate this prevailing focus. The logical conclusion is that the specific
characteristics of non-profit organisations, such as different corporate goals and a
greater emphasis on the corporate culture, are well matched to brand orientation.
If that is so, then analysis of brand orientation in such other non-profit sectors
as the arts (Baumgarth, 2009; Evans, Bridson, & Rentschler, 2012), public health,
charities (Keller, Dato-on, & Shaw, 2010), political parties, universities, places
and destinations (Hankinson, 2012), or churches (Mulyanegara, 2011) could be a
potentially fruitful direction for further research. A second suggestion is to continue
the exploration of brand orientation in the business-to-business context. Surprisingly
enough, there are few recent case studies on the business-to-consumer companies that
typically are associated with a strong market-oriented approach.

Exploring and developing brand orientation by cross-fertilisation

We likewise detect strong potential for the integration of brand orientation into
management theories and models, for example that of corporate social responsibility
(see Baumgarth & Binckebanck, 2011; Fan, 2005; Kitchin, 2003). This particular
application of brand management is characterised by the heightened relevance of
trust, transparency, and credibility. A brand promising corporate social responsibility
which lacks these fundamental attributes runs the risk of ‘greenwashing’ and
consequently intense negative stakeholder reactions. The internalisation of the
brand philosophy in the company should reflect this ‘inside-out’ approach to brand
orientation. The concept of brand authenticity (see, e.g., Beverland, 2005, 2009;
Grayson & Martinec, 2004) is likewise based on internalisation of the brand
philosophy throughout the whole company or organisation. Given the supposition
that authentic brands are based on a high level of brand orientation, future studies
might usefully analyse the extent to which that is true.

Leadership and management in brand-oriented organisations

We find the managerial aspects of brand orientation to be essential for the new
paradigm’s relevance for practice. Articles in the existing literature as well as some
in the selection presented here have discussed the relationship between brand
orientation and internal brand management. Whereas the latter focuses on the
single employee, the former is a more holistic and corporate culture concept.
A useful avenue of further research would therefore be the influence of brand
orientation on such single constructs in the literature of internal brand management
as brand commitment, brand involvement, or brand supportive extra-role behaviour
(Baumgarth & Schmidt, 2010; Urde, 2003). It might also be rewarding to analyse
the influence of such internal brand-management measures as leadership, internal
978 Journal of Marketing Management, Volume 29

communication, or human resource management on the development or fortification

of brand orientation. The further integration of brand orientation with strategic
brand management, including the management of different types of brands in
different brand strategies, will be a necessary step in the development of the
paradigm.

Performance, measurement, and operation of brand orientation

We would also recommend a deeper analysis in future of the impact of brand

orientation on company performance. Many existing studies have examined this
relationship already (e.g. Ahmad & Iqbal, 2013; Baumgarth, 2010; Wong &
Merrilees, 2008), but their findings could have been subject to key-informant bias
(e.g., Homburg, Klarmann, Reimann, & Schilke, 2012). Since only one study has
so far investigated the contribution of brand orientation to ‘objective’ corporate
performance (Gromark & Melin, 2010), further research should aim to explore the
relationships between brand orientation and such objective performance indicators
as profit or turnover, stock prices, or other independent measures.

The paradigm, mind-sets, approaches, and drivers

Lastly, we would advocate a deeper and broader analysis of the relationship between
brand orientation and market orientation (and other strategic orientations, such
as innovation, learning, or cost orientation). We have developed a conceptual
framework for the relationship of both those strategic orientations (Baumgarth
et al., 2011; Urde et al., 2013), but an empirical test is missing so far. The
theoretical positioning of brand orientation in relation to, for example, corporate
marketing would represent a relevant contribution forwarding the understanding of
the paradigm and the mind-sets associated with it. These five proposals for future
research confirm that brand-orientation research can indeed be an ongoing field of
theoretically and practically useful research. If the brand-orientation paradigm were
to attract as much academic attention and interest as the marketing orientation, and
be accorded as much relevance in theory and practice, then the future opportunities
for researchers would look very bright indeed. We sincerely hope that this Special
Issue will stimulate many new research projects focusing on brand orientation.

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Carsten Baumgarth
Berlin School of Economics and Law, Berlin, Germany

Bill Merrilees
Department of Marketing, Griffith Business School, Australia

Mats Urde
Department of Business Administration,
Lund University School of Economics and Management, Lund, Sweden
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