Brand management as a component of the modern organization’s competitiveness

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Yriy Fedkovych Chernivtsi National University

Brand management as a component of the modern organization's competitiveness

Gruntkovsky Volodymyr Yuriyovych PhD in Economics, Assistant Professor of the Department of Economic theory, Management and Administration

Luste Olena Olehivna PhD in Economics, Assistant Professor of the Department of Economic theory, Management and Administration

Abstract

The article examines brand management in the context of strategic development of a modern enterprise. a modern tool for increasing the market competitiveness of the enterprise. The theoretical and methodological aspects of the formation of a scientific understanding of this type of managerial activity are determined, and possible options for the implementation of this tool in the activities of Ukrainian enterprises are also considered. The authors investigated the essence of the brand as a consistent set of functional, emotional, psychological and social promises to the target audience and best meet its needs. The article emphasizes that brand management is implemented in several basic directions, the degree of detailing of which is determined by the set goals, which include the organizational component (formation of a work group, teams, divisions or consolidation of functions under a separate manager),The authors substantiated that a complex innovative system of brand management should take into account the latest trends in business development and effective tools of modern brand management proven by practice, including: provision of visual communication with the client; paying special attention to product packaging; use of product description; avoiding an excessive increase in consumer value; avoiding sales on the main page; study of clientele; sales together with related goods; offers to clients to join a club (cooperative); honesty, openness and realism; clear formulation of the brand idea; stimulation of customer activity with the help of referral programs. It was determined that digitalization and the use of ready-made digital solutions for monitoring one's own brand can become an important component of the company's innovative brand management system,

Keywords: brand management, development strategy, organizational competitiveness, operational efficiency, consumer behavior.

Анотація

Грунтковський Володимир Юрійович кандидат економічних наук, асистент, кафедра економічної теорії, менеджменту і адміністрування, Чернівецький національний університет імені Юрія Федьковича, м. Чернівці

Лусте Олена Олегівна кандидат економічних наук, асистент, кафедра економічної теорії, менеджменту і адміністрування, Чернівецький національний університет імені Юрія Федьковича, м. Чернівці

БРЕНД-МЕНЕДЖМЕНТ ЯК СКЛАДОВА КОНКУРЕНТОСПРОМОЖНОСТІ СУЧАСНОЇ ОРГАНІЗАЦІЇ

У статті розглядається бренд-менеджмент у контексті стратегічного розвитку сучасного підприємства. сучасного інструменту підвищення ринкової конкурентоспроможності підприємства. Визначені теоретико-методологічні аспекти формування наукового уявлення про цей вид управлінської діяльності, а також розглядаються можливі варіанти реалізації цього інструменту в діяльності українських підприємств. Авторами досліджено суть бренду як послідовного набору функціональних, емоційних, психологічних і соціальних обіцянок цільовій аудиторії та найкращим чином відповідають її потребам. У статті підкреслено, що бренд-менеджмент реалізується декількома базовими напрямками, ступінь деталізації яких визначається поставленими цілями, до яких відносять організаційну складову (формування робочої групи, команди, підрозділи або закріплення функцій за окремим керівником), дослідження ринку, розробку концепції бренду, планування маркетингових програм з розвитку бренду. Авторами обґрунтовано, що комплексна інноваційна система бренд-менеджменту має враховувати останні тенденції розвитку бізнесу та апробовані практикою дієві інструменти бренд-менеджменту сучасності, серед яких: забезпечення

візуальної комунікації з клієнтом; приділення особливої уваги упаковці товару; використання опису товару; уникання надмірного збільшення споживчої цінності; уникнення продажів на головній сторінці; вивчення клієнтури; продажі разом з супутніми товарами; пропозиції клієнтам вступити до клубу (співтовариства); чесність, відкритість і реалістичність; чітке формулювання ідеї бренду; стимулювання активності клієнтів за допомогою реферальних програм. Визначено, що важливою складовою інноваційної системи бренд-менеджменту компанії може стати діджиталізація та використання готових digital-рішення з моніторингу власного бренду, а саме Brand Monitor, Brand Survey Lift Pulse, Social Essentials.

Ключові слова: бренд-менеджмент, стратегія розвитку, конкурентоспроможність організації, ефективність діяльності, споживча поведінка.

Formulation of the problem

In modern business, a new era of the information economy has begun, the main feature of which is a change in the fundamental sources of well-being. If before it was material assets - land, labor force, capital, now such concepts as intangible assets, intellectual property, trademarks, branding and brand management are increasingly entering the sphere of entrepreneurial activity. Brand management in modern conditions is an important tool for the functioning of a successful business, which is especially relevant in the conditions of the new reality associated with the improvement of the quality of goods and services, the emergence of new markets and types of communication. One of the first steps in brand management is to define the company's target audience and understand what makes its product unique. To survive in the market, the company's brand must be different from others and be memorable. brand strategic emotional

Analysis of recent research and publications

D. Aaker, J. Kapferer, F. Kotler, D. Ogilvy, U. Okonkwo, M. Tangate and others were engaged in the study of brand management issues at different times. The following scientists made a significant contribution to the development of the theoretical and practical foundations of branding: O.O. Vlasenko, A.V. Voychak, O.V. Zozulyov, V.Ya. Kardash, L.A. Moroz, Yu. Nestereva, V.P. Pelishenko, E.V. Romat, S.O. Solntsev, A.O. Starostina, O.K. Shafalyuk, L.M. Shulgina and others. Having studied the works of the authors listed above, it can be noted that in the era of electronic communication and the information boom, work on the creation and further development of a brand and the formation of a sustainable brand management system of organizations is the most urgent issue today

The purpose of the article consists in the substantiation of theoretical and methodological provisions and the development of scientific and practical tools for the formation of modern approaches to the construction of an organization's brand management system as a component of its competitiveness.

Presenting main material

In today's economy, a "brand" is not what you say, but what consumers think of you. If you know how to shape the world of the brand in the imagination of the consumer, then it can and should be sold expensively. For two years, the specialists of the Brand Aid company analyzed the available materials to determine the essence of the concept of a brand. As a result, the following definition was obtained: "A brand is a consistent set of functional, emotional, psychological and social promises to the target audience, which are unique and significant for the latter, and best meet their needs."

Increasing attention to the strategy of brand development is due to the fact that in the XXI century, the ways of attracting customers by business have become much more diverse and large-scale than in previous periods of market development. Now, in order to break through the market noise created by the large number of competitors, you have to do something that others are not doing or pay very big money to make your ad appear everywhere and make noise even louder than the competition. However, this is not the most successful strategy. To form a strong brand, 3 areas should be important: people, culture, solutions.

In the early 2000s, Interbrand defined a brand as the sum of all the explicit and implicit characteristics that make an offer unique. The very concept of a "unique trade offer" was developed in the middle of the 20th century. R. Reeves. He wrote about the need to study the market, potential consumers and focus advertising on target groups. Modern concepts of well-known brands include the perception of the value of products. If consumers share such values, it often affects the company's financial performance, and branding can be considered as a process of creating additional brand value.

In the literature, there are studies measuring brand experience, brand image, brand attachment, and other emotional concepts. David Aaker put forward the theory of brand identity - the unique semantic content of the brand, which, in his opinion, should be studied in four directions: the brand as a product, the brand as a person, the brand as an organization, and the brand as a symbol [1]. In 2001, the Leo Burnett agency developed the Brand Belief System (a system of belief in a brand) - a way of finding a "connecting link" between a brand and its audience, which is based on four elements: the product category, the essence of the brand offer, the cultural space and a specific target audience [2].

Thus, branding attracts more and more attention to management practice, and the relationship "consumer - brand" becomes an important part of the formation of the company's strategy and its tactical actions.

Many researchers have wondered whether brands can identify with a person, evoke feelings, emotions and be evaluated accordingly by people. For example, it is argued that brands, like people, can be described using certain sets of different attributes. In modern research, brand personification is understood as the process of brand perception by the consumer using characteristics that describe a person. For example, brand personification can be interpreted as the process of forming characteristics that allow brands to be identified, or as a metaphor that describes their stable properties. Research on brand personification has mainly been related to measuring the characteristics of the personification scale in different settings (different countries; global, local brands, etc.

Based on the analysis of publications on the theory of personification, as well as the personification scale, which makes it possible to evaluate individual brand characteristics by counting respondents' answers, but at the same time does not allow segmenting the market, modern authors propose the following method of evaluating brand personification:

At the first stage, generalized and detailed factors are determined, as well as their components, which are used to build a personification model. A scale of 42 components proposed by J. Aaker was taken as a starting point.

At the second stage, the questionnaire is developed, the requirements for the sample are formulated, the form of the survey and the place of its conduct are determined. The questionnaire should include: filtering questions that help establish whether the respondents meet the requirements for the sample structure; socio-economic and demographic information. The main question is: "If brand X were a person, would it have quality Y and to what extent?". At the same time, Y represents one of the characteristics of J. Aaker's scale, for example, "honest", "courageous", "glamorous" [3].

At the third stage, a factor analysis is carried out by the method of identifying latent (hidden) factors that determine the personification of the brand. The components of the J. Aaker scale are used as initial factors for factor analysis. Factor analysis is based on the following hypothesis: variables (components of the J. Aaker scale) are indirect characteristics of the studied object or phenomenon. In fact, there is some set of internal (latent) factors or properties that actually determine the value of the observed variables [4]. From the point of view of the proposed methodology, this means the possibility of interpreting selected groups of components as descriptions of certain groups of consumers.

At the fourth stage, classification methods are used, with the help of which significant commonalities are revealed and the optimal number of selected latent factors is determined.

Creating a brand is a complex process in many directions that integrates the work of various specialists of the company and its partners in a single project, the success of which is determined by the ability of the manager to correctly form a team of specialists, consolidate and purposefully use management, intellectual and creative resources.

Brand management as a brand management process is represented by corporate and product branding and is aimed at the development of appropriate individuality. Branding is implemented in several basic directions, the degree of detail of which is determined by the set goals. As a rule, they include the organizational component (formation of a working group, teams, divisions or consolidation of functions under a separate manager), market research, development of a brand concept, planning of marketing programs for brand development [4].

The general sequence of brand management measures includes three stages:

preparatory (market research, analytical works, justification of actions);

design (name development, trademark registration, advertising campaign design);

implementation of the project (introduction of the brand to the market).

Effective positioning of brands strengthens competitive positions on the

market, allows rational use of common corporate resources. Successful solutions in the field of positioning are able to reduce production costs and evenly distribute them among all functional divisions of firms that participate in the creation of the firm's capital. Brand positioning defines a kind of niche in the hierarchy of consumer values, which is fixed by a positioning statement - a brand formula that expresses the unique essence of the brand. Positioning involves substantiating brand positions on each of the three components: product, price, image [5].

How do modern brands manage to realize themselves in these directions? Here are some examples.

Creating a sense of scarcity. As an example - The North Face brand stores, which are located high in the mountains. Climbers passing by can resupply and rest there. You can also buy limited edition items there. Similarly, the Supreme brand does not need advertising and in every way increases the feeling of scarcity with the help of the following methods: limited number of items; never make the same things twice; creation of queues at the entrance to shops; sold out in the online store; the presence of a "black market" of branded items on Amazon.

Creating a feeling of "goods/services only for their own" in customers.For example, Pause Fest - an Australian festival of creativity and innovation implanted microchips in the hands of influencers from the world of technology, business and creativity. Customers and visiting fans, of course, appreciated such a creative approach.

The presence of intrigue. Curiosity is a powerful motive for interaction with a brand. If the creative asks the question and your product is the answer, then many people will want to try it. For the promo series Girlfriends guide to divorce, women were hired to paint new cars with the inscriptions: "Traitor" and "It's over" and drive through city streets. Of course, everyone was wondering why? As a result, the series had high ratings.

Collaborations of a new level. At one time, Google teamed up with Ivyrevel (owned by H&M) to create an application that analyzes all user information (geolocation, likes, visits) during the week and, based on this, creates a pattern of perfect clothes for that person [6].

Brands created for people should be daring. Audacity is to do in the market category what has not been done before you. Audacious brands always appeal to people, not consumers, because "consumers" are just an abstract category if you haven't carefully formed a portrait of your customer.

Communication is any manifestation of the brand in any field. A brand conveys messages to the world by all means available to it: text, sound, aroma, signage, colors, tactile objects, behavior. Everything with which the audience interacts in a certain way is a manifestation of the brand, that is, its communication. What are the main rules and trends in communications?

Useful content. Brand marketing departments are increasingly becoming media-like in their structure. The content should carry value: be useful, interesting, informative for the client. For example, the eco-goods store OZERO talks about the situation with the environment and does its own research on the degree of air pollution in order to post the results. Clinics urge people to take care of their health and give thorough advice, fitness centers upload complete training plans, and motivational micro-series about people who are on their way to their goals appear on Nike's IGTV.

Stories instead of sales. The communications of big brands have long been tuned not only to the story of the product, but also to the broadcast of their own values. TEDx doesn't sell tickets, it sells ideas. Nike is not a sports uniform, but the embodiment of everything you want. Storytelling has become a mandatory component of any campaign. Now there is a script not only for a commercial, but also for every post [7].

Unusualforms for content.Photos on boards, articles in magazines and posts in social networks are also communication channels, but the winner is the one who invents the most unusual format for content. For example, the yellow Glovo backpacks that spread themselves around the city, the aroma of Apple technology (and a candle with this aroma) or the Berlin party from Philip Morris on the theme of different taste sensations. Guests wearing the brand's signature raincoats entered a dark room where it rained with different flavors. You had to catch the raindrops and guess what each next flavor was like.

Social component of communications. It is frivolous to make empty call-to-actions about buying a certain product in a world where something important happens every day. The information drive will work better if it is supported by a social component. For example, G-bar decided to sew wigs for cancer patients undergoing chemotherapy, Monobank made a cashback for charity, purchasing equipment for Ukrainian hospitals.

Emphasis on offline. Every showroom, hub, space, co-working space or event must have instaplaces - places with soft light and special decor for taking photos as a memory. A vivid example is the pink wall of Paul Smith in Los Angeles or the Museum of Ice Cream in New York and San Francisco. If people want to take a photo at your location, upload it to a social network and tag you, you will receive UGC (adv.: User-generated content - media content that is created by users themselves) - the content that every brand dreams of these days. The same goes for product packaging: if it's perfect, you'll want to take a picture of it and show it to others.

Do not make unnecessary movements. Not every brand necessarily needs all communication channels. Therefore, before embarking on a strategy for the next channel, it is worth understanding whether it really suits your brand and is worth spending time on. The answer "everyone has it, and we need it" is not accepted.

Everything down to the smallest detail. Thoughtful communication is the devil in the details. It's warm water from the tap, friendly staff, offline and online reach. This is when you are offered tea, when the same tone of voice is followed in the mobile application as under the posts on the social network, when a pleasant aftertaste remains after a meeting with the brand, even an accidental one [8].

In our opinion, a comprehensive innovative system of brand management should take into account the latest trends in business development and effective modern brand management tools tested by practice. Therefore, we present the justification of this system as the sequential execution of certain steps, namely:

Provision of visual communication with the client. When we talk about stationary brand stores, the most important component of the work of the exhibition hall can be considered stands and showcases. Brand owners invest in them, trying to present the product more attractive than in reality. On the other hand, the product photos that your potential consumer audience sees should deliver the product's value message in the most targeted way possible.

Paying special attention to product packaging. Attractive packaging, which is used by many online fashion clothing stores, allows you to increase brand recognition. The effort put into this factor is designed to compensate for the boutique shopping experience. Demonstration of product packaging gives the customer the opportunity to properly evaluate the benefits of delivery even before he receives the order. What can the client expect from the packaging? The highest standards - from branded packages with embossing, to boxes with fine finishing, made by hand. For a fashion brand, it is extremely important to create a great impression. After receiving the order, the customer should be delighted with both the item itself and the packaging. They must exceed his expectations, which he made while looking at the photo on his computer screen.

Use of product description. The growing maturity of social media channels as a brand management tool has eliminated the need to write product descriptions in a way that pleases Google. Now you can focus on delivering specific, important information about the value of the product to the end consumer.

Avoidance of excessive increase in consumer value. When you or your production team work to increase customer value, there is a risk of crossing the line beyond which the value is inflated so much that it cannot meet the expectations of the customer who opens the box with an order.. But if you inflate the acceptable value, expect to increase repeat orders You do not have to pay the amount of the check. Difficulties will also arise with logistics, as there will be many complaints and facts of product returns.

Avoiding sales on the main page. Online sellers use the main page of the site to interact with potential customers, informing them about their business, building the necessary level of trust. Leading online stores in the field of fashion never display the prices of their products on the main page. Before proceeding to the questions of price, they consider it necessary to interest the client.

Study of clientele. If you are serious about success in business, you must know your customers thoroughly. Today, fashion online stores are actively implementing new ways of collecting information about consumers to provide personalized shopping. Shoedazzle collects information about customer preferences in the form of a quiz in order to provide a personalized approach to each customer and make product recommendations. An online store should try to collect as much customer data as possible without overwhelming or alienating them [9].

Sales together with related goods. Adding a "you may also be interested" or "often bought with" section to your product page is the most popular way online sellers use to encourage an increase in average order amount. The consumer is on a page with one product, but sees a full overview of related products, having the opportunity to immediately go to the page with the product of interest.

Proposals for clients to join the Club (association). In the case of online stores, there are certain difficulties with community formation. When the user registers on the site, he enters data that will be used for his own convenience in the future: saving credit card data to speed up purchases, managing order history, gaining access to favorites, tracking orders, etc. The point is not that the listed advantages are not important enough, but in the fact that they do not in themselves create a community of which the client wants to become a member. He won't return to the store just because he doesn't have to re-enter his credit card number. Long-term relationships cannot be built on these opportunities. The predicted advantage of registering in the store should go beyond usability and give the customer the opportunity to become part of your business.

Honesty, openness and realism. We live in an era where absolute honesty and transparency in work is required from brands. Gone are the days when there was no Internet and business could be conducted in informational isolation from the consumer audience. Today, a disgruntled customer using social media can cause more damage to a brand than at any time in history. You should also be honest with product reviews. Everyone knows about the importance of reviews today. They can significantly influence the customer's purchase decision. Therefore, many retailers moderate reviews so that only positive points are displayed on the page, regardless of the number of dissatisfied customers and complaints. The better the feedback, the more sales. But this approach won't get you far, it won't help you gain brand trust [10].

Today, the purpose of reviews is not to increase sales, but to help the client make an informed purchase decision. Honesty and publishing even negative reviews will benefit you - you will be able to save money that would have been spent on returning or exchanging goods. The goal of such a strategy is to establish trusting relationships with the clientele. It goes without saying that openness does not mean the complete absence of any moderation. You should still remove reviews that contain profanity or references to your competitors.

Realism. Social networks today democratize fashion and luxury. Real photos of products are far from always perfect, on the contrary. But any photo of your products taken by a customer on their own iPhone makes a difference to your business. The photo that your client will publish on the website or share on social networks may not be as successful as the one that you will take in your own studio, but it will have a more positive effect on sales because it inspires trust in its realism.

Clear formulation of the brand idea. What distinguishes one online store from another? The way they present their story. How they position themselves. When you go to Everlane.com, for example, you immediately see a message that carries an idea that penetrates the visitor's mind. Such messages have a huge advantage - everyone can see them - you, your employees, customers, investors, competitors. It will force you to adhere to the chosen strategy and a clear business model.

Stimulation of customer activity with the help of referral programs. Many online fashion clothing stores use such stimulation to develop their brand. Gilt, for example, runs a referral program to reward its customers, motivating them to share their shopping experience with friends and invite them to sign up. Such programs can help increase the reach of the consumer audience and expand your own client base.

Digitization and the use of ready-made digital solutions for monitoring one's own brand can become an important component of the company's innovative brand management system. Let's consider some of them:

1. Brand Monitor - a comScore study to measure the "well-being" of a brand in comparison with competitors. Brand Monitor is currently only available for US brand research. Brand Monitor provides information on consumer preferences and multidimensional comparative data with competing brands. The tool combines data streams obtained as a result of tracking brand performance and advertising activity. Brand Monitor's research methodology is a panel of 200 people who are interviewed weekly using online surveys in three major US regions (East - 37%; Central - 40%; West - 23%). Within each region, consumers are interviewed according to socio-demographic characteristics: men / women (50/50%); age: from 18 to 29 - 24%, from 30 to 44 - 30%, from 45 to 54 - 21%, 55 + - 25%; working / unemployed or housewives (50% / 50%); nationality (12% African American) [11].

Brand Survey Lift Pulse comScore is a tool based on online surveys that can be used by an organization to measure the impact of advertising on the "feeling" of a brand throughout an online advertising campaign. BSL Pulse can help optimize an advertising campaign without waiting for it to end, avoid unnecessary costs, and improve overall brand performance. It tracks key metrics such as awareness, preference and purchase intent. The service calculates and processes feedback taking into account the available data on the real effectiveness of the campaign. Only those users who actually saw the advertisement and did not just decide to take part in the survey are taken into account. BSL Pulse provides real-time demographic information about those who saw the ad, which allows you to evaluate the effectiveness of the campaign for a specific target audience [12].

Social Essentials comScore is a tool that uses Facebook's statistics API to measure and study brand page subscribers. The number of subscribers to connect to the system must be at least 100 thousand, and among them there must be at least 30 comScore. Social Essentials by comScore is one of the first tools for measuring the capabilities of the social environment, which will help assess the appearance of a brand in social media and determine what qualities the target audience possesses and what their behavior is. This new service can be called a real breakthrough in the field of social media measurement, and it will undoubtedly help to correctly evaluate the effectiveness of social media investments.

Consumer-generated media (CGM) - content created by consumers in social networks, blogs, forums and others - one of the fastest growing online segments today. Effective measurement, analysis and action based on CGM is a competitive advantage for a brand. BuzzMetrics ("buzz" - rumors, rumors) from Nielsen - helps PE "Ivory Bridal Fashion" to maintain and develop the brand through measurement and analysis of CGM. Among other things, BuzzMetrics provides tools to understand:

What consumers think about the brand, product or service;

How online conversations strengthen or weaken the brand;

How online and offline marketing campaigns resonate with consumers.

That is, in the practice of brand management of organizations, new solutions

will appear that complement the traditional methods of measuring awareness. Thanks to new technologies, media planning specialists and brand managers of any product, especially an Internet project, gain knowledge about the brand not only from telephone and online surveys, but also with the help of statistical counters (Brand Index).

Conclusions

Brand management is associated with constant research activities, as it is aimed at identifying hidden desires, as well as clear consumer needs and expectations, according to which brand elements are developed - the essence of the brand, its individuality, values, advantages and attributes. As it was previously established, the brand management system is affected by a large number of factors, and in order to predict them, it is necessary to take actions consistently and systematically every time. In the worst case, brand management measures will convey one information to buyers, and company employees another, which is connected with ignorance of the organization's strategy. Under the current conditions of a high level of competition, the formation of a sustainable brand management system is the main task for any business.

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Література

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