2.1 The Relevance of Brand Management

Posted in academia,Bachelor Thesis,Brands and Business by thomas on the August 29th, 2011

This post is part of my bachelor paper ‚The Evolving Role of Creativity in Brand Management‘. You can see the other posts and the table of contents here.

This chapter will first start with an argument for the relevance of brand management, followed by a discussion and working definition of the brand concept. Subsequently, the different brand paradigms at work in both practice and theory are identified and discussed and contemporary challenges for brand management are outlined. Last but not least, at the end of this chapter, a systems theory-based model of brand management is proposed and three key learnings about brand management in organisations are suggested.

2.1  The Relevance of Brand Management

“Branding has emerged as a top management priority in the last decade due to the growing realization that brands are one of the most valuable intangible assets that firms have.” (Keller & Lehmann 2006, p.740)

“Niall Fitzgerald, co-chairman of Unilever, the Anglo-Dutch consumer products group, epitomized this shift in perspective when he stated ‚We’re not a manufacturing company any more, we’re a brand marketing group that happens to make some of its products‘ (Willman 2000).” (Louro & Cunha 2001, p.850)

Brands are seen as important assets by shareholders and management. Each year brand consultancies and market research companies rank the “world’s biggest brands” (Interbrand 2010; Millward Brown 2010). In 2009 5,981 new brands were registered in Austria (Österreichisches Patentamt 2009). However, while the launch of new products is certainly an exciting prospect for brand managers, they spend most of their time managing the more than 114.000 officially registered national, 218.000 international and 70.000 Community Trademarks.

A lot of attention is therefore being devoted to brands and branding in marketing science (Keller 1993; Keller & Lehmann 2006; Wood 2000): “Brands manifest their impact at three primary levels – customer market, product market, and financial market. The value accrued by these various benefits is often called brand equity”. The actions taken by an organisation to increase the brand equity may then be understood as brand management.

“Brand management comprises the process and locus for capitalizing and realizing brand value, i.e. transforming it in superior market performance.” (Louro & Cunha 2001, p.850)

The following chapter will therefore analyse existing definitions of “brand” and then analyse contemporary conceptualizations of brand management and the challenges brand management is currently facing. At the end of this chapter a conclusion about the state of brand management and how it may be understood in a broader organisational context will be offered.

Keller, K.L. & Lehmann, D.R., 2006. Brands and branding: Research findings and future priorities. Marketing Science, 25(6), p.740.

Louro, M.J. & Cunha, P.V., 2001. Brand management paradigms. Journal of Marketing Management, 17(7), pp.849–875.

Österreichisches Patentamt, 2009. Geschäftsbericht 2009. Österreichisches Patentamt. Available at: http://www.patentamt.at/geschaeftsbericht2009/de/start.html [Accessed July 12, 2011].

1. The Evolving Role of Creativity in Brand Management

Posted in academia,Bachelor Thesis,Brands and Business by thomas on the August 29th, 2011

This is the introduction to my bachelor thesis, which has the same title as this blog post. I thought I’d post it here, so that more than the two people grading it can read it and give feedback. I’ll probably also put the pdf online, but I want to layout it properly before doing that. You can see the table of contents here.

Creativity is an often used word in the context of marketing communications and brand management. There are magazines named after it, such as Creativity and Creative Review, there are numerous awards around the globe judging and celebrating it and there is the APG Creative Strategy award, which rewards creative strategy in the context of marketing communications and planning.

Creativity, of course, is also the selling point of almost every agency or agency-like company trying to make a living in the widening domain of marketing services.

“We put the creative function at the top of our priorities.” (Ogilvy & Mather 2010)

“Creativity Is The Most Powerful Force In Business. […] DDB’s pursues collaborative relationships with clients and partners to find the hidden potential of people, brands and business through creativity.” (DDB 2010)

“[Wieden + Kennedy is] an independent, creatively-led communications agency.” (Wieden + Kennedy 2010)

“We connect ideas and innovation to deliver award-winning results for the world’s leading brands.” (AKQA 2010)

„We are creative problem-solvers.” (Naked Communications 2010)

“We are a creative company with 186 offices and 7000 colleagues united around a single mission: To Resist the Unusual.” (Young & Rubicam 2010)

“Our industry is undergoing radical transformation. To keep pace with the changes being driven by emerging technology, it is vital to focus on collaboration, creativity and organizational flexibility.” (Brien 2010, McCann)

“Our philosophy emphasizes the utilization of strategy and creativity to drive growth and measurable impact.” (MDC Partners 2010)

Both independent agencies as well as large established agency networks claim to be at the forefront of creativity. More precisely, as Zurstiege (2005, p.179ff) puts it, what agencies aim to offer and what marketers ask for is effective creativity or creative effectiveness. Therefore, as the relationship between creativity and effectiveness is a regular topic of discussion between advertising agencies and clients, within agencies, the industry press and advertising conferences, there is a stream of research dealing with creativity in the context of advertising. Among the topics covered are the definition and perception of creativity (White & Smith 2001; West et al. 2008; El-Murad & West 2004; Koslow et al. 2003) the effect of creativity on advertising effectiveness (White & Smith 2001; Ehrenberg et al. 2002; Till & Baack 2005; Kover et al. 1995), and contextual issues that influence advertising and agency creativity (Koslow et al. 2006).

However, while creativity is the focus of awards, agency positioning and industry debates, and while there is work in advertising research towards “a general theory of creativity in advertising” (Smith & Yang 2004) the topic is generally not dealt with in detail in a broader marketing and brand management context. The seminal work of many leading scholars in this area (Kotler & Bliemel 2006; Fuchs & Unger 2007; Schweiger & Schrattenecker 2009) does not systematically cover creativity.

For this reason this paper sets out to critically evaluate the functions and premises of brand management and more specifically what “creativity” could mean in this context. This is done by first analysing the concept of brands and brand management as found in a literature review. In addition, the environment companies and brands operate in will be described and structured, followed by implications for brand management theory and practice. Then, meanings of creativity both in today’s advertising and marketing industry as well as in the broader management context will be examined. The last chapter will then merge the two streams and draw conclusions from the synthesis of the current state of brand management and a broader meaning of creativity in a commercial context.

AKQA, 2010. AKQA Fact Sheet. Available at: http://www.akqa.com/10_company/assets/pdf/AKQA_Fact_Sheet.pdf [Accessed October 22, 2010].

Brien, N., 2010. Interpublic Announces Management Succession at McCann Worldgroup. Available at: http://www.mccannworldgroup.com/2010/01/interpublic-announces-management-succession-at-mccann-worldgroup/ [Accessed October 22, 2010].

DDB, 2010. DDB. Available at: http://www.ddb.com/timeline.html [Accessed October 22, 2010].

Ehrenberg, A. et al., 2002. Brand advertising as creative publicity. Journal of Advertising Research, 42(4), pp.7–18.

El-Murad, J. & West, D.C., 2004. The Definition and Measurement of Creativity: What Do We Know? Journal of Advertising Research, 44(2), pp.188-201.

Fuchs, W. & Unger, F., 2007. Management der Marketing-Kommunikation 4th ed., Springer, Berlin.

Koslow, S., Sasser, S.L. & Riordan, E.A., 2006. Do Marketers Get the Advertising They Need or the Advertising They Deserve? Agency Views of How Clients Influence Creativity. Journal of Advertising, 35(3), pp.81–101.

Koslow, S., Sasser, S.L. & Riordan, E.A., 2003. What Is Creative to Whom and Why? Perceptions in Advertising Agencies. Journal of Advertising Research, 43(01), pp.96-110.

Kotler, P. & Bliemel, F., 2006. Marketing-Management. Analyse, Planung und Verwirklichung 10th ed., Pearson Studium.

Kover, A.J., Goldberg, S.M. & James, W.L., 1995. Creativity vs. effectiveness? An integrating classification for advertising. Journal of Advertising Research, 35(6).

MDC Partners, 2010. MDC Partners [BETA]. Available at: http://www.mdc-partners.com/#agency/mdc_partners [Accessed October 22, 2010].

Naked Communications, 2010. Naked. Meet Us. Manifesto. Available at: http://www.nakedcomms.com/ [Accessed October 22, 2010].

Ogilvy & Mather, 2010. Corporate Culture | Ogilvy & Mather. Available at: http://www.ogilvy.com/About/Our-History/Corporate-Culture.aspx [Accessed October 22, 2010].

Schweiger, G. & Schrattenecker, G., 2009. Werbung 7th ed., UTB, Stuttgart.

Smith, R.E. & Yang, X., 2004. Toward a general theory of creativity in advertising: Examining the role of divergence. Marketing Theory, 4(1-2), p.31.

Till, B.D. & Baack, D.W., 2005. Recall and Persuasion: Does Creative Advertising Matter? Journal of Advertising, 34(3), pp.47–57.

West, D.C., Kover, A.J. & Caruana, A., 2008. Practitioner and Customer Views of Advertising Creativity: Same Concept, Different Meaning? Journal of Advertising, 37(4), pp.35-46.

White, A. & Smith, B.L., 2001. Assessing Advertising Creativity Using the Creative Product Semantic Scale. Journal of Advertising Research, 41(6), pp.27-34.

Wieden + Kennedy, 2010. Wieden + Kennedy London. An independent, creatively led communications agency. Available at: http://www.wklondon.com/ [Accessed January 4, 2011].

Young & Rubicam, 2010. Young & Rubicam. Young & Rubicam. Available at: http://www.yr.com/ [Accessed October 22, 2010].

Zurstiege, G., 2005. Zwischen Kritik und Faszination. Was wir beobachten, wenn wir die Werbung beobachten, wie sie die Gesellschaft beobachtet 1st ed., Halem.

„The Evolving Role of Creativity in Brand Management“ aka my Bachelor Paper and Planning Barcamp topic

Posted in academia,Bachelor Thesis,Brands and Business,planning by thomas on the August 25th, 2010

This weekend, I am going to fly up to Hamburg to meet with a bunch of interesting people at the Planning Barcamp, a mini/un-conference around the overarching theme of „Context“. As Michaela asked us to come up with topics, I thought it might be a good idea to suggest the title of my bachelor paper that otherwise nobody else would probably read anyways. So, as a preview of what I am going to talk about on Friday (in a less academic and hopefully more interesting way), here’s the preliminary introduction to my „thesis“:

(Thanks to Christian Riedel, and Michaela for organizing and to the APGD and the Good School for supporting it.)

Creativity is an often used word in the context of marketing communications and brand management. There are magazines named after it, such as Creativity and Creativity Review, there are numerous awards around the globe judging and celebrating it and there is the APG Creative Planning award, which rewards creative strategy in the context of marketing communications and planning.

Creativity, of course is also the selling point of almost every agency or agency-like company trying to make a living in the widening domain of marketing services.

We put the creative function at the top of our priorities.

Creativity Is The Most Powerful Force In Business. […] DDB’s pursues collaborative relationships with clients and partners to find the hidden potential of people, brands and business through creativity.

[Wieden + Kennedy is] an independent, creatively-led communications agency.

We connect ideas and innovation to deliver award-winning results for the world’s leading brands.

We are creative problem-solvers.

We are a creative company with 186 offices and 7000 colleagues united around a single mission: To Resist the Unusual.

Our industry is undergoing radical transformation. To keep pace with the changes being driven by emerging technology, it is vital to focus on collaboration, creativity and organizational flexibility,

MDC Partners fosters the entrepreneurial spirit of our Partner firms by encouraging creativity and autonomy while providing human and financial resources to accelerate growth.

Both independent agencies as well as large established agency networks claim to be at the forefront of creativity. More precisely, as Zurstiege (cf. 2005: 179ff) puts it, what agencies aim to offer and what marketers ask for is effective creativity or creative effectiveness. Therefore, as the relationship between creativity and effectiveness is a regular topic of discussion between advertising agencies and clients, within agencies, the industry press and advertising conferences, there is a stream of research dealing with creativity in the context of advertising. Google Scholar, which searches for scientific literature such as journal articles, displays around 100.000 entries for “advertising AND creativity”. Among the discussed topics are the definition and perception of creativity (D. C West et al. 2008; El-Murad & Douglas C. West 2004; Scott Koslow et al. 2003; White & B. L. Smith 2001), the effect of creativity on advertising effectiveness (Ehrenberg et al. 2002; Arthur J. Kover et al. 1995; Dahlen et al. 2008; Till & Baack 2005), and contextual issues that influence advertising and agency creativity (S. Koslow et al. 2006).

However, while creativity is the focus of awards, agency positioning and industry debates, and while there is work in advertising research towards “a general theory of creativity in advertising” (R. E. Smith & Yang 2004) creativity is generally not dealt with in detail in a broader brand management context (Kotler & Bliemel 2006; Fuchs & Unger 2007; Schweiger & Schrattenecker 2009).

For this reason this paper sets out to critically evaluate the functions and premises of brand management and more specifically what roles “creativity” could play in the ever-more-complex environment companies and brands are embedded in.

This is done by first analyzing the concept of brands and brand management as found in a literature review. In addition, the changing environment companies and brands operate in will be described, followed by implications for and a critique of brand management and research on the topic. Then, different meanings of and perspectives on creativity, both in today’s marketing industry as well as in the broader business context, will be examined. The last chapter will then merge the two streams and draw conclusions from the synthesis of the current state of brand management and a broader meaning of creativity in a commercial context.

(Will update the sources later.)

So much for the introduction. The good thing is, I’m not finished and will therefore have to present half-baked thoughts as discussion material. Of course, I’ll share the thesis here, once it is finished.