branding | Thomas Wagner

2.2 What is a Brand?

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.

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There are a lot of diverging descriptions and definitions of what a brand is (Wood 2000, p.664; De Chernatony & Riley 1998, p.417), with de Chernatony & Riley (1998, p.418) identifying twelve categories of definitions, with brands being a

“[…] i) legal instrument; ii) logo; iii) company; iv) shorthand; v) risk reducer; vi) identity system; vii) image in consumers’ minds; viii) value system; ix) personality; x) relationship; xi) adding value; and xii) evolving entity”.

Among those categories of definitions that cannot be sharply separated from each other, three stand out more prominently. First of all, there is the basic understanding of a brand as a signifier of distinction, “[a] name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers” that is now the standard definition of the American Marketing Association (2010) and e.g. also used by Kotler and Keller (2006, p.274). It was already used by the AMA as early as in 1960 (De Chernatony & Riley 1998, p.419) and is closely related to the legal definition of a brand, which deals with the protection of intellectual property. It derives its relevance from the time when companies started to “brand” their products in the strictest and simplest sense through visual identities (Gries 2006, p.15ff; Tropp 2004, p.23ff).

Another very frequently used perspective to define brands is the one of a brand as an image in consumers’ minds. Practitioners and researchers referred brands as being associations in people’s minds as early as 1955 (De Chernatony & Riley 1998, p.421). While there is no consensus among researchers about the conceptualization of brand image (Louro & Cunha 2001, p.863), Keller (1993, p.3) defined brand image as “perceptions about a brand as reflected by the brand associations held in consumer memory”, with the thought being that the value derived from brands is based on associations built upon “the complete experience that customers have with products” (Keller & Lehmann 2006, p.740).

However, the image perspective has come under harsh critique by another perspective, which lays its focus on brand identity (de Chernatony & Riley 1998, p.420). One of the strongest criticisms of the brand image perspective comes from Kapferer & Gibbs (1992, p.11):

“[A] brand is not a product. It is the product’s essence, its meaning, and its direction, and it defines its identity in time and space. Too often brands are examined through their component parts: the brand name, its logo, design, or packaging, advertising or sponsorship, or image or name recognition, or very recently, in terms of financial brand valuation. Real brand management however, begins much earlier, with a strategy and a consistent integrated vision. Its central concept is brand identity, not brand image.”

Another advocate of the brand identity concept is Aaker who defines brand identity as “a unique set of brand associations that the brand strategist aspires to create or maintain” (Aaker 1995, p.68).

All these definition show a persistent duality in current brand definitions (Tropp 2004, p.55) that also exists in organisational theory (Gioia et al. 2000, p.63). On the one hand there is the brand as an identity and on the other hand there is what is perceived by people. This was already identified as early as 1955 in an often cited article by Gardner & Levy (1999, p.35):

“A brand name is more than the label employed to differentiate among the manufacturers of a product. It is a complex symbol that represents a variety of ideas and attributes. It tells the consumers many things, not only by the way it sounds (and its literal meaning if it has one) but, more important, via the body of associations it has built up and acquired as a public object over a period of time.”

These different definitions of brands and what their function is seen to be is a reflection of the development of diverging brand management paradigms that will be introduced in the following paragraphs.

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Aaker, D.A., 1995. Building Strong Brands Nineth Printing., Free Press.

American Marketing Association, 2010. Dictionary. Available at: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=B [Accessed October 22, 2010].

De Chernatony, L. & Riley, F.D.O., 1998. Defining A“ Brand”: Beyond The Literature With Experts’ Interpretations. Journal of Marketing Management, 14(5), pp.417–443.

Gardner, B.B. & Levy, S.J., 1999. The product and the brand. Brands, consumers, symbols, & research: Sidney J. Levy on marketing, p.131.

Gioia, D.A., Schultz, M. & Corley, K.G., 2000. Organizational identity, image, and adaptive instability. Academy of Management Review, 25(1), pp.63–81.

Gries, R., 2006. Produkte & Politik: zur Kultur- und Politikgeschichte der Produktkommunikation, Facultas Verlag.

Kapferer, J.-N. & Mayring, P., 1992. Strategic brand management, Kogan Page London.

Keller, K.L., 1993. Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), pp.1–22.

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

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

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].

Tropp, J., 2004. Markenmanagement: Der Brand Management Navigator. Markenführung im Kommunikationszeitalter, VS Verlag.

Willman, J., 2000. Leaner, Cleaner and Healthier is the Stated Aim. Financial Times. Available at: http://scholar.google.at/scholar?q=Niall+Fitzgerald%2C+co-chairman+of+Unilever%2C+the+Anglo-Dutch+consumer+products+group%2C+epitomized+this+shift+in+perspective+when+he+stated+%22We%27re+not+a+manufacturing+company+any+more%2C+we%27re+a+brand+marketing+group+that+happens+to+make+some+of+its+products&hl=en&btnG=Search&as_sdt=2001&as_sdtp=on [Accessed January 4, 2011].

Wood, L., 2000. Brands and brand equity: definition and management. Management Decision, 38(9), pp.662–669.

2.1 The Relevance of Brand Management

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.

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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.

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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

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.

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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.

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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.

Master Thesis Topic (update)

After getting a lot of useful comments (thank you!) on my initial brainstorming on possible topics for my master thesis I cut them down to three and handed in a description of three very broad topics, all with some more concrete research questions: (1) ‘Post-Postmodern’ Uses of Brands and Media?, (2) ‘Continuities from Propaganda Theory to Planning:’ and (3) Reception and Usage of ‘Transmedia’ Narratives.

So here’s my translated description of topic (1), that I handed in before leaving and which has got a strong endorsement from the prof while I was in Tanzania.

‘Post-Postmodern’ Uses of Brands and Media?

According to Holt (2002) there are two relevant branding paradigms in the 20th century. The first is called “Modern Branding” and was based on a domineering, cultural engineering approach. It was dominant until the 60s, when the ‘creative revolution’ around people like Bill Bernbach appeared.

Marketers made no pretense about their intentions in these branding efforts. They directed consumers as to how they should live and why their brand should be a central part of this kind of life. Advertisements shared a paternal voice that is particular to this era. By contemporary standards, these ads appear naive and didactic in their approach. This paternalism reveals that, at the time, consumer culture allowed companies to act as cultural authorities. Their advice was not only accepted but sought out. (Holt 2002: 80)

This modell – now being popularized by the TV series Mad Men – was inspired both by Freudian psychoanalysis and the scientific approach to advertising and persuasion at the time, provoked rising resistance in the 60s, with books like The Hidden Persuaders and other critical analysis appearing on bookshelves. With the increasing professionalization of the industry and knowledge about the branding paradigm more and more entering the public sphere, the public opinion was increasingly directed against the supposed manipulation of the individual.

Branding could no longer prescribe tastes in a way that was perceived as domineering. People had to be able to experience consumption as a volitional site of personal development, achievement, and self-creation. Increasingly, they could not tolerate the idea that they were to live in accord with a company-generated template. (Holt 2002: 82)

In reaction to the creative and anti-commercial countercultures of the 60s – and with that at the time when interpretative approaches started to challenge the predominant stimulus response thinking – a new branding paradigm emerged. Holt calls this paradigm “Postmodern Branding”. In a postmodern consumer culture, the role of branding would emerge from the supplier of a cultural blueprint – “How should I live?” – to supposedly authentic, cultural ressources to be used for the identity projects of consumers who strive for independence from paternalistic and authoritarian corporations.

Postmodern consumer culture has adopted a particular notion of authenticity that has proved particularly challenging to marketers. To be authentic, brands must be disinterested; they must be perceived as invented and disseminated by parties without an instrumental economic agenda, by people who are intrinsically motivated by their inherent value. Postmodern consumers perceive modern branding efforts to be inauthentic because they ooze with the commercial intent of their sponsors. (Holt 2002: 84)

To produce these ressources in a distanced and commercially disinterested way, five branding techniques – also made public by Klein 1999 and Frank 1998) have emerged over time: (Holt 2002: 83ff)

Authentic Cultural Resources
Ironic, Reflexive Brand Persona
Coattailing on Cultural Epicenters
Life World Emplacement
Stealth Branding

All of these techniques however, are confronted with substantial contradictions. Ironic distance has been imitated without end and is now outdated, stealth marketing is getting more and more aggressive and reaching its limits, marketers are running out of counterculture content to tap for their campaigns as the authenticity market heats up, consumers are increasingly peeling away the brand veneer and “collectively, postmodern branding floods social life with evangelical calls to pursue personal sovereignty through brands” (ibid.).

For Holt these phenomena (published in 2002 – before ‘social media’ even existed) pointed to an expiration of the postmodern branding paradigm. Whereas brands in the future would still have to offer authentic and relevant resources, authenticity won’t not be conveyed distance the brand from a profit motive, but through a role that Hold calls ‘citizen artist’.

So brands will become another of expressive culture, no different in principle from films or television programs or rock bands (which, in turn, are increasingly treated and perceived as brands). […] Postmodern brands have little value in this new consumer culture. Because they rely so much on the cultural work of disinterested others and work so hard to deny that the brand itself stands for anything by itself (for fear of being tagged as cultural engineers), postmodern brands lack an original point of view that they can claim as their own. Rather than take a free ride on the backs of pop stars, indie films, and social viruses, brands will be valued to the extent that they deliver creatively, similar to other cultural products.

The citizen part on the other hand is concerned with the socially responsable behavior of corporations and their brands, basically answering the question of what is behind the brand veneer.

This topic and Holt’s only superficially covered hypotheses give rise to a lot of questions that might be covered in a master thesis. (Not all in one of course …)

What – to people – is authenticity in advertising and marketing communication? How is it operationalized? What are expectations?
How does authenticity translate in regards to aesthetics – from user-generated content to brands using a documentary style?
How does the use of digital, social networks (‘social media’) have affect the ‘corporate cool machine’ as described by Holt in the postmodern branding paradigm. Is his hypothesis regarding brands being used in the role of citizen artists true? Or, more concrete: which range of uses of original, authentic and creative brand content can be shown? And in regards to the ‘citizen’ part of the hypothesis: do people really look behind the brand veneer and if so, how?

Frank, T., 1998. The Conquest of Cool: Business Culture, Counterculture, and the Rise of Hip Consumerism, University of Chicago Press.

Holt, D.B., 2002. Why do brands cause trouble? A dialectical theory of consumer culture and branding. Journal of Consumer Research, 29(1), S.70–90.

Klein, N., 1999. No Logo: no space, no choice, no jobs ; taking aim at the brand bullies, New York, NY: Picador.

Mad Men – AMC. Mad Men. Available at: http://www.amctv.com/originals/madmen/

12 Brand Definition Themes Identified (by others)

As a result of the content analysis of this literature, we identified twelve main themes which we thought were an accurate categorisation of the broad range of definitions of the “brand” in the literature, i.e. as: i) legal instrument; ii) logo; iii) company; iv) shorthand; v) risk reducer; vi) identity system; vii) image in consumers’ minds; viii) value system; ix) personality; x) relationship; xi) adding value; and xii) evolving entity. The categorisation into the twelve themes was fairly straightforward, since most authors used buzz words such as “personality” or “relationship” either in the definitions themselves, or in the discussion of their view of the brand. As we discuss in more detail in below, there is some overlap among the elements of different definitions, which are therefore not mutually exclusive. However, the twelve themes represent a categorisation of the most important propositions in the branding literature.

This is a quote from de Chernatony, L. & Riley, F.D., 1998. Defining A “Brand”: Beyond The Literature With Experts’ Interpretations. Journal of Marketing Management, 14(4/5), 417-443.

I think it’s valuable to read this kind of stuff and deal a fair share of time with what could be denounced as a pure semantic, abstract and theorectical exercise. Why? Because it could eventually help me to understand the perspective a client, partner, team or boss has on the topic, which in turn allows me to reach a goal easier just by making my thinking – or its packaging – more compatible with the associations people already formed. (That, and finishing my bachelor thesis …)

A sign showing how subjective our business is (as Russell Davies has pointed out before)? Rubbish and useless academia?