M a s t e r T h e s i s – P e r s u a s i v e C o m m u n i c a t i o n
Are brand managers losing their
power?
A qualitative study on brand management practices and changes within these
Abstract
Brand management has definitely involved and changed over the last few years because of it’s complex and challenging environment. This study presents an exploration of how brand management practices have changed as a result of the shift in power balance between consumer and brand from the unique perspective of brand management practitioners. Through a series of semi-structured interviews, the study looks into the current changes in brand management practices as well as into the practitioners’ perspective on the power shift between consumers and brands. It shows that although brand management tasks and
environment (media and brand touchpoints) have changed in a number of ways, the goals of brand management and the core responsibilities of brand managers remain the same. Brand management practitioners recognize that consumers nowadays have more influence and power than before because of the Internet and online influences, but it depends on certain factors (type of product, social media strategy) whether the brand or consumer is in total control.
Keywords: brand management practices, changes in brand management, consumer empowerment, power balance, brand managers.
Introduction
The article called: ‘A Brand Manager's Guide To Losing Control’ clearly states that brand managers have lost the power to control the perception of their products (Nobel, 2014). According to Nobel, consumers are in command these days because of Social Media. With new social technologies as blogs and reviews like Trip Advisor, social media sites like Facebook, Twitter, Instagram and user-generated content sites like YouTube, customers are now connecting across the web and empowering one another (De Vries and Carlson, 2014).
In a similar vein, Fournier & Avery (2011) advise brand managers to cede at least some of the control of their brands to consumers. Since consumers nowadays are not only discussing and disseminating branded content, but are also creating it, brand management needs another mindset. This new mindset is called ‘open source branding’, which takes place when a brand becomes part of the cultural conversation online and consumers have a say in what the brand looks like and how it behaves.
There is no doubt that because of all these changes, brand management in the social-media era needs a different approach. For example, in the beginning of Web 2.0, brand managers were replicating offline marketing efforts on the Internet such as the use of one-sided communication models. However, brand managers soon realized that only sending out information to their consumers was unsuitable for the dynamic interaction that the Internet provides. Today, the technological and information asymmetry between consumers and brands, that used to work in favor of brands, has been reversed. Consumers are now more empowered than ever because of the online influences and the shift in power has gone from brand to consumer (Labrecque et al, 2011; Gensler et al., 2013).
However, whether brand management practices have actually changed because of these online influences and shift in power balance between consumers and brand remains unclear. Most research has focused on how brand management should change, or how
consumers are more empowered because of online influences, but how do brand management practitioners experience all of this? To the best of my knowledge, there has not been any research thus far into seeing how brand managers portray this shift in power towards
consumers and how they feel this is affecting their job. Therefore the research question is as follows:
How do brand managers experience the effect of the shift in power balance between consumers and brand and how has this changed brand management practices?
Theoretical Framework
Brand management practices
Brand management has been evolving ever since ‘the first large wave of successfully, nationally branded consumer products’ was created from about 1870 until the early 1900s (Low & Fullerton, 1994, p.175). Procter & Gamble was one of the early organizational
pioneers of professional marketing departments, who established the brand manager prototype (Howley, 1988) in 1931, because Neil McElroy believed that each P&G brand should have its own managers dedicated to the advertising and other marketing related activities for the brand.
As Low and Fullerton (1994) state: ‘‘ the brand manager system was finally born’’ (p.184). However, it took a while until other companies started adopting the brand
management system. Even though the brand manager idea was a part of the revolution in marketing, the brand manager system was mostly directed with haste and with unrealistic expectations of its output (Low & Fullerton, 1994). By the mid-1970’s there were a lot of variations in the brand manager system across companies and approved to be adaptable to changing environmental conditions over time, Low and Fullerton (1994) end their article by questioning the future of brand management since it ‘has been and will continue to be
influenced heavily by changes in overall managerial styles and organization design’ (p.184).
Development of the Brand Management System
Most research from the area of the Brand Management System (hereby referred to as BMS) has originated from the system developed by Procter & Gamble in the 1930s, which is mentioned in the previous section. A BMS has been proposed a key factor within
organizations and is defined as a ‘‘set of any systems, organizational structure, or culture of a firm supporting brand building activities” (Santos-Vijande et al., 2013, p. 148; Lee et al.,
2008, p.849). Santos-Vijande et al. (2013) conceptualize the BMS as consisting of three dimensions: brand-orientation, internal branding, and the strategic brand management of the brand activities. Brand orientation is concerned with the degree of recognition that brands receive within organizations and internal branding can be seen as the process of aligning employees’ behavior with a brand’s identity (Santos-Vijande et al., 2013; Vallaster and de Chernatony 2006). Strategic management of the brand activities will be discussed more in detail in the next section, since Keller (2008) mentions four activities that may fall under the responsibilities of brand management.
Responsibilities of brand management
Brand management is defined as “the process of maintaining, improving, and upholding a brand so that the name is associated with positive results” (BusinessDictionairy.com, 2016). Brand managers are seen as central coordinators of all marketing activities for their brand and have multiple responsibilities, depending on how the brand is perceived, the nature of the brand-consumer exchange and how brand equity is created and managed (Heding, Knudtzen and Bjerre, 2009). Keller (2008, p. 58-60) regards the strategic brand management as a process that evolves around four activities. First, identification and establishment of brand positioning, which means having ‘a clear understanding of what the brand is to represent and how it should be positioned with respect to competitors’ (p.58). Second, planning and
implementation of marketing programs, which is a knowledge-building process that aims to increase associations to a brand and customers’ awareness. Third, interpretation of brand performance, which is vital in the evaluation of current status and market performance of the brand. Lastly, growing and sustaining brand equity, which means brand managers have the responsibility to define the brand strategy and mange brand equity.
Besides the amount of responsibility and activities the brand manager has to deal with, it is important to note that the definition of brand management may vary according to the size of the company, type of brand or target audience (Hirvonen et al. 2013). Louro and Cunha (2001) also mention how ‘‘this diversity significantly magnifies the fields’ complexity’’ (p.850). The challenge of coherently describing brand management is visible in the literature on brand management practices. Therefore in this study brand management practices will be based on a variety of companies and showed from the perspective of multiple practitioners in brand management.
Difference between product and service brands
Since multiple authors state that service brands require a more strong emphasis on brand culture and so called employee branding (Punjaisri et al., 2009; de Chernatony & Cottam, 2008), a difference will be made between several product and service brands in this research. Dall'Olmo Riley and de Chernatony (2000) see ‘‘service brands’ executional strategies differing from those of goods because of their intangibility, heterogeneity, and simultaneous production and consumption ’’ (p.145). In many cases service brands are perceived to be the focus and the inspiration for relationship building both outside and inside the organization. Building a close relationship with consumers in service brands is mostly via interaction with the employees, and therefore internal branding is even more important in service brands (Sirianni et al., 2013). As literature identifies differences between service and product brands, the changes in brand management will be studied via brand managers of service and product brands in practice. Since the onine influences on brand management are changing the power balance between consumer and brand (Fournier & Avery, 2011), it is interesting to see whether this also has a different impact on service and product brands.
Shift in power balance between consumer and brand and its consequences for brands and brand management
Companies and brands are used to being in control (Shao, Jones and Grace, 2015). They typically base their marketing messages on their own view of what consumers want. The company is the one who designs the products or service, but makes sure to have a ‘customer-centric’ approach. This approach mostly has meant conducting research on consumers’ needs and test new products and services (Bernoff & Li, 2008). The traditional brand manager wanted to control everything about his brand (Mitchell, 2001) and had a product and firm-centric perspective that saw consumers as simply passive recipients of brand value (Prahalad and Ramaswamy, 2004). Because of the technological and informational asymmetry, brands naturally had more power over the brand in the past, but digital technology, particularly the Internet, has been described as an enabler of equal access to information (Pires, Stanton and Rita, 2006), which has naturally empowered consumers.
Consumer empowerment
Labrecque et al. (2013) have defined consumer power in internet and digital media environments in their study as follows: ‘‘ With the introduction of the World Wide Web, ordinary consumers gained access to vast amounts of information and developed
opportunities to influence their own lives, in the marketplace and beyond ’’ (p.258). They present four distinct sources of consumer power: demand-, information-, network-, and crowd-based power. Though, it should be mentioned that demand-based power existed before the Internet. The impact of consumption and purchase behavior has increased with Internet and social media technologies, but the consumer has always had its power in buying or boycotting a brand (Zureik and Mowshowitz 2005). Information-based power has reduced the information asymmetry earlier mentioned, through the easier access to product or service
information online and content consumption. Network-based power derives from the
importance of social networks, which allow activities such as sharing and organizing content through networks (Labrecque et al., 2013). Lastly, crowd-based power ‘‘resides in the ability to pool, mobilize, and structure resources in ways that benefit both individuals and the groups.’’ (Labrecque et al., 2013, p.264).
Literature on consumer empowerment and brand management in the digital age has mentioned the Internet as the main enabler for the power shift from brand manager to
consumer (Pires, Stanton and Rita, 2006; Gensler et al., 2013) The social media landscape of connectivity has allowed consumers to create content and amplify their voices anywhere and anytime (Kohli, Suri and Kapoor, 2015).
Consumers exercising their power
People are uniting on the Internet and using technology to get the things they need from each other, rather than from a company. Sharing-economy startups such as AirBnB and Uber are an example of how consumers can replace company’s, for example a travel agency or a taxi service, as consumers can be the provider as well. Thanks to the power of their platform dynamics and network effects, these peer-to-peer networks can grow exponentially and, just like social media, bring people even closer together (Cusumano, 2014). As a consequence, this development in the world of marketing and consumer is now tilting the balance of power from company to consumer (Moynagh &Worsley, 2002).
Examples of companies losing their power because of the Internet keep rising. Brands have been influenced or even attacked by websites or social media posts, which they have absolutely no control over. One response or negative comment from a customer can go viral and, depending on the way the company responds, it can really backfire against the brand (Jevons, Gabbott and de Chernatony, 2005).
Co-creation
It can be questioned whether there is an actual power shift from brands to consumer or that consumers are simply co-creating (Muniz & Schau, 2011; Merz, He & Vargo 2009). Co-creation is about joint Co-creation of value by the company and the consumer (Prahalad & Ramaswamy, 2004). Since individuals seek greater engagement with their brands and want involvement in creating brand personalities (Parent, Plangger & Bal, 2011), it is important for companies to find new ways of interacting, engaging in conversations and co-creating. As Zinnbauer and Honer (2011) state in their research: ‘‘ Today, one of a brand’s most important strengths is its “social currency”, which we define as the extent to which people share the brand or information about the brand with others as part of their everyday social lives’’ (p. 51). They mention that social currency can be managed, and customers or consumers are not solely in charge. Companies can try to stimulate the creation of social currency by strengthening their consumer interaction and adding value to the community.
Fournier and Avery (2011) also discuss the power shift from marketers to consumers in their paper ‘The uninvited brand’. According to the authors, the brand must relinquish some control in order to gain coveted resonance. Brand Managers themselves have not yet discussed this shift in power in any research thus far, and therefore it is interesting to see how they actually see this in practice. Do Brand Managers also feel as if they need to relinquish some control? It is safe to say that there are a lot of challenges and opportunities facing brand management nowadays. Therefore this study will mainly focus on how brand management practices have changed in response to the shift in power balance.
How do brand management practices and goals change?
As Fournier & Avery (2011) state: ‘‘We’ve moved from a world where the brand sets the agenda, to a world where consumers decide if – and when – brands are invited in. ’’ (p.14). Some authors argue that one of the biggest changes in brand management is the shift in the role of the brand as a provider of concrete brand messages towards brand co-creation together with consumers (Fournier & Avery, 2011; Merz et al., 2009; Klaus & Maklan, 2007).
How branding is changing
Besides co-creation and the loss of control, Jones (2012) talks about five ways branding is changing. The first one is from persuasion to platform, which is the shift that is being observed as a result of the changing consumer. Consumers nowadays have become more critical, are less easy to persuade and better informed. Therefore brands are acting more as platforms, than as persuaders. If you take a look at one of the biggest twenty-first century brands, for example: Google, eBay and Amazon, they simply earn support from consumers by being useful. The second one is from positioning to purpose. This shows that companies need to think about the purpose of their brand, which is vision, beliefs and personality (Jowitt & Lury, 2012). Proposition, which is one of the biggest tools of persuasion, still is important but has a more secondary role nowadays. The third one is from consistency to experimentation, which is also the most visible change. Brands are not as concerned anymore about varying their visual identities or rolling out a formula, and see themselves as continuously changing things rather than permanent items. The other two: from control to liberation and from ownership to boundarylessness, have been mentioned before in this literature review.
How brand managers should respond to the changes
A lot of authors mention how brand managers should respond to this shift in power balance between consumer and brand (Potts et al., 2008; Singh & Sonnenburg, 2012). For example, by giving the advise of how brand management needs to integrate social media strategically, since it is argued that social media tools are very effective in two important management requirements: brand extension and brand reputation (Schlinke and Crain, 2013). Other authors discuss how social media enables organizations to create more dialogue and transparency (Potts et al., 2008) with their consumers.
Current study
From brand management theories it is certain that brand management should change, but whether brand management actually has changed in practice, remains unclear. Even though it seems as if the brand manager is losing its control (Iglesias and Bonet, 2012) from the
outside, this should be looked at from a brand managers’ perspective. Most literature until now has focused on the consumer experience, but how do brand managers experience these changes? There hasn’t been any research specifically focusing on the subjective experience of the brand manager. Therefore this current research will focus on how the shift in power and online influences have changed brand management practices, and how practitioners within brand management personally feel about this.
Research Method
Study Design
This study’s objective is to gain a deeper understanding of brand management practices and, specifically, how these have changed as a result of the shift in power balance between consumer and brand initiated by the advent of social media. The nature of the research question and the objective of this research require a qualitative study design (Glaser and Strauss, 1967) as there is a need for exploring the changes within brand management practices from the perspective of practitioners. Therefore in-depth, semi-structured interviews were constructed with brand managers of several product and service brands in product in the Netherlands. A semi-structured interview is chosen for this study because it allows the practitioners to freely discuss the themes and give their expertise without leading them towards a desired answer (Bryman, 2008), which is important as the objective is to gain a deeper understanding in the changes of brand management from the perspective of brand managers in practice.
Sample
Purposeful sampling was conducted for the selection of participants, as it is a technique mostly used in qualitative research “to interview informants with a broad general knowledge of the topic or those who have undergone the experience and whose experience is considered typical” (Morse, 1991, p.129). Thus, respondents were specifically approached based on their assumed knowledge and expertise in brand management and availability at the time of data gathering. Decisions regarding further sampling were made based on whether the participants managed a service or a product brand. To have both type of brands represented equally, an equal amount of practitioners working at a service-based company or a product-based company were selected. Under service brands, companies as insurances, a bank, a telephone
company or a travel agency were understood. Product brands could vary from biscuits and other products from multinational manufacturers, a famous drink, magazines or fashion items.
The practitioners were selected and recruited through the researcher’s personal network via email or telephone, and through LinkedIn, one of the largest professional networks in the world. The researcher also posted a status on Facebook and LinkedIn, with the question if brand managers would have the time and interest for an interview on brand management practices and the changes within brand management practices, and multiple practitioners responded to this. The question was quickly shared on LinkedIn by brand managers, which expanded the network of people working within brand management and enables the selection of highly skilled and knowledgeable practitioners thanks to the online resume on the LinkedIn page of the person concerned.
LinkedIn requests were then sent to experienced practitioners of highly recognized brands (brand that exist for at least five years minimum, so they have the possibility of noticing any changes within brand management over the last few years) with the question if they would be interested in an interview about brand management practices. Participants that agreed to be interviewed were informed about the interview’s purpose, how long it would last approximately, and that anonymity and confidentiality (i.e. the name of the respondent, their employer’s name, and the name of the brands they worked for) were guaranteed. All
participants were thanked for their participation with the ‘best cookies of Amsterdam’, which beforehand was mentioned in the e-mail or message in an informal and humorous way as a ‘thank-you gift’ for their time and effort.
Eventually, thirteen qualitative interviews were carried out with highly experienced Dutch brand management practitioners, seven of whom managed product brands, and six of whom managed service brands. All participants were responsible for managing the brand and were experienced in brand management practices. Whether their job title was ‘marketing
manager’, ‘brand manager’, ‘marketing director’, or even ‘owner and founder of the product’, they all owned full responsibility over the brand. Age and gender did not matter in selecting the participants, as interviewees were solely selected based on the position that they occupied, their experience in brand management, and the type of company they worked for (service versus product). Appendix 2 indicates the function and type of brand per respondent.
Interview guide and procedure
The interview guide (Appendix 3) contained nine questions, which were all rooted in the sensitizing concepts. For example, one question was: ‘how have these developments or influences changed brand management goals and practices?’. This question is rooted in the sensitizing concept ‘changes within brand management practices’.
Each interview was divided into three main parts that served more as discussion topics, rather than direct questions. In the first part questions about brand management practices in general were asked. The aim here was to get an insight in brand management practices, let them freely talk about their daily work and what they consider as tasks and goals of brand management.
The second part, the shift in power balance between consumer and brand, was tackled by the interviewer by subtly leading the discussion towards a statement about consumers exceeding more power nowadays because of online, giving examples of social media or reviews. The respondents would then share their experience and opinion on this.
The third and last part included questions about changes in brand management practices and goals. By referring to the previous parts in the interview and summarizing what is said, a follow-up question would be: ‘how have these developments or influences changed brand management goals and practices?’. The aim for this last part was an insight into feelings, experiences and opinions regarding the changes in brand management. The very last question of the interview was about the differences between product and service brands in
brand management and the respondents could share their opinion on this shortly, since this was not the main focus for the research. Each discussion started with an introduction and initial question, followed by additional questions to reveal perspectives and practices of practitioners within brand management.
The interviews were conducted by the researcher and took place in the working environment of the participant at a time of their choice. The interviews were conducted between the 25th of March 2016 and the 11th of May 2016. All interviews were held in Dutch and audio recorded with permission of the participant. The duration of the interviews lasted between 45 and 90 minutes in average and had a confidential and friendly atmosphere. The interviewer was very clear about the scope of the study and would make field notes on a notepad only to be able to refer to some important quotations of the interviewee.
Trustworthiness and authenticity
The standards for a qualitative study are framed in conventional terms such as: “internal validity (isomorphism of findings with reality), external validity (generalizability), reliability (in the sense of stability), and objectivity (distanced and neutral observer)” (Guba & Lincoln, 1994, p.114). This study recognizes the importance of these scientific research criteria and has made sure these criteria were met within the research. For instance, the sample of participants, working in thirteen totally different brands in the Netherlands, was selected to ensure
variation of opinions.
All materials involved in this study, such as field notes, recordings and transcript have been kept in order to ensure dependability and conformability. Also materials prior to the study, such as reading notes, e-mail and LinkedIn communications with the potential respondents are saved, which adds to the external validity of this study. Confident
information, such as respondents’ names, name of the brand, name of the company or whatever the respondent might regard as commercially confident has been anonymized.
Internal validity is ensured by respondent validation, which was done at the end of every part of the interview. The interviewer would sum up the answers and ensure credibility by asking respondents if they had summed up their thoughts correctly. In addition, for the reliability of codings and pattern analyses, all documents related to data analysis are saved in order to prove the findings in this study.
Data analysis
The interviews were recorded and transcribed verbatim by the researcher, using Wreally’s Transcribe software. The transcriptions were further analyzed with Atlas.Ti, a program to code qualitative data. The analysis followed the open-axial-selective coding of grounded theory (Strauss & Corbin, 1998). Further guidelines for the analysis were derived from methodological literature on qualitative data analysis (Dey, 1993; Flick et al., 2007). The three sensitizing concepts played an essential role in the analysis, but without limiting the exploration. Open coding identified 188 quotations and a total of 1057 open codes. Through axial coding the open codes were merged into 7 main categories, most relevant to the sensitizing concepts and research aim of this study. Through selective coding a total of 25 subcategories emerged, which are all themes drawn from the 7 main categories. The concept-indicator model was developed on the basis of these groups, which can be found in Appendix 1.
Results
In this following section the results that emerged from the analysis of the data are presented. Their presentation is structured according to the relations between the sensitizing concepts. The main categories and sub-categories are presented under each relevant sensitizing concept: brand management practices, shift in power balance and changes in brand management practices. A graphical representation of these findings is displayed in the concept-indicator model, which can be found in Appendix 2.
Brand Management Practices
Interviewees have been asked what their perspective is on brand management practices. Results include what they consider important within brand management, what goals and tasks are or other responsibilities they might have as a brand manager. Since this study includes multiple practitioners of product and service brands, all interviewees have been asked whether they find any differences within brand management of these two different type of brands. Thus, the main categories that followed from the data are: responsibilities and differences between product and service brands.
Responsibilities
The first theme underlying current brand management practices is what interviewees see as their main responsibilities within brand management. This involves their daily work, their own perspective of what brand management is and their goals as a brand manager. Several interviewees see their work as multidisciplinary and mention the large amount of
responsibilities they have. The brand manager of product #4 states, ‘‘ I think that the brand manager eventually is responsible for the overall success of his brand, in the country or geography where he is responsible’’. What eventually leads to a successful brand is also a part of the goals. Therefore interviewees mention not only the success of a brand, but also making a brand stronger, finding credibility and multiple other goals. The interviewees’
responses regarding their responsibilities can be categorized as: ‘ brand management goals’ and ‘brand management tasks’.
Brand management goals
Since the brand manager is responsible for so many things at the same time, the interviewees also mention the multiple goals they want and have to achieve within their work. This varies from bringing the right message across to making sure there is a return on investment for your marketing activities. Goals such as making the brand strong and relevant, with a clear link to sales are mentioned, but it is also crucial to be aware of your identity as a brand, and your vision and mission. Several interviewees consider it as important to guard this:
‘‘ You have to think: ok, this is something that matches who we are, where we come from and this is something we want to build’’ (head of brands, product #3). Another owner of a
product thinks this coincides with credibility, which he sees as the most important for a brand:
‘‘I think that’s the most important thing for a brand, to find that credibility. And then you will sell, or you won’t. At least, once they believe it, they will consume it’’ (Owner, product #5).
Some interviewees also mention their target group and see this as very important, for example the Net Promoter Score, which keeps track of the customers’ experience with the brand. The marketing director of product #7 states as follows:
‘‘So brand awareness is very important…ehm...awareness is one of the most important drivers. NPS we’re controlling more and more, so the satisfaction a customer has with our products or services’’.
The brand manager of product #1 states that nowadays within brand management the goals are changing, also according to the book ‘How Brands Grow’ by Byron Sharp and the famous Kantar Worldpanel, which she mentions in her response. She mentions how in the years before, very often there was a switch between penetration, frequency and loyalty as the goals of a brand manager. However in the current brand management practices, she sees this new development of ‘penetration’ as the main goal, which she explains as: ‘‘repeatedly recruit people in your category, or even better in your brand’’ (brand manager, product #1). So therefore, also her goal as a brand manager is: ‘‘to make sure that as many people as possible buy my brand and are also pleased with it as well’’.
Brand management tasks
Most brand managers called themselves ‘a spider in the web’, or a key figure where
everything revolves around. Because of their multiple responsibilities and their central role within the organization, multiple interviewees see their work as multidisciplinary. From strategy and positioning to activations and campaigns, the brand manager is responsible for it all. Therefore the tasks of a brand manager are very broad, as the brand manager of product #4 also explains:
‘And a good brand manager is very good at keeping several balls in the air. Because on side you have to approve your media-plan, you have to take a look at this copy, you have to make sure your PR-plan will be fine, you have to make sure that he goes to work, you have to arrange that banner is done online so….’.
Other interviewees also state that you have to work a lot together with external parties or media agencies and have to keep track of everything to make sure it happens on time.
Working together with other disciplines is not only external, but also within the company it is important for a brand manager to be connected with other departments such as sales or market research. The head of brands of product #3 mentions how this multiplies the tasks of a brand manager:
‘‘ So for me it’s also important that I keep track of that, that I know what’s going on. That I meet with my sales-colleagues about their campaigns, that it fits well with what we are doing. So it’s not only doing tasks from your own discipline, but also making sure that the entire company contributes to this, that the brand becomes stronger and that we’re doing things with the right image, the right tone of voice ’’
These quotes demonstrate the importance of brand management within the organization, but also how broad the responsibilities of a brand manager are.
Difference between product and service brands
According to theory there are crucial differences in brand management between product and service brands, which is important as it may also lead to different results regarding the changes within brand management. Whether practitioners also notice a difference between product and service brands differs per brand manager interviewed in this research. Some brand managers honestly say, for example the brand managers of product #4, that they don’t have any experience in service brands, and therefore find it hard to give their perspective on this subject. Others, mostly the brand managers of a service brand, clearly state that service and product brands are totally different. However, some interviewees think that brand management is always the same, no matter what type of brand you are managing. Therefore
the responses fall into two different categories: ‘Product and service brands are different, and ‘ No differences between products and service brands’.
Product and service brands are different
Almost all brand managers of a service brand that were interviewed in this research, say that brand management is really different with a service brand than a product brand. A reason that was mentioned several times during the interviews was that a product brand is tangible and it is easier to show that as a brand. As the marketing manager of service #6 states:
‘‘ So ehm, yeah the advise that you gave me, now I know exactly what to do, and I have to pay for it, but it’s gone, at one certain moment, that advice. But the car you bought, or that can of (…)…you know, you feel it, you see it, you can use it.’’
He explains how this makes brand management more difficult for a service, since a service is intangible. Therefore the perception of consumers with a service is simply different. They are quickly to judge a service brand, or complain faster than they would with a product brand, according to the brand manager of service #1. The brand manager of service #3 even states that a service brand is always 2-0 behind. According to this brand manager, consumers are still not completely used to pay for certain services. She explains why brand management in service is more of a challenge:
‘‘Ehm, what our brand has to deal with and I think it’s the same in this whole
category…when you will talk with other services or providers, it’s always that way. People only think of us when it’s not going well. People won’t call us to say: ‘well my range is so good again, thanks’! You also don’t call up an energy provider to say: ‘well the light is
shining as never before!’ You call up when it’s not working and than you’re angry immediately’’
When it comes to brand management practices, the brand manager of service #5, states that a brand manager of a service brand has a totally different position within the organization than a brand manager of a product brand. The responsibilities also differ:
‘And with a service brand, the role I had was for example also very different. I’ve been in very different places within in the organization. I was working in marketing, in corporate communication, I was working directly for the managing board…. because what you see with service brands, and definitely with an insurance company, is that your brand is not only that little sticker. An insurance…you can’t feel, taste or smell that before you buy it. So the brand is maybe even more important there, and also to realize it. And the moment of realization is actually more within your employees’ (brand manager, service #5).
Therefore brand management practices in services is different, as one of the main tasks of the brand manager of a service brand is ‘employee branding’, none of the brand managers of a product brand have mentioned this as one of their tasks.
No differences between products and service brands.
However, some practitioners, mostly brand managers from product, say that there is a thin line between brand management practices in product and service brands. They don’t see that much of a difference, and think that in essence brand management is the same for both types of brands. The marketing manager of product #6 thinks that ‘the focus may be different, for
example more on customer communication or webcare, but to establish your brand, you’re actually in the same market and have to take into account the same market’.
The owner of product #4 also thinks there is no difference:
‘Well, it’s just the approach. It’s, no I think that, in essence, a brand manager needs to do the same everywhere. And a brand manager, the word says it all. Managing a brand, so…ehm, no I think it’s the same.’ (Owner, product #4)
Shift in power balance
Besides the perspective on brand management practices and the difference between product and service brands, brand managers have also been asked whether they agree with the so-called ‘shift in power balance from brands to consumer’. As the literature mentions,
consumer empowerment has become huge with the Internet as the enabler and brands should relinquish control. Whether brand managers in practice also recognize this online influence or shift in power balance is demonstrated in this second theme. The main categories that
followed from the data are: online influence and power balance.
Online influence
According to theory, the growing online influence has become a major concern within brand management. Several practitioners are very aware of the online influence and share a lot of examples of viral campaigns or new ways of interacting with consumers thanks to social media. The brand manager of product #1 also mentions how online has become an important factor: ‘‘…. because online has become really huge. And online is now bigger than everybody
had thought 10 years ago’’. Online has thus become an important factor within brand
management and is also the main enabler for the shift in power balance, as it has led to an increase in consumer knowledge, faster spreading of the news, more dialogue between brand and consumer and more interaction. Therefore the responses regarding online influence fall into four subcategories: ‘increased consumer knowledge’, ‘pace of the internet and social media’, ‘from monologue to dialogue’ and ‘increased interaction with consumers’.
Increased consumer knowledge
As literature has mentioned as well, consumer knowledge has increased because of the easier access to information. According to several interviewees, consumers have become smarter and do not unquestionably accept information that soon anymore since everything has become more transparent because of the online influences as well: ‘‘I think consumers have
become more conscious…a lot more critical…everything is more transparent, so as a brand you need to have a credible story’’ (head of brands, product #3). Also, consumer have
become used to all these different messages from brands and advertising. Thus consumers have also grown into this, and will recognize a persuasive story or message more easily. As the head of brands of product #3 also mentions:
‘‘consumers have of course become more articulate and a bit more media-savvy, so they understand how the world works. So you can’t really fool them anymore ’’.
The brand manager of product #1 also talks about the way consumers have faster access to information due to the Internet and therefore have become wiser as well:
Well, consumers are certainly becoming smarter; it’s all easier to look up things. So it’s not only easier to share things, but they also just know more. Because if you think, wait a minute, I see a discussion about margarine versus butter, I’m going to look it up. And you
immediately know every little detail about it’ (brand manager, product #1).
These quotes demonstrate how the Internet has enabled consumers to become more
knowledgeable and thus more empowered as they have equal access to information and do not unquestionably accept information from brands anymore.
Pace of the Internet and social media
The speed in which information spreads by cause of the Internet also is a part of the online influence. Interviewees express their opinions on the rapidness of online and especially social media. They state that everything expands faster, especially news or a scandal. They give their own examples of viral campaigns or moments where things got out of hand on social media. The marketing manager of service #2 illustrates a case of 2 years ago, when the Facebook page of one of the biggest fairs in the Netherlands completely was covered with jokes and comments of youngsters within no time:
‘‘Well that got huge, I remember very well that I was in Utrecht at the Musical Awards and my phone just kept on buzzing and buzzing, so at one certain moment I thought, I have to see what’s going on. At that moment I saw that the whole Facebook page of [biggest one-week fair in the Netherlands] was flooded with, on one side, complaints and on the other side jokes of youngsters. (…) And ehm, it was very quickly picked up by the media. I think that in that very same evening I’ve spoken to radio 538 and ehm…3FM’’.
This was an example where the marketing manager states that they quickly had control over again, but it does show how fast something like this can go. Also traditional media can pick up news or messages that go viral, which makes it spread even faster. The marketing director of product #7 explains this as follows:
‘‘ The speed in which a consumers’ reaction doubles itself is huge, and what you see then is that if a consumers’ reaction is numerous enough, it will be picked up by traditional media again. So before you know it, you can be on NU.nl [a news site] within a few hours and then get traditional media like TV-shows etcetera in your office’’.
From monologue to dialogue
Several interviewees mentioned how online influence has made it possible to go ‘from monologue to dialogue’. When they further explained this, it was meant that brands could no longer just send out information, or send communication. Brand managers are not the only ones sending out information and communication anymore, as the internet and social media has made it possible for brands to engage in an actual conversation with their consumers. Consumers are expressing their opinions, asking questions or complaining about brands online and especially on social media. Therefore brands must enter into dialogue with their consumers and do this mostly via webcare: ‘ ‘ We have 24/7 webcare. So you can send a
Whatsapp or a tweet or whatever on Sunday-night at 4AM and you will get a response’’
(marketing manager, service #6). The brand manager of service #5 mentions how brand managers have another tool to engage in conversation, which leads to ‘‘more and more individual dialogues’’. The marketing manager of service #6 also mentions how the online influence has led to seeing consumers less in real life, but still need to engage in that conversation online:
‘‘ You want to know your customer, to serve them as well as possible, but if you do not speak to them any more, you have to enter into a dialogue in a different way with each other. So you're going to respond to customers much more, based on the data you have’’ (Marketing manager, service #6).
These quotes demonstrate how business to consumer-communication works nowadays, that brand managers have to engage in conversation with their consumers because the Internet has enabled consumers to talk back to brands and express their opinion.
Increased interaction between consumers
Furthermore in relation to online influence is the increased interaction among consumers. Interviewees mention how ‘‘ the world has become enormously interactive’’ (brand manager, product #1). Consumers can choose where and when they want to receive information or for example watch their favourite TV-show at their own time. On the other hand brands can also hitch in on important moments in the life of a consumers or play along with the news, which gives consumers the feeling that a brand is ‘alive’. This increased interaction mostly
manifests on social media. Almost all interviewees mention that their brands have their own Facebook, Instagram and Twitter pages. Snapchat was also mentioned a few times. Brand managers say that their consumers are very ‘engaging’ on their social media pages, thus interact with each other and with the brand as well. For example the marketing manager of service #6, explains how a lot of consumers were interacting with each other on the social media page of on of their new TV-shows and complaining on how they didn’t like it, which made the brand respond to this interaction:
‘That programme had it’s own Facebook page, so people would say…we think that…lot’s of comments, also on Twitter, lots of comments. And then, well the channel manager always also looks at what’s happening on social. (…) Then we took out a commercial and also looked at the editing. So that was also seen by them and they were like ‘oh, how cool that you listened, and it looks really good’, so yeah that’s the way we look at the comments of our Facebook followers.’ (Marketing manager, service #6)
Consumers are interacting with each other and forcing powers, as the brand manager of service #5 states:
‘‘people have the feeling that they can, anywhere and anytime, have their own opinion and are allowed to share their opinion, especially with each other. And that’s an important one, people are searching each other up and using each other for that as well’’
These quotes demonstrate how the increased interaction between consumers also portrays the empowerment of the consumer, since consumers have found each other on the Internet and social media and can publicly combine their forces to have a bigger influence on the brand together.
Power balance
According to theory these online influences have led to a shift in power balance from consumer to brand. Brands are aware of the power consumers can have:
‘‘Consumers are powerful. Of course they are powerful! Because once consumers stop buying you, it has a lot of influence on a company. So they have a lot of power, they have always had it’’ (Head of brands, product #3)
Whether the interviewees actually feel as the consumer is more powerful than the brand depends on certain factors. Some agree on the fact that things might have changed, but believe the power always lies in the hand of the brand. Others mention how consumers nowadays have full control over the brand. Therefore the responses power balance fall into three categories: ‘brands remain in power’, ‘consumers are in power’ and ‘power balance depends on certain factors’.
Brands remain in power
Some interviewees clearly say that they think the power is always in the hands of the brand, despite the changes online may has brought within brand management practices. Consumers don’t have that much of an influence in their opinion, as they decide their own brand strategy and when consumers try to gain any power or influence, the brand should always make sure that the power lies in their own hands. As the brand manager of service #2 explains in response to her story about the Facebook bash reported earlier (p.26):
‘‘Ehm, I think that they eventually don’t get the power over a brand. I think they play with it. And that’s what you also saw with this example; they are actually playing with your
brand…but because we reacted in this way, we actually just show them that the power is in our hands’’. (Marketing manager, service #2)
This quote demonstrates how consumers may try to take the power over a brand, but that the actual power over a brand remains in control of the brand manager.
The two ‘smaller’ product brands that were interviewed, compared to the other bands and companies, were very clear about the fact that a brand should never give it’s power away, for example the owner of product #2. He thinks you should always stay true to your own idea of the brand and not even listen to consumers:
‘‘Oh hell no! But if you’re going to listen to those things, what a lot of brands do, then you lose yourself! That is… then there is neither rhyme nor reason in what you’re doing.’’
Thus, brands may be aware of the online influence and how consumers are more empowered nowadays, but think the brand always remains in control.
Consumers are in power
Several interviewees however, recognize that there is a shift in the power balance between consumer and brands: rather than brands remaining fully in control, they are convinced that consumers are getting more and more power nowadays: ‘‘ You’re not in control anymore. You
have to accept that ’’, the marketing manager of service #6 aptly states.
Interviewees give examples of consumer organizations or consumers who unite together against a brand and there is no PR or brand manager that can influence it, because it can get totally out of hand. The marketing manager of service #4 also mentions companies such as Airbnb and Uber, which are very successful because the consumer is in control of everything. The consumer is the provider here as well and therefore doesn’t need a travel agency or a taxi service anymore, but has the power to do and arrange it himself. He also mentions how in the future ‘‘the consumer will get more and more power’’ (marketing manager, service #4) because the role of the intermediary is disappearing. The marketing director of product #7 also thinks that consumers are getting more power nowadays:
‘’Ehm, that consumers are getting more power? Yes, absolutely. It has become, way, way, way more transparent, because of, not just because of the consumer, but the enabler there is definitely the Internet’’. (Marketing director, product #7)
This quote demonstrates how the Internet has enabled consumers more power and since everything has become more transparent, brands don’t have the full control over their brand anymore.
Power balance depends on certain factors
Some interviewees don’t think the brand or consumer is always in control, but mention the power balance as something that depends on certain factors. For example the marketing manager of service brand #2 says it depends how you respond to situations as a brand, how transparent you are and how you deal with situations in where it seems you are losing control as a brand. In line with this statement, the brand manager of service #1 thinks it depends on the message of the consumer, whether it’s going the positive or the negative way and how you respond to it as a brand manager. He thinks that ‘if you respond to it reproachfully, the
negative impact will only increase’. Therefore an online strategy or webcare system can also be seen as a tool for the brand in remaining its power.
The brand manager of product #4 also thinks the shift in power depends on the type of product. He has been a brand manager of low-interest and high-interest products and sees a big difference whether consumers will have power over a brand. He explains, that for
example with a very functional brand, reviews and ratings are very important and 70% of his sales were online, so consumer influence and online presence were crucial there. So when asked if consumers have more power nowadays over a brand, he responds as follows:
‘I think that’s partially true, I mean your consumer buys your products, and how your consumer spends his time is important to you. But I think it really depends on your brand, whether you’ll be influenced by this’ (brand manager, product #4)
How the power shift is perceived by brand managers themselves thus differs per interviewee. Several interviewees are aware of the online influences, and recognize how consumers are trying to take more power, but are certain that the power still remains in the hands of the brand. Others aptly state that the brand manager in no way has any control anymore and just
has to accept this. Whether this shift in power balance and online influence has also led to changes in brand management practices will be discussed in the next section.
Changes in brand management practices
To eventually see how these online influences and shift in power balance have changed brand management practices, all interviewees are asked whether the influences they have mentioned have affected their work. Whether it’s their work as a brand manager or marketing director, they all have their own perspective of this. Some interviewees see no change or influence on their brand management practice or the essence of their work, others see as if they have gotten more tools do to their job, thus more possibilities and others see it as more difficult, or more complex. The subjective experience is also taken into account, as this is an important factor in studying how brand managers feel about the changes. The main categories that followed from the data are: ‘brand management has changed’ and ‘brand management has not changed’
Brand management has changed
Several practitioners definitely see changes within brand management practices as a result of the online influence and shift in power balance. Some practitioners find it also logical that brand management has evolved and changed, for example:
‘‘ Well see, a brand is not some static thing or anything. It is not a entity which only sends…it is natural, it interacts naturally with its environment. So ehm, so everything going on in the world outside the brand, also affects the brand ’’ (head of brands, product #3)
Therefore the online influences have also affected the brand and thereby it’s brand
management. Interviewees mention how they have more possibilities within their work or how their job has become more complex, but consider their work as more enjoyable and more fun because of these changes. Thus, the responses regarding how brand management practices
have changed fall into three subcategories: ‘more possibilities for brand management’, ‘brand management has become more complex’ and subjective experience.
More possibilities for brand management
Interviewees mention how they recognize the changes in brand management practices because they have way more possibilities nowadays to do their work. The brand manager of product #1 mentions the possibility of ‘on-the-go fine-tuning’, which means that with campaigns she can see directly how consumers respond and therefore make adjustments quicker, which is a result of the interaction and pace of online. Other practitioners aptly state: ‘‘I think you just get more goals and tasks!’’ (marketing manager, product #6) For example, making time for people to do webcare, and not only focusing on awareness but also making sure consumers watch your content or video online. The head of brands, product #3 and the marketing manager of service #3 both talk about how brand management has become more ‘always on’. You have way more chances of communicating with your consumers and are more continuously busy with marketing, instead of some big moments per year. Other practitioners give their opinion on how there are more possibilities because of the direct contact with consumers nowadays. The marketing manager of service #2 states:
‘Yes, yes definitely and I simply think that it changes every year. I think for that matter, it may have used to be easier in former times as well ... ehm, because there is simply a lot of choice, there are just so many possibilities ...ehm, yeah ... the media landscape is huge. Not only offline, but also online’ (marketing manager, service #2).
Because of the changing media landscape, the more direct contact with consumers and the enormous new opportunities online influences bring, brand managers see it as if they have more possibilities to do brand management.
Brand management has become more complex
The interviewees, who agree that brand management practices have changed, also mention how their jobs have become more complicated. They give examples of how their tasks have become more complex and mention how thereby: ‘ the job is never finished’ (brand manager, product #1). Because of the online influences, mass marketing has become more individual marketing, which makes the job more complex. Interviewees mention how they are trying to measure consumer behavior, buying behavior and media behavior to keep their customers satisfied in this rapidly changing environment:
‘‘ It’s not only awareness, it’s also: how do you keep people interested, how can you keep
your customers, so ehm customer life time value is something that keeps us busy as well…so yeah it’s incomparable to a few years ago. It has become way more complex’’ (marketing
director, product #7).
This quote demonstrates how brands are finding it difficult to create relationships with their customers since it has become more difficult to keep people interested and satisfied because of the online influence and shift in power balance. The head of brands of product #3
acknowledges how brand management practices have also become more complicated because of the changes in media. He mentions how the ‘‘the whole thing has become a bit more
do within every media type’’. It makes it more difficult to stay ahead of the competition and to
respond to these changes as a brand.
Subjective experience
Almost all practitioners think it is a positive thing how brand management practices are changing, or how everything has gotten more transparent because of the online influence. Some say the changes have become an enrichment or positive addition to the job. Especially the fact that there is more interaction and more dialogue than monologue. According to the brand manager of product #1:
‘‘that’s fantastic of course, because it also gives you insights as a marketeer. So, ehm I see it
absolutely as something positive. It’s just difficult to convince the older management and the more standard people’’.
The head of brands of product #3 thinks it is also positive that consumers have become wiser and nonsense-stories or nonsense-content will not work anymore. Some practitioners also say there work has become more challenging, fun and see it all as an improvement. The brand manager of service #3 is also very enthusiastic about the whole development and changes within brand management practices:
‘‘ The fact that ehm, consumers can now talk back…I find that a very good development, I think it’s awesome! (…) You won’t get away with: ‘oh no, that’s fine, that will be a very fun campaign’. No, if you get only criticism that it was not good, then you immediately know. So it has become more honest, more direct, and I think that’s really cool ’’ (Brand manager, service #3).
None of the practitioners have mentioned anything negative about the changes due to online. Even the ones who mentioned it has gotten more complex would say: ‘It has gotten way more complex, but in my opinion therefore much more enjoyable’. Therefore the overall
experience regarding the changes within brand management practices can be seen as positive.
Brand management has not changed
However, other interviewees don’t think brand management has changed that much in
general. They see the changes in their environment as a result of the online influence and shift in power balance, but do not see it as an effect on their job. Interviewees mention how media and resources have changed, but the core and basis of the job always stays the same. Some interviewees personally don’t even see social media as an influence or change anymore, but more as a hygiene factor. Therefore, the responses regarding how brand management practices have changed fall into two subcategories: ‘basis of the job stays the same, and ‘subjective experience’.
Basis of the job stays the same
Several interviewees agree with the fact that the world around them is changing, or
acknowledge the fact that online has gotten really huge in the world of branding, but do not consider it as an effect on their work. They don’t really think it has changed brand
management. For example, the marketing manager of service #6 thinks that only your tone of voice has become different because you can easier personalize communication on target groups, and that there is an extra channel that you have to deal with, but in essence it hasn’t really changed. The brand manager of service #5 agrees, stating that:
‘‘the core and basis of the job always stays the same, and that is that you ensure all touchpoints remain to feel the same. Only the touchpoints have changed and operate differently in relation to each other’’.
These quotes demonstrate how media channels and brand touchpoints have changed, for example more online or on social media, but clearly state that what a brand is and what the core of brand management practices is hasn’t really changed. But other interviewees, for instance the brand manager of product #4 , also think that the goals of brand management have stayed the same as well:
‘‘ I think you just have responsibilities, you're just responsible for the overall success of your brand, you must ensure that it gets stronger; you must ensure that it grows. In that sense I do not think it really changes. I can imagine that, 10 years ago you did not have to monitor the social media of your brand and that is one of your tasks now, so in some tasks it has changed but in your main goal not probably not.’’ (Brand manager, product #4)
To conclude, tasks and responsibilities of brand managers may have changed because of the online influence, but the actual goals and core of the job stay the same according to the interviewees.
Subjective experience
Every practitioner shared his or her own story, about what happened within the company regarding online influences and brand management practices. From Facebook comments to animal activists who tried to stop an event from a service brand. Stories about viral campaigns or messages that can go viral and negatively influence the brand were also told. The
practitioners who were aware of the online influence and the shift in power also gave some interesting personal insights on how brand management has developed within the last years. Social Media has become so much integrated within the job, as some interviewees say, that it does not lead to any changes anymore within brand management nowadays:
‘‘ For me, social media is just a part of the job. Its not like…people often say: ‘we need to do something with social’, I think that’s nonsense ’’ (brand manager, service #5).
The marketing manager of service #6 also mentions how they used to always be one of the first to do something with smartphones and tried to always be ahead with gadgets and online. Nowadays social media is not something you adjust your strategy on, but it has become a hygiene factor:
‘‘ Now it has gotten more normal. And it’s not something you…you adjust your strategy on. It’s more of a hygiene factor, so you must have a presence on social media, otherwise you do not get involved. It’s not that you think ‘I will take this into account’. If you don’t take it into account, it will not work’’. (Marketing manager, service #6)
Discussion
Brand management has definitely involved and changed over the last few years because of it’s complex and challenging environment (Fournier & Avery, 2011; Kapferer, 2008). However, from the perspective of brand management practitioners, little is known about the actual change within brand management practices. Conducting a series of 13 interviews, this study aimed to provides an exploration of how brand management practices have changed as a result of the shift in power balance between consumer and brand and how brand management practitioners experience these changes. Results show that although brand management tasks and environment (media and brand touchpoints) have changed in a number of ways, the goals of brand management and the core responsibilities of brand managers remain the same as in the pre-social media age (cf. Christodoulides, 2009). Brand management practitioners recognize that consumers nowadays have more influence and power than before. Because of the Internet and online influences, everything has become more transparent. The Internet has empowered consumers by having easier access to information, the possibility of entering into dialogues with brands and therefore exercise their power.
One of the theoretical implications is that most literature has focused on consumers experience and how consumers are evolving rapidly and making brands lose control. There is a lack of qualitative literature on brand management from the perspective of brand managers in practice. Regarding the changes within brand management practices, there is also little literature. As brand management is evolving rapidly due to the online influences, it is understandable that not much literature has yet focused on the latest changes within brand management practices. But also here it would be a scientific advancement if more research would be done from the perspective of practitioners, to study whether the theory matches with the practice.
Brand management practices
The main responsibilities within brand management practices are increasing the overall success of a brand and making the brand stronger. This is in line with one of the fundamental goals of branding, which is creating and maintaining strong brands (Keller, 1999). Given the importance of brand in many modern organizations (Kapferer, 2008), the brand manager is seen as a key figure in the organization and someone who has to work together with other departments, external parties or media agencies, to ensure the whole company contributes to the same brand values. Consequently, the tasks of a brand manager are very broad and diverse, ranging from strategy and positioning to activations and campaigns.
In addition, this study has also made a difference between several product and service brands, since the existing literature on brand management in services claims that service brands require a more strong emphasis on brand culture and employee branding (Punjaisri et al.,2009; de Chernatoy & Cottam, 2008). Practitioners of service brands in this study also mention the strong focus on employee branding, while neither of the product brands have mentioned this. Consistent with Dall'Olmo Riley and de Chernatony ( 2000), practitioners saw the brand management of service brands differing from product brands because of their intangibility. However, results from this study also show that brand management
responsibilities differ in service and product brands as the brand manager of a service brand has a totally different position within the organization.
Shift in power balance
Findings of this study view the shift in power balance between consumer and brand from the brand’s perspective. The experience of practitioners in brand management has contributed to literature on consumer empowerment (Labrecque et al., 2013), by looking at consumer empowerment from the practitioner’s side. The findings demonstrate that consumers have
