case outline

Running Head: BRAND ORIENTATION PERFORMANCE 1

BRAND ORIENTATION PERFORMANCE 2

Xiaoyi Yin

Brand Orientation

There are several definitions of brand orientation; the comprehensive definition is that brand orientation is known as a premeditated approach to brand building in which brand equity is established as a result of interaction between the external and internal stakeholders. Brand orientation is characterized by brands being the center around which processes in the organization revolve. Brand management is considered the core competence in which brand building is associated closely with financial performance and business development.

Most organizations take an ad hoc approach to building their brand, however for brand orientation to be effective, the stakeholders have to make a deliberate approach. The brand of an organization is important in many ways. A good brand can be the base for competitive advantage in a particular industry. An effective brand can be the source of superior performance especially on the financial performance of the organization. Three factors are of importance for a successful brand orientation. These are; attitude, capabilities, and behavior. Operationalization of brand orientation has included either two of these factors, and one attempt has included all three factors. To capture brand orientation in its fullness, interaction, which is the fourth factor, should be included. Orientation means that the brand building is a process that is based on the interplay between the external and internal stakeholders. This process is characterized by reciprocal interdependence and influence. For these reasons, it is important that the business takes a cross-functional and holistic approach to brand orientation. For an organization to achieve true brand orientation, interaction is an essential part that makes the brand the firm’s hub. In most instances, orientation is discussed alongside brand orientation when it is mentioned in connection to the business’ external shareholders as well as their capabilities.

For many organizations, brand orientation is important to them since it will result in stronger brands that have higher brand equity. To determine the impact of brand orientation, the authors considered several empirical studies and found out that few studies focus on brand orientation. From the studies analyzed, only one used brand equity as the dependent variable. The other studies used the ability to serve stakeholder’s needs, the strength of fashion retailer advantage, and achieving short and long-term goals as the dependent variables. The study focuses on the relationship between brand orientation and brand equity as well as the connection between financial performance and brand orientation. The authors state that for a business to strive for higher degrees of brand orientation, the investment needs to pay off naturally. However, the author notes that no study has carried out an investigation on brand orientation based on the objective measurements of financial performance. This raises some questions for the research gaps such as what the underlying dimensions of brand orientation are, how the degree of brand orientation influences financial performance, and how these dimensions influence the brand orientation degree.

Organizations need to protect their brand by trademarking them. This will prevent competition from copying the firm’s original designs. Trademarking a brand is a vital part of brand management and orientation. Trademarking is the ability to identify threats and divert them away from the brand. Clear policies have to be formulated by the company since the manner in which an organization handles acrisis is important to creating a strong brand. An organization’s valuable resources have to include consistent brand strategy and a strong brand. In brand management, a well-defined, strong brand is a pathway to a successful brand building. In developing a brand strategy, it is important to emphasize the importance of brand portfolio management. When creating the brand strategy, the identity of the brand has to be highlighted.

From the results of the study’s finding, I would agree that many of the brand-oriented companies’ value brand orientation as the integral part of the business processes such as the internal communication, business development, and product development. The participation by the top management of a business is an independent factor. The top management has to be used as the company’s brand ambassadors since they are at the pinnacle of the organization. They have to embrace that role and represent the brand in all frontiers. They are not only involved in the representation of the brand, but they have a sense of ownership since they are involved in the brand-building process and organization.

Brand orientation involves several factors, but the bottom line is always a foundation of strong organizational beliefs and value of brands. Secondly, is the implementation factor in the brand orientation. The organization realizes the importance of implementation to brand orientation and lay out a brand strategy where ideas are realized to make the strategy alive. I agree with the authors finding that there is a strong relationship between financial performance This is evidenced by the fact that most brand-oriented organizations have twice as much operating margins compared to firms that are least brand-oriented.

Without a doubt, strong brands created can thrash the competition; we see this every day, from advertisements and in retail. Big established brands take control of great market share and control most of it. To attain such levels, it was not an overnight success story, but it took time to establish a strong brand. A strong brand is not an ultimatum to the long-term success of the business, the management of a company needs to maintain the factors that keep the brand stronger. Most of the points raised in the article are factually based on empirical data which I concur with.

References

Gromark, J., & Melin, F. (2011). The underlying dimensions of brand orientation and its impact on financial performance. Journal of Brand Management, 18(6), 394-410.