The Origin of Brand Management…

Posted by admin on July 3, 2012 in Uncategorized |

 

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As more brands appeared within same market sectors while competition within categories increased, managing the creation of ads and resulting images was not enough. It is said that in 1931, Neil McElroy changed marketing forever when he wrote the classic memo at Procter and Gamble (P&G), which lead to the creation of the discipline of brand management (Aaker, Joachimsthaler, 2000; Larry Light, 2004; et al).

In this memo McElroy said that in addition to having a person in charge of the advertising of each brand, there should be a substantial team of people devoted to thinking about every aspect of marketing it. This dedicated group should attend to only one brand. The new unit should include a brand assistant, several “check-up people,” and others with very specific tasks.

The concern of these managers would be the brand, which would be marketed as if it were a separate business. In this way it would be possible to solve “sales problems” by analyzing sales and profits for each market area in order to identify problem markets21. Moreover, through brand management, the features and benefits of every brand would be distinguished from those of every other.

This evolution came from McElroy’s identified need of focusing and coordinating the marketing efforts for Camay soap. McElroy’s idea was that a brand management team would be responsible for creating a brand’s marketing program and coordinating it with sales and manufacturing. The process of managing a brand meant dealing with a complex system – often involving R&D, manufacturing, and logistics in addition to advertising, promotion, and distribution-channel issues. A brand management team had to include planners, doers, and motivators; while successful brand managers needed to have exceptional coordination and motivational skill

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