4.2 The Underlining Dimensions of Brand Orientation and its Impact on Financial Performance (Gromark & Melin, 2010)
This research “responds to the need for an increased understanding of brand orientation and its impact on financial performance” (Gromark & Melin, 2010). It also reveals eight dimensions that can be seen as the structure of the brand orientation, as well as empirical evidence of a positive relationship between the brand orientation and the organization’s profitability.
In this research context, brand orientation is “a deliberate approach to brand building where brand equity is created through interaction between internal and external stakeholders. This approach is characterized by brands being the hub around which the organization’s …show more content…
The brand strategy normally can be discussed from two major different perspectives – formulation and implementation. Lately, the latter perspective has been put into prominence, as “the implementation of the brand strategy characterized by a high degree of brand alignment has proven to be a great challenge for several organizations” (Gromark & Melin, 2010). The challenge can be involved with both internal and external stakeholders of the organizations – all employees should be good brand ambassadors, and long-term stable relationships should be sustained with the organizations’ different stakeholders. Additionally, the organizations should live the brand and use it as a beacon to develop as the value-driven …show more content…
Since strategy and structure are closely associated, the recent brand-related studies focus on how the organization can develop an appropriate brand management system. They often demonstrate how important it is that “the CEO of the organization has overall responsibility for the brand, and that some crucial business decision concerning brands should be taken by the board” (Gromark & Melin, 2010). Yet, operative responsibility is often delegated to functional managers, such as information manager, marketing manager, and human resource manager, who mainly drive the corporate culture and the corporate brand. Thus, the organizational responsibility and roles lie within the brand management strategy for communicating the corporate brand and sustaining the brand position in the long-term orientation.
One further dimension of the brand orientation is goals and follow-up. Firms have different kinds of strategic goals, including those for the brand building process; and they have to be translated into operative goals. “Setting up quantitative and qualitative goals to measure the effect of different brand building activities is considered a vital part of this work” (Gromark & Melin, 2010). To assure that the brand building process is carried out successfully, the company, therefore, has to set the clear goals for brand development, as well as, to measure the degree of the goal
This research “responds to the need for an increased understanding of brand orientation and its impact on financial performance” (Gromark & Melin, 2010). It also reveals eight dimensions that can be seen as the structure of the brand orientation, as well as empirical evidence of a positive relationship between the brand orientation and the organization’s profitability.
In this research context, brand orientation is “a deliberate approach to brand building where brand equity is created through interaction between internal and external stakeholders. This approach is characterized by brands being the hub around which the organization’s …show more content…
The brand strategy normally can be discussed from two major different perspectives – formulation and implementation. Lately, the latter perspective has been put into prominence, as “the implementation of the brand strategy characterized by a high degree of brand alignment has proven to be a great challenge for several organizations” (Gromark & Melin, 2010). The challenge can be involved with both internal and external stakeholders of the organizations – all employees should be good brand ambassadors, and long-term stable relationships should be sustained with the organizations’ different stakeholders. Additionally, the organizations should live the brand and use it as a beacon to develop as the value-driven …show more content…
Since strategy and structure are closely associated, the recent brand-related studies focus on how the organization can develop an appropriate brand management system. They often demonstrate how important it is that “the CEO of the organization has overall responsibility for the brand, and that some crucial business decision concerning brands should be taken by the board” (Gromark & Melin, 2010). Yet, operative responsibility is often delegated to functional managers, such as information manager, marketing manager, and human resource manager, who mainly drive the corporate culture and the corporate brand. Thus, the organizational responsibility and roles lie within the brand management strategy for communicating the corporate brand and sustaining the brand position in the long-term orientation.
One further dimension of the brand orientation is goals and follow-up. Firms have different kinds of strategic goals, including those for the brand building process; and they have to be translated into operative goals. “Setting up quantitative and qualitative goals to measure the effect of different brand building activities is considered a vital part of this work” (Gromark & Melin, 2010). To assure that the brand building process is carried out successfully, the company, therefore, has to set the clear goals for brand development, as well as, to measure the degree of the goal