Unpacking brand management superiority: Examining the interplay of brand management capability, brand orientation and formalisation

Abstract

Purpose

A strong brand is one that consumers know and perceive as differentiated from competing brands. Building brands with high levels of awareness and uniqueness is critical to ensuring brand strength and sustained competitiveness. To this end, the roles of brand management capability and brand orientation are highlighted. However, given the significance of consistency in branding, firms’ brand management capability and brand orientation alone may not be sufficient, and a mechanism that facilitates branding consistency is required. In the integrating marketing control theory with the resource-based view (RBV) and dynamic capabilities (DC) theory, this study aims to examine how a firm’s brand orientation, when supported by formalisation, contributes to building brands with high levels of awareness and uniqueness through the intervening role of brand management capability.

Design/methodology/approach

In testing the hypotheses proposed in this study, survey data were drawn from a sample of firms operating in the consumer goods sector and examined through hierarchical regression analysis.

Findings

This study finds that firms are more likely to build brands with high levels of awareness and uniqueness in the market when their brand orientation is supported by formalisation, because this combination (brand orientation and formalisation) facilitates branding consistency and brand management capability development.

Originality/value

In weaving together the theoretical perspectives of marketing control, RBV and DC, this study extends current knowledge by showing that brand management capability and brand orientation alone are insufficient for building brands with high levels of awareness and uniqueness. Instead, maximising their performance effects requires the support of formalisation.

Citation

Lee, W.J.(T)., O’Cass, A. and Sok, P. (2017), "Unpacking brand management superiority: Examining the interplay of brand management capability, brand orientation and formalisation", European Journal of Marketing, Vol. 51 No. 1, pp. 177-199. https://doi.org/10.1108/EJM-09-2015-0698