In the modern era of marketing, brand management has proved its importance by being a widely discussed topic. While brand value was primarily connected with customers only, its importance into non-customer areas has been acknowledged. Brand equity and brand value are argued on their relation with relevant stakeholders. In this assignment I am reflecting on the importance of managing these stakeholder relationships.
Stakeholder management is as a key part of an organisation’s effectiveness. Advocates, sponsors, and managers of change are only a few roles that stakeholder may be in. (Ipsos 2009).
Building a successful brand is effective if brand value is generated. Through the relationship performance between the relevant stakeholders and the brand, brand value and equity can be created. Jones (2005) suggests, that one should acknowledge two key points while accessing the stakeholders:
1. Network of relationships / dependency upon multiple stakeholders,
2. Value assessment on the basis of each individual relationship.
Regarding the dependency upon multiple stakeholders, one needs to realise that brand value depends on several stakeholders that support the value creating process for the firm. Working with only a couple of stakeholders will not create brand value.
If the brand value created does not support other stakeholders in the network, it cannot be successful. For example, a situation where customers’ awareness of a brand is cultivated through media and advertisement,