Managing by Values | Kenneth H. Blanchard

Summary of: Managing by Values: How to Put Your Values Into Action for Extraordinary Results
By: Kenneth H. Blanchard

Introduction

Embark on an illuminating journey to discover the power of managing your business by values through the insights of Kenneth H. Blanchard’s book, ‘Managing by Values: How to Put Your Values Into Action for Extraordinary Results’. The summary highlights key aspects of business management, such as building long-term brand equity and understanding the importance of brand loyalty, name awareness, perceived quality, brand associations, and proprietary assets. Learn how to create a more dedicated customer base while nurturing and maintaining your brand through strategic decisions and effective communication.

Building Long-Term Brand Equity

Your brand’s name is your most valuable asset, and building its equity is key to attracting and retaining customers. Brand equity is based on five assets, including brand loyalty and perceived quality, which influence buying behavior. Existing customers can help generate new customers and provide a platform for growth through brand extensions.

Your company’s brand name is its most valuable intangible asset. It forms the basis of competitive advantage and future earnings, yet it’s often not managed in a coordinated, coherent manner. Many managers fail to think about building long-term brand equity.

To get rid of customers, a business often has to be rude, uncaring, unresponsive, or disrespectful. Unfortunately, customers experience these negative behaviors all too often. Avoiding such behavior is simple and should be a top priority.

Brand equity is linked to five assets: brand loyalty, name awareness, perceived quality, brand associations, and proprietary pluses such as patents, trademarks, and relationships. Brand equity provides value by attracting new customers and retaining old ones, increasing loyalty and providing a platform for growth through brand extensions.

Most people buy familiar brands because they are comfortable with what they know. They believe they have quality products. Perceived quality influences buying and brand loyalty, especially for unmotivated buyers or those who can’t comparison shop. Existing customers provide a sound customer base, which helps your brand by generating new customers and retaining existing ones.

Understanding Brand Loyalty

Brand loyalty is subjective and is measured by a customer’s willingness to choose a specific brand over others. According to this book, customers become loyal to a brand not just because of objective factors like price and convenience, but also because they genuinely like the brand. There are different levels of brand loyalty, and each level presents different challenges. The different levels of brand loyalty range from “switchers” who are not interested in your brand, to “committed customers” who are very loyal to the brand and see it as an expression of themselves. It is essential to understand that customers need a reason to switch brands, and the key to keeping them loyal is by avoiding giving them a reason to look for alternatives. Your brand loyalty aligns with the customer’s experiences and positive associations with the brand and could be influenced by perceived quality.

Measuring and Maintaining Brand Loyalty

Brand loyalty is measured based on behavior, switching costs, brand preference, and satisfaction. Brand loyalty is valuable to a company as it reduces marketing costs, attracts new customers, and gives the company time to respond to competition. To maintain brand loyalty, companies should prioritize customer satisfaction, reward loyalty, and focus on retaining existing customers rather than solely attracting new ones.

Building brand awareness

Building brand awareness is vital to customer recognition, and it can be achieved by creating an anchor association, brand familiarity, and signaling substance and commitment. However, nurturing and maintaining the brand is equally essential, and brand recognition signals commitment and substance- two factors that most clients consider when making costly purchases, such as cars. Therefore, it is essential to establish recognition before introducing new product attributes to a brand.

Enhancing Brand Awareness

This book excerpt provides eight ways to achieve, maintain, or improve brand awareness. The author recommends creating a distinct image by being memorable, using a slogan, or developing a symbol. Generating publicity and sponsoring events are two other strategies to build brand exposure. The author also suggests considering brand extensions, using cues, and repetition to increase brand recognition. Repetition particularly plays a significant role in enhancing brand recognition. These tips emphasize the importance of building a unique and recognizable brand for long-term success.

Perceived Quality in Business

Perceived quality is a complex and often misunderstood aspect of brand equity that can be hard to identify. It is usually associated with reliability and performance. Perceived quality can help position a company and allow for price premiums. To maintain high quality, businesses should commit to quality, create a quality culture, seek customer input, measure performance, allow employee initiative and increase customer expectations. It can be difficult for businesses to respond to what they are, rather than what they do, as it involves acquiring or neutralizing specialized assets or skills.

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