Brand Management: Research, theory and practice

at their disposal to create a strong brand and optimize brand performance. Because
of the rather operational nature of the theoretical building blocks, this section will
not, as is the case in the other approach chapters, elaborate extensively on how to
manage the marketing mix variables, since the key issues have already been
explained in the theoretical building blocks. Rather it will focus on the strengths
and weaknesses of using the economic approach as a basis of brand building. It
will also summarize the main points of critique that the approach has been subject
to since its foundation and application in the context of brand management.
As already mentioned the marketing mix approach has in many ways dominated
the marketing environment and become an indisputable paradigm. The economic
approach and the transactional approach to brand management represent a push
approach to the marketing of brands, where some of the newer approaches
represent a more pull-oriented approach to brand strategy. The economic approach
has been subject to some critique since its foundation, but it is important to keep in
mind that the economic approach is the foundation of how brand management has
evolved until today. Understanding the premises of the approach will enable the
reader to critically evaluate how the approach is still relevant for some key
problems in brand management while insufficient for others. The managerial
branding focus of the economic approach is, as mentioned, individual transactions,
and branding is considered to be a management problem that can be solved through
managerial tasks of analysing, planning, and implementing marketing activities
with the purpose of selling as many products as possible. In the research literature
and in management practice the tools of economic approach, e.g. the Four Ps and
the marketing mix and how it can affect consumers’ brand choice behaviour, are
still widely researched. From an operational viewpoint the marketing mix toolbox

Theory

Methods and data

Assumptions

Managerial implications

Figure 4.7Methods and data of the economic approach

The economic approach 43