02 Oct Brand orientation
Brand orientation refers to “an approach in which the processes of the organization revolve around the creation, development, and protection of brand identity in an ongoing interaction with target customers with the aim of achieving lasting competitive advantage” (Urde, 1999, p. 117). It is a form of marketing orientation in which top management strongly emphasizes the role that branding plays in the success of the firm (Baumgarth, 2010; Reijonen et al., 2015). Compared to customer-oriented firms that value market intelligence (Deshpandé, Farley, & Webster Jr, 1993), brand-oriented firms tend to have clear brand visions and identities, as well as systems in place to manage the relationships between their brands and their main stakeholders (Reid, Luxton, & Mavondo, 2005).
The building and maintenance of a brand requires significant resource commitments (e.g., human resources and promotion and advertising efforts) (Erdem & Sun, 2002). Thus, managers must carefully weigh the pros and cons of adopting a B2B brand orientation. Firms that are more willing to engage in branding activities than others are considered to be more brand oriented (Reijonen et al., 2015). Drawing on the Upper-echelon theory and the resource-based view, we propose that two key factors influence the degree to which a firm is brand oriented—management’s entrepreneurial orientation and the firm’s marketing capability.
- Urde, M., Baumgarth, C., & Merrilees, B. (2013). Brand orientation and market orientation—From alternatives to synergy. Journal of Business Research, 66(1), 13–20.
- Baumgarth, C. (2010). “Living the brand”: Brand orientation in the business-to-business sector. European Journal of Marketing, 44(5), 653–671.
- Reijonen, H., Hirvonen, S., Nagy, G., Laukkanen, T., & Gabrielsson, M. (2015). The impact of entrepreneurial orientation on B2B branding and business growth in emerging markets. Industrial Marketing Management, 51, 35–46.
- Deshpandé, R., Farley, J. U., & Webster, F. E., Jr. (1993). Corporate culture, customer orientation, and innovativeness in Japanese firms: A quadrad analysis. Journal of Marketing, 57(1), 23–37.
- Erdem, T., & Sun, B. (2002). An empirical investigation of the spillover effects of advertising and sales promotions in umbrella branding. Journal of Marketing Research, 39(4), 408–420.
- Reid, M., Luxton, S., & Mavondo, F. (2005). The relationship between integrated marketing communication, market orientation, and brand orientation. Journal of Advertising, 34(4), 11–23.