Market orientation, brand management processes and brand performance

Abstract

Purpose The purpose of this study is to investigate the manner in which market orientation types facilitate the development of brand management processes (strategic brand management and internal branding), and brand performance. Design/methodology/approach The research model is assessed using data collected from brand executives. Existing scales are used to measure all the focal constructs. Partial least squares-based structural equation modeling (PLS-SEM) using the Smart-PLS 3.0 software is used to check for the psychometric properties of the scales and to test the hypotheses. Findings The results of this study indicate that proactive and reactive market orientation influence the internal branding and strategic brand management. The mediating role of strategic brand management in the relationship between proactive market orientation (PMO) and brand performance is significant. Similarly, internal branding mediates the relationship between PMO and brand performance. Also, strategic brand management and internal branding mediate the relationship between responsive market orientation (RMO) and brand performance. Results also indicate that market turbulence negatively moderates the relationship between strategic brand management and brand performance. Research limitations/implications Building on literature from brand management, organizational capabilities and market orientation, this study explicates the role of PMO and RMO in influencing different strategic brand management and internal branding, and subsequently, brand performance. The perspective used in this study provides an insight into how organizations can develop and manage brands from a process perspective. Practical implications To develop the brand management capability, organizations may benefit from cultivating processes that seek to meet the latent customer needs through explorative and proactive information seeking, and at the same time, pursing processes that focus on capturing the existing customer and competitor trends in the market. Social implications This study hopefully helps marketers realize that brand management function needs to move toward being more dynamic in nature. Originality/value This study borrows from the existing research on market orientation, branding and brand management to argue that organizations are required to not only maximize the brand returns in the existing market but also to adapt to the changes in the future.