Contemporary branding theory: Division of approaches according to functional perspective

Abstract

The purpose of this paper is to identify if the existing branding approaches include new branding functions generated in a result of the recent years` trends. The investigation of the peculiarities of the existing concepts is in line with the current trends in branding theory concerning its functional side. Over the past few years the understanding of brands, preconditions of their creation and management has changed significantly. The trends of the XXI century, such as globalization, development and spread of digital technologies, emergence of new communication channels and an increasing role of all kinds of stakeholders in the process of creation and brand management have made dramatic changes in the branding sphere. The appearance of the highlighted circumstances resulted in the formation of new branding functions. But according to the previous research there are only two streams in theoretical approaches to branding. They are dual division of branding approaches and four paradigms of brand management. The study provides the analysis of the main research on branding, published in peer-reviewed academic journals on management and marketing. This paper sheds the light upon the functionality generated in branding as a result of the recent years’ trends and also identifies the main functions of branding formed during the period from the moment when branding was separated as an independent scientific approach till the XXI century. On the basis of Russian and foreign studies the paper identifies specific features of both dual division of branding approaches and the theory of four brand management paradigms. The research results in a new kind of division that emphasizes different branding approaches. The concept is formed by combining the dual division of the branding approaches and the hybrid approach proposed by this study. The approach allows to include new functions of branding generated in the resent years in the classification. The paper provides researchers and practitioners with the systematization of existing knowledge on branding and with understanding of what should be done by a company while managing brands in the digital age.