It is not enough anymore to have high quality products or to present high level services for the market success in modern business. Market is far more open, competition much stronger, products and services are pouring from all over the world making no differences by their characteristics at all, and are available to consumers. These conditions led to the need of product and service differentiation. One of the ways to access differentiation is to create a brand. A purpose of this paper is to indicate importance of creating a brand and brand management as a source of achieving competition advantage and increasing value as well. This paper starts with history of branding which goes back all the way to antique period. In that period producers had marked their products with different symbols. In modern period, products are also marked with different elements such as names, signs and alike, but branding is a lot more than that. It is complex and a long lasting process which implies creating relations with consumers and considerable expenses in making success. Brand needs strategic management. Good management will increase values. However, large number of brands failed on the market. The most frequent reasons of failure are mistakes made by managers during brand managing process.