Chapter two

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Chapter two
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Corporate image and brand management
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Chapter objectives
Brand and corporate image management
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• Nature and importance of corporate image
• Building an effective corporate image
• Developing an effective brand strategy, name,
  equity, and recognition
• Establishing strategic advantage with logos,
  packaging, and labels
• Importance of and methods for effective brand and
  product positioning

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Importance of corporate image in IMC

• A critical element in IMC planning and management
  
• Firms image is based on perceptions of the
  overall organization and its individual brand(s)
• Marketing communications affect and influence
  image
• Goal is to create messages that
• Sell products profitably
• Build a firms image over time
• Strong IMC foundation is based on
• Combining perceptions about a firms image and
  brand with assessments of consumer and business
  buyer behaviors

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Conceptual overview

• Effective marketing communications is based on a
  clearly defined and appealing corporate image
• What the company stands for
• How well its position has been established
• Perceptions are reality and are what count
• A firms image may have a positive or negative
  affect
• A firms image consists of a unique set of
  components
• Both tangible and intangible elements
• Perceived quality of firms goods and services
  often cited as most important component

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F I G U R E 4 . 1
Components of a Corporate Image
Tangible elements
Intangible elements
1. Corporate, personnel, and environmental
policies 2. Corporate culture, ideals,
values, and beliefs 3. Surrounding culture of
country and location of the firm 4. Media
reports press coverage
1. Goods and services sold 2. Retail distribution
outlets 3. Manufacturing plants/factories 4.
Advertising, promotions, and other forms of
MARCOM 5. Corporate name and logo 6. Employees
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Role of a corporate image in IMC

• Consumer perspective
• Provides purchase decision assurance of familiar
  products in unfamiliar settings
• Provides purchase decision assurance when buyer
  has little or no experience with product
• Reduces search time in purchase decisions
• Provides psychological reinforcement and social
  acceptance of purchase decisions

• Company perspective
• Extends positive consumer feelings to new
  products aiding new product launches
• Enables firm to charge higher prices or fees
• Generates consumer loyalty and/or positive
  word-of-mouth endorsements
• Enhances firms ability to attract quality
  employees
• Generates more favorable Wall Street/analyst
  ratings

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Key factors or criteria in deciding what image
to promote

• Image being projected must accurately portray
  firm and coincide with goods and services being
  offered
• Reinforcing or rejuvenating an existing image
  that is consistent with consumers perceptions is
  easier than changing a well-established image
• It is very difficult to change the images people
  hold about a given company or brand
• Negative or bad press can quickly destroy an
  image that took years to build

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Promoting the desired image

• Creating the right image
• Conveys a clear message about the organization
• Should portray the nature of the firm
• Should fit or reflect the products being offered
• Rejuvenating an image
• Easier than changing a well-established image
• Add new elementsbut continue existing image
• Changing an image
• Extremely difficult
• Necessary when
• Target market has shrunk or disappeared
• Current image not consistent with
  industry/consumer trends

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This Family Circle ad aims to change the
magazines image, reflecting changes in culture
What does this ad say about the contemporary
family woman versus the one of 30 years ago?
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What corporate image is being projected by the
following Web sites?
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• Http//www.kelloggs.com
• Http//www.nabisco.com
• Http//www.ibm.com
• Http//www.bmwmotorcycles.com
• Http//www.britishairways.com
• Http//www.singaporeair.com

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Corporate name and naming

• Is the overall banner under which all operations
  occur
• Can be divided into 4 categories based on their
  actual, implied, or visionary meaning(s)
• Overt name Reveals what the firm does
  (American Airlines)
• Implied name Implies what the firm is about
  (FedEx)
• Conceptual name Captures the essence of the
  idea behind the brand (Krispy Kreme Lucent
  Technologies)
• Iconoclastic name Reflects something that is
  unique, different, memorable, etc. (Monster.com
  Gucci Nike)

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Corporate logos

• Are symbols used to identify a firm and its
  brands
• Thus helping to convey the overall corporate
  image
• Should meet 4 tests and/or criteria
• Be easily recognizable
• Be familiar
• Elicits a consensual meaning among firms target
  market (stimulus codability)
• Evokes positive feelings

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Benefits of logo recognizability

• Aids in recall of specific brands
• Aids in recall of advertisements
• Reduces shopping effort
• Reduces search time and evaluation of
  alternatives

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Logo recognizability
McDonalds Golden Arches logo is clearly
recognizable enough to stand on its own
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Firms often create product icons to develop an
identity for their products.
Why is the Mr. Clean icon an effective
representative for its product?
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Role and benefits of brands

• Provides quality assurance
• Reduces search time
• Allows a company to charge more
• Reduces brand parity
• Consumers choose a brand because it is
• Salient
• Memorable
• Noteworthy

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Building brand equity

• Research current brand image
• Decide what makes the brand unique
• Communicate brands uniqueness
• Invest heavily on IMC (esp. advertising?)
• Make domination the goal
• Deliver on uniqueness

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Benefits of brand equity

• Higher prices
• Higher gross margins
• Channel power
• Additional retail shelf space
• Reduces customer switching behavior
• Prevents erosion of market share

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Developing a strong brand name
Begins with understanding why consumers consider
and buy a specific brand

• What are the most compelling benefits?
• What emotions are elicited by the brand either
  during or after the purchase?
• What one word best describes the brand?
• What is important to consumers in the purchase
  of the product? (Key purchase motivators?)

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Packaging

• Traditional view and elements
• Protect the product inside
• Provide for ease of shipping, moving, and
  handling
• Provide for easy placement on store shelves
• Prevent or reduce the possibility of theft
• Prevent tampering
• New trends
• Meet consumer needs for speed, convenience, and
  portability
• Must be contemporary and striking
• Must be designed for ease of use
• Must reflect and reinforce the brand image!

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Labels

• Must meet legal requirements.
• Provide another marketing opportunity.

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Successful brand development

• Continue commitment to the brand
• Increase market penetration
• Understand the brands target market
• Leverage the effects of penetration

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Branding Boston Consulting Group Http//www.bcg
.com/practice/branding.asp
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Branding (as Business Tool) Corporate
Branding Http//www.corebrand.com/tool/tool.html
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Types of brands and branding strategies

• Family brands
• Brand extensions
• Flanker brands
• Co-branding
• Ingredient branding
• Cooperative branding
• Complementary branding
• Private brands

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Brand Extensions and Flanker Brands

• Sara Lee Corporation
• Http//www.saralee.com
• Procter Gamble
• Http//www.pg.com
• VF Corporation
• Http//www.vfc.com
• General Mills
• Http//www.generalmills.com
• Marriott Hotels
• Http//www.marriott.com

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Changes in private brands
1. Quality improvement2. Lower prices 3. Higher
store loyalty 4. Lower loyalty for manufacturer
brands 5. Increase in advertising support6.
Increase in quality of promotional efforts
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Brand and product positioning

• Is about creating a unique, differentiating, and
  compelling perception in target consumers mind
• Find a niche in consumers mind that you can
  uniquely occupy
• Must either reinforce what consumers already
  believe about a brand and product or shift
  consumer views toward a more desirable position
• Positioning strategies or approaches
• Attributes
• Competitors
• Use or application
• Price-quality relationship
• Product user or product class
• Cultural symbol

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A B2B advertisement positioned by the products
attributes the brightness of the Sony projector.
An advertisement by Stetson positioned by
cultural symbols.