Corporate Image and Branding

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Corporate Image and Branding

• Chapter 2

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• Discussion Points
• How important are brand names?
• How important are brand names for clothes? Why?
• What additional product categories are brand
  names important?
• What product categories are brand names not
  important?

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Promoting the Right Image

• Very important first step in creating a
  successful brand
• Creating the right image
• Conveys a clear message about the organization
• Should portray the nature of the firm
• Fit with products being sold
• Rejuvenating an image
• Easier than changing a well-established image
• Add new elements but continue current image
• Changing an image
• Necessary under certain circumstances
• Difficult to do
• More B to B

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Video American Express

• Questions for Discussion
• How does media selection impact the goal of
  changing consumer perceptions?
• What strategy did the marketing department at
  American Express use to reach younger consumers?

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Interview with Bob Baxter, Manager of Marketing
Research Mercedes Benz of North America Before
watching this interview What word(s) would you
use to describe the Mercedes Benz car? What is
your image of the Mercedes? After watching this
interview What would you do if you were Bob
Baxter?
Click picture to play video.
Discussion Slide
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• What image is being conveyed by this Porsche
  advertisement?
• What image is being conveyed by the Porsche Web
  site?
• www.porsche.ca
• Are the images consistent?

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What is Branding?

• Assigning a name, phrase, design, symbols or a
  combination of these to a product, service, or a
  group of complimentary products

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Branding

• Provides quality assurance
• Reduces search time.
• Allows a company to charge more (if the brand is
  recognized and respected).
• Reduces brand parity.
• Consumers choose a brand because it is
• Salient
• Memorable
• Noteworthy

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Discussion Exercise

• List the names of five bad or poor brands?
• Why is the brand conceived negatively?
• To help you understand the difficulty and
  challenge of finding just the right brand name,
  select any product category such as bottled
  water. With other students seated around you
  choose a suitable brand name.

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Developing a Strong Brand Name
Begins with understanding why consumers buy a
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?

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Successful Brand Development

• Commitment to the brand
• Market penetration
• Research and understanding the brands target
  market
• Building effective expansion programs and fending
  off competitors.

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Types of Brands

• Family brands
• Brand extension
• Flanker brand
• Co-branding
• Ingredient branding
• Cooperative branding
• http//www.americanexpress.com/canada/en/homepage/
  default.shtml
• Complementary branding
• Private brands

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Changes in Private Brands
1. Quality improvement. 2. Lower prices. 3.
Higher store loyalty. 4. Lower loyalty for
manufacturer brands. 5. Increase in advertising
of private brands. 6. Increase in quality of
private brand in- store displays.
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Successful Brand Extensions

• Lipton tea Lipton soup mixes
• Kodak film Kodak cameras and batteries
• Ivory soap Ivory shampoo, dishwashing liquid
• Barbie dolls Barbie games, furniture, clothes
• Honda bikes Honda cars, lawnmowers, generators

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Unsuccessful Brand Extensions

• Dunkin Donuts Dunkin Donuts cereal
• Harley Davidson Bikes Harley Davidson
  cigarettes
• Levis Jeans Levis business wear
• Mr. Coffee coffee makers Mr. Coffee coffee

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Building Brand Equity

• Brand Equity certain assets that add to the
  value assigned to the product
• Research current brand image
• Decide what makes the brand unique
• Communicate brands uniqueness
• Spend on advertising/communication
• Deliver on uniqueness

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Benefits of Brand Equity

• Higher prices
• Higher gross margins
• Reduces customer switching
• Greater demand for the product
• Prevents erosion of market share

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Companies 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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Logo Recognizability
McDonalds Golden Arches logo is recognizable
enough to stand on its own.
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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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Positioning

• Is relative to competition.
• Exists in the mind of the consumer.
• Created through
• __________
• __________
• __________
• __________
• __________