Corporate Image and Brand Management 2 Chapter Overview

Corporate Image and Brand Management 2 Chapter Overview • • • Managing a corporation’s image. Managing brands. Issues associated with developing and promoting brand names and logos Importance of packaging and labels. Developing brand corporate positioning strategies. 2 -1

FIGURE 4. 1 Components of a Corporate Image Tangible Elements 1. Goods and services sold. 2. Retail outlets where product is sold. 3. Factories where product is produced. 4. Advertising, promotions, and other forms of communications. 5. Corporate name and logo. 6. Packages and labels 7. Employees Intangible Elements 1. Corporate, personnel, and environmental policies. 2. Ideals and beliefs of corporate personnel. 3. Culture of country and location of the company. 4. Media reports. 2 -2

Role of Corporate Image Consumer perspective. • Business-to-business perspective. • Company perspective. • Sony’s Web site is continually updated, but still retains a consistent corporate image. 2 -3

Role of Corporate Image Consumer’s view n Assurance of familiar products (e. g. Coke) n Assurance of familiar company (e. g. IBM) Reduction of purchase research time n Psychological reinforcement & social acceptance n B 2 B view Reduce feelings of risk n Reduce search time n Psychological reinforcement & social acceptance n 2 -4

Role of Corporate Image Corporation’s view n n n Extends +ve consumer feelings to new products Enables higher pricing Enables increased repeat buying Endorses +ve W. O. M. Attracts quality employees Increased financial viability as ranked by analysts and corp. raters 2 -5

Branding • • • 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 2 -6

Top 10 Brands n n n n n Coca Cola Microsoft-Windows IBM Intel Nokia General Electric Ford Disney Mc. Donald’s AT&T Brand Value ($m) 72, 537 70, 157 53, 184 39, 049 38, 528 38, 128 36, 368 33, 553 27, 859 25, 548 Source: Interbrand Annual Survey 2 -7

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? • 2 -8

Packaging • Traditional 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 2 -9

Labels • Must meet legal requirements. • Provide another marketing opportunity. 2 -10

Brand Equity The set of characteristics unique to a brand that allows the company to charge a higher price and retain a greater market share than would otherwise be expected for an undifferentiated product. 2 -11

Benefits of Brand Equity • • • Higher prices Higher gross margins Channel power Additional retail shelf space Reduces customer switching behavior • Prevents erosion of market share 2 -12

Building Brand Equity 1. 2. 3. 4. 5. 6. Research current brand image. Decide what makes the brand unique. Communicate brand’s uniqueness. Spend heavy on advertising. Make domination the goal. Deliver on uniqueness. 2 -13

Successful Brand Development • • Continue commitment to the brand. Increase market penetration. Understand the brand’s target market Leverage the effects of penetration 2 -14

Types of Brands Family brands Brand extension Flanker brand Co-branding Ingredient branding Cooperative branding Complementary branding Private brands 2 -15

Brand Extensions and Flanker Brands q. Brand Extension Use established brand name for unrelated goods and service (reaching new markets with new product lines) v Black & Decker: power tools, flashlights, household appliances (toaster, iron, kettle…) q. Flanker Brand Develop a new brand within a related product category (increase market mix to reach new target segments) v Tide & Cheer, Ivory Snow…etc. 2 -16

Co-Branding ØIngredient branding ØCooperative branding ØComplementary branding 2 -17

Private Brands q Exclusive lines q Used to be higher priced now lower priced q Use to have higher quality perception now not always q Retail loyalty up but brand loyalty down § E. G. : Sears (Kenmore) 2 -18

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 instore displays. 2 -19

Positioning Approaches 1. Is relative to competition. 2. Exists in the mind of the consumer. q. Attributes. q. Competitors q. Use or application q. Price/quality. q. Product user q. Product class q. Cultural symbol • Consumer markets • B-to-B markets • International markets 2 -20