Corporate Image And Brand Management - Chp2 43293q

IMC: Corporate Image and Brand Management Chapter 2 with Duane Weaver

OUTLINE • Corporate Image Roles – Consumer role – B2B role – Corporate role

• Promoting Desired Image

Components of a Corporate Image Tangibles

Intangibles

Goods and services

Corporate, personnel, and environmental policies

Retail outlets (sale)

Ideals and beliefs of corporate personnel

Factories (produce)

Culture of country and location of company

Communication media: ads, promos, literature, docs…

Media reports

Name/Logo Packaging & Labeling Employees

Corp. Image Role consumer’s view

• Assurance of familiar products (e.g. Coke)

• Assurance of familiar company (e.g. IBM)

• Reduction of purchase research time • Psychological reinforcement & social acceptance

Corp. Image RoleB2B view

• Reduce feelings of risk • Reduce search time • Psychological reinforcement & social acceptance

Corp. Image Role – corporation’s view (self-view) • 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

Promoting Desired Image 1. Image must accurately portray firm and coincide with products and services sold. 2. Easier to re-enforce or rejuvenate than it is to change well-established (e.g. New Coke vs. Coke Classic)

3. Difficult to “next to impossible” to develop new image (sometimes divorce and/or new company is easier)

4. Recovering from –ve or “bad press” happens fast (overnight) … building/rebuilding can take years!

Branding –

discovering why consumers buy a brand • Most compelling Benefits? • Emotions elicited by the brand? • One-word encapsulation? • Importance to customers? Get in your teams and write down two company brand names you feel are the best in their industry. Explain how the above

four criteria are demonstrated by the brand name that make it the best.

Packaging • What do they say to us?

Packaging • Same? What do they say differently to us?

Brand Equity Brand equity has been also defined as: • The component of overall preference not explained by objectively measured attributes; and • The set of consumer associations & behaviours that permits the brand to earn greater volume or margins than it could without the brand name.

http://www.ag.state.co.us/mkt/BrandEquityandImageAssess.pdf#search='logo%20images%20brandequity‘ (retrieved Jan/05/2006), Brand Werks Group,

Brand Equity “Brand image is everything. It is the sum of all tangible & intangible traits — the ideas, beliefs, values, prejudices, interests, features & ancestry that make it unique. A brand image visually & collectively represents all internal & external characteristics — the name, symbol, packaging, literature, signs, vehicles & culture. It's anything & everything that influences how a brand or a company is perceived by target constituencies — or even a single customer. Brand image may be the best, single marketable investment a company can make. Creating or revitalizing a positive brand image is a basic component of every business — and lays a foundation on which companies can build their future.” http://www.ag.state.co.us/mkt/BrandEquityandImageAssess.pdf#search='logo%20images%20brandequity‘ (retrieved Jan/05/2006), Brand Werks Group

Brand Extensions and Flanker Brands • Brand Extension

– Use established brand name for unrelated goods and services (reaching new markets with new product lines) • Black & Decker: power tools, flashlights, household appliances (toaster, iron, kettle…)

• Flanker Brand – Develop a new brand within a related product category (increase market mix to reach new target segments) • Tide & Cheer, Ivory Snow…etc.

Co-Branding • Ingredient branding – Intel inside compaq

• Cooperative branding – t venture e.g.: Citbank, Mastercard and American Airlines points card

• Complementary branding – Encourage co-consumption of more than one brand such as Oreo shakes in Dairy Queen

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

Positioning “The process of creating a perception in the consumer’s mind regarding the nature of a company and its products relative to the competition” (Clow & Blaack, p. 48)

7 ways to achieve effective positioning: Attribute Cultural Symbol

Competitors

POSITIONING

Product Class Product

Price-Quality Relationship

Application Use

THANKS!