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2 Corporate Image and Brand Management Chapter Overview

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1 2 Corporate Image and Brand Management 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 and corporate positioning strategies.

2 F I G U R E 4 . 1 Tangible Elements Intangible Elements
Components of a Corporate Image Tangible Elements Intangible Elements 2. Philosophies of Gates affects views of Microsoft 3. Country – perception of Japan effects views of Sony 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 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.

3 Role of Corporate Image
Consumer perspective. Business-to-business perspective. Company perspective. C – assurance concerning purchases B – risk reduction Company – can charge higher prices Sony’s Web site is continually updated, but still retains a consistent corporate image.

4 Role of Corporate Image
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 Brand – name for a product; e.g. Tide Salient brand – customer is aware of, part of evoked set, see brand as a good value, buy/use on a regular basis, recommend to others. B2B view Reduce feelings of risk Reduce search time Psychological reinforcement & social acceptance

5 Role of Corporate Image
Corporation’s 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 Brand – name for a product; e.g. Tide Salient brand – customer is aware of, part of evoked set, see brand as a good value, buy/use on a regular basis, recommend to others.

6 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 Brand – name for a product; e.g. Tide Salient brand – customer is aware of, part of evoked set, see brand as a good value, buy/use on a regular basis, recommend to others.

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

8 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? Ford – quality is job one Family branding – e.g., Delmonte – advantages and disadvantages?

9 Packaging Traditional elements New trends 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 Should be consistent with image and brand, but is it always? Use Doug’s exercise

10 Labels Must meet legal requirements.
Provide another marketing opportunity. “gourmet” “natural” “premium”

11 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.

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

13 Building Brand Equity 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. Domination – consumer’s belief that the brand is #1

14 Successful Brand Development
Continue commitment to the brand. Increase market penetration. Understand the brand’s target market Leverage the effects of penetration Mkt penetration – percent buying brand relative to product category What do tgt mkt customers really want? Leverage – build effective expansion programs (e.g., brand extensions – arm & hammer); fend off attacks

15 Types of Brands Family brands Brand extension Flanker brand
Co-branding Ingredient branding Cooperative branding Complementary branding Private brands Extension – arm & hammer; Nike Flanker – P&G with Tide, Cheer, Ivory Snow and 8 other brands; Hallmark with Shoebox greetings; Gillette and Atra SEE NEXT OH for Cobranding and Private brands

16 Brand Extensions and Flanker Brands
Use established brand name for unrelated goods and service (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.

17 Co-Branding Ingredient branding Cooperative branding
Complementary branding Ingredient – M&Ms in Eddy’s ice cream Cooperative – e.g., Citibank and Mastercard Complementary – Seagram’s encouraging 7-up as a compatible mixer Can help or could hurt

18 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)

19 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.

20 Positioning Approaches
Is relative to competition. Exists in the mind of the consumer. e.g., Hide a bed; Rolex vs Timex Do via mktg mix or: Attribute – cavity prevention Competitor – Avis, #2 but try harder Use/application – arm & hammer – use in toilet, kitty box, refrigerator; Weekend were made for Michelob Price/quality – L'Oreal – I’m worth it Product user – for the serious carpenter Class- Camay is a beauty bar Symbol – Chevy with apple pie and baseball Attributes. Competitors Use or application Price/quality. Product user Product class Cultural symbol Consumer markets B-to-B markets International markets


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