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