1. 2-1 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. Corporate Image and Brand Management 2

2. 2-2 What impact do you think Steve, the “Dell Dude” has made on Dell’s image? What is the theme of Dell’s current advertising campaign? How does it compare to the “Dell Dude” campaign? How important is the brand name and brand image in purchasing a computer? Dell Computers Discussion Slide 2

3. 2-3 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? Discussion Slide Click picture to play video.

4. 2-4 Tangible ElementsIntangible 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 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. F I G U R E 4. 1 Components of a Corporate Image

5. 2-5 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.

6. 2-6 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 B2B view Reduce feelings of risk Reduce search time Psychological reinforcement & social acceptance

7. 2-7 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

8. 2-8 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

9. 2-9 Top 10 Brands Coca Cola72,537 Microsoft-Windows70,157 IBM53,184 Intel39,049 Nokia38,528 General Electric38,128 Ford36,368 Disney33,553 McDonald’s27,859 AT&T25,548 Brand Value ($m) Source: Interbrand Annual Survey

10. 2-10 The Ford brand name:  is among world’s top 10.  provides assurance of quality.  has high brand equity.

11. 2-11 Developing a Strong Brand Name 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? Begins with understanding why consumers buy a brand.

12. 2-12 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

13. 2-13 Labels Must meet legal requirements. Provide another marketing opportunity.

14. 2-14 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.

15. 2-15 Benefits of Brand Equity Higher prices Higher gross margins Channel power Additional retail shelf space Reduces customer switching behavior Prevents erosion of market share

16. 2-16 Building Brand Equity 1.Research current brand image. 2.Decide what makes the brand unique. 3.Communicate brand’s uniqueness. 4.Spend heavy on advertising. 5.Make domination the goal. 6.Deliver on uniqueness.

17. 2-17 Successful Brand Development Continue commitment to the brand. Increase market penetration. Understand the brand’s target market Leverage the effects of penetration

18. 2-18 Types of Brands Family brands Brand extension Flanker brand Co-branding Ingredient branding Cooperative branding Complementary branding Private brands

19. 2-19 Brand Extensions and Flanker Brands  Brand Extension 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.

20. 2-20 INTEGRATED LEARNING EXPERIENCE STOP Brand Extensions and Flanker Brands  Sara Lee Corporation  Http://www.saralee.com Http://www.saralee.com  Procter & Gamble  Http://www.pg.com Http://www.pg.com  VF Corporation  Http://www.vfc.com Http://www.vfc.com  General Mills  Http://www.generalmills.com Http://www.generalmills.com  Marriott Hotels  Http://www.marriott.com Http://www.marriott.com

21. 2-21 Co-Branding  Ingredient branding  Cooperative branding  Complementary branding

22. 2-22 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)

23. 2-23 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.

24. 2-24 Positioning Approaches  Attributes.  Competitors  Use or application  Price/quality.  Product user  Product class  Cultural symbol Consumer markets B-to-B markets International markets 1.Is relative to competition. 2.Exists in the mind of the consumer.

25. 2-25 A business-to-business advertisement positioned by the product’s attributes: the brightness of the Sony projector. An advertisement by Stetson positioned by cultural symbols.

26. 2-26 Choose a brand name for your product. What image do you want to project? Create a brand logo. Choose a positioning strategy. Building Your IMC Campaign