E ve ry S a tu rd a y a t 1 0 : 0 0 a m 4 : 0 0 p m M B A E xe cu ti ( S p ri g S e m e ste r 2 0 1 1 ) ve n I &M U E T , La h o re B

C o u rse I stru cto r: S y e d M u h a m m a d n Ju n a id

Le ctu re 0 3 & 0 4 0 5 . 0 3 . 2 0 1 1

Chapter - 2

CORPORATE IMAGE & BRAND MANAGEMENT

Corporate Image
The image summarizes what the company stand for and how well its position has been established. What consumers believe about the company is far more important than how the company officials view the image.

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Components of a Corporate Image

Products Personnel Retail Outlets Servicing Advertisements Publicity

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The Role of a Corporate Image Consumer Perspective

From a consumers perspective, the corporate image serves several useful functions. These include:

Assurance regarding purchase decisions of familiar products in unfamiliar settings Assurance concerning purchases where there is little previous experience Reduction of search time in purchase decisions Psychological reinforcement and social acceptance

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The Role of a Corporate Image Business Perspective

Corporate image is a crucial element of the business-to-

business marketplace. Making B2B purchases from a wellknown company is in many ways the same process as consumer purchases, in terms of the advantages of a strong and positive image.

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The Role of a Corporate Image Companys Perspective

From the viewpoint of the firm itself, a highly reputable image generates many benefits. These include:

Extension of positive consumer feelings to new products The ability to charge a higher price or fee Consumer loyalty leading to more frequent purchases Positive word-of-mouth endorsements The ability to attract quality employees More favorable ratings by financial observers and analysts

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F I G U R E

2 . 1

Components of a Corporate Image

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Corporate Image
Promoting the Desired Image
The image being projected must be an accurate portrayal of the firm and coincide with the products and services being sold. Reinforcing or rejuvenating a current image that is consistent with the view of consumers is easier to accomplish than changing an image that is well established.

Creating the Right Image

- In each industry, the right image is one that reaches all target markets and conveys a clear message regarding the unique nature of the organization and its products. - It is very difficult to change the images people hold regarding a given company. Consequently, leaders must carefully consider: What they wish to change Why they wish to make a change How they intend to accomplish the task
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Changing an Image

Corporate Name
A corporate name is the overall banner under which all other operations occur: Overt names reveal what the company does (American Airlines, BMW Motorcycles).

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Corporate Name
A corporate name is the overall banner under which all other operations occur: Implied names imply what the company is about (Federal Express, International Business Machines).

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Corporate Name
A corporate name is the overall banner under which all other operations occur: Conceptual name simply the essence of the brand (Google, Green Cables, Krispy Kreme).

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Corporate Name
A corporate name is the overall banner under which all other operations occur: Iconoclastic names do not reflect the company's goods or services (Apple, Monster.com).

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Corporate Logos

A Symbol used to identify a company and its brand.

They should be easily recognizable. They should be familiar. They should elicit a consensual meaning among those in the firms target market. They should evoke positive feelings.

Logos are especially important for in-store shopping. To be advantageous the logo should help with two things: Consumers must remember seeing the logo in the past The logo must remind consumers of the brand or corporate name

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Top 10 Global Corporate Brands

Rank Previous Rank Brand Name Brand Logo Country Sector Brand Change in Value ($M) Brand 2010 Value

1 2 3 4 5 6 7 8 9 10

1 2 3 7 4 6 9 5 10 11

Coca Cola IBM Microsoft Google GE Mc Donalds Intel Nokia Disney HP

United States United States United States United States United States United States United States Finland United States United States

Beverages Business Services Computer Software Internet Services Diversified Restaurants Electronics Electronics Media Electronics

70,452 64,727 60,895 43,557 42,808 33,578 32,015 29,495 28,731 26,867

2% 7% 7% 36% -10% 4% 4% -15% 1% 12%

QUIZ QUIZ

Branding

A brand name is assigned to an individual good or service or to a group of complementary products (within the corporate name structure).

Goal of a branding is to set a product a part from its competitors.

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ILLUSTRATION

A MODEL OF A BRAND

A brand is more than a name or symbol

People speaking informally about brand often use the term to mean the name or symbol of a company. While this shorthand is convenient, it misses an important truth.

Name

Brand

A brand is at least two things: a name and a perception of what the name means.

Perception

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Creating a great customer experience

Perception of a brand does not arise on its own. Rather, it grows out of experience with a product. Here, product is used in a broad sense incorporating the results of many activities commonly associated with marketing.

Product

Experience Perception

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A brand manager (or steward) is responsible for any item which comes into contact with customers. By controlling all the touch points, the manager tries to ensure that customers have a great experience.

Name

Brand

To complete the framework of the model, the set of terms related to brand must be Product linked to the set of terms related to experience.

Experience

Perception

Perception, common to both sets, is the link.

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Name
Ca n te ac

imagine

Stewards

Promise
guides

Brand
build

represents represents

Symbols

Measured

Stewards

Product

deliver

Experience

shape shape

Perception
deliver

Individuals
influence

External systems

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

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?

F I G U R E 2 .6

Benefits of Brand Equity

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

Benefits of Brand Equity

Mercedes Benz has developed a high level of brand equity.

Steps in Building Brand Equity

in Building Brand Equity

F I G U R E .7 Steps

1.Research and analyze what it would take to make the brand distinctive. 2.Engage in continuous innovation. 3.Move fast. 4.Integrate new and old media. 5.Focus on domination.

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.

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 Snowetc.

F I G U R E

Forms of Co - Branding

2 . 11

Ingredient Branding
Example: Intel

Co - Branding

Cooperative Branding
Example: Master card, Visa

Complementary Branding
Example: Pepsi & KFC

Brand Development

Brand Development
New Product - a new product is developed with a series of new brand ideas and meanings to the consumer.
Sony enters the market for music downloads under a new sub-branding idea and concept.

Flanker Brand - a new brand is introduced into a category where the organization already has established products.
Sony introduces the Sony Vaio laptops (as it indeed has).

Line Extension - a current brand name is introduced into a category where the organization already has established products.
Sony enter the market for digital HD TV's (as it has).

Franchise Extension - a familiar brand is taken to a product category where it is unknown.

Sony enters the market for innovative environmentally friendly small cars that run on solar power.

CASE STUDY

BMW

NEW MEDIA VEHICLES

BMW Customers Personality

SHORTFILMS

The average BMW customer was about 46 years old, with a median income of about $150,000. Most BMW customers were well-educated, arried, and had no children. Two- thirds were male. People who tends to be leader, work hard, played hard, and achieved a lot very early in life, tend Marketing Approach BMW to be active and engaged in sports in their daily life CEO McDowell says: regime. Our goal was to produce the most exciting, fun thing people had ever seen come out of their computer. We convinced ourselves that we could create something so involving that people would remember the experience 10 years down the road.