1. 2
Chapter Two
Corporate Image
and
Brand Management

2. Components of a Corporate Image
Products
Personnel
Retail outlets
Servicing
Advertisements
Publicity
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F I G U R E
Components of a Corporate Image
Tangible Elements
Intangible 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. Ideas and beliefs of corporate
personnel.
3. Culture of country and location
of the company.
4. Media reports.
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4. Role of Corporate Image Consumer Perspective
Positive assurance
Unfamiliar settings
Little or no previous experience
Reduces search time
Provides psychological reinforcement
Social acceptance
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5. Role of Corporate Image Company Perspective
Ability to charge more
Consumer loyalty
More frequent purchases by customers
Positive word-of-mouth
Attracts higher quality employees
More favorable ratings
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6. Top 10 Global Corporate Brands
Brand Value ($billion)
Coca-Cola $ 65.3
Microsoft $ 58.7
IBM $ 57.1
General Electric $ 51.5
Nokia $ 33.7
Toyota $ 32.1
Intel $ 30.9
McDonald’s $ 29.4
Disney $ 29.2
Mercedes Benz $ 23.6
Source: Based on “The 100 Top Brands,” Business Week (August 6, 2007), pp
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7. Promoting the Right Image
Creating the right image.
Conveys a clear message about the organization.
Should portray the nature of the firm.
Fit with products being sold.
Rejuvenating an image.
Easier than changing a well-established image.
Add new elements but continue current image.
Changing an image.
Extremely difficult.
Necessary when
Target market has shrunk or disappeared.
Current image not consistent with industry trends.
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F I G U R E
Tests of Quality Logos and Corporate Names
Should be easily recognizable.
Should be familiar.
Should elicit a consensual meaning among firm’s target market.
Mutual contract
Should evoke positive feelings.
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9. Benefits of Logo Recognizability
Aids in recall of specific brands.
Aids in recall of advertisements.
Reduces shopping effort.
Reduces search time and evaluation of alternatives.
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10. What colors should you use in your logo?
Black – seriousness, distinctiveness, power, sophistication, and tradition.
Blue – authority, dignity, security, faithfulness, heritage, corporate stability, and trust.
Brown/gold – history, utility, earthiness, richness, tradition, and conservative.
Gray/silver – authority, practicality, corporate mentality, and trust.
Green – health, freshness, stability, and appetite.
Orange – fun, cheerfulness, health, and youth.
Source: “Jared McCarthy, “Logos: What Makes Them Work (Part 1of 2),”
( February 22, 2005.
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11. What colors should you use in your logo?
Pink – femininity, innocence, softness, health, and youth.
Purple – sophistication, spirituality, wealth, royalty, youth, and mystery.
Red – aggressiveness, passion, strength, vitality, fear, speed, and appetite.
White/silver – purity, truthfulness, faith, contemporary, refined, and wealth.
Yellow – youth, positive feelings, sunshine, cowardice, refinement, caution, and appetite.
Source: “Jared McCarthy, “Logos: What Makes Them Work (Part 1of 2),”
( February 22, 2005.
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Logo Recognizability
McDonald’s Golden Arches logo is recognizable enough to stand on its own.
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Companies often
create product icons
to develop an identity for their products.
Why are these
icons effective representatives
for these companies?
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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
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Branding
If you didn’t find the brand you wanted, would you be likely to buy another brand?
Greeting cards 68%
Groceries and canned food 67%
Women’s apparel 50%
Men’s apparel 55%
Toys %
Candy %
Beverages 49%
Consumer electronics 40%
Computer software 35%
Source: Debbie Howell, “Today’s Consumers More Open To Try New Brands,” DSN Retailing Today, vol. 43, No. 20 (October 25, 2004), pp
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16. 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?
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F I G U R E
Benefits of Brand Equity
Higher prices
Higher gross margins
Channel power
Additional retail shelf space
Reduces customer switching behavior
Prevents erosion of market share
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Brand Equity
Mercedes Benz has developed a high level of brand equity.
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F I G U R E
Steps in Building Brand Equity
Research and analyze what it would take to make the brand distinctive.
Engage in continuous innovation.
Move fast.
Integrate new and old media.
Focus on domination.
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F I G U R E
Top 10 Most Powerful Brands (AlixPartners)
Brand Trust Rate Distrust Rate BPI
Sony 9.2% 1.8% 75.1
Johnson & Johnson 5.7% 0.5% 55.3
Kraft 5.2$ 0.6% 48.7
Procter& Gamble 5.8% 1.1% 48.2
Campbell’s 3.5% 0.4% 32.9
Toyota 4.1% 1.2% 28.0
Tylenol 3.2% 0.6% 27.2
Dell 5.1% 2.1% 27.0
General Mills 2.7% 0.2% 25.9
Hewlett-Packard 4.0% 1.5% 23.5
BPI = awareness, trust, and distrust.
Source: Adapted from Fred Crawford, “Branding Isn’t Like High School,” Retail Merchandiser, Vol. 47, No. 6 (July/August 2007), pp. S4-S9.
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F I G U R E
Most Preferred Brands (DSN Retailing)
Women’s Apparel
Beverages
Hanes (39%)
Levi’s (10%)
Victoria’s Secret (6%)
Liz Claiborne (4%)
Nike (4%)
Fruit-of-the-Loom (4%)
Coke (26%)
Pepsi (22%)
Dr. Pepper (6%)
Mountain Dew (5%)
Snacks
Consumer Electronics
Frito Lay/Lays (19%)
Doritos (10%)
Hershey’s (6%)
Pringles (6%)
Oreos (5%)
Sony (27%)
RCA (6%)
Panasonic (6%)
Dell (5%)
Duracell (4%)
Source: Adapted from Debbie Howell, “Top Brands,” DSN Retailing Today, Vol. 44, No. 20 (October 24, 2005), pp
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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
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