Corporate Image and Brand Management Chapter 2

2 - 1 Chapter Objectives 1.Understand the nature of a corporation’s image and why it is important. 2.Develop tactics and plans to build effective corporate image. 3.Cultivate effective brand strategies. 4.Discover the advantages of quality logos, packages, and labels. 5.Recognize the importance of effective brand and positioning strategies.

2 - 2 Gucci Started in Italy Strong corporate and brand name Global name recognition In United States – seductive, high fashion band

2 - 3 Corporate Image Components of image  Tangible  Intangible Role of corporate image  Consumer perspective  Business-to-business perspective  Company perspective

Corporate Image Tangible -Goods and services sold. -Retail outlets. -Factories where the product is produced. -Packages and labels. Intangible -Media reports. -Culture of country and location of company. - corporate, personnel and environmental policies

2 - 5 Corporate Image Consumer Perspective Provide assurance  Unfamiliar settings  Little or no previous experience Reduce search time Provide psychological reinforcement Provide social acceptance

2 - 6 Corporate Image Company Perspective Extension of name to new products. Ability to charge more Consumer loyalty More frequent purchases by customers Positive word-of-mouth communications Attracts higher quality employees

2 - 7 Accurate reflection of firm Reinforcing image or Rejuvenating image Changing image Negative press Corporate Image Development

2 - 8 Promoting the Desired Image Creating the right image  Convey clear message  Fit with company and product Rejuvenating an image  Easier than changing image  Add new elements, but maintain current image Changing an image  Extremely difficult

2 - 9 Overt names (what the company does. i.e. AMERICAN AIRLINES) Implied names (what the company is about. i.e. Federal express) Conceptual names (the essence of the brand i.e. Google) Iconoclastic names (don’t reflect company’s goods or services: Apple) Corporate Names

Should be easily recognizable Should be familiar Should elicit consensual meaning  Stimulus codeability (Coke, nike and MacDonalds) Should evoke positive feelings Corporate Logos

Benefits of Logo Aids in recall  Specific brands  Advertisements Reduces shopping effort Reduces search time

Branding It is assigned to an individual good or service or to a group of complementary products

Provides quality assurance Reduces search time Allows company to charge more Reduces brand parity Consumers choose brands that are:  Salient (aware of the brand&desire it)  Memorable  Noteworth Branding

Developing Strong Brands What are most compelling benefits? What emotions are elicited by brand? What one word best describes brand? What is important to consumers in the purchase of the brand?

Brand Equity The set of characteristics unique to a brand, which allows the company the opportunity to charge a higher price and retain a market share

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

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)Minimize reliance in any one customer.

Family brands Brand extensions Flanker brands Private brands Types of Brands Ingredient (replacement) Cooperative ( joint venture of goods) Complementary ( co-purchases) Co-Branding

Family brands Brand extensions -the use of an established brand name on goods or services that are not related to the core brand. Flanker brands - the development of a new brand by a company in a good or service category it currently has as a brand offering Private brands - Brands marketed by an organization and normally distributed exclusively within the organization’s outlets Types of Brands

Changes in Private Brands Quality improvements Lower prices Higher store loyalty Lower loyalty to manufacturer brands Increase in advertising of private brands Increase in quality of private brand store displays

Traditional elements  Product protection  Ease of shipping  Easy placement on shelves  Prevent theft New trends  Consumer convenience  Contemporary and attractive design  Designed for ease of use Packaging

Labels Must meet legal requirements. Provide another marketing opportunity to sell the product.

Attributes (characteristic) Competitors Use or application Price/quality Product user Product class Cultural symbol Product Positioning Consumer B-to-B International Markets 1.Relative to competition. 2.Exists in the mind of the consumer.

Review Questions(1-15)In page 55. Key terms page