MKTG 303: Advertising and Promotion Corporate Image and Brand Management October 8, 2009 Zeynep Gürhan-Canlı

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

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

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

Corporate Image Development Accurate reflection of firm Reinforcing image Rejuvenating image Changing image Negative press

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

Corporate Names Overt names: Turkish Airlines (reveal what the company does) Implied names: FedEx, IBM, İzocam (recognizable words or word parts that imply what the company is about) Conceptual names: Varan, Krispy Kreme (try to capture the essence of the idea behind the brand) Iconoclastic names: Apple, Beko (Does not reflect company’s goods or services , but instead something that is unique, different, and memorable)

Corporate Logos

Corporate Logos Should be easily recognizable Should be familiar Should elicit consensual meaning Stimulus codeability Should evoke positive feelings

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

Brand Logos

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?

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

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.

Types of Brands Co-Branding Family brands Brand extensions Flanker brands Private brands Co-Branding Ingredient Cooperative Complementary

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

Packaging

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

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

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