Corporate Image and Branding Chapter 2

Discussion Points: How important are brand names? How important are brand names for clothes? Why? What additional product categories are brand names important? What product categories are brand names not important?

Promoting the Right Image Very important first step in creating a successful brand 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 Necessary under certain circumstances Difficult to do More B to B

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.

 What image is being conveyed by this Porsche advertisement?  What image is being conveyed by the Porsche Web site?   Are the images consistent?

What’s Happening? Mhttp:// M

What is Branding? Assigning a name, phrase, design, symbols or a combination of these to a product, service, or a group of complimentary products

Branding Provides quality assurance Reduces search time. Allows a company to charge more (if the brand is recognized and respected). Reduces brand parity. Consumers choose a brand because it is: –Salient –Memorable –Noteworthy

Discussion Exercise List the names of five brands you have a negative impression of? Why is the brand(s) conceived negatively? Does this brand(s) need to be rejuvenated? If so how should it be rejuvenated? (from question 3, page 46).

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.

Successful Brand Development Commitment to the brand Market penetration Research and understanding the brand’s target market Building effective expansion programs and fending off competitors.

Video – Nike Questions for Discussion:  What do you think of Nike’s Brand Management?  What can other athletic apparel company’s learn from Nike?

What’s Happening? WM1SRshttp:// WM1SRs

Building Brand Equity Brand Equity – certain assets that add to the value assigned to the product Research current brand image Decide what makes the brand unique Communicate brand’s uniqueness Spend on advertising/communication Deliver on uniqueness

Benefits of Brand Equity Higher prices Higher gross margins Reduces customer switching Greater demand for the product Prevents erosion of market share

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

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.

Successful Brand Extensions Lipton tea – Lipton soup mixes Kodak film – Kodak cameras and batteries Ivory soap – Ivory shampoo, dishwashing liquid Barbie dolls – Barbie games, furniture, clothes Honda bikes – Honda cars, lawnmowers, generators

Unsuccessful Brand Extensions Dunkin’ Donuts – Dunkin’ Donuts cereal Harley Davidson Bikes – Harley Davidson cigarettes Levis Jeans – Levis business wear Mr. Coffee coffee makers – Mr. Coffee coffee

Companies often create product icons to develop an identity for their products, and increase brand equity. Why is the Mr. Clean icon an effective representative for its product?