2 Brand and Corporate Image Management Chapter Overview Managing a corporation’s image. Managing brands. Issues associated with developing and promoting brand names and logos Importance of packaging and labels. Developing brand and corporate positioning strategies.

Dell Computers 2 What impact do you think Steve, the “Dell Dude” has made on Dell’s image? What is the theme of Dell’s current advertising campaign? How does it compare to the “Dell Dude” campaign? How important is the brand name and brand image in purchasing a computer? Discussion Slide

Before watching this interview: 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? Click picture to play video. Discussion Slide

F I G U R E 4 . 1 Tangible Elements Intangible Elements 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. Employees 1. Corporate, personnel, and environmental policies. 2. Ideals and beliefs of corporate personnel. 3. Culture of country and location of the company. 4. Media reports. 2. Philosophies of Gates affects views of Microsoft 3. Country – perception of Japan effects views of Sony

Role of Corporate Image Consumer Perspective Business-to-business perspective. Company perspective. C – assurance concerning purchases B – risk reduction Company – can charge higher prices Sony’s Web site is continually updated, but still retains a consistent corporate image.

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. Harley brand was rejuvenated

This Family Circle ad aims to change the magazine’s image, reflecting changes in culture What does this ad say about the contemporary “family woman” versus the one of 30 years ago?

What image is being conveyed by this BMW advertisement? Discussion Slide What image is being conveyed by this BMW advertisement? What image is being conveyed by the BMW Motorcycles Web site? http://www.bmwmotorcycles.com Are the images consistent? Click image to enlarge.

What corporate image is being projected by the following Web sites? STOP INTEGRATED LEARNING EXPERIENCE What corporate image is being projected by the following Web sites? Http://www.kelloggs.com Http://www.nabisco.com Http://www.ibm.com Http://www.bmwmotorcycles.com Http://www.britishairways.com Http://www.singaporeair.com

Test for Effective Logos Should be easily recognizable. Should be familiar. Should elicit a consensual meaning among firm’s target market. Stimulus codeability Should evoke positive feelings. Logos aid in memory and recall Stimulus codeability = elicit consensual meaning = convey a meaning by the logo itself (Nike swoosh originally very low in stimulus codeability; Prudential Rock is high in stimulus codeabiltiy)

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.

Logo Recognizability McDonald’s Golden Arches logo is recognizable enough to stand on its own.

an effective representative for its product? Discussion Slide Companies often create product icons to develop an identity for their products. Why is the Mr. Clean icon an effective representative for its product? Icon – pictorial representation

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 Brand – name for a product; e.g. Tide Salient brand – customer is aware of, part of evoked set, see brand as a good value, buy/use on a regular basis, recommend to others.

Top 10 Brands Brand Value ($m) Coca Cola 72,537 Microsoft-Windows 70,157 IBM 53,184 Intel 39,049 Nokia 38,528 General Electric 38,128 Ford 36,368 Disney 33,553 McDonald’s 27,859 AT&T 25,548 Source: Interbrand Annual Survey

The Ford brand name: is among world’s top 10. provides assurance of quality. has high brand equity.

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? Ford – quality is job one Family branding – e.g., Delmonte – advantages and disadvantages?

Packaging Traditional elements New trends 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 Should be consistent with image and brand, but is it always? Use Doug’s exercise

Labels Must meet legal requirements. Provide another marketing opportunity. “gourmet” “natural” “premium”

Brand Equity The set of characteristics unique to a brand that allows the company to charge a higher price and retain a greater market share than would otherwise be expected for an undifferentiated product.

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. Domination – consumer’s belief that the brand is #1

Successful Brand Development Continue commitment to the brand. Increase market penetration. Understand the brand’s target market Leverage the effects of penetration Mkt penetration – percent buying brand relative to product category What do tgt mkt customers really want? Leverage – build effective expansion programs (e.g., brand extensions – arm & hammer); fend off attacks

Types of Brands Family brands Brand extension Flanker brand Co-branding Ingredient branding Cooperative branding Complementary branding Private brands Extension – arm & hammer; Nike Flanker – P&G with Tide, Cheer, Ivory Snow and 8 other brands; Hallmark with Shoebox greetings; Gillette and Atra SEE NEXT OH for Cobranding and Private brands

INTEGRATED LEARNING EXPERIENCE STOP INTEGRATED LEARNING EXPERIENCE Brand Extensions and Flanker Brands Sara Lee Corporation Http://www.saralee.com Procter & Gamble Http://www.pg.com VF Corporation Http://www.vfc.com General Mills Http://www.generalmills.com Marriott Hotels Http://www.marriott.com

Co-Branding Ingredient branding Cooperative branding Complementary branding Ingredient – M&Ms in Eddy’s ice cream Cooperative – e.g., Citibank and Mastercard Complementary – Seagram’s encouraging 7-up as a compatible mixer Can help or could hurt

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.

Positioning Approaches Is relative to competition. Exists in the mind of the consumer. Attributes. Competitors Use or application Price/quality. Product user Product class Cultural symbol Consumer markets B-to-B markets International markets e.g., Hide a bed; Rolex vs Timex Do via mktg mix or: Attribute – cavity prevention Competitor – Avis, #2 but try harder Use/application – arm & hammer – use in toilet, kitty box, refrigerator; Weekend were made for Michelob Price/quality – L'Oreal – I’m worth it Product user – for the serious carpenter Class- Camay is a beauty bar Symbol – Chevy with apple pie and baseball

A business-to-business advertisement positioned by the product’s attributes: the brightness of the Sony projector. An advertisement by Stetson positioned by cultural symbols.

Building Your IMC Campaign Choose a brand name for your product. What image do you want to project? Create a brand logo. Choose a positioning strategy.