1. 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.

2. 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

3. 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

4. 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

5. 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.

6. 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

7. 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?

8. 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?
Are the images consistent?
Click image to enlarge.

9. 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?

10. 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)

11. 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.

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

13. 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

14. 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.

15. Top 10 Brands Brand Value ($m) Coca Cola 72,537
Microsoft-Windows 70,157
IBM ,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

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

17. 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?

18. 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

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

20. 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.

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

22. 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

23. 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

24. 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

25. INTEGRATED LEARNING EXPERIENCE
STOP
INTEGRATED LEARNING EXPERIENCE
Brand Extensions and Flanker Brands
Sara Lee Corporation
Procter & Gamble
VF Corporation
General Mills
Marriott Hotels

26. 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

27. 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.

28. 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

29. 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.

30. 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.