9_brandbuilding&corporatereputation.pdf

8/9/2019 9_BrandBuilding&CorporateReputation.pdf

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Brand Management

MK542E

Brand Building and Corporate Reputation

Dr. Dildar HussainAssistant Proessor

E!C Rennes !"#ool o Business

$i"e %o. &2'

dildar.#ussain(es")rennes."om

Overview

*#at +rand and "orporate reputation means

Corporate so"ial responsi+ilit,

Re"ent resear"# in t#ese domains

Learning Objectives

-nderstanding meanings and importan"e o +rand and "orporate reputation

Dis"uss and appl, pro"ess o reputation +uilding

Ho "orporate reputation is measured

Dis"uss and appl, C!R "on"ept a"ross industries

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C#apter $/er/ie

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Brands increasingly seen as corporate interface

Financial scams and failure to comply with ethical production norms can harm the

brand

Brands under more pressure to deliver for investors, shareholders, employees, and

other stakeholders

Therefore, brands are being called upon to play the role of ambassador for the

organization

The brands need to ensure that

Brand /alues are ne/er "ompromised

Are "onstantl, maintained o/er time and spa"e

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0ntrodu"tion

nti !lobalism

Anti glo+ali1ation a"ti/ists +lame +ig +rands o +eing led mainl, +, greed e3ploiting t#e

orlds "iti1ens and t#e en/ironment

$t#ers also argue t#at t#ere #a/e +een e3amples #ere +ig +rands or"ed small +rand out o

t#e maret t#roug# air or unair pra"ti"es

"ommon features shared by #bad brands$

They opt for short term profits

!#ort term proits at t#e e3pense o long term +rand +uilding a"ti/ities

6,pi"all, su"# organi1ations o"us on s#ort terms sales t#roug# dis"ounts re+ates "ontests

et". instead o pro/iding an emotional reason or pur"#ase

Mostl, organi1ations mo/e t#eir produ"tion to lo "ost and lo 7ualit, lo"ations

Better option ) to #a/e long term o"us on "ost redu"tion and +eing t#e lo "ost produ"er

t#roug# resear"# and de/elopment

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Dilemma 8a"ing Modern Brands )9


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Failing to build relationship with customers

Due to s#ort term o"us t#ese +rands ail to +uild relations#ip it# "onsumers

6#e, ail to understand "onsumers e3pe"tations

6rusted +rands #a/e #ig#er ris o oending "ustomers as "ompared to e3"iting +rands

Fail to recover

6#ese +rands ail to rea"t on una/ora+le reports

E/en i t#e, tr, it is /er, #ard to re"o/er

Brand reputation ris is #e single +iggest ris "ompanies a"e t#ese da,s

!e/eral organi1ations #a/e esta+lis#ed spe"ial unit to tae "are o t#ese issue

e.g. Bar"la,s ormed a Brand and Reputation Committee t#at puts it at par it# inan"ial ris

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Dilemma 8a"ing Modern Brands )2

%f brands have value, they can lose it

Brand e&uity

6urning t#e +rand into a "ommodit, or ailing to dierentiate rom "ompetitors

Companies put +rand e7uit, at ris #en t#e "ompete on pri"e or a longer period o time

0t "an also +e "aused +, +rand misalignment ) ailing to deli/er promise misaligned e3tensions

'eputation risk

Reputation ris in/ol/es losing t#e +rand 7ualit,

and trust +uilt o/er time

Due to some sudden mis#ap or an, ot#er reason

: Coe e3ample;

(arketplace risk

Rele"ts "#anges in e"onom, industr, or maretpla"e or "onsumer preeren"es

Constant re/itali1ation o +rands66

6#ree 6,pes o Ris


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Brand reputation is concerned with both tangible and intangible perceptions of what

it is good at

%t embraces wider audience such as the supply chain, shareholders, and the society at

large

)erceived &uality and credibility underpin reputation

Four types of credibility

6rue positi/e< A "ompan, sa,s it ill do and t#e does it

6rue negati/e< A irm indi"ates it ill not do somet#ing and t#en does not do it

8alse positi/e< A irm indi"ates it ill do it somet#ing and t#en ails to do so

8alse negati/e< A irm sa,s it ill not do somet#ing and t#en goes a#ead and does it

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Brand and Corporate Reputation

'anking measures

Raning +, media is one o t#e most idel, a""epted measures o reputation

8inan"ial soundness

=ong term in/estment /alue

-se o "orporate assets

0nno/ati/eness

>ualit, o "ompan,s management

>ualit, o "ompan,s produ"ts and ser/i"es

A+ilit, to attra"t de/elop and retain talented people

A"noledgement o C!R

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Measuring Corporate Reputation ) 9


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Brand e&uity scales

6#is measure attempts to e/aluate sot or intangi+le aspe"t o "orporate reputation

>ualit, o produ"ts

Ad/ertising le/el

!ponsoring a"ti/ities

Condu"ting a"tor, tours

=ong)esta+lis#ed traditions

Hig#l, regarded emplo,ment it# t#e irm

*ell trained emplo,ees

!trong management

Costs o ad/ertising

Proita+ilit,99

Measuring Corporate Reputation ) 2

%mage measures

Measuring store or "orporate images emplo,ing =iert or semanti" dierential s"ales

!tore la,out ? "lean de"or et".

!er/i"e ) "#e"out #elpul riendl,

Produ"t mi3 ? ide sele"tion +rand names 7ualit,

Pri"e ? good /alue reasona+le pri"es spe"ial oers

%dentity measures

Measuring intera"e +eteen t#e a"tual and desired identit, using inter/ies o+ser/ations

o"us groups et".

Cal"ulating "omposite reputation s"ores +ased on /arious dimensions e.g. C!R management@

inno/ation et".

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Measuring Corporate Reputation ) &


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concept whereby the organizations consider the interests of society by taking

responsibility for the impact of their activities on customers, employees, shareholders,

communities, and the environment in all aspects of their operations

The scope if "*' is beyond the statutory responsibility

The company needs to assess the cost+benefit ratio

)ositive relationship between corporate social performance "*)- and corporate

financial performance "F)-

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Corporate !o"ial Responsi+ilit,

http://www.youtube.com/watch?v=yTiE!"#$$8

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6oda,s ideo

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'epositioning the . Brand

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Case !tud,

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