IMC 2011 by ARM
Session 2
Ali Raza Merchant
IMC CourseCorporate Image & Brand
Management
IMC 2011 by ARM
Understand the nature of a corporation’s image and why it is important
Develop tactics and plans to build an effective corporate image
Discover the advantages of a quality logo, package and label
Cultivate effective brand names, family brands, brand extensions, flanker brands, co-brands, private brands, brand equity and brand recognition
Recognize the importance of effective brand and product positioning and utilize strategies to help establish a positive position
Topic Objectives
IMC 2011 by ARM
Corporate Image
IMC 2011 by ARM
The Corporate ImageEffective marketing communications begins with the establishment of a clearly defined “Corporate Image”.
The image influences customers either positively or negatively as they make purchase decisions
For e.g. Corporate brands like Nestle, Apply, Microsoft, Unilever, P&G are respected by consumers
COMPONENTS OF A CORPORATE IMAGE
The Corporate Image of an organization has two facets
TANGIBLEELEMENTS
These are the visible
aspects of the organization
that consumers
see or encounter
INTANGIBLEELEMENTS
These are the invisible yet
important aspects of the organization that are not openly known to consumer but have an effect on how consumers
relate to an organization
IMC 2011 by ARM
Components of Corporate Image
TANGIBLEELEMENTS
1. Goods & Services sold
2. Retail outlets where product is sold
3. Factories where product is produced
4. Advertising Promotions & other form of communications
5. Corporate name and logo
6. Packages & Labels
7. Employees
INTANGIBLEELEMENTS
1. Corporate, personnel and environmental policies
2. Ideals and beliefs of corporate personnel
3. Culture of country and location of company
4. Media reports
IMC 2011 by ARM
Role of Corporate Image – Consumer Perspective
From a consumer’s perspective, the Corporate Image serves several useful functions
Assurance Regarding
purchase decisions of familiar products
in unfamiliar settings
1. Known Corporate Image provides consumers assurance what they can expect from Brands
2. A coke can, Mcdonald’s, KFC or Pizza Hut wherever it is known whatever the location
Assurance concerning
purchases where there is little
previous experience
1. Purchasing from a known corporation is considered safer
2. For e.g. a family on vacation might select Marriott or Holiday Inn as they are familiar with the name but have not stayed there earlier
Psychological reinforcement and social acceptance
1. The psychological comes from customers feeling that they made wise purchasing choices – The product or service will perform well
2. These customers are also concerned about how family and friends will view and approve of their decision – It satisfies the ego and social consciousness
IMC 2011 by ARM
Role of Corporate Image – Company Perspective
From the Cos
viewpoint of itself, a
reputable Corporate Image has
many benefits
Extension of Positive
Consumer feelings to new
Products
The ability to charge a higher
price or fee
Consumer loyalty leading
to more frequent
purchases
Positive Word-of-Mouth
Endorsements
The ability to attract good employees
More favorable ratings by financial
observers and analysts
IMC 2011 by ARM
Promoting the Desired Image1. Promoting the
proper image is critical to an organization’s success
2. It is important to assess co’s existing image to ensure successful future image transmission
3. Marketing experts need to ensure that customers, suppliers, employees and stakeholders are aligned with company’s image
The image being projected must accurately portray the firm and coincide with the products and services being sold
Reinforcing or rejuvenating a current image that is consistent with the view of consumers is easier to accomplish than changing a well-established image
It is very difficult to change the images people hold about a given company. In some cases, modifying or developing a new image simply cannot be done
Any negative or bad press can destroy an image that took years to build. If the reputation of a company has been damaged it is a herculean task to fix it.
IMC 2011 by ARM
Test for Quality Corporate Names & Logos
The Corporate Name and Logo is really the cornerstone of a company’s relationship with its customers
Quality logos and corporate names must meet four tests
Be easily recognizable
Be Familiar
Elicit a meaning to the firm’s
target market
Evoke Positive Feelings
IMC 2011 by ARM
Some Interesting Logos
IMC 2011 by ARM
Branding
IMC 2011 by ARM
Branding
1. Brands are names generally assigned to a product or service or a group of complimentary products
2. Most characteristics and benefits of a corporate image apply to brands as well
An effective brand name allows a company to charge more for its products, which increases gross margins
Strong brands provide customers with assurances of quality and reduction of search time in the purchasing process
In mature markets few tangible differences exist between competing brands. It is easy for competitors to copy features, however the difference lies in brandingA brand name develops strength in the market place when many customers choose the brand because they consider it memorable and notworthy
IMC 2011 by ARM
Developing a Strong Brand Name
Developing a strong brand name begins with discovering why consumers buy and rebuy the brand.
The company must address these key questions
What are the most
compelling benefits?
What emotions are elicited by
the brand either during or after the purchase?
What one word describes the
brand?
What is important to consumers in
the purchase of the product?
A company is then able to develop a strong brand positioning
Two important processes that assist in establishing stronger brand prestige are:1. The brand name must be prominently promoted to capture individual
attention2. The brand name must be associated with its most prominent
characteristic for e.g. Crest – Cavity protection, Coke – Refreshing, BMW – Performance driving
IMC 2011 by ARM
Important Aspects of branding
The goal of branding is to set a product apart from its competitors
Such brands develop histories through distinct personalities
Marketers must identify the “one thing” that the
brand stands for which
consumers recognize and find relevant
When a brand successfully establishes a
connection with customers – A
powerful brand recognition
occurs
Once brand recognition is
achieved the next step is to prolong
success by consistently
promoting the USP or brand
differentiator
A Family Brand is one in which a
company offers a series or group of
products under one brand name. For e.g. Black and
Decker for numerous power
tools
IMC 2011 by ARM
Packaging
IMC 2011 by ARM
Traditional Elements of a Package
Packaging is the final form in which the product is contained for purchase at retail.
The package contains the brand name, the company name, logo and certain information about product
Protect the product inside
Provide ease of shipping, moving and handling
Provide for easy placement on store shelves
Prevent or reduce the possibility of theft
Prevent tampering (drugs and foods)
IMC 2011 by ARM
Some Interesting Pack Designs
IMC 2011 by ARM
Brand Equity
IMC 2011 by ARM
Brand Equity and its advantages
Brand Equity is the set of characteristics unique to a brand which are linked with a strong brand name.
It offers a business several advantages over competition which increase the overall financial value and goodwill
Allows manufactures to charge a higher price from its customers -
Creates higher gross margins
Provides power with retailers and wholesalers
Captures additional retail shelf
Serves as a weapon against consumers switching due to sales promotions
Prevents erosion of market share
IMC 2011 by ARM
Steps to Building Brand Equity
Brand name recognition and recall can be built through repetitious advertising
Building Brand Equity, however, goes beyond mere brand recognition,
Following steps are required to do so.
Research & analyze what it would take to make the brand distinctive
Decide what makes the brand unique
Boldly communicate the USP of the brand
Spend no more than 30% of the communication budget on driving sales
Make domination the goal
Deliver on the promise of uniqueness being communicated
IMC 2011 by ARM
Brand Extensions & Flanker Brands
IMC 2011 by ARM
Brand ExtensionsBrand Extensions is the use of an established brand name on goods or services not related to the core brand.
For e.g. Nike athletic shoes extending its name to clothing line and Black and Decker extending its name to small kitchen appliances
In Pakistan Sufi has attempted to do this by extending its name to Edible Oil
Black & Decker Power Tools
Black & Decker Home Appliances
IMC 2011 by ARM
Flanker BrandsA Flanker Brand is the development of a new brand by a company in good or service category it currently has a brand offering.
For e.g. Procter & Gamble’s primary laundry detergents are Cheer and Tide. Still the company has Ariel to appeal to target markets where P&G believes that the primary brand is not reaching.
P&G Primary Detergent Brands
P&G Flanker Detergent Brands
IMC 2011 by ARM
Co-BrandingCo-branding is the offering of two or more brand in a single marketing offer.
Co-branding can be in either of these three forms:
1. Ingredient Branding
2. Cooperative Branding
3. Complimentary Branding
Ingredient BrandingIs the placement of one brand within another brand. For e.g. Intel microprocessors in Dell or HP computers
Cooperative BrandingIs the joint venture of two or more brands in new product or service. For e.g. Airblue, RBS Visa Credit Cards or Sony Ericsson Mobile phones
Complimentary BrandingIs the is the marketing of two brands to encourage co-consumption or co-purchases. For e.g. Tarang tea milk with Brook Bond Tea etc
IMC 2011 by ARM
Private BrandsPrivate Brands also known as Private Labels are proprietary brands marketed by an organization and sold within the organization’s outlets.
For e.g. Marks & Spencer’s UK selling their own sandwiches and Cola’s. Similarly Walmart selling its own brand of chocolates or clothes.
Tesco Private Labels
IMC 2011 by ARM
Brand Positioning
Positioning is the process of creating a perception in the consumer’s mind regarding:
•The nature of the company•Its products•Relative to competition
Positioning is created by variables such as quality, price, image and other factors
It is established relative to competitionBrands operate in a competitive environment and therefore need to distinguish themselves v/s competition.
It exists in the mind of consumersA brand can only be successful if its consumers can clearly identify the image conveyed through communication. If consumers can relate a word that best defines the brand its positioning is said to be successfully established
IMC 2011 by ARM
Different Positioning Approaches
Attribute Based Positioning
An attribute is a product trait or characteristic that sets it apart from other products
For e.g. Happy Dent chewing gum claiming shiny white teeth
Competitor Based Positioning
Using a competitor to garner a position, whereby one brand is contrasted to show the position of another
For e.g. Avis comparing itself with Hertz establishing that they work harder as they are No. 2
Use or Application Positioning
Creating a memorable set of uses for the Product.
For e.g. Arm & Hammer used it for promoting their baking soda as deodorizer, teeth whitener
Price-Quality Relationship
Associating a brand with how expensive it is and denoting a high quality perception or vice versa.
For e.g. Moven Pick ice cream or Haagen Daz clearly establishing that they are expensive but absolute high quality
IMC 2011 by ARM
Different Positioning ApproachesProduct Class Positioning
Certain company’s aim to position themselves in a particular product class or category.
For e.g. Orange juice was commonly used in breakfast. The industry decided to move its positioning as “Its not for breakfast anymore”
Identifying with Cultural Symbol
Though difficult to do yet it can be highly effective if clearly linked with something of pride for consumers
For e.g. Chevrolet has done this showing that it is as American as baseball – Also Harley Davidson which is respected for its free way of life
Product User Positioning
This specifically distinguishes a brand or product with reference to who uses the product.
For e.g. For e.g Apple Macs known for Designing v/s PC which are known more for business users