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

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Some Interesting Logos

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Branding

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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

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Packaging

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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

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Brand Equity

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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

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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