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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.

Brand and CorporateImage Management2

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• 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?

Dell Computers

Discussion Slide

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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?

Discussion Slide

Click picture to play video.

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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.

F I G U R E 4 . 1Components of a Corporate Image

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Role of Corporate ImageConsumer Perspective

• Consumer perspective.• Business-to-business perspective.• Company perspective.

Sony’s Web site is continually updated, but still retains a consistent corporate image.

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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.

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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?

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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.

Discussion Slide

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INTEGRATED LEARNING EXPERIENCESTOP

What corporate image is being projected by the following Web sites?

1. Http://www.kelloggs.com 2. Http://www.nabisco.com 3. Http://www.ibm.com 4. Http://www.bmwmotorcycles.com 5. Http://www.britishairways.com6. Http://www.singaporeair.com

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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.

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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.

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Logo Recognizability

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

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Companies oftencreate product iconsto develop an identity for their products.

Why is the Mr. Clean icon an effective representative for its product?

Discussion Slide

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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

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Top 10 Brands

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

Brand Value ($m)

Source: Interbrand Annual Survey

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

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Developing a Strong Brand Name

• 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?

Begins with understanding why consumers buy a brand.

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Packaging

• Traditional elements• 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

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Labels

• Must meet legal requirements.

• Provide another marketing opportunity.

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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.

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Benefits of Brand Equity

• Higher prices• Higher gross margins• Channel power• Additional retail shelf space• Reduces customer switching

behavior• Prevents erosion of market share

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Building Brand Equity

1. Research current brand image.2. Decide what makes the brand unique.3. Communicate brand’s uniqueness.4. Spend heavy on advertising.5. Make domination the goal.6. Deliver on uniqueness.

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Successful Brand Development

• Continue commitment to the brand.• Increase market penetration.• Understand the brand’s target market• Leverage the effects of penetration

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Types of Brands

Family brands Brand extension Flanker brandCo-branding

Ingredient branding Cooperative branding Complementary branding

Private brands

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INTEGRATED LEARNING EXPERIENCESTOP

Brand Extensions and Flanker Brands

Sara Lee CorporationHttp://www.saralee.com

Procter & GambleHttp://www.pg.com

VF CorporationHttp://www.vfc.com

General MillsHttp://www.generalmills.com

Marriott HotelsHttp://www.marriott.com

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Co-Branding

Ingredient branding

Cooperative branding

Complementary branding

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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.

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Positioning Approaches

Attributes.Competitors Use or application Price/quality.Product userProduct classCultural symbol

•Consumer markets•B-to-B markets•International markets

1. Is relative to competition.2. Exists in the mind of the

consumer.

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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.

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

Building Your IMC Campaign