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Lecture 7
The Corporate Brand: An
Organization’s Covenant
2
Objectives
• An introduction to different branding types
• The characteristics of corporate brands
• Differences between corporate brands and product
brands
• Differences between corporate brands and corporate
identities
• Similarities between corporate brands and corporate
identities
• Corporate Branding Relationships (corporate
branding architecture)
• “Model of the Moment”: Adjusting the AC2ID
TestTM so as to accommodate the corporate brand
p.251
3
Understanding Branding Types: i
• Brands, in their various guises, have
become a lingua franca
• Traditionally, two types of branding
have been identified:
• ERSTWHILE BRANDS
• ESTABLISHED BRANDS
4
Understanding Branding
Types: ii
• Erstwhile: in its simplest sense a brand is a
name, logotype, or trademark. Often used as a
mark of ownership.
• Established: refers to the added values that a
brand brings to a product. For the main, such
values are synthetic in that they are superimposed
on the product by marketing and communications
managers and creatives
5
Understanding Branding
Types: iii
• However, there a new, and quite
distinct, type of brand has emerged
over recent years. This refers to those
brands which refers to brands as
applied to corporate entities. This
branding category is called
EMERGENT
6
Understanding Branding
Types: iv
• Emergent: equally applicable to countries,
regions, cities etc it is most often applied to
corporations and to their subsidiaries
• Corporate brand values (unlike product brands)
are not contrived but are bona fide.
• The corporate branding philosophy, at its core,
represents an explicit COVENANT between an
organization and its key stakeholder groups,
including customers
7
Corporate and product
brands: the differences: i
PRODUCT CORPORATE
MANAGEMENT middle manager CEO
RESPONSIBILITY middle manager all personnel
COGNATE marketing strategy/multi
DISCIPLINE discplinary
COMMUNICATIONS marketing total corporate
MIX communications corporations
FOCUS/FOCI mainly customer multiple internal and
external groups and
networks
VALUES mainly contrived those of founder(s)
+ mix of corporate
+ other sub cultures
Balmer (2001)
8
Corporate and product
brands: the differences: ii
Of particular importance to the
establishment, maintenance, and
comprehension of corporate brands are
company personnel and company
culture(s).
9
Moreover, corporate brands often boundary-
span organizations.
Consider the Rolls Royce corporate brand. The Rolls Royce
brand is, on the one hand linked to(a) an aero engines group, and
(b) an automotive manufacturer. Two companies, sharing the
same, quintisentially British corporate brand name: the latter is
a subsidiary of the German automobile group BMW.
Corporate and product brands: the differences: iii
10
Corporate brands and
corporate identities: the
differences: i
• The identity concept is applicable to all entities in a
way that the corporate branding concept is not.
• A corporate brand will, almost certainly, have its
origins in an identity.
However, once a corporate brand has been
established an organization’s identity elements
need to be in alignment with the corporate brand
covenant (the promise that is explicit in a corporate
brand).
11
Corporate brands and
corporate identities: the
differences: ii
• In addition corporate brands differ from identities
in that they typically have a:
Longer gestation
External foci
Higher profile
Particular reliance on corporate communications, and
strong verbal and visual identifiers
Portability (can be bought, sold, and may be extended
to other corporations, products, and services)
Financial value that may be independent of the
corporation itself.
12
Similarities between
corporate brands and
corporate identities
• The importance of:
• Personnel and of sub cultural groups in their
formation, maintenance, and comprehension.
• Their multidisciplinary roots
• The necessity for ongoing CEO/Senior
Management support and sensitivity.
13
Corporate Branding
Relationships: i
(corporate branding architecture)
• Olins’s categorization of the three principal types of branding
relationship remain influential.
• Monolithic: the use of a single (corporate) brand name. This is used to
identify the organization in addition to its’ products and/or services.
Example: Shell
• Endorsed: the use of a distinct brand name by a subsidiary (corporate
brand) is accompanied by explicit reference to the the holding corporation’s
brand (the same may occur for a product and/or service.)
Example: General Motors.
• Branded: the use of a distinct brand name by a subsidiary, product or
service which makes no reference to the holding corporation’s brand.
Example: Jaguar, a subsidiary of the Ford Group.
14
Corporate Branding
Relationships: ii
• It is important to note, however, that:
• the aforementioned categories (monolithic, endorsed,
and branded) primarily relates to the degree of
profile they wish to give to their corporate
brand/corporate brand. The focus is very much on
the corporate brand/name as a VISUAL
IDENTIFIER.
• Most large corporations do not ascribe solely to one
of the three branding categories.
15
Corporate Branding
Relationships: iii
• In recent years, it has become apparent that there are
other types of corporate branding relationships. As
such, behind a single corporate brand may lurk a
variety of strategic arrangements. Thus, in addition,
to monolithic, branded, and endorsed branding
categories the following, additional, categories may
be added:
• FAMILIAL
• SHARED
• SURROGATE
• MULTIPLEX
• FEDERAL
• SUPRA
16
Corporate Branding
Relationships: iv
• FAMILIAL: the adoption of the same corporate brand by two
entities within the same industry. Example: HILTON
• SHARED: as above, but with companies operating in
distinct, markets.
• Example: ROLLS ROYCE
• SURROGATE: a franchise arrangement whereby one
organization’s products/services are branded as those of
another.
• Example: British Regional Airways use of the BRITISH
AIRWAYS brand
17
Corporate Branding
Relationships: v
• MULTIPLEX: the muliple use, and sometimes multiple
ownership/rights, of a corporate brand among a variety of
entities in a variety of industries.
• Example: VIRGIN
• FEDERAL: the creation of a new corporate brand by separate
companies that pool their resources in a joint venture.
• Example: AIRBUS
• SUPRA: a quasi, “arch” brand used to supra-endorse any
number of corporate brands. Common in the airline sector
(airline alliances)
Examples: ONE WORLD/STAR/QUALIFIER
18
“Model of the Moment”: the
AC3ID TestTM: i
• Building on the AC2ID TestTM pp.15-30 a
corporate brand can be viewed as an
independent organism and, as such, may be
viewed as a sixth identity type. This identity
type we call the
• COVENANTED IDENTITY.
• (underpinning any corporate brand is an explicit
covenant, or promise, that acts as a standard by which an
organization or group organizations interact with key
internal and external groups and networks.)
19
“Model of the Moment”: the
AC3ID Test TM: ii
• See page 251
The same principles relating the AC2ID TestTM can be applied to
the AC3ID TestTM as shown on page 251 (including the REDS2
methodology for operating the model.
Note that the covenanted identity is depicted as a five pointed
star OUTSIDE the original pentagon. This reflects some of the
abiding characteristics of corporate brands in that they can be
applied to:
other identities and entities
shared with other organization
have a life, reputation, and financial worth of their own.
20
A
ACTUAL
C2
CONCEIVED
C
COMMUNICATED
I
IDEAL
D
DESIRED
C3
C3
C3
C3
C3 Balmer 2002 [28]
C3 = Covenanted Identity
THE AC3ID TESTTM
Section V Exhibit One
21
Decus et tutamen
“An ornament and a safeguard”
This Latin inscription is used as one of the inscriptions on
the rim of British pound coins.
To us it epitomizes the worth of another currency: that of
corporate branding.

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Balmer ACID.ppt

  • 1. 1 Lecture 7 The Corporate Brand: An Organization’s Covenant
  • 2. 2 Objectives • An introduction to different branding types • The characteristics of corporate brands • Differences between corporate brands and product brands • Differences between corporate brands and corporate identities • Similarities between corporate brands and corporate identities • Corporate Branding Relationships (corporate branding architecture) • “Model of the Moment”: Adjusting the AC2ID TestTM so as to accommodate the corporate brand p.251
  • 3. 3 Understanding Branding Types: i • Brands, in their various guises, have become a lingua franca • Traditionally, two types of branding have been identified: • ERSTWHILE BRANDS • ESTABLISHED BRANDS
  • 4. 4 Understanding Branding Types: ii • Erstwhile: in its simplest sense a brand is a name, logotype, or trademark. Often used as a mark of ownership. • Established: refers to the added values that a brand brings to a product. For the main, such values are synthetic in that they are superimposed on the product by marketing and communications managers and creatives
  • 5. 5 Understanding Branding Types: iii • However, there a new, and quite distinct, type of brand has emerged over recent years. This refers to those brands which refers to brands as applied to corporate entities. This branding category is called EMERGENT
  • 6. 6 Understanding Branding Types: iv • Emergent: equally applicable to countries, regions, cities etc it is most often applied to corporations and to their subsidiaries • Corporate brand values (unlike product brands) are not contrived but are bona fide. • The corporate branding philosophy, at its core, represents an explicit COVENANT between an organization and its key stakeholder groups, including customers
  • 7. 7 Corporate and product brands: the differences: i PRODUCT CORPORATE MANAGEMENT middle manager CEO RESPONSIBILITY middle manager all personnel COGNATE marketing strategy/multi DISCIPLINE discplinary COMMUNICATIONS marketing total corporate MIX communications corporations FOCUS/FOCI mainly customer multiple internal and external groups and networks VALUES mainly contrived those of founder(s) + mix of corporate + other sub cultures Balmer (2001)
  • 8. 8 Corporate and product brands: the differences: ii Of particular importance to the establishment, maintenance, and comprehension of corporate brands are company personnel and company culture(s).
  • 9. 9 Moreover, corporate brands often boundary- span organizations. Consider the Rolls Royce corporate brand. The Rolls Royce brand is, on the one hand linked to(a) an aero engines group, and (b) an automotive manufacturer. Two companies, sharing the same, quintisentially British corporate brand name: the latter is a subsidiary of the German automobile group BMW. Corporate and product brands: the differences: iii
  • 10. 10 Corporate brands and corporate identities: the differences: i • The identity concept is applicable to all entities in a way that the corporate branding concept is not. • A corporate brand will, almost certainly, have its origins in an identity. However, once a corporate brand has been established an organization’s identity elements need to be in alignment with the corporate brand covenant (the promise that is explicit in a corporate brand).
  • 11. 11 Corporate brands and corporate identities: the differences: ii • In addition corporate brands differ from identities in that they typically have a: Longer gestation External foci Higher profile Particular reliance on corporate communications, and strong verbal and visual identifiers Portability (can be bought, sold, and may be extended to other corporations, products, and services) Financial value that may be independent of the corporation itself.
  • 12. 12 Similarities between corporate brands and corporate identities • The importance of: • Personnel and of sub cultural groups in their formation, maintenance, and comprehension. • Their multidisciplinary roots • The necessity for ongoing CEO/Senior Management support and sensitivity.
  • 13. 13 Corporate Branding Relationships: i (corporate branding architecture) • Olins’s categorization of the three principal types of branding relationship remain influential. • Monolithic: the use of a single (corporate) brand name. This is used to identify the organization in addition to its’ products and/or services. Example: Shell • Endorsed: the use of a distinct brand name by a subsidiary (corporate brand) is accompanied by explicit reference to the the holding corporation’s brand (the same may occur for a product and/or service.) Example: General Motors. • Branded: the use of a distinct brand name by a subsidiary, product or service which makes no reference to the holding corporation’s brand. Example: Jaguar, a subsidiary of the Ford Group.
  • 14. 14 Corporate Branding Relationships: ii • It is important to note, however, that: • the aforementioned categories (monolithic, endorsed, and branded) primarily relates to the degree of profile they wish to give to their corporate brand/corporate brand. The focus is very much on the corporate brand/name as a VISUAL IDENTIFIER. • Most large corporations do not ascribe solely to one of the three branding categories.
  • 15. 15 Corporate Branding Relationships: iii • In recent years, it has become apparent that there are other types of corporate branding relationships. As such, behind a single corporate brand may lurk a variety of strategic arrangements. Thus, in addition, to monolithic, branded, and endorsed branding categories the following, additional, categories may be added: • FAMILIAL • SHARED • SURROGATE • MULTIPLEX • FEDERAL • SUPRA
  • 16. 16 Corporate Branding Relationships: iv • FAMILIAL: the adoption of the same corporate brand by two entities within the same industry. Example: HILTON • SHARED: as above, but with companies operating in distinct, markets. • Example: ROLLS ROYCE • SURROGATE: a franchise arrangement whereby one organization’s products/services are branded as those of another. • Example: British Regional Airways use of the BRITISH AIRWAYS brand
  • 17. 17 Corporate Branding Relationships: v • MULTIPLEX: the muliple use, and sometimes multiple ownership/rights, of a corporate brand among a variety of entities in a variety of industries. • Example: VIRGIN • FEDERAL: the creation of a new corporate brand by separate companies that pool their resources in a joint venture. • Example: AIRBUS • SUPRA: a quasi, “arch” brand used to supra-endorse any number of corporate brands. Common in the airline sector (airline alliances) Examples: ONE WORLD/STAR/QUALIFIER
  • 18. 18 “Model of the Moment”: the AC3ID TestTM: i • Building on the AC2ID TestTM pp.15-30 a corporate brand can be viewed as an independent organism and, as such, may be viewed as a sixth identity type. This identity type we call the • COVENANTED IDENTITY. • (underpinning any corporate brand is an explicit covenant, or promise, that acts as a standard by which an organization or group organizations interact with key internal and external groups and networks.)
  • 19. 19 “Model of the Moment”: the AC3ID Test TM: ii • See page 251 The same principles relating the AC2ID TestTM can be applied to the AC3ID TestTM as shown on page 251 (including the REDS2 methodology for operating the model. Note that the covenanted identity is depicted as a five pointed star OUTSIDE the original pentagon. This reflects some of the abiding characteristics of corporate brands in that they can be applied to: other identities and entities shared with other organization have a life, reputation, and financial worth of their own.
  • 20. 20 A ACTUAL C2 CONCEIVED C COMMUNICATED I IDEAL D DESIRED C3 C3 C3 C3 C3 Balmer 2002 [28] C3 = Covenanted Identity THE AC3ID TESTTM Section V Exhibit One
  • 21. 21 Decus et tutamen “An ornament and a safeguard” This Latin inscription is used as one of the inscriptions on the rim of British pound coins. To us it epitomizes the worth of another currency: that of corporate branding.