Imc course session 2 corporate image & b management


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Session 2 - Corporate and Brand Image

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Imc course session 2 corporate image & b management

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