This document discusses corporate image and brand management. It defines corporate image as being made up of tangible elements like products and intangible elements like policies and culture. Strong brands provide benefits like customer loyalty and ability to charge higher prices. Developing a strong brand requires understanding customer benefits and emotions. Measuring brand equity examines awareness, trust, and preference. Companies use various branding strategies like extensions, co-branding, and private labels. Packaging, labels, and positioning are also important brand management elements to consider across international markets.

1. 2 Chapter Two
Corporate Image
and
Brand Management
Prof. (Dr.) Kao Kveng Hong, PhD, D.Litt.

2. • How important are brand names?
• How important are brand names
for clothes?
• In what product categories are
brand names important?
• What product categories are brand
names not important?
• What is your image of Gucci?
• What determines your image of
Gucci?
2

3. 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 Corporate
Image Management
2

4. A corporate
image
advertisement
by State Farm

5. Components of a Corporate Image
Study by Edelman Asia Pacific
• Quality of goods and services.
• Willingness of firm to stand behind its products.
• Perception of how the firm deals with
customers.
Source: Arun Sudhaman, “Brand Quality Still Key to Corporate Reputation: Edelman,”
Media Asia, November 19, 2004, p. 8.

6. 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. Packages and labels
7. 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.
Components of a Corporate Image
Tangible Elements
F I G U R E 2 . 1

7. Interview with Bob Baxter,
Manager of Marketing Research
Mercedes Benz of NorthAmerica
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.

8. Role of Corporate Image
• Consumer perspective.
• Business-to-business perspective.
• Company perspective.
Sony’s Web site is
continually updated,
but still retains a
consistent corporate
image.

9. Role of Corporate Image
Consumer Perspective
• Positive assurance
• Unfamiliar settings
• Little or no previous experience
• Reduces search time
• Provides psychological reinforcement
• Social acceptance

10. Role of Corporate Image
Company Perspective
• Extension of feelings to new products
• Ability to charge more
• Consumer loyalty
• More frequent purchases by customers
• Positive word-of-mouth
• Attracts higher quality employees
• More favorable ratings

11. Top 10 Global Corporate Brands
Brand Value ($billion)
Source: Based on “The 100 Top Brands,” Business Week (August 6, 2007), pp. 59-64.
 Coca-Cola $ 65.3
 Microsoft $ 58.7
 IBM $ 57.1
 General Electric $ 51.5
 Nokia $ 33.7
 Toyota $ 32.1
 Intel $ 30.9
 McDonald’s $ 29.4
 Disney $ 29.2
 Mercedes Benz $ 23.6

12. Corporate Image
1. Accurate reflection of firm
2. Reinforcing
3. Rejuvenating an image
4. Changing an image
5. Negative or bad press

13. 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.

14. 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?

15. 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.

16. Corporate Names
• Overt names
• Implied names
• Conceptual names
• Iconoclastic names

17. Iconoclastic Names
Skeeter Boats
Yamaha

18. F I G U R E 2 .4
Tests of Quality Logos and Corporate Names
• Should be easily recognizable.
• Should be familiar.
• Should elicit a consensual meaning
among firm’s target market.
• Stimulus codeability
• Should evoke positive feelings.

19. 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.

20.  Black – seriousness, distinctiveness, boldness,
power, sophistication, and tradition.
 Blue – authority, dignity, security, faithfulness,
heritage, corporate stability, and trust.
 Brown/gold – history, utility, earthiness,
richness, tradition, and conservative.
 Gray/silver – somberness, authority, practicality,
corporate mentality, and trust.
 Green – tranquility, health, freshness, stability,
and appetite.
 Orange – fun, cheerfulness, warm exuberance,
health, and youth.
What colors should you use in your logo?
Source: “Jared McCarthy, “Logos: What Makes Them Work (Part 1of 2),”
(www.marketingprofs.com/5/mccarthy4.asp), February 22, 2005.

21.  Pink – femininity, innocence, softness, health, and
youth.
 Purple – sophistication, spirituality, wealth,
royalty, youth, and mystery.
 Red – aggressiveness, passion, strength, vitality,
fear, speed, and appetite.
 White/silver – purity, truthfulness, faith,
contemporary, refined, and wealth.
 Yellow – youth, positive feelings, sunshine,
cowardice, refinement, caution, and appetite.
What colors should you use in your logo?
Source: “Jared McCarthy, “Logos: What Makes Them Work (Part 1of 2),”
(www.marketingprofs.com/5/mccarthy4.asp), February 22, 2005.

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

23. Companies often
create product icons
to develop an identity
for their products.
Why is the
Mr. Clean icon
an effective
representative
for its product?

24. 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

25. Branding
If you didn’t find the brand you wanted, would you
be likely to buy another brand?
Source: Debbie Howell, “Today’s Consumers More Open To Try New Brands,” DSN
Retailing Today, vol. 43, No. 20 (October 25, 2004), pp. 29-31.
Greeting cards 68%
Groceries and canned food 67%
Women’s apparel 50%
Men’s apparel 55%
Toys 47%
Candy 47%
Beverages 49%
Consumer electronics 40%
Computer software 35%

26. Developing a Strong Brand Name
Begins with understanding why consumers buy a brand.
• 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?

27. F I G U R E 2 .6
Benefits of Brand Equity
• Higher prices
• Higher gross margins
• Channel power
• Additional retail shelf space
• Reduces customer switching
behavior
• Prevents erosion of market share

28. Brand Equity
Mercedes Benz has developed a high level of brand equity.

29. F I G U R E 2 .7
Steps in Building Brand Equity
1. Research and analyze what it would
take to make the brand distinctive.
2. Engage in continuous innovation.
3. Move fast.
4. Integrate new and old media.
5. Focus on domination.

30. Measuring Brand Equity
Brand Metrics
Brand metrics measure return on branding investments.
• Attitudinal measures
• Awareness
• Recall
• Recognition
• Brand power index (BPI)
• Most preferred brand (DSN Retailing)
• Revenue premium approach

31. Source:Adapted from Fred Crawford, “Branding Isn’t Like High School,” Retail Merchandiser,
Vol. 47, No. 6 (July/August 2007), pp. S4-S9.
Top 10 Most Powerful Brands (AlixPartners)
Brand Trust Rate Distrust Rate BPI
BPI = awareness, trust, and distrust.
F I G U R E 2 .8
Sony 9.2% 1.8% 75.1
Johnson & Johnson 5.7% 0.5% 55.3
Kraft 5.2$ 0.6% 48.7
Procter& Gamble 5.8% 1.1% 48.2
Campbell’s 3.5% 0.4% 32.9
Toyota 4.1% 1.2% 28.0
Tylenol 3.2% 0.6% 27.2
Dell 5.1% 2.1% 27.0
General Mills 2.7% 0.2% 25.9
Hewlett-Packard 4.0% 1.5% 23.5

32. Source:Adapted from Debbie Howell, “Top Brands,” DSN Retailing Today, Vol. 44, No. 20 (October 24, 2005), pp. 38-42.
1. Hanes (39%)
2. Levi’s (10%)
3. Victoria’s Secret (6%)
4. Liz Claiborne (4%)
5. Nike (4%)
6. Fruit-of-the-Loom (4%)
1. Coke (26%)
2. Pepsi (22%)
3. Dr. Pepper (6%)
4. Mountain Dew (5%)
1. Frito Lay/Lays (19%)
2. Doritos (10%)
3. Hershey’s (6%)
4. Pringles (6%)
5. Oreos (5%)
1. Sony (27%)
2. RCA (6%)
3. Panasonic (6%)
4. Dell (5%)
5. Duracell (4%)
Consumer ElectronicsSnacks
BeveragesWomen’s Apparel
F I G U R E 2 .9
Most Preferred Brands (DSN Retailing)

33. Types of Brands
Family brands
Brand extension
Flanker brand
Co-branding
Ingredient branding
Cooperative branding
Complementary branding
Private brands

34. Head & Shoulders is
one of the brands
sold by Procter &
Gamble.
Access their Web
site to see what
other brands they
sell in the United
States as well as
other countries.
http://www.pg.com

35. Ingredient Branding
Cooperative Branding
Complementary Branding
Co- Branding
F I G U R E 2 .11
Forms of Co-Branding

36. Growth of Private Brands
•15% of all retail sales.
•19% of food sales
Last 10 years:
•64% increase in store brand sales.
•30% increase in manufacturers’ brand sales

37.  Improved quality.
 Perceived as a value purchase.
 Higher loyalty towards retail outlets and lower
loyalty towards specific brands.
 Used to differentiate retail outlets.
 Increased advertising of private brands.
 Increased quality of in-store displays and
packaging of private brands.
F I G U R E 2 .12
Changes in Private Labels

38. 15%
18%
21% 21%
18%
45%
16%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Saks' DSG Dillard's May
Department
Store
Goody's
Family
Clothing
Nordstrom JP Penney
(apparel
only)
Federated
PercentofTotalSales
Source: Thomas J. Ryan, “Private Labels: Strong, Strategic & Growing, Apparel Magazine, Vol. 44, No. 10
(June 2003), pp. 32-39.
Private Label Sales as a Percentage of Total Sales

39. Source:Adapted from Vanessa L. Facenda, “A Swift Kick to the Privates,” Brandweek,
Vol. 48, No. 31 (September 3, 2007), pp. 24-28.
Strategies Used to Combat Private Labels
 Focus on core brands
 Increase advertising
 Introduce new products
 Focus on in-store selling, packaging
 Use alternative methods of marketing
F I G U R E 2 .13

40. 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

41. Labels
• Must meet legal requirements.
• Provide another marketing
opportunity.

42. Positioning Approaches
Attributes
Competitors
Use or application
Price/quality
Product user
Product class
Cultural symbol
•Consumer markets
•B-to-B markets
•International markets
1. Is relative to competition.
2. Exists in the mind of the consumer.

43. A business-to-business
advertisement positioned by
the product’s attributes: the
brightness of the Sony
An advertisement by Stetson
positioned by cultural
symbols.
projector.

44. Ethical Issues
• Brand infringement
• Brand name becomes a generic term
• Domain or cyber squatting

45. International Implications
• Adaptation vs. standardization
• Standardization reduces costs
• Shrinking world  standardization
• High-profile, high-involvement – global brand
• Low-involvement products – local brand
• Packaging and labeling
• Image and positioning issues