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21st Century Brand PDF
21st Century Brand PDF
KEITH RICHEY
is an independent consultant working in New York. He holds a joint Master’s degree in Global Media and
Communication from the University of Southern California and the London School of Economics.
Keywords Abstract
corporate branding; Brand personality has been defined as the human characteristics or traits that can be attributed to
corporate image; a brand. Corporate brand personality is a form of brand personality specific to a corporate brand.
corporate values; brand Unlike a product brand personality that typically relates to consumers and user imagery for a
personality; brand specific product brand, a corporate brand personality can be defined in terms of the human
personality traits; characteristics or traits of the employees of the corporation as a whole. A corporate brand
corporate brand personality will reflect the values, words, and actions of all employees of the corporation. A
personality successful 21st century firm must carefully manage its corporate brand personality. The three core
dimensions of corporate brand personality and two traits for each dimension that are crucial for
marketplace success are outlined as Passionate and Compassionate (Heart), Creative and
Disciplined (Mind) and Agile and Collaborative (Body). These traits have an interactive effect such
that the effects of one trait can be enhanced by the existence of another.
Journal of Brand Management (2006) 14, 74–81. doi:10.1057/palgrave.bm.2550055
74 © 2006 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NOS. 1/2, 74–81 SEPTEMBER–NOVEMBER 2006
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IMPORTANCE OF CORPORATE BRAND PERSONALITY
Although the concept of brand person- would be reflected in its set of brand person-
ality is relevant to both product brands ality traits. In this way, the corporate brand
and corporate brands, there is an impor- personality is shaped by the corporate values.
tant distinction that can be drawn between A company’s corporate brand personality
the two types of brands that affects how traits as seen by consumers and the general
the brand personality concept should be public should be aligned with the company’s
applied. A corporate brand is distinct from internally espoused values.
a product brand in that a corporate brand Only once a corporation solidifies an
can encompass a much wider range of appropriate set of personality traits that
associations.6 For example, a corporate are consistent with its values and drive
brand may be more likely to invoke asso- employee behaviours can it attain sustain-
ciations based on people and relationships; able success against its competitors. In this
programs and values; and corporate cred- paper, a perspective on corporate brand
ibility; as well as on common products personality traits is offered. Specifically, it
and their shared attributes or benefits. is contended that there are three key sets
Procter & Gamble is an example of a of traits that collectively define corporate
corporate brand that has a more broadly brand personality. Maximising perform-
defined and differently composed set of ance of the organisation on these three
associations than those associations of the sets of traits is therefore crucial for busi-
product brands it owns (eg Tide, Pringles, ness success in the 21st century.
Mr Clean, Pantene, Iams, etc.).
Consequently, corporate brands will
typically have a set of personality traits that CORPORATE BRAND PERSONALITY
is broader and differently composed than TRAITS
the set of personality traits for each product Externally, corporate brands can establish
brand owned. By its nature, a product a number of valuable associations in the
brand is defined by what it does and repre- minds of customers and other key constit-
sents, whereas a corporate brand is defined uents that can help to differentiate the
as much by who it is as what it does. Unlike brand, such as common product attributes,
a product brand personality that typically benefits or attitudes; people and relation-
relates to consumers and user imagery for ships; programmes and values; and corpo-
a specific product brand, a corporate brand rate credibility. 7–10 Regardless of how it
personality can be defined in terms of the is constituted, a corporate image will
human characteristics or traits of the depend on a number of factors, such as
employees of a corporation as a whole. A the products a company makes, the actions
corporate brand personality will therefore it takes, and the manner in which it
reflect the values, words and actions of communicates to consumers.
employees, individually and collectively. A key component of the corporate
Importantly, a successful 21st century firm image is the corporate brand personality.
must carefully manage its corporate brand In the past, brand personality has been
personality. The corporate brand personality studied at the product level. Aaker11 exam-
should reflect the corporate values held by ined the brand personality attributed to 60
the organisation. For example, if environ- US product brands and found they fall into
mental stewardship is one of a company’s five main clusters: (1) sincerity, (2) excite-
core values, then attributes such as ‘respon- ment, (3) competence, (4) sophistication
sible’ and ‘caring (for the environment)’ and (5) ruggedness (see also Aaker et al.,).12
© 2006 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NOS. 1/2, 74–81 SEPTEMBER–NOVEMBER 2006 75
KELLER AND RICHEY
76 © 2006 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NOS. 1/2, 74–81 SEPTEMBER–NOVEMBER 2006
IMPORTANCE OF CORPORATE BRAND PERSONALITY
© 2006 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NOS. 1/2, 74–81 SEPTEMBER–NOVEMBER 2006 77
KELLER AND RICHEY
78 © 2006 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NOS. 1/2, 74–81 SEPTEMBER–NOVEMBER 2006
IMPORTANCE OF CORPORATE BRAND PERSONALITY
the launch of the Mr Clean Magic Eraser, competing in new markets that seem more
which contains a specialty chemical foam attractive for reasons such as that they are
made by BASF. growing faster or have fewer competitors.
A successful firm must also be disci- Then, a few years later, the firm repeats the
plined in its approach to growing its busi- move, shifting again into another new busi-
ness, which in itself at times can present ness or market. The firm affected by the
a trade-off with creativity. While it is ‘grass is greener’ syndrome overlooks the
necessary to encourage and maintain crea- fact that success cannot be sustained by
tivity in the organisation, this creativity continually chasing business trends.
must be focused to a certain degree. A
successful firm must concentrate on lever-
aging its core competencies and main- Body: Agile and Collaborative
taining focus on its core business, rather Finally, the ‘body’ of the firm involves
than pursuing any new business opportu- being agile and collaborative. A successful
nity that arises. This can be best achieved 21st century firm must possess the agility
by setting appropriate priorities that to capture and deliver value to consumers
provide clear direction to all members of in the face of challenging market dynamics.
the organisation as to what its business Many changes have occurred in the
goals are and how they can be met. marketing environment in recent years.
If firms are to compete successfully in Undoubtedly, the marketing environment
today’s rapidly changing marketplace, they will continue to evolve and change, often
must transcend the current status quo and in very significant ways, in the coming
find creative ways to systematically deliver years. Shifts in consumer behaviour,
differentiated and unexpected value to competitive strategies, government regu-
consumers. For example, 3M encourages a lations or other aspects of the marketing
culture of innovation by requiring its scien- environment can profoundly affect the
tists to spend 15 per cent of their time fortunes of a firm. Besides these external
pursuing research that interests them outside forces, the firm itself may engage in a
their specific role in the company. As a variety of activities and changes in stra-
result, 3M consistently delivers innovative, tegic focus or direction that may neces-
creative, and, importantly, differentiated sitate minor or major adjustments in the
products that bring value to consumers. way that its brands are being marketed.
With the ‘15per cent rule,’ the company Consequently, effective brand manage-
manages the creativity of its employees so ment requires proactive strategies designed
that this creativity augments its core busi- to at least maintain—if not actually
ness, rather than distracting from it. enhance—brand equity in the face of all of
To further maintain discipline, the 21st these different forces.The firm must be able
century firm must resist following the latest to move forward quickly to take advantage
management fads, since frequently reorgan- of new opportunities in the market. Google
ising or restructuring a business to follow is currently capitalising on its agility to move
untested management philosophies can be rapidly into new markets such as IP
distracting and even damaging. Similarly, the telephony, wireless internet access, and video
firm must avoid the ‘grass is greener’ content provision as well as challenging
syndrome, in which the firm de-emphasises entrenched competitors in established
some existing businesses and markets in markets such as e-commerce, publishing,
favour of building new businesses and/or desktop software and classified ads.
© 2006 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NOS. 1/2, 74–81 SEPTEMBER–NOVEMBER 2006 79
KELLER AND RICHEY
The 21st century firm must also adapt the financial community (shareholders,
its business model to changing conditions. investors, analysts). Relationship marketing
As noted above, it is important to apply builds strong economic, logistical and social
the appropriate level of discipline to ensure ties among all these relevant parties.
that these changes do not dilute the Successful relationship marketing offers
strength of its core business. To be truly the potential of smoother operations and
successful in the long term, the 21st century superior customer solutions. The ultimate
firm must be proactive, rather than reactive. outcome of relationship marketing is the
Being proactive requires that a firm antic- building of a marketing network—the
ipate what changes will be necessary in the company and all its supporting constituents
future and proactively address them. Inno- and stakeholders with whom it has
vation and relevance in all that it does will built mutually beneficial relationships.19
require much agility by the firm as it Marketing networks are invaluable company
ensures that it continually moves forward, assets. Increasingly, competition is not
but does so in the right direction. between companies but between marketing
Finally, the successful 21st century firm networks.Winning companies will be those
must encourage collaboration among its that build better net-works, in part through
employees and seek a closely collaborative a strong spirit of collaboration.
atmosphere with its business partners. Developing strong relationships requires
Increasingly, a key goal of marketing is to understanding the capabilities and
develop deep, enduring relationships with resources of different groups, as well as
all people or organisations that could their needs, goals and desires. Each party
directly or indirectly affect the success of must be treated differently. Rich, multi-
the firm’s marketing activities. faceted relationships with key constituents
Internally, the firm must foster a culture create the foundation for a mutually bene-
of inter-departmental teamwork. Only ficial arrangement for both parties.
when employees willingly seek opportu-
nities to collaborate can a firm develop CONCLUSIONS
the agility to overcome business challenges.
Externally, the firm must develop a network A whole greater than the sum of the
of partners that offer complementary assets parts
and competencies, have common corpo- A corporate brand personality is defined
rate values and beliefs, and jointly create in terms of three main dimensions, each of
synergistic effects. For example, Wal-Mart which can be defined in terms of two key
invites close collaboration from its biggest traits: the ‘heart’ (passionate and compas-
suppliers by requiring them to perma- sionate), the ‘mind’ (creative and disciplined)
nently staff teams at the retail giant’s and the ‘body’ (agile and collaborative).
Bentonville, Arkansas headquarters. Importantly, the effects of these three pairs
Successful collaborations result from of corporate personality traits are enhanced
relationship marketing that cultivates by each other. In other words, corporate
the right kind of relationships with the personality traits can have a multiplicative
right constituent groups. Four key constit- or interactive effect, not an additive effect.
uents for marketing are customers, For example, passion can be the engine
employees, marketing partners (channels, for creativity. Employees who live the
suppliers, distributors, dealers, university brand and are close to their customers are
scientists, agencies, etc.); and members of more likely to energetically pursue new
80 © 2006 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NOS. 1/2, 74–81 SEPTEMBER–NOVEMBER 2006
IMPORTANCE OF CORPORATE BRAND PERSONALITY
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Acknowledgments Hoboken, NJ.
Thanks are extended to John Hayes, Chief Marketing (18) Kotler, P. and Nancy, L. (2005) ‘Corporate Social
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© 2006 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NOS. 1/2, 74–81 SEPTEMBER–NOVEMBER 2006 81