IMC

Session 3
 Corporate Organizational
Looks at outside Looks at employees
Audience & Stakeholders
The Corporate Image

• Effective marketing communications begins with the establishment of a clearly

defined “Corporate Image”.

• The image influences customers either positively or negatively as they make

purchase decisions

• For e.g. Corporate brands like Nestle, Apply, Microsoft, Unilever, P&G are
respected by consumers
COMPONENTS OF A CORPORATE
IMAGE
The Corporate Image of an organization has two facets

TANGIBLE ELEMENTS INTANGIBLE ELEMENTS

• These are the visible aspects of the
organization that consumers see or
encounter
• 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
Components of Corporate Image

TANGIBLE ELEMENTS INTANGIBLE ELEMENTS

1. Goods & Services sold
1. Corporate, personnel and environmental
2. Retail outlets where product is sold policies
3. Factories where product is produced
2. Ideals and beliefs of corporate personnel
4. Advertising Promotions & other form of
communications

5. Corporate name and logo

3. Culture of country and location of
company
6. Packages & Labels

7. Employees 4. Media reports

Role of Corporate Image – Consumer
Perspective
Assurance Regarding
Assurance concerning
purchase decisions of
purchases where there is
familiar products in
little previous experience
unfamiliar settings From a
consumer’s 1. Purchasing from a known
1. Known Corporate Image
perspective, corporation is considered
provides consumers
safer
assurance what they can the Corporate
2. For e.g. a family on vacation
expect from Brands Image serves might select Marriott or
2. A coke can, Mcdonald’s, several useful Holiday Inn as they are
KFC or Pizza Hut wherever functions familiar with the name but
it is known whatever the
have not stayed there earlier
location

Psychological reinforcement and social acceptance

1. The psychological comes from customers feeling that they made wise purchasing
choices – The product or service will perform well
2. These customers are also concerned about how family and friends will view and
approve of their decision – It satisfies the ego and social consciousness
Role of Corporate Image – Company Perspective

Extension of Positive Positive Word-of-

Consumer feelings to Mouth
new Products Endorsements
From the Cost
viewpoint of
The ability to charge
itself, a The ability to attract
a higher price or fee reputable good employees
Corporate
Image has many
benefits More favorable
Consumer loyalty
ratings by financial
leading to more
observers and
frequent purchases
analysts
Promoting the Desired Image

1. Promoting the proper The image being projected must accurately portray the
image is critical to an firm and coincide with the products and services being
organization’s success sold
2. It is important to
assess co’s existing Reinforcing or rejuvenating a current image that is
image to ensure consistent with the view of consumers is easier to
successful future accomplish than changing a well-established image
image transmission
3. Marketing experts It is very difficult to change the images people hold
need to ensure that about a given company. In some cases, modifying or
customers, suppliers, developing a new image simply cannot be done
employees and
stakeholders are Any negative or bad press can destroy an image that took
aligned with years to build. If the reputation of a company has been
company’s image damaged it is a herculean task to fix it.
Test for Quality Corporate Names & Logos

Elicit a meaning to
Be easily
The Corporate the firm’s target
recognizable
Name and Logo is market
really the
cornerstone of a
company’s
relationship with
its customers
Quality logos and
Evoke Positive
Be Familiar corporate names
Feelings
must meet four
tests
Some Interesting Logos
Branding
Branding

An effective brand name allows a company to charge more

1. Brands are names for its products, which increases gross margins
generally assigned
to a product or Strong brands provide customers with assurances of quality
service or a group and reduction of search time in the purchasing process
of complimentary
products
In mature markets few tangible differences exist between
2. Most competing brands. It is easy for competitors to copy
characteristics and features, however the difference lies in branding
benefits of a
corporate image A brand name develops strength in the market place when
apply to brands as many customers choose the brand because they consider it
memorable and notworthy
well
Developing a Strong Brand Name

What are the most Developing a strong What one word

compelling benefits?
What emotions are
elicited by the brand
either during or after
the purchase?
brand name begins describes the brand?
with discovering why
consumers buy and
rebuy the brand.
What is important to
The company must
consumers in the
address these key
purchase of the
questions
product?

A company is then able to develop a strong brand positioning

Two important processes that assist in establishing stronger brand prestige are:
1. The brand name must be prominently promoted to capture individual attention
2. The brand name must be associated with its most prominent characteristic for e.g.
Crest – Cavity protection, Coke – Refreshing, BMW – Performance driving
Important Aspects of branding

Marketers must Once brand recognition

identify the “one is achieved the next step
thing” that the brand The goal of is to prolong success by
stands for which branding is to set consistently promoting
consumers recognize a product apart the USP or brand
from its differentiator
and find relevant
competitors

Such brands
When a brand develop histories A Family Brand is one in
successfully through distinct which a company offers
establishes a personalities a series or group of
connection with products under one
customers – A brand name. For e.g.
powerful brand Black and Decker for
recognition occurs numerous power tools
Packaging
Traditional Elements of a Package

Protect the product inside

Packaging is the final form

Provide ease of shipping, moving and
in which the product is handling
contained for purchase at
retail.
Provide for easy placement on store shelves
The package contains the
brand name, the company
name, logo and certain Prevent or reduce the possibility of theft
information about product

Prevent tampering (drugs and foods)

Some Interesting Pack Designs
Brand Equity
Brand Equity and its advantages

Allows manufactures to charge a higher price

from its customers -
Brand Equity is the set of
characteristics unique to a Creates higher gross margins
brand which are linked
with a strong brand name.
Provides power with retailers and
wholesalers
It offers a business several
advantages over
competition which increase Captures additional retail shelf
the overall financial value
and goodwill Serves as a weapon against consumers
switching due to sales promotions

Prevents erosion of market share

Steps to Building Brand Equity

Research & analyze what it would take to make the

brand distinctive
Brand name recognition
and recall can be built Decide what makes the brand unique
through repetitious
advertising
Boldly communicate the USP of the brand
Building Brand Equity,
however, goes beyond Spend no more than 30% of the communication
mere brand recognition, budget on driving sales

Following steps are Make domination the goal

required to do so.
Deliver on the promise of uniqueness being
communicated
Brand Extensions & Flanker
Brands
Brand Extensions
Black & Decker Power Tools
Brand Extensions is the
use of an established brand
name on goods or services
not related to the core
brand.
For e.g. Nike athletic shoes
extending its name to
Black & Decker Home Appliances
clothing line and Black and
Decker extending its name
to small kitchen appliances
In Pakistan Sufi has
attempted to do this by
extending its name to
Edible Oil
Flanker Brands
P&G Primary Detergent Brands
A Flanker Brand is the
development of a new
brand by a company in
good or service category it
currently has a brand
offering.

For e.g. Procter & Gamble’s P&G Flanker Detergent Brands

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.
Co-Branding
Co-branding is the offering
of two or more brand in a
single marketing offer.
Co-branding can be in
either of these three
forms:
1. Ingredient Branding
2. Cooperative Branding
3. Complimentary
Branding
Ingredient Branding
Is the placement of one brand within
another brand. For e.g. Intel
microprocessors in Dell or HP computers
Cooperative Branding
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
Complimentary Branding
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
Private Brands
Tesco Private Labels
Private Brands also known
as Private Labels are
proprietary brands
marketed by an
organization and sold
within the organization’s
outlets.
For e.g. Marks & Spencer’s
UK selling their own
sandwiches and Cola’s.
Similarly Walmart selling its
own brand of chocolates or
clothes.
Brand Positioning
Positioning is the process
of creating a perception in
the consumer’s mind
regarding:
•The nature of the company
•Its products
•Relative to competition
Positioning is created by
variables such as quality,
price, image and other factors
It is established relative to competition
Brands operate in a competitive
environment and therefore need to
distinguish themselves v/s competition.
It exists in the mind of consumers
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
Different Positioning Approaches
Attribute Based Positioning
An attribute is a product trait or
characteristic that sets it apart from
other products
For e.g. Happy Dent chewing gum
claiming shiny white teeth
Competitor Based Positioning
Using a competitor to garner a position,
whereby one brand is contrasted to
show the position of another
For e.g. Avis comparing itself with Hertz
establishing that they work harder as
they are No. 2
Use or Application Positioning
Creating a memorable set of uses for
the Product.
For e.g. Arm & Hammer used it for
promoting their baking soda as
deodorizer, teeth whitener
Price-Quality Relationship
Associating a brand with how expensive
it is and denoting a high quality
perception or vice versa.
For e.g. Moven Pick ice cream or
Haagen Daz clearly establishing that
they are expensive but absolute high
quality
Different Positioning Approaches
Product Class Positioning Product User Positioning
Certain company’s aim to position
This specifically distinguishes a brand or
themselves in a particular product class
product with reference to who uses the
or category.
product.
For e.g. Orange juice was commonly
For e.g. For e.g Apple Macs known for
used in breakfast. The industry decided
Designing v/s PC which are known more
to move its positioning as “Its not for
for business users
breakfast anymore”

Identifying with Cultural Symbol

Though difficult to do yet it can be highly effective if
clearly linked with something of pride for consumers
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
Corporate Communication
Wheel