Corporate Image

and
Brand Management

Chapter 2

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 Chapter Objectives
1. Why is a corporation’s image vitally
important?
2. What kind of tactics and plans can be used
to build an effective corporate image?
3. What are family brands, brand extensions,
flanker brands, co-brands, private brands,
brand equity, and brand recognition?
4. How are logos, packages, and labels related
to image and brand management?
5. Which brand and product characteristics can
be used to establish a positive position in
the market?

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 Gucci

• Started in Italy
• Strong corporate and brand name
• Global name recognition
• In United States – seductive, high
fashion band

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 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

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 Corporate Image
• Components of image
 Tangible
 Intangible
• Role of corporate image
 Consumer perspective
 Business-to-business perspective
 Company perspective

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 Corporate Image
Consumer Perspective
• Provide assurance
 Unfamiliar settings
 Little or no previous experience
• Reduce search time
• Provide psychological reinforcement
• Provide social acceptance

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

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Corporate Image Development

• Accurate reflection of firm

• Reinforcing image
• Rejuvenating image
• Changing image
• Negative press

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 Promoting the Right Image
• Creating the right image
 Convey clear message
 Fit with company and product
• Rejuvenating an image
 Easier than changing image
 Add new elements, but maintain
current image
• Changing an image
 Extremely difficult

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 Corporate Names

• Overt names
• Implied names
• Conceptual names
• Iconoclastic names

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 Corporate Logos

• Should be easily recognizable

• Should be familiar
• Should elicit consensual meaning
 Stimulus codeability
• Should evoke positive feelings

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Benefits of Logo Recognizability

• Aids in recall
 Specific brands
 Advertisements
• Reduces shopping effort
• Reduces search time

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 Branding
• Provides quality assurance
• Reduces search time
• Allows company to charge more
• Reduces brand parity
• Consumers choose brands that are:
 Salient
 Memorable
 Noteworthy

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Developing Strong Brands
• What are most compelling benefits?
• What emotions are elicited by brand?
• What one word best describes brand?
• What is important to consumers in the
purchase of the brand?

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Benefits of Brand Equity
• Higher prices
• Higher gross margins
• Channel power
• Additional retail shelf space
• Reduces customer switching
behavior
• Prevents erosion of market share

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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.

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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

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 Types of Brands

• Family brands Co-Branding

• Brand extensions • Ingredient
• Flanker brands • Cooperative
• Private brands • Complementary

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Changes in Private Brands
• Quality improvements
• Lower prices
• Higher store loyalty
• Lower loyalty to manufacturer brands
• Increase in advertising of private brands
• Increase in quality of private brand store
displays

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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

Source: Adapted from Vanessa L. Facenda, “A Swift Kick to the Privates,” Brandweek, Vol. 48, No. 31 (September
3, 2007), pp. 24-28.

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 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

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 Labels
• Must meet legal requirements.

• Provide another marketing

opportunity to sell the product.

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 Product Positioning
1. Relative to competition.
2. Exists in the mind of the consumer.
• Attributes
• Competitors Markets
• Use or application
• Consumer
• Price/quality
• B-to-B
• Product user
• International
• Product class
• Cultural symbol
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 Ethical Issues
• Brand infringement
• Brand name becomes a generic term
• Domain or cyber squatting

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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

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