Corporate Image

and
Brand Management

Chapter 2
 Chapter Objectives
1. Understand the nature of a
corporation’s image and why it is
important.
2. Develop tactics and plans to build
effective corporate image.
3. Cultivate effective brand strategies.
4. Discover the advantages of quality
logos, packages, and labels.
5. Recognize the importance of effective
brand and positioning strategies.
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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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 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 Desired 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
• 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
 Noteworth
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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 current brand image.
2) Decide what makes the brand
unique.
3) Communicate brand’s uniqueness.
4) Spend heavy on advertising.
5) Make domination the goal.
6) Deliver on uniqueness.

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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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 Packaging
• Traditional elements
 Product protection
 Ease of shipping
 Easy placement on shelves
 Prevent theft
 Prevent tampering
• New trends
 Consumer convenience
 Contemporary and attractive design
 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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