2-1 2 Chapter Two Corporate Image and Brand Management

2-1

2 Chapter Two

Corporate Imageand

Brand Management

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall2-2

Components of a Corporate Image

– Products– Personnel– Retail outlets– Servicing– Advertisements– Publicity


Tangible Elements 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 logo6. Packages and labels7. Employees

1. Corporate, personnel, and environmental policies.2. Ideas and beliefs of corporate personnel.3. Culture of country and location of the company.4. Media reports.

F I G U R E 2 . 1Components of a Corporate Image


Role of Corporate Image

Consumer Perspective

• Positive assurance• Unfamiliar settings• Little or no previous experience

• Reduces search time• Provides psychological reinforcement• Social acceptance


Role of Corporate Image

Company Perspective

• Ability to charge more• Consumer loyalty• More frequent purchases by customers• Positive word-of-mouth• Attracts higher quality employees• More favorable ratings


Top 10 Global Corporate Brands

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

Brand Value ($billion)

Source: Based on “The 100 Top Brands,” Business Week (August 6, 2007), pp. 59-64.


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.


• Should be easily recognizable.• Should be familiar.• Should elicit a consensual meaning

among firm’s target market.• Mutual contract

• Should evoke positive feelings.

F I G U R E 2 .4

Tests of Quality Logos and Corporate Names


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.


Black – seriousness, distinctiveness, 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 – authority, practicality, corporate mentality, and trust.

Green – health, freshness, stability, and appetite. Orange – fun, cheerfulness, 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.

http://www.marketingprofs.com/5/mccarthy4.asp


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.

http://www.marketingprofs.com/5/mccarthy4.asp


Logo Recognizability

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


Companies oftencreate product iconsto develop an identity for their products.

Why are these icons effective representatives for these companies?

http://rds.yahoo.com/_ylt=A0WTb_yMgbNKDgMAZKmjzbkF/SIG=121198jlk/EXP=1253364492/**http%3A//www.flickr.com/photos/pcioo/333827712/

http://rds.yahoo.com/_ylt=A0WTb_upg7NKbjsByV.JzbkF;_ylu=X3oDMTBpdnJhMHUzBHBvcwMxBHNlYwNzcgR2dGlkAw--/SIG=1iivr1s1r/EXP=1253365033/**http%3A//images.search.yahoo.com/images/view%3Fback=http%253A%252F%252Fimages.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dstarbucks%2526sado%253D1%2526ei%253Dutf-8%2526vm%253Dr%2526fr2%253Dsg-gac%26w=520%26h=520%26imgurl=www.uky.edu%252F%257Erjpowe0%252Fjou497%252Fpages%252Fassignments%252Fai_02%252Fstarbucks.gif%26rurl=http%253A%252F%252Fwww.uky.edu%252F%257Erjpowe0%252Fjou497%252Fpages%252Fassignments%252Fai_02%26size=25k%26name=starbucks%2Bgif%26p=starbucks%26oid=9f704e97340c57ca%26fr2=sg-gac%26no=1%26tt=1222821%26sigr=11q0tki4a%26sigi=1214l9utt%26sigb=12oe390d9


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


BrandingIf you didn’t find the brand you wanted, would you be likely to buy another brand?

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%

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.


Developing a Strong Brand Name

• 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?

Begins with understanding why consumers buy a brand.


• Higher prices• Higher gross margins• Channel power• Additional retail shelf space• Reduces customer switching

behavior• Prevents erosion of market share

F I G U R E 2 .6Benefits of Brand Equity


Brand Equity

Mercedes Benz has developed a high level of 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.

F I G U R E 2 .7Steps in Building Brand Equity


Source: Adapted from Fred Crawford, “Branding Isn’t Like High School,” Retail Merchandiser, Vol. 47, No. 6 (July/August 2007), pp. S4-S9.

Brand Trust Rate Distrust Rate BPI

Sony 9.2% 1.8% 75.1Johnson & Johnson 5.7% 0.5% 55.3Kraft 5.2$ 0.6% 48.7Procter& Gamble 5.8% 1.1% 48.2Campbell’s 3.5% 0.4% 32.9Toyota 4.1% 1.2% 28.0Tylenol 3.2% 0.6% 27.2Dell 5.1% 2.1% 27.0General Mills 2.7% 0.2% 25.9Hewlett-Packard 4.0% 1.5% 23.5

BPI = awareness, trust, and distrust.

F I G U R E 2 .8Top 10 Most Powerful Brands (AlixPartners)


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 .9Most Preferred Brands (DSN Retailing)


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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2-1 2 Chapter Two Corporate Image and Brand Management