Corporate Image and Brand Management

Image A firm’s image is dependent on the feelings

consumers and businesses have about the overall organization and its individual brands. Use of various promotional tools do impact the consumer perceptions.

Brand Managers and advertising executives are responsible for developing and maintaining good image.

Image is connected to the strengths and weaknesses of the firm.

To make solid connections with customers and businesses, markets should understand the firm’s image and have full knowledge about the strengths of its brands.

Combining ideas about a firm’s image and the brand with assessments of consumer and business buyer behaviors go a long way in laying a strong IMC foundation.

Corporate Image

The corporate image summarizes what the company stands for and how well its position has been established.

It is important to know the image as perceived by the consumers rather than the image thought to be by the managers

Strong Images

Kodak, IBM, Apple, Toyota, Tata, Infosys, Reliance, Nike conjure strong images in the minds of various stake holders.

A firm’s image can have a positive or negative influence on customers as they make purchase decisions.

Components of a Corporate Image

Primary component of a corporate image is customer perceptions of goods and services offered by the firms.

Second was the willingness of a firm to stand behind its goods and services when something went wrong.

Third was the way the firm dealt with customers

The corporate image of an automobile company like Maruti Suzuki Limited will be based on:

1. Evaluations of vehicles2. Is it a foreign or Indian company?3. Customer views about the company’s

advertisements 4. Reactions to the local dealership5. Assessments of employees/mechanics of

the company

Corporate Image – Tangible & Intangible Elements

Tangible Elements 1. Goods and services sold2. Retail Outlets where the

product is sold3. Factories where the

product is produced4. Advertising. Promotions,

& other forms of communications

5. Corporate name & logo6. Packages & labels7. Employees

Intangible Elements1. Corporate, personal, and

environmental policies2. Ideals & beliefs of

corporate personnel

3. Culture of country & location of company

4. Media reports

The role of a Corporate Image-Consumer Perspective

Providing assurance regarding purchase decisions of familiar products in unfamiliar settings

Giving assurance about the purchase when the buyer has little or no previous experience with the product

Reducing search time purchase decisions Providing psychological reinforcement and

social acceptance of purchases

The role of corporate image – Business-to-business perspective A strong corporate image establishes a major

competitive advantage A well established corporate image make it easier for

the business customers to reduce the search time involved in a purchase process

Company buyers get praise for buying quality products from organizational leaders and others involved in the process

A strong company/brand image can make the difference in a choice between two competitors

Brand image comes very handy for those who are expanding internationally – risk and uncertainty are reduced when the buyer knows that he will be buying a product or service from a well-known seller

The role of corporate image – company perspective

Extension of positive consumer feelings to new products

Ability to charge premium prices Consumer loyalty that may encourage

repeat purchases Positive word-of-mouth endorsements Ability to attract quality employees Favorable ratings from financial

observers and analysts

How to promote the desired image? The image being promoted must accurately portray

the firm and should be consistent with the quality of the products and services

Reinforce/rejuvenate the current image with the view of customers – it will be easier to do so than trying to change a well-established image

Trying to change the images people hold about a firm is rather difficult – in some cases it may not be even possible to modify or create an entirely new image

Negative or bad press can quickly destroy an image that took years to build – once it is damaged it may require a great deal of time to recover the lost reputation

Creating the right image The right image is that image that sends a clear

message about the uniqueness of the firm and its products

A BMW ad. Reinforces the image that BMW is a quality product – a top brand in the motor cycle industry

“The ultimate motorcycle” Other promotions can be built around

a strong image

Rejuvenating an image Rejuvenating an image helps a firm to sell new

products and attract new customers. The key to successful image reengineering is to be consistent with a previous image while at the same time incorporate new elements to expand the target segment

What can a company like Coca-Cola do to rejuvenate its image in the context of the negative publicity it received in Kerala?

Coke could go for integrated communications that suggest that the customers can trust its quality – reassert strongly what it has always been trusted for

Changing an image It is difficult to change the image people

have about a company It becomes necessary when target market

shrinks or disappears or its image does not match the industry trends or the consumer expectations

Changing a name or image of a brand would require more than one well-made ad. or press release. It may begin with internal company employees and products and then move outward to suppliers, other businesses, and certainly customers

Corporate Names, Logos

Corporate name is the banner under which all operations occur.

It is the cornerstone of a company’s relationship with its customers and sets an attitude and tone and is the first step toward a personality.

Corporate names can be classified into four categories.

Overt names – reveal what business the company is in: Jet Airways, BMW Motorcycles

Implied names – imply what the company is about: DTDC, IBM (International Business Machines)

Conceptual names- Google portraying the idea of place where you can find a lot of things, Krispy Kreme suggesting confectionaries with tasty crème

Iconoclastic names – which does not reflect the company’s products but instead something that is unique, different, and easily memorable: Apple Computers, Monstor.com, and Gucci

A corporate logo is symbol used to identify a company and its brand and helps to convey the overall corporate image. It should be compatible with the corporate name.

1. Logos should be easily recognizable 2. Familiar3. Elicit a consensual meaning among the

those in the firms target market4. Evoke positive feelings

Some famous logos Apple- some people think the bite

resembles Adam and Eve; but it is meant to make sure that people would not mistake it for a tomato!

Nike the swoosh was designed in 1971 by a graphic-design student who was paid $35

FedEx – created in 1994 – the designers kept the orange and purple color, but shortened the name to FedEx as a verb