Corporate Image and
Branding
Chapter 2
Discussion Points:
• How important are brand names?
• How important are brand names for
clothes? Why?
• What additional product categories
are brand names important?
• What product categories are brand
names not important?
Promoting the Right Image
• Very important first step in creating a successful
brand
• 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
• Necessary under certain circumstances
• Difficult to do
• More B to B
Interview with Bob Baxter, Manager of
Marketing Research Mercedes Benz of North
America
Before watching this interview:
What word(s) would you use to describe the
Mercedes Benz car? What is your image of the
Mercedes?
After watching this interview: What would you do if
you were Bob Baxter?
Discussion Slide
Click picture to play video.
 What image is
being conveyed by
this Porsche
advertisement?
 What image is
being conveyed by
the Porsche Web
site?
 www.porsche.ca
 Are the images
consistent?
What’s Happening?
• http://www.youtube.com/watch?v=4ba1BqJ4S2
M
• http://www.youtube.com/watch?v=LCl5uyn5K7k
What is Branding?
• Assigning a name, phrase, design,
symbols or a combination of these to a
product, service, or a group of
complimentary products
Branding
• Provides quality assurance
• Reduces search time.
• Allows a company to charge more (if the brand
is recognized and respected).
• Reduces brand parity.
• Consumers choose a brand because it is:
– Salient
– Memorable
– Noteworthy
Discussion Exercise
• List the names of five brands you have a
negative impression of?
• Why is the brand(s) conceived negatively?
• Does this brand(s) need to be rejuvenated? If
so how should it be rejuvenated? (from question
3, page 46).
Developing a Strong Brand Name
Begins with understanding why consumers buy a brand.
• 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?
Successful Brand Development
• Commitment to the brand
• Market penetration
• Research and understanding the brand’s
target market
• Building effective expansion programs and
fending off competitors.
Video – Nike
Questions for Discussion:
 What do you think of Nike’s Brand Management?
 What can other athletic apparel company’s learn from
Nike?
What’s Happening?
• http://www.youtube.com/watch?v=10RNn
WM1SRs
Building Brand Equity
Brand Equity – certain assets that add to the
value assigned to the product
• Research current brand image
• Decide what makes the brand unique
• Communicate brand’s uniqueness
• Spend on advertising/communication
• Deliver on uniqueness
Benefits of Brand Equity
•
•
•
•
•
Higher prices
Higher gross margins
Reduces customer switching
Greater demand for the product
Prevents erosion of market share
Types of Brands
•Family brands
•Brand extension
•Flanker brand
•Co-branding
•Ingredient branding
•Cooperative branding
•Complementary branding
•Private brands
Changes in Private Brands
1. Quality improvement.
2. Lower prices.
3. Higher store loyalty.
4. Lower loyalty for manufacturer brands.
5. Increase in advertising of private brands.
6. Increase in quality of private brand instore displays.
Successful Brand Extensions
• Lipton tea – Lipton soup mixes
• Kodak film – Kodak cameras and batteries
• Ivory soap – Ivory shampoo, dishwashing
liquid
• Barbie dolls – Barbie games, furniture,
clothes
• Honda bikes – Honda cars, lawnmowers,
generators
Unsuccessful Brand Extensions
• Dunkin’ Donuts – Dunkin’ Donuts cereal
• Harley Davidson Bikes – Harley Davidson
cigarettes
• Levis Jeans – Levis business wear
• Mr. Coffee coffee makers – Mr. Coffee
coffee
Companies often
create product icons
to develop an identity
for their products, and
increase brand equity.
Why is the
Mr. Clean icon
an effective
representative
for its product?