CORPORATE IMAGE MANAGEMENT
SUBMITTED BY
Aamir Akhon
Table of Contents
1. ABSTRACT
2. INTRODUCTION 2
3. CORPORATE IDENTITY, BRANDS AND REPUTATION AS STRATEGIC RESOURCES
3.1. CORPORATE IDENTITY
5
3.2. CORPORATE BRANDING
7
3.3 CORPORATE REPUTATION
9
4. Corporate Image Building.
10
4.1 Image should be treated as an asset and should be planned
4.2 The term, corporate personality
4.3 The process that translates corporate identity into a corporate image
4.4 Public relations is a discipline of management
4.5 Everyone in the organization has a role to play in developing and enhancing the corporate image.
4.6 Being accountable for their own performance
4.7 ADVERTISING AND CORPORATE IMAGE
4.8 The remuneration package
4.9 Assistance help behind schedule
5. Impact and Approaches on organizational profitability 19
6. Brand Image and Walt Disney:
27
5.1 Building a strong Brand Perception Position
28
5.3 An Analysis of the impact of “Magical Gatherings” on the brand Image of Walt
Disney 39
45
5.4 CONCLUSION
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1. ABSTRACT
Purpose - The purpose of this paper is to explore and analyze Corporate Image,
Identity and Reputation in a framework that reflects the importance of corporate
image management and its impact on the organizational profitability
Methodology/approach - The paper draws on key literature relating to corporate
image management.
2. INTRODUCTION
A brilliant image can strengthen an organization’s credibility, increase its sales, and
help the organization bounce back from attacks—an idea termed the “halo effect.”
Positive brand images persuade customers to engage in desired economic action—
to buy a specific brand or product.
The primary challenge of present-day public relations (PR) departments is effective
corporate image management. Such activities should distinguish between reality
and the desired image. Companies can be analyzed from an internal (own image,
perception of company by employees) and external (perception by external parties,
such as customers or business partners) point of view.
Corporate image research is often conducted in conjunction with other types of
research, as this helps to optimize investment. When looking at the external view of
a company or organization, for example, corporate image is often combined with
brand research activities. Similarly, an internal view may be supplemented by an
employee satisfaction survey.
Corporate image research is an analysis of a company’s strengths and weaknesses
view by a target customer. It involves elements of a typical functionality assessment
as well as emotional approach. The summary of results is accompanied by
recommendations on how to reinforce positive aspects of the corporate image while
2
eliminating negative ones.
Internal and external corporate image research conducted concurrently enables
clients to develop a comprehensive PR strategy. Most frequently, a first full study
results in the establishment of a simplified tool that can be used regularly to review
changes in the company’s image and the effectiveness of marketing activities, in
particular in the area of public relations campaigns.
As the key areas of creating the company’s image are usually known, corporate
image research generally involves a quantitative measurement of the strength of
(variable) features of the existing image and also the desired or target image.
Monitoring the strength of such features makes it possible to track any changes –
good or bad. This can also be used as a way of measuring the effectiveness of
corporate image campaigns. In each study, PMR Research tailors the scope and
method of data collection. It is vitally important that the study covers both existing
and potential target groups.
3. CORPORATE IDENTITY, BRANDS AND REPUTATION AS STRATEGIC RESOURCES
The resource–based view within the strategy literature has argued that sustainable
competitive advantage is created primarily from intangible capabilities, including
brands and reputations (Omar, Williams and Lingelbach, 2009). RBV posits that
resources are heterogeneously distributed between firms, with resource
heterogeneity leading to inter-firm performance variations (e.g., Grant, 1996;
Wernerfelt, 1984). Resources are viewed as assets enabling firms to accrue
economic rents through the conception and execution of strategy within resourcebased view thinking (Conner, 1991). In order for a firm resource to have a
competitive advantage, it must be associated with the following four attributes:
(a) it must be valuable, in the sense that it can exploit opportunities and/or
neutralise threats in a firm’s environment,
(b) it must be rare among a firm’s current and potential competition,
(c) it must be imperfectly imitable, and
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(d) there cannot be strategically equivalent substitutes for this resource that are
valuable but neither rare or imperfectly imitable (Barney, 1991).
An organisation’s reputation, its corporate brand as well as certain elements of its
corporate identity, meet these four attributes. Corporate brands and reputations are
important assets in enabling organisations to exploit opportunities and mitigate
threats (Argenti and Druckenmiller 2004). Although every company has a corporate
brand and develops a reputation over time, strong brands and reputations are rare
and impossible to imitate in totality owing to the unique sets of assets, skills and
choices made by organisations and the broad number of dimensions used across
stakeholders to evaluate corporate brands and reputations.
Reputation is an outcome of interactions between stakeholders and the organization
over time (Argenti and Druckenmiller, 2004). An organisation does not have a single
reputation at any point in time. It has a number of reputations depending on the
stakeholders concerned. Interactions with brand-associated stimuli (including mass
communication, employees, agents or other individuals and groups that are linked
to the brand), enables stakeholders to form their perceptions of an organization.
These perceptions consolidate to become a single impression at a point in time - the
brand image. Over time these fragmentary images evolve to become the
stakeholder’s perception of the reputation of the organisation. The corporate brand
comprises two aspects: corporate expression and stakeholder images of the
organisation’s identity. The former includes all mechanisms employed by the
organisation to express its corporate identity to all stakeholder groups. Corporate
expression links the organisation’s corporate identity with its corporate brand and
accordingly is classified as part of both constructs. The strategic choices that
organisational leaders must make to determine the corporate expression include
the conceptualisation and communication of the visual identity, the brand promise
and the brand personality. The second aspect of corporate branding encompasses
stakeholders’ perspectives of an organisation’s brand. A stakeholder can never
interact with an organisation’s corporate identity in its entirety – they interact with
aspects of the organisation’s identity and in so doing build their perception of the
corporate brand. As stakeholders experience the brand, they develop brand images.
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Although every stakeholder will experience the brand, only some will form brand
relationships or become part of brand communities. During these interactions,
stakeholders will judge the brand by considering the extent to which the brand has
fulfilled the brand promise and will evaluate the brand’s personality relative to their
expectations and requirements.
The corporate identity of the organisation is concerned with what the organisation
is and what it seeks to be, and comprises two parts. Firstly, the strategic choices
made by the organization including the organization’s mission, vision, strategic
intent, values and
corporate culture and, secondly the corporate expression, which is also part of the
corporate brand.
In summary, an organisation that seeks to create positive reputations amongst its
various stakeholder groups must understand the dimensions on which stakeholders
evaluate reputation. These include, but are not limited to, the organisation’s
performance, its products and services, its citizenship activities, service, innovation,
the workplace, governance and ethics. The organization creates its identity though
its strategic choices and corporate expression. Thereafter, it must develop a strong
corporate brand, through its corporate expression and influence of brand image.
Each element of the framework will now be discussed in detail.
3.1. CORPORATE IDENTITY
We define corporate identity as an organisation’s strategic choices and its
expression thereof. He and Balmer (2007) have identifed four sub-perspectives of
corporate identity: visual identity, corporate identity, organisation’s identity and
organizational identity. Visual Identity refers to the various visual cues that a
company marshals as part of its corporate communications policy. Visual Identity
includes the organisation’s name, logo, slogan, colour and anything else that is
related to graphic design.
Corporate Identity is an area dominated by multiple identity categorisations. Balmer
and Greyser (2003) identified six separate corporate identity types: actual identity,
communicated identity, conceived identity, ideal identity, desired identity, and the
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corporate brand identity. Organisation’s identity is the defining characteristics of an
organisation (He and Balmer, 2007). This is seen as the perceptions of the
organisation’s various stakeholders about the organisation: “the identity of the
organisation”. Organisational Identity refers to the identity of people within the
organisation. According to Hatch and Schultz (1997, p. 357), “Organisational
Identity refers broadly to what members perceive, feel and think about their
organisations. It is assumed to be a collective, commonly-shared understanding of
the organisation’s distinctive values and characteristics”. Organisational identity is
defined as the characteristics of an organisation that contribute to the
distinctiveness and uniqueness of an organisation (Albert and Whetten, 1985).
While He and Balmer (2007) are correct in identifying these four perspectives of
Corporate Identity, we argue that visual identity is also part of the corporate brand
as it forms part of what we term corporate expression. Balmer and Greyser (2003)
identified six types of corporate identity; two of the types they mention,
communicated identity and corporate brand identity are also part of the corporate
branding decisions that an organisation has to make. In our model, communicated
identity needs to be integrated with brand communication and corporate brand
identity with the elements that form brand image.
Our view is that corporate identity consists of an organisation’s strategic choices
and how it elects to express these. Strategy formulation and implementation is well
documented in the literature (see Barney, 1991 amongst others). Values expressed
through various subcultures lie at the core of organisation and underpin the identity
formation process (Abratt, 1989; Balmer and Gray, 2003; Aaker, 2004). Core values
(that may or may not be explicitly defined) make up the backbone of an
organisation’s brand track record and must be aligned with the organisation’s
promises (Urde, 2009).
Culture, defined by Kiriakidou and Millward (2000) as the corporate values that are
held by staff and management and their concrete manifestation in organisational
symbolism and behaviour which frame the way the organisation operates, is also
part of CI. The second aspect of CI that builds on strategic choices is corporate
expression, which consists of the decisions concerning visual identity, the brand
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promise, brand personality and brand communication. This brand expression
overlaps with corporate branding decisions and will be discussed as part of
corporate branding.
3.2. CORPORATE BRANDING
There is little agreement in the literature as to what constitutes a corporate brand.
According to Balmer and Gray (2003) corporate brands are marks denoting
ownership; 8 image-building devices; symbols associated with key values; means by
which to
construct individual identities; and a conduit by which pleasurable experiences may
be consumed. Knox and Bickerton (2003, p. 1013) proposed the following definition
of corporate brand, “A corporate brand is the visual, verbal and behavioural
expression of an organisation’s unique business model”.
In attempting to differentiate between the constructs of corporate brand and
corporate reputation, Corkindale and Belder (2009) note that the focus of the
corporate brand building focuses on relevancy to customers whereas reputation
concentrates on legitimacy of the organisation with respect to the stakeholders. We
disagree and hold the view that the corporate brand is integral in building corporate
reputations across all stakeholder groups, not only customers. Our perspective
conforms with the views of Hatch and Schultz (2001) who state that the corporate
brand contributes not only to customer-based images of the organisation, but to the
images formed and held by all its stakeholders. Argenti and Druckenmiller (2004),
note that a company engages in corporate branding when it markets the company
itself as a brand. They state further that the reputation of the organisation is
strengthened when the corporate brand promise is kept. According
to Aaker (2004), the corporate brand defines the organisation that will deliver and
stand behind the offering, and will potentially have a rich heritage, assets and
capabilities, people, values and priorities, a local or global frame of reference,
citizenship programs, and a performance record. Urde, Greyser and Balmer (2007)
define a heritage brand as one with a positioning and a value proposition based on
its heritage. Balmer and Thompson (2009) observe that corporate brands are
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multidisciplinary in scope and strategic in nature and must be underpinned by the
brand promise and aligned with the corporate identity. According to Balmer and
Gray (2003), corporate brands are different to product brands in terms of
disciplinary scope and management, and have a multistakeholder
rather than customer orientation. They acknowledge that the terms
corporate brands and corporate identities are used interchangeably, but argue that
there are fundamental differences between them. According to Balmer and Gray
(2003), corporate identity refers to the distinct attributes of an organisation which
addresses the
questions, “who are we? And what are we?” and is relevant to all types of
organisations. They go on to state that corporate brands on the other hand are not
applicable to all organisations, and would not for example, be necessary for a
monopoly (Balmer and Gray, 2003). We disagree, and argue that as a consequence
of their formation, all organisations have a corporate brand, whether they make
explicit choices to communicate it to all stakeholder groups or not. Organisations
are identified by their name, symbols, colours, assets and the people who work for
them. We define a corporate brand as expressions and images of an organisation’s
identity. For organisations, it is the mechanism that conveys the elements and builds
the expectations of what the organisation will deliver for each stakeholder group.
Core elements of its corporate identity include corporate affinities, products and
services, and social responsibility programmes. These reflect the organisation’s
values and culture.
Corporate identity is expressed through the corporate brand in the form of visual
identity, the brand promise, the brand personality as well as by using brand
communications which may be tacit or explicit. The corporate brand is thus the
interface between the organisation’s stakeholders and its identity. Organisations
seeking to build strong corporate brands must align their internal communications
activities and human resource management practices with the brand values (Gotsi
and Wilson, 2001). We argue that corporate identity is an internal organisational
strategic decision, and the corporate brand is the mechanism that allows for
alignment between the desired identity and how stakeholders “see” the identity.
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3.3 CORPORATE REPUTATION
The domain of corporate reputation draws academic attention from the
management, marketing, accounting, economics, and sociology areas (Brown, Dacin,
Pratt and Whetten, 2006). Corporate reputation is much more than corporate image
or corporate identity as it involves a temporal dimension that the latter do not
consider (Cravens and Oliver, 2006). Helm (2007) observed that no consensus has
been achieved concerning the core meaning and building–blocks of corporate
reputation, although there is considerable agreement about the positive effects that
stem from having a good reputation. According to Firestein (2006), reputation is the
strongest determinant of any organisation’s sustainability. While strategies can
always be changed, when reputation is gravely injured, it is difficult for an
organisation to recover.
Reputation is rooted in the aggregated perceptions of the organisation’s
stakeholders (Fombrun, Gardberg, and Sever, 2000). Fombrun and van Riel (2003)
suggest that organisations with good reputations attract positive stakeholder
engagement. A favorable corporate reputation results in business survival and
profitability (Roberts and Dowling, 2002), is an effective mechanism to maintain
competitive advantage, and can aid in buildling customer retention and satisfaction
(Caminiti, 1992) and obtaining favourable media coverage (Fombrun et. al., 2000).
Fombrun (1996) observes that managers should pay increased attention to building
and sustaining their reputation for greater economic returns. What is not
immediately clear is whether a good reputation leads to better returns, or good
financial performance leads to a good reputation. A study by Inglis, Morley and
Sammut (2006) failed to establish any relationship between reputation and
performance. This is inconsistent with the findings of Rose and Thomsen
(2004); Roberts and Dowling (2002) and Eberl and Schwaiger (2005) who showed
that strong reputations have a positive impact on future financial performance.
Strong corporate reputations have also been positively associated with successful
organisational relationships with clients
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4. Corporate Image Building.
4.1 Image should be treated as an asset and should be planned, developed analyzed
and managed along with other valuable assets. The right image greatly enhances an
organization’s sphere of influence and is as important as other assets such as capital,
plant and technology. “The greatest risk to professional image is the failure to factor
image into business decisions”. Marilyn Mondejar .Corporate Image is the picture a
company’s audiences have of it. It will be determined by all a company’s actions.
Theproblem a company faces is that different audiences will interpret a message in
different ways. Themanagement of the corporate image is thus an ongoing
task.Corporate image includes information and inferences about the company as an
employer, as a seller,as an investment and as a corporate citizen. A company will
have more than one image dependingon the nature of the interaction it has with the
different groups. Since people tend to "humanize"companies (Bayton, 1959),
corporate imagemay also include characteristics often attributed tohumans such as
"caring", "friendly", and "ruthless" and so on.The first step in attempting to influence
and manage the corporate image of an organization is to understand the process by
which corporate image is formed.
4.2 The term, corporate personality, refers to who and what the company is, rather
than how thecompany is perceived by the public.A company also has an "identity"
which can be described as an ideal self-image. Ideal self-image isthat image which
the company would like the public to hold (Sirgy, 1982).b) corporate
advertisingCorporate advertising seeks to inform and influence the publics attitudes
about a companysactions, characteristics, or viewpointsis a tool often used to
deliver this information and, by doingso, influence stakeholders image of the
corporationc) brand imageBrand image consists of functional, symbolic and
experiential aspects of the product or service (Park,Jaworski, & MacInnis, 1986)
including the influence of product advertising on the brand. Intuitively,one would
expect a significant interaction between brand image and corporate image. This
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isespecially true for brand names such as Coke or Sony, where the company name
(or a part of it) isalso the brand name. In such cases the interaction effect would be
maximum.d) public relations Public relation programs can be used to project an
image of a company that is environmentallyconscious which can do wonders for the
company.e) frontline employee behaviorIn many situations, direct contact with
frontline employees of the company serves to formimpressions about the company.
4.3 The process that translates corporate identity into a corporate image. The identity
needs to becommunicated to employees, customers, suppliers and shareholders if it
is to have any value. Therole of design within this is to visually signify what a
company stands for.”The development of an image should revolve around many
things including: • staff training to help develop a customer service “culture” •
community awards, including Certificates of Merit for sporting and cultural
achievement and Staff Excellence Awards • school education programs • Council’s
involvement in community activities and events • the wearing of Corporate uniform
by staff • the wearing of a name badge by staff in all encounters with the public • the
preparation of cost effective, informative and interesting publications. Surveys and
the invitation for public comment, where appropriate, should be included in some of
these publications to evaluate stakeholder interest and to promote community
involvement.
Some of the important roles for developing Corporate Image:
4.3.1 . Role of the General Manager and Directors
i) The General Manager and Directors should rate the enhancement of Company’s
corporate image highly in the day to day running of the organisation and its
functions i.e. informing the customer of what is happening on a weekly or even daily
basis
4.3.2. The Role of the Customer First Manager in Corporate Image
i) To prepare, develop and review the Corporate Image.
ii) To manage and oversee the implementation of the Strategy
4.3.3. The Role of the Communications Officer in Corporate Image
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i)To have input into the development and review of the Corporate Image.
ii) To implement those sections of the Strategy and Action Plan which are the
responsibility of the Communications Officer.
iii)To receive information from the various Departments that will, through its
dissemination, improve and enhance the corporate image of the company
4.3.4 The Role of Staff in Corporate Image
i) Staff members are at the forefront in liaison with the company’s stakeholders.
Each and every action that is performed by staff members is deemed to be an act of
the company. Therefore, the way the staff deal with customers at the counter, in the
field, on the telephone and in response to written or electronic requests will reflect
on the organisation. As a result they are in the best position to recommend changes
to Management which will benefit both the customer, in the form of superior levels
of service, and the company, by way of time and cost savingsPUBLIC RELATION OF
AN ORGANIZATION
4.4 Public relations is a discipline of management that can greatly enhance the
communication process and, therefore, the image of the organization. It is one of the
most important tools in building a positive corporate image.Importance of Public
Relations of an organizationPublic relations enables the community to gain an
impression of the organisation and thisperception will be the basis for, and the
influencing factor in, establishing the company’s corporateimage.The organisation
as an entity, and each individual involved, have important roles to play inraising the
profile of the organisation and achieving good public relations.The following
guidelines are submitted ii) The management should respect the role of the media to
inform the public and therefore should not expect the media’s view to be always
positive and in accordance with those of Council. iii) Councillors should be mindful
of the public nature of their meetings and of the expectations the electors have in
respect of their chosen representatives. iv) Company should operate an open access
policy. Directors (or in their absence,section Managers) should supply information
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to the media when requested in accordance with various codes, policies and
resolutions of the same v) It is vital to be aware of all the staff members as they
being a critical component in achieving a corporate image. vi) Regular team
meetings need to be set in place to ensure that communication flow exists. Staff
members should be encouraged to strive for excellence in every facet of their work
and should be consulted, not only on ways to improve work performance, but also
to enhance the corporate image through effective public relations in the work place.
vii) It should also be ensured that knowledge, confidence, a positive attitude and an
appearance that reflects the corporate image are attributes that all staff embrace;
not just those in regular contact with the public. viii) All the related informations
and objectives should be conveyed to staff on a regular basis through informal
discussions with work groups, monthly team meetingsCOMPONENTS OF AN
INDIVIDUAL IMAGEIn order to create a positive professional image, impression
management must effectivelyaccomplish two tasks: build credibility and maintain
authenticity. When you present yourself in amanner that is both true to self and
valued and believed by others, impression management canyield a host of favorable
outcomes for you, your team, and your organization
4.5 Everyone in the organisation has a role to play in developing and enhancing the
corporate image. It is essential for a leader to be natural and humane in practice and
analysis. The most important goalis to measure against your own experiences. Very
often what makes leaders great is that they couldtranscend personal feelings to help
a person to see only they can help themselves to be moreproductive but also more
effective and intelligent.Keys to enhance Individual Image: To understand the core
competencies and character traits you want people to associate with you. Assess
how do others currently perceive you. Employ appropriate traditional and social
identity-based impression management strategies. Pay attention to the balancing
act—build credibility while maintaining authenticity. If you are the leader in charge,
you have the authority to make the decision, but also the responsibility to do so and
take the consequences. Authority and responsibility go hand in hand. Consider
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carefully before you commit or act and if necessary take extra time to consider the
implications, risks and how to implement strategies. Another one that sounds
obvious, but consistency, integrity, ingenuity and reliability are things that make or
break leaders. It is important to communicate wisely and never consider it a
weakness to ask for help. When a person is too proud to ask for help it sows the
seeds of failure early as when they cannot ask for help or advise when it is really
needed, either emotionally or symbolically as a way to save face, they lose their
ability to act and implement change or strategy, as well as losing integrity and
ability to inspire at one stroke. Not only does everyone start somewhere, but no one
ever stops learning and expanding in experience and knowledge. Sometimes we
may feel wise and capable but be able to be stunned at the most simple of insights.
Know what is going on and stay in touch. Not only within your team, but in the
company, your clients, your suppliers and the general world around you. Be
proactive. Oddly enough some individuals love or loathe this word. It means being
aware and acting against possible problems and also to make possible opportunities
into real opportunities.Vital components an individual must inculcate; A positive
attitude towards, and belief in the organization. Innovation and creativity in
furthering the organization’s objectives.
4.6 Being accountable for their own performance. Understanding the importance of
their contribution and role in the organization. Accepting ownership of problems
and responsibility for solving them- To actively seek opportunities to enhance
knowledge and experience- Be respectful of, and helpful to, colleagues and able to
openly discuss problems and issues.Effective corporate branding requires all
company employees to adopt and behave according to a companys set of core
values. Thus, strong corporate brands are associated with employees who are
closely aligned with the core corporate values. Values are especially important as
they are at the core of the corporate brand, are critical to how service brands
differentiate themselves, and can inspire behavioral changes, motivation and
commitment.
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4.7 ADVERTISING AND CORPORATE IMAGE In an increasingly competitive
marketplace, greater emphasis is being placed on brand image development as the
basis for consumer discrimination. Advertising has a central role to play in
developing brand image, whether at the corporate, retail or product level. It informs
consumers of the functional capabilities of the brand while simultaneously imbuing
the brand with symbolic values and meanings relevant to the consumer.WHAT IS
ADVERTISING?a) A definitionThe Advertising Association defines advertising
as:“Any paid for communication in media intended to inform and/or influence one
or more people”Advertising is a direct means of reaching a desired audience at a
cost and you can control what isincluded in the message and how and when it is
delivered.Advertising plays an important role in an organization, helping to
generate revenue and profit bystimulating sales. Advertising raises market
awareness of an organizations products and servicesand generates leads for a sales
force to follow up. By building a brand image for products,advertising differentiates
the products from competitors and helps to create customer preference. Italso helps
to develop a corporate image that builds market confidence and trust in an
organizationas a supplier.To meet the varying demands of their target consumers,
advertisers commonly use rational appealand emotional appeal in their advertising
in an attempt to influence consumer behavior (Chu, 1996)Kotler (1991) defined
rational appeal as rationally oriented purchase stimulated by directly
givingexplanations of a product’s advantages. Rational appeal focuses on the
benefits consumers mayenjoy. In an advertisement, it emphasize that a product or
service could achieve the function andbenefits consumers desire. He defined
emotional appeal as the stimulation of consumers’ purchaseintentions by arousing
their positive or negative emotions. Positive emotional appeal covers humor,love,
happiness, etc, while negative emotional appeal involves fear, a sense of guilt, and so
on.Corporate AdvertisingCorporate Advertising as a basic tool of Public Relations is
that broad area of non-productadvertising aim specifically at enhancing company’s
image and increasing lacking awareness.It can be defined as “paid use of media that
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seeks to benefit the image of the corporation as a wholerather than its product or
services alone”
Corporate Advertising is a promotional strategy that is designed to not only interest
consumers in products and services offered by an organization, but also to cultivate
a positive reputation among consumers and others written the business world. The
focus of Corporate Advertising is on the company itself, with the attention to the
products produced by the organization being a by product of the advertising effort.
Types of Corporate Advertising The four types of corporate advertising commonly
used by organizations are: PR Adinstitutionally Adcorporate Identity Adrecruitment
Ad PUBLIC RELATIONS AD: it is typically used to improve the company’s relations
with labour,government, customers or even suppliers. Thus, when a company
sponsors arts events, programmeson television or charitable activities, they are
engaging in PR. PR Ad is used when a company wishesto communicate directly with
one of its important publics to express its feelings or to enhance itspoint of view to
that particular audience. They are designed to enhance a company’s general
community citizenship and to create public goodwill. INSTITUTIONAL AD:
otherwise called corporate advertisement Institutional advertising is marketing
designed to promote a company rather than a specific good or service. It can be
designed to make the public more aware of a company or to improve the reputation
and image of an existing company. Depending on the company, this can be a form of
brand advertising. Institutional Ads serve these purposes amongst others: To report
company’s achievement or accomplishment To position company competitively in
the market place To reflect a change in corporate personality To shove up stock
prices of companies To improve employees morale To avoid communication
problems with agents, dealers, suppliers, customers etc. CORPORATE IDENTITY AD:
this is embarked upon on rare occasion such as when organization decides to
change its name, logo, address, trademark or corporate signature or in case of a
merger. When such occasions occur, there is need for Corporate Identity
Advertising, this is to communicate the change to the publics. RECRUITMENT AD:
This is used when the prime objective is to attract employment applications.
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Recruitment advertising, also known as Recruitment Communications and
Recruitment Agency, includes all communications used by an organization to attract
talent to work within it. Recruitment advertisements typically have a uniform layout
and contain the following elements:-the job title heading and location-an
explanatory paragraph describing the company, including the Employer Brand- a
description of the position- entry qualifications
4.8 the remuneration package (not always provided by the employer)- further
details and from where application forms may be sought  Image Advertising:It is a
type of marketing that attempts to improve the companys reputation or increase
theacknowledgment of its importance in relation to its competitors. This ad
educates the public aboutthe companys leadership and market position in an
attempt to show the company as a primaryreason a particular industry is
prospering or beneficially impacting consumers.  Opinion, or Advocacy,
Advertising:This corporate advertising is primarily concerned with influencing
public opinion on issues ofimportance to the company. The ad is educational, and
may not even mention the company in amajor way.Its role is to implement product
flow through the channels of distribution; to act as a catalyst inacquainting the
consumer and to induce him to buy the product. Advertising is a device ofpersuasive
communication through which a prospective industrial buyer becomes aware of
thecompany and its product. Through the awareness or knowledge thus acquired
the buyer showsinterest or liking for the product and finally makes purchases at
least on trial basis. One may then saythat the ultimate purpose of advertising is to
create sales which of course depends on the functionalrelationship between nonpersonal communication (through advertising messages) and sales.dvertising as a
tool that aids in increasing demand for a product and, thus opens the way for
largescale production at lower cost which ultimately passed on to the consumers in
terms of lower pricethey pay for the product. Also, it increases the variety and
quality of good offered, stimulatescompetition in technical progress, subsidizes the
press and television services and thus, helps inproviding employment.What makes a
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good advertisement?Determine who the target market is – ratepayers, residents,
community groups, stakeholders,visitors or others.Use a strong headline which
clearly indicates what the advertisement relates to. If room permits,mention a
benefit or make the headline newsworthy.John Caples, author of “Tested Advertising
Methods”, has analysed the top ten most commonly usedwords in successful
headlines. They are:-You Your How New WhoMoney Now People Want WhyAll vital
facts are included. A handy checklist is to ask the five “W’s” when writing the copy
for your advertisement – Who, What, When, Where, Why. All possible objections are
answered Use simple words that your audience understands. Do not use jargon and
acronyms. For example –Instead of Use adjacent to next to or near to approximately
about ascertain find out
4.9 assistance help behind schedule late beverage drink commence start or begin
currently now endeavour trying attendance present or there manufacture make
merchandise goods prior to before subsequently later sufficient enough terminate
end Use short sentences Use graphics, diagrams, maps or photographs if
appropriate
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5. Impact and Approaches on organizational profitability
Organisations are understandably concerned with managing their Corporate Image.
This shows that there is a strong positive correlation between how people perceive
an organization and the pro-corporate supportive behavior. Corporate images are
perceived as the mental pictures of an organization. It is the sum total of these
perceived characteristics of the corporation that we refer to as the corporate image.
Every organisation has its image whether the organization does anything about it or
not. Corporate image is formed based on the stakeholders’ perceptions of specific
company actions as well as associated industry and nation issues. An organisation’s
image to a large extent influences stakeholder’s reactions to specific corporate
actions and products. Oxford Advanced Learner’s Dictionary (2000) defined
corporate as “connection with a large business company” Formbrun (1996) defined
corporate image as “the overall estimation in which a company is held by its
constituents through perceptual representation of an organisation’s past actions
and future prospects when compared with other leading rivals. According to Rayner
2 (2003), corporate image confers clear-cut advantages and privileges on
companies. It proves difficult to imitate, at the same time, it creates responsibilities.
Whereas, the obligations that managers and the organization owe must meet the
personal standards of the employees, the quality standards of customers, the ethical
standards of the community and the profitability standards of the investors.
Therefore, organizations sustain their corporate image by building strong and
supportive relationships with all of their constituents- i.e. customers, suppliers,
investors, community, government, e.t.c. (Formbrun, 1996). Moreover, as opined by
Villanova, Zinkhan and Hyman (2000), corporate image is an overall perception of
the company held by different segments of the public. For example, the products and
services consumer stakeholder buy are seen as having personal and social meanings
in addition to functional utility. Again, they are interested in the long term stability
of the company and ability of the company to maintain supplies, product/service,
quality and price. The management are interested in all aspects of financial ratio
19
analysis that all outside investors used in evaluating the firm to bargain effectively
for more funds. Not only that, the shareholders are interested in the company’s
profitability, stability, potential for growth and dividend policy. Likewise, the
creditors are interested in the ability of the business to pay interest and repay the
principal sum on a due date. The government is interested in business profits to
assess tax liabilities and may also be interested in other information example
statistics on employment and wage levels. However, the employees are interested in
the long term stability of the company and ability of the company to maintain
supplies, product/service, quality and price. The financial analyst and advisers are
interested to advise their audience that can be any of the other stakeholder groups.
For example, stockbrokers are interested in the information on profitability and
prospects of capital growth to advise investors and potential investors. Moreover,
the competitors, the community and the channel members who are involved in the
distribution network including the wholesalers, retailers and the kind are interested
in the comparative performance of a business and accessing its role as a corporate
citizen.
Corporate image includes information and inferences about the company as an
employee, employer, customer, community, supplier and as a corporate citizen.
Since an organisation’s corporate image affects stakeholders’ behavior, they strive
to develop and manage their image for many reasons among which are; i.
Enhancement of the corporate competitive advantage thus leading to higher
profitability. ii. Promoting favourable relationship with the community in the
environment they operate, else it may experience difficulty in recruitment, selection
and maintaining the employee morale. iii. Influencing investors and financial
institutions. iv. Establishing a corporate goodwill for the organisation. v. Creating
good identity for the employees thereby leading to their satisfaction. vi. Stimulating
sales, thus influencing customer loyalty. vii. Promoting good relationship with the
government, opinion leaders and various interest groups, (Adeniji, Osibanjo and
Abiodun, 2012). Worthy of note is the fact that perceptions and influences about the
company will defer between the various stakeholders groups depending on the
nature of their interaction with the organization. Thus, it follows that an
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organization may have more than one image depending on the nature of the
interaction it has with the different interest groups. Because people tend to
humanize companies, corporate image could be said to include characteristics
attributed to humans such as friendly, ruthless loving and caring. Therefore, to
project an effective corporate image, it is important for the organization to
understand all the various interest groups perceptions, expectations and needs. This
becomes important because the needs and aspirations of the various interests will
be different which makes it necessary to recognize that these needs can differ
between the groups. Importantly, corporate image affects the way in which various
stakeholders behave towards an organization. A favourable image tends to
encourage shareholders to invest in a company, attract good staff, retain customers,
increases profits and correlates with superior overall returns (Robert and Dowling,
2007). 4 Murray (2003) posits that corporate image builds strategic value for a
company by granting it a competitive advantage over rivals. They do this by trying
to outdo rivals in marketing new products, hiring the best job candidates and to
show profitability. These make them gain image and good image can lead to higher
sales. Martineau (2000) associated the image of an organization with the self-image
of an individual customer, suggesting a model of how image affects patronage that
people become customers where the image of the provider is similar to the image
they have of themselves. Studies on corporate image have generally focused on the
effect of advertising, corporate logo, brand preference or interaction with
employees (Davies & Miles, 2000; Davies & Chun, 2002 and Chun and Davies, 2006).
Kennedy, (2001) showed the effects company employees have on external image
irrespective of what their employer might desire. Also, Bernstein, (2004) argued
that the image the customer perceives cannot be separated from the reality of the
customer’s experience. Worcester (1992) suggested four image categories: Product
class image, Brand image, User image and Corporate image. His last category which
is the corporate image is subcategorized as product image, customer relations,
employer role and ethical image. Initially, image was regarded as an independent
variable which drives corporate image, it was later regarded as a dependent
variable, something that resulted from being a good employer, being seen as
21
offering good service, being honest, reliable and dependent. Bromley (2003) defines
image as the summary of the impressions or perceptions held by external
stakeholders. Within this definition, “a self is taken into consideration from the
position of the other” (Hatch and Schultz, 2000). Among external stakeholders, the
main focus is on customers so that the image is defined not as what the company
believes, but what customers believe or feel about the company from their
experiences and observations. Bernstein (2004 also corroborate above submission
that corporate image include the attitudes and feelings consumers have about the
nature and underlying reality of the company or the result of how consumers
perceive the firm. People seek cues in their relationships to guide them toward
behavior that gains social acceptance, a condition necessary for a sense of personal
validity. Relationships provide us with sources that help us fulfil our agendas. One of
the greatest challenges facing firms today is how to gain an advantage over
competitors in satisfying customer needs. This is often demanded by more 5
demanding customers. Thus, businesses must be able to show more concern for
customers than the competition in order to gain any competitive advantage. Zins,
(2000) and Kandampully & Suhartanto, (2000) identified a disparate group of
leaders of successful organizations who enjoyed a unique and sustained competitive
advantage by showing greater concern for customers which was achieved by
focusing on building strong relationships. Thus, good corporate image and
perceived good relationship are important variables that help customers
understand process, recall and recognize information because the customers benefit
in other ways from longterm associations with the organization. The perceived
relationship benefits add to the perceived value of the product because the
relationship is strenghetend when customers perceive benefits beyond their
satisfaction with the core product. Also, relational benefits have an indirect effect on
customer loyalty via perceived value which positively influences loyalty. According
to Kwon and Lennon, (2009), customers believe that their purchase behavior is
influenced by ethical and unethical corporate actions. Researchers from the
organizational behavior discipline define corporate image as the internal members’
belief about outsiders’ perception of an organization (Dukerich and Carter, 2000).
22
Strong corporate image helps win the war for talents and fosters employee
retention (Melewar & Jenkins, 2002). Robert & Dowling, (2003) also mention
decreasing production costs per unit as a result of strong corporate image. With
respect to customers, researchers found that a strong corporate image increases
customers’ confidence in products and services, advertising claims and in the buying
decision (Hatch & Schultz, 2001). Through better customer retention, organizations
can achieve price premiums and higher purchase rates. This follows that
organizations showing strong image have better access to capital markets, which
decreases capital costs and lower procurement rates, meaning that an
organization’s profitability grows with a better image, all things being equal. Several
researchers have suggested that image has a positive impact on profitability though
they relied on the fortune rankings. For example, higher fortune scores correlate
with superior returns overall (Roberts and Dowling, 2007; Vergin and Qoronfleh,
1998). Thus, since financial performance is a major input to the Fortune rankings,
the measure is heavily influenced by a financial halo (Brown and Perry, 2004). 6 Not
only that, Hsieh and Kai Li (2008) refer to good corporate image as a major
promotional tool which refers to building good relationships with the company’s
public by obtaining favourable publicity and handling or heading off unfavourable
rumours, stories and events. They identified three factors for creating permanent
relationships with customers as conversational reciprocity, reciprocal empathy and
reciprocal vulnerability which are said to be effective via messages that allow
information to flow and trust to build. The links between image and financial
performance may not be direct but may be influenced by other variables, such as
gaps between image and identity, service offering and customer satisfaction,
employee satisfaction cum customer loyalty and gaining competitive advantage.
These intervening variables may be antecedents or consequences of a corporate
image, which may lead to good financial performance in the long run. Therefore, we
propose the first hypothesis as; H1: Positive corporate image enhances competitive
advantage thus leading to higher profitability. A good corporate image stimulates
purchase by simplifying decision procedures for customers. The common link
between image and satisfaction is perceived quality. A good corporate image for
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high quality means more customers, fewer dissatisfied customers and invariably,
increases in profits which put the organization on a favourable competitive
advantage. Anderson & Sullivan, (2003) and Weigelt & Camerer, (2008) claim that
high customer satisfaction develops positive corporate image because they will
provide positive word of mouth. Thus, corporate image is seen as microeconomic
consequences of satisfaction. Oliver, (2006) defines customer loyalty as a deeply
held commitment to re-buy or re-patronise a preferred product/service consistently
in the future, thereby causing repetitive patronage, despite situational influences
and marketing efforts having the potential to cause switching behaviour. It is the
possibility of a returning customer repurchasing from company and willing to
behave with them as a partner. Loyalty according to Bruning and Ledingham,
(2000), occurs when customers purchase only from a certain company in the future
and recommend the company to others. Andreassen (2004) found that corporate
image is positively correlated with customer loyalty but no relationship was found
between satisfaction and loyalty based on his measurement asking executives of a
particular organization to rate their own company on six items which includes;
offering good services, 7 having competence, being inventive, having long-run
perspectives, adjusting to the needs of customers and the overall image. Andreassen
and Lindestad (2008) also found a relationship between measures of satisfaction
and corporate image. Corporate image is a mirror reflection of an organization as a
person and its products. It is what people believe about an organization and
includes their thoughts, feelings and expectations, (Bloemer and Ruyter, 2008).
Loyal customers are more likely to repurchase the same service or brand, provide
positive word-of-mouth and be willing to pay a premium price, (Cretu & Brodie,
2007). Also, it is often said that higher customer loyalty resulting from good
corporate image implies a higher market share and an ability to demand relatively
higher prices compared to those of competitors, (Herington, Johnson & Scott, 2006
and Fortunato, 2000). Despite the popular and common views that satisfaction links
an organisation’s image to profitability, the association of corporate image,
satisfaction and financial performance has not been empirically finalized. Most
importantly, the links between customer loyalty and the corporate image of an
24
organization have not been adequately researched. Hence, why this proposition
that; H2: Customer loyalty is positively influenced by the corporate image.
According to Gremler & Gwinner, (2000) and Berkley & Gupta, (2005), good image
leads to lower employee turnover. While the role of customer contact employees
and their interaction with customers are vital in a service business, and customercontact employees treat customers in the way they are treated by management, the
frontline work force-i.e. those with most customer contact are the most cynical
group among employees, (Gremler & Gwinner 2000 and Larkin & Larkin, 2006).
Thus, working on the corporate image may mean changes in the core organizational
activities like the work function of the frontline workforce. However, Michael &
Spector (2002) suggested a possible relationship between job satisfaction and
employee turnover. He gave several factors that can influence employee turnover
among which include; not getting promoted, job market opportunities, ease of
leaving a job, transferable KSA, (Adeniji & Oisbanjo, 2012) e.t.c. Sergeant and
Frenkel (2008) reiterated that the interaction between customer and employees as
part of the service on offer is likely to affect customer satisfaction, repeat patronage
which enhances an organisation’s image. They argue further that motivated
employees stay with the company longer and get to know their customers better,
thus 8 leading to better service, greater customer satisfaction, improved
relationship and enhancement of the corporate competitive advantage. Again,
repeat patronage by customers satisfied with the value they receive and their
contentment with the service offer is a source of pride and energy for employees.
Therefore, the link between happy employees and happy customers shows some
levels of organizational effectiveness which is a pointer to a good corporate image.
Thus, we propose the following hypothesis; H3: Employee satisfaction is a function
of an effective and good corporate image. Attracting new customers remain an
important management task. Today’s companies must focus on retaining current
customers and building profitable, long-term relationships with them. The key to
customer retention is superior customer value and satisfaction, (Khodarahmi,
2009). However, service offering by an organization goes a long way to create an
impression whether positive or negative about their image. The inclination of the
25
customer to say good things about an organization via words of mouth could be
building or destroying but satisfied customers are more likely to engage in positive
words of mouth (Anderson, 2004 and Athanassopoulus, Gounaris, &
Stathakopolous, 2001). Brown and Perry (2004) argue that an organization’s service
offering has a positive direct effect on customer loyalty, recommendation and
satisfaction. Just like people, organizations also leave some effects and pictures in
their relation with the environment. The picture that is formed in the mind and
defined as an important factor gives advantages to firms in realizing their aims,
especially that of profitability. Consumers reward ethical behavior with a
willingness to pay higher prices for a firm’s product, though they may buy from an
unethical firm, they want to do so at lower prices. One of the challenges confronting
organizations today is how to gain advantage over its competitors via satisfying the
needs of its customers and achieving its goals of profit maximisation (Allen, 2000;
Caruana and Chircop, 2004). Therefore, organizations should endeavour to show
concern for its customers more than its competition in order to gain competitive
advantage. Following these propositions, we come up with the assumptions that,
H4: Organisation’s service offering has positive relationship with customer
satisfaction. H5: Corporate identity influences the profitability level of an
organisation. 9 The ultimate goal of a good corporate image is to build mutually
beneficial relationships with the key public members and that the corporate image
practitioners manage the organisation’simage using a two-way symmetrical modelpersonal relationship and to a lesser degree, the professional relationship to
influence key public members’ evaluations of satisfaction since this will lead to
customer satisfaction and ultimately, profitability level of the organization thereby
enhancing their competitive advantage. Creation, retention and extension of this
relationship lead to customer loyalty, which is very important in building good
corporate image and sustaining it. Higher customer self-congruence enhances the
establishment of commitment and meaningful relationships with the organization
and intensifies customer loyalty. Therefore, good corporate image can raise
customers’ self-congruence and the higher the self-congruence, the higher the
customer loyalty leading to higher profitability.
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6. Brand Image and Walt Disney:
The Walt Disney Company, commonly referred to as Disney, is an American
diversified multinational mass media corporation headquartered in Walt Disney
Studios, Burbank, California, United States. It is the largest media conglomerate in
the world in terms of revenue. The Walt Disney Company expanded its existing
operations and also started divisions focused upon theatre, radio, music, publishing,
and online media. In addition, it has created new divisions of the company in order
to market more mature content than it typically associates with its flagship familyoriented brands. In 2004, Roy Disney perfectly summarized the intangible benefits
of the Disney brand: The Walt Disney Company is more than just a business. It is an
authentic American icon -- which is to say that over the years it has come to stand
for something real and meaningful and worthwhile to millions of people of all ages
and backgrounds around the world. This is not something you can describe easily on
a balance sheet, but it is tangible enough. Indeed, it is the foundation on which
everything we have accomplished as a company -- both artistically and financially -is based. I believe our mission has always been to be bringers of joy, to be affirmers
of the good in each of us, to be -- in subtle ways -- teachers. To speak, as Walt once
put it, "not to children but to the child in each of us." We do this through great
storytelling, by giving our guests a few hours in another world where their cares can
be momentarily put aside, by creating memories that will remain with them forever.
This is the core of what we've come to call "Disney…" Notice that Disney did not
describe their brand in terms of amusement parks, cartoons, films or products. They
describe their brand in terms of the experience people get from Disney. It’s no
coincidence that park staff calls the customers “guests” and refer to the employee
break areas as “backstage”.
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6.1 Building a strong Brand Perception Position
The following statement was given by Disney as a description of his process for
creating his stories: "The story man must see clearly in his own mind how every
piece of business in a story will be put. He should feel every expression, every
reaction. He should get far enough away from his story to take a second look at it...to
see whether there is any dead phase...to see whether the personalities are going to
be interesting and appealing to the audience. He should also try to see that the
things that his characters are doing are of an interesting nature." Perceptual
Mapping of Disneyland As an example of perceptual mapping, let us have a look at
one of the divisions of Walt Disney, i.e. Resorts which primarily includes Disneyland.
Now, comparing Disneyland against other theme parks in the United States on the
perceptual map of price versus quality gives us the following result. Figure 1 Perceptual Mapping of Disneyland Brand Awareness Perhaps one of the most visible
and successful examples of corporate and brand image building is the Walt Disney
Corporation. The Walt Disney image, management techniques, and products are
known throughout the world. Disney sustains its magical, satisfying image by
training its cast members from the very first day to view their work as a “role” in
“the greatest show on earth.”
How companies maintain a high level of consistency in image-building—especially
on a brand level— has received little attention thus far. While Disney has commonly
been hailed as a brand image success story, almost no research has been conducted
to demystify how the Disney Corporation actually puts brand image-building
techniques to work. Answers to these questions may provide much useful
information and strategies for today’s organizations. Before the idea of brand image
can be related to Disney, we must define and explain the types of image, understand
the importance of image, and explore what makes up a strong brand image. Brand
Image One organization leading the way in brand image development and
projection via the World Wide Web is the Walt Disney Corporation. The massive
popularity of past Disney movies and related products attests to Disney’s successful
brand imaging. To better reach large audiences, Disney has chosen to launch its
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newest invention—the “Magical Gatherings” vacation planning service— through its
website (in addition to TV and magazines). Haedrich’s 3 Criteria for a Successful
Brand Image The Walt Disney Corporation began with cartoonist Walt Disney. On
July 17, 1955, after many years of work in the animation business, Walt opened
Disneyland—“a place where ‘age relives fond memories of the past and youth may
savour the challenge and promise of the future’. In 1971, Disney opened an even
larger theme park in Florida—Walt Disney World. Today, the park spreads across
30,000 acres. Within the Magical Gatherings website, Disney has not only met, but
exceeded Haedrich’s (1993) three criteria of a successful brand image. 1. In meeting
Haedrich’s first criteria of outstanding product quality, a high degree of innovation,
an exceptionally efficient sales force, highly attractive advertising, or a particularly
favourable price, Disney presented the Magical Gatherings vacation planning service
in a beautifully designed website that showcased the product’s ability to design a
vacation for any preference. 2. To meet the second criteria of controlling disturbing
factors such as simulative, economic, and social factors that could inhibit audiences
from actually purchasing/supporting a product or brand, Disney emphasized the
inclusiveness and all-encompassing characteristics of a Magical Gatherings vacation.
A Disney vacation offers something for every age and taste and all in a safe, fairy tale
environment. 3. Thirdly, the Magical Gatherings website meets the criteria of
referring to a strong corporate image by prominently displaying the Disney name on
every page, showing many pictures of Disney World, and using words made famous
by Disney, including “magic,” “fairy tale,” and “dreams.” This tie-in to the corporate
Disney image puts the Magical Gatherings vacation planning service head-andshoulders above its competition before visitors even realize what an amazing
product it is in its own right.
Brand Elements Along the years, Disney has worked hard to create a respectful and
recognizable brand equity & image thanks to their success and constant expansion.
They have created a brand image based on “core values, a brand essence, and a
brand promise emphasizing wholesome, kid-friendly, family- oriented fun and
entertainment”. Logos The Walt Disney logo represents the brand image &
everything the company offers to families and kids: decent, traditional, fun & a
29
magical experience. Its origin comes from the signature of the founder Walt Disney
& has achieved recognition nationally & internationally. Since the Walt Disney
Company contains many affiliated & subsidiary companies, there are many logos
corresponding to each; however one of the most recognizable are the Disney
Pictures logo and the Walt Disney logo. Figure 2 - the Walt Disney logo Figure 3 - the
Disney Pictures logo Slogans A successful slogan is a short memorable quote that
helps the consumer remember the brand. Throughout the years, Disney’s focus has
been to create a fantasy land for kids and family, and has used multiple slogans to
portray what the company and the brand image truly is. The first slogan was “the
happiest place on earth” which was declared by the very own Walt Disney. Other
slogans include “make the dream come true”, “where dreams come true”, “magic
happens”, “this is the start of something big”, “the magical place to be”, “celebrate
the magic”, “where the ordinary is always extraordinary” among others
Pop Culture Disney is a well-worldwide-known company that offers multiple
services & products. It’s such a big expanded empire that isn’t easy for it to be
recognizable in the public as well as in TV commercials, TV series, movies and
parades. Since kids love Disney, you can see Disney products around schools, in the
streets, whether it’s a t-shirt or a hat. The Walt Disney Company so powerful that it
has made a commitment to help society and the community, forming different
organizations to help the environment, hospitals etc. Disney characters are also
commonly seen on food products such as cereals, candy and cookies. One of the
most common and well known public references has been in the Super Bowls when
the winning team announces “We are going to Disney World”
5.2 Brand Positioning Strategic Planning The Walt Disney Company is a market
oriented corporation, meaning they assume that a sale does not depend on an
aggressive sales force but rather on a customer's decision to purchase a product.
These are usually the parents that take their kids to the movies and buy the
merchandise. Disney knows that it's one thing to make a great movie that kids are
excited about but the efforts often fall short if parents don't approve of it. The
driving force of the entire company is the motion pictures and animated cartoons
30
which are managed by Touchstone, Pixar, Walt Disney Pictures, Buena Vista, and
Miramax. Disney Imagineering does all of the strategic planning for The Walt Disney
Company as well as the marketing planning. The goal of the Disney Imagineering
section is to continuously design and implement new, fun and exciting products for
the Disney Company that will attract, amaze, and excite their customers. By doing
so, the company uses its product/service differentiation competitive advantage. The
company clearly has developed a very strong and well known "brand-name and
image" over many years. In addition, Disney has one the most recognized and
powerful brand names in the entertainment industry according to Datamonitor
2007. Because of this, selling all of their movies are almost never a problem. Yes, a
lot has to do with advertising but the Disney name has so much history that it has
given them an advantage of instinct and familiarity when it comes to selling their
products. Marketing Mix As you all may know, the term marketing mix refers to a
unique blend of product, place, promotion, and pricing strategies (often referred to
as the "four Ps") designed to produce mutually satisfying exchanges with the target
market. The Walt Disney Company is very good at the product and placing aspects of
the four Ps. Again, because of their brand name they have the ability to sell their
products easily. As new theatrical productions are released, it allows for new
product lines based off the feature’s characters to be made and sold in strategically
placed stores throughout the United States. The stores are located in malls and
super centres, in urban locations in order to for them to be visible by the public eye.
The next two Ps are promotion and pricing. The Walt Disney Company promotes
their films in almost every way possible varying from McDonald's toys to Billboards
and posters all over buses and trains. Disney wastes so much money on advertising,
that you see their upcoming previews all over TV as well as the internet. Movie ads
are displayed on various websites like YouTube, Facebook, and Twitter and many
more. As for pricing, new DVD releases are usually relatively cheap due to the fact
that Disney is a family oriented company that wants to be able to attract families of
median incomes. Competitive Advantage The most basic goal of The Walt Disney
Company other than profit is, “To Make People Happy”. Their ability to make
children as well as parents feel warm-hearted and full of joy after just one animated
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movie is what truly makes them successful. Their unique ability to capture their
audiences’ hearts is what separates them from other companies in the film industry.
I believe that this is Disney's secret to success and true competitive advantage.
Marketing Plan The Walt Disney Company current situation on marketing takes into
consideration the following characteristics: sell more to existing customers, expand
their market place, continuous promotion, tracking business, and always improve or
add to existing products.
Disney is continually offering goods and services for existing customers through
their website, parks and resorts, television and cruise lines. Through these goods
and services, Disney tries to capture the most as they can by expanding to strategic
points in the world – such as parks in China, Japan and Paris -, and also by
developing structures that fit different cultures, in order to make people from
different backgrounds feel comfortable with the products offered. Continuously
advertising is also an enhanced marketing strategy of Disney – the company never
stops advertising, through the most various means -, making people keep the
company in mind at all times. A really important fact about the company’s
marketing is that they know their seasons very well, and adapt marketing to it;
always heavily investing in slow times, in order to have profit all year round.
Moreover, Disney never stops; it embraces the change by always modifying,
expanding, and creating new ways of brings the magic to customers, making their
experience never be the same, and making them want to experience it again.
Competitors of Disney are News Corporation, Viacom, NBCUniversal and Times
Warner. They compete with Disney in all the five branches. However, Disney uses
marketing more focused in the family, which calls for the parents, the ones that
often has the power of purchase decision; while the others call customers
individually. Hence, Disney has a marketing advantage while appealing for not only
children but also for the parents. But, as kids grow, establish their tastes, and have
their decisions taken into consideration by the parents while purchasing, Disney
might lose market for being associated to younger children and family; while its
competitors gain advantage for that reason. Constantly making parents aware and
comfortable with Disney goods and services, as well as their way of advertising, in
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order to reach the ones that have the purchasing power, is the marketing objective
of The Walt Disney Company. Segmenting & Targeting Markets Now it is obvious
which kind the Walt Disney Company is, this is due to their market segmentation.
Market segmentation helps marketers define customer needs and wants more
precisely. Disney uses geographic, demographic, and psychographic segmentation to
locate their target market.
Geographic segmentation refers to a region of a country or the world, market size,
market density, or climate; this is used for the location of Disney's theme parks such
as Disneyland and Disney World which are strategically located in the world's most
visited places: Europe, Japan, India, and of course the United States. Demographic
segmentation refers to age, gender, income, ethnic background, and family life cycle;
this is used to help determine where to place their chain stores called the Disney
Store, where to distribute their movies, and even determines what kind of movie
they should create next
Geodemographics; this is also used to help Disney determine who is going to buy
more of their products. Disney mainly targets children and their families; it uses the
multisegment targeting strategy which is when a firm chooses to serve two or more
well-defined market segments. Disney intrigues people of all ages; whether it is a
child, teen, or parent. For small children, it has its animation films, toys and other
goods from their consumer products division, a segment on their channel called
"Playhouse Disney," and many more.
For older kids such as tweens and teens, it has the Disney Channel, Radio Disney,
their live-action films, and much more. Disney's live-action films such as Pirates of
the Caribbean attracts adults as well, in order to target adults Disney uses a "family
approach."
Disney theme parks were built for the whole family to enjoy and they do a fine job
stressing that. If you pay close attention to their advertisements you will see that
they are not always aimed for children, in fact they are aimed at the parents most of
the time with little phrases such as "Let the Memories Begin" and "This is Where the
Magic Happens.
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" Even the animation films are made to please the parents, with their good morals
and some jokes that are meant for the child not to understand. In addition, the
Disney Store has its own Home Decor department which is intended to satisfy the
parents' wants as well as their children's, while the child is browsing through the
toys, the parent is browsing through the Home Decor section. As you can see Disney
does not have one specific target market, it focuses on each member of the family. It
mainly targets average income families, who live in urban areas. Almost all of the
Disney Stores are located in large super-centres and malls; their theme park in the
United States is located in Orlando, Florida; and their films as well as consumer
products are conveniently priced for the average person. Walt Disney himself said it
all when he stated: "You’re dead if you aim only for kids. Adults are only kids grown
up, anyway. " Market Positioning When referring to the words "A magical world
where dreams come true (Disney official website, 2011)". What immediately comes
to mind? While, there is a destination can embodying all your imaginations:
mysterious neverland, incredible fairy tales, unlimited possibilities, it is called The
Disney, which is a conspicuous instance of a brand that can effectively position itself
on its benefits or attributes by meeting their target's expectations. As one of the
most successful entertainment companies in the world, the Walt Disney Group, it
now owns interests in four major fields: media networks, studio entertainment,
consumer products, theme parks and resorts.
According to the marketing process of segmenting, targeting and positioning, it is
crucial that Disney select profitable segments in order to be success in their
operations. After identify the most worthwhile target market, the company should
be able to provide them additional value that competitors cannot provide. By
following this principle, Disney must then position itself basis on the targeted
customers' demands. Therefore, the consumers are being regarded as the driving
force.
Positioning strategies which can fit properly with its marketing mix is the key
element of successful marketing process. Disney Studio for example, which has been
positioned as providing great movies that kids are excited about, while parents
approve of at the same time. This will affect the marketing mix in relation to
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product, as Disney added family orientated as one of it characteristics, they are now
tending to make the product suitable for different levels of ages. Another part of
marketing mix that is affected by Disney Studio's positioning strategy is the
presentation utilized by the company, it is especially important for service sector.
The physical environment (i.e. the buildings, decor, furnishings. etc.) is instrumental
in customers' assessment of the quality and level of service they can expect, for
Disney Studio, in fact, the physical environment is part of the product itself. As the
two founders, Walt and Roy believed that they had to always stay one step ahead of
the competition.
Brand Inventory Brand Hierarchy The Walt Disney Company manages a complex
portfolio. Under the corporate level brand, Walt Disney, the company is organized
into two family brands: ABC & Disney. Under the ABC family level brand, there are a
few individual level brands and sub-brands related to television and production.
The Disney family level brand is a massive umbrella with individual brands involved
in a breadth of various businesses. Each individual brand under the Disney family
brand also includes sub-brands and modifiers. For example, under the Walt Disney
Pictures individual brand, there are various modified brands specifically relating to
particular types of film production, such as Walt Disney Feature Animation.
Technically, every movie title, character, hotel resort, and theme park attraction is
brand under Disney. It was impossible to include every trademarked brand in the
following hierarchy, but examples are provided along with some of the key Disney
characters. The company also manages television group brands jointly under both
the Disney and ABC family brand umbrella, such as Disney ABC Domestic Television.
Outside of the two family brands, the company also manages various individual
brands such as Touchstone Pictures and ESPN among others. The brand inventory
and exploratory, beyond the hierarchy outlines, focus on the branding strength of
Disney as a family brand and the various individual brands it represent.
One marketing alliance that Disney has long been involved with is that between
Disney and McDonald’s. The most popular promotional strategy used by the
partnership was the distribution of Disney figurines and toys in McDonald’s Happy
Meals accompanying the release of a new film. Perhaps the most commonly known
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and recent brand partnerships include that with Disney and Pixar, Marvel and
Lucasfilms. With the help of high-tech computer animation, a rich library of stories
and characters and a proven franchise of films; Disney has been able to create
classics such as Toy Story, Monsters Inc., Avengers, Iron Man, Star Wars & Indiana
Jones. All these companies are acquired by Disney and are now a subsidiary of the
Walt Disney Company.
Brand Exploratory Consumers’ Brand Associations The most important element
connected to Disney is the magic and fantasy associated with the brand. “Magic” is a
unique and exciting concept that leads to other positive associations of happiness
and excitement. In a 2008 focus group study conducted at Ball State University,
consumers were asked to share immediate associations that came to mind with the
mention of “Disney”. The first words mentioned were: magic, princess and fun. The
first few thoughts from consumers are clearly favourable. It is evident through
Disney’s various advertisements and products that magic and happiness are key
elements that Disney wants to associate with its brand. The immediate mention of
magic and fun illustrate the brand’s success in establishing favourable and strong
associations. The other associations mentioned by consumers can be collapsed into
key categories representing the brands values: characters, theme parks and resort
locations, movies, and brand image. Numerous associations were mentioned that
depict Disney’s brand image such as: dreams, magic, happiness, happy tears, Walt
Disney, the man and the mouse, and many more. These brand values and their
associations work together to make up a complex network that is represented by
the Disney brand in the consumers’ minds. These brand values can be condensed
even further into a brand mantra: fun (and magical) family entertainment. All
participants agreed that this brand mantra was an accurate representation of the
Disney brand.
Consumer Associative Brand Network Consumer Opinions of the Disney Brand
Focus group members determined that Disney can be old fashioned, but in a
positive light. This related to a common issue for brands that have been strongly
established for a long time: the challenge to balance heritage with staying
contemporary and competitive. Disney, today, sticks to its roots and its original core
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image, which is important. Consumers find it crucial that Disney always keeps a firm
connection with the characters that define the brand such as Mickey Mouse or
Donald Duck. Rather than refer to the brand as old fashioned, which can hold
negative conations and relate to an out-dated image or poor branding, the brand is
viewed by consumers as traditional and well established. Overexposure is always a
potential issue for brands that represent such a diversified company as the Walt
Disney Company. Focus group participants, when questioned, agreed that they did
not consider overexposure to the Disney brand an issue at this time. As a large
corporation with a complex portfolio of brands, the average consumer is not always
aware of the various connections within the brand structure. In the recent focus
group study, only about 25% of the individuals were aware of Disney’s ownership of
ESPN & Touchstone Pictures; all but two, however, were aware of the company’s
connection to ABC. In regards to family branding structure, everyone agreed that
collapsing ESPN, ABC, Touchstone & Miramax Films under the Disney brand and
possible renaming them to include the Disney name would have a negative impact
on all the brands involved. Consumer Brand Equity Pyramid Salience According to
polled consumers, everyone regardless of cultural background, age or geographical
location is aware of the Disney brand and the core basics of the brand’s common
associations. Not only is brand awareness well-established worldwide, it is done at
an early age. Because salience is established at a young age, it sets a strong base to
allow structuring of the complete consumer brand equity pyramid.
The Disney brand is dedicated to offering high quality products & experiences. With
all entertainment based companies, consumers expect to be entertained and have
an exciting time. But Disney goes further and attempts to dazzle audiences and
customers beyond expectations. Disney is viewed as having reliable brand
performance; consumers trust that their experience with the brand will meet
expectations with every encounter. Image Disney’s image is clearly defined in most
consumers’ minds. When the focus group was asked to describe the image of the
Disney brand, the members explained it was youthful and inspired a child- like
innocence. Magical, fantasies, popular and thrilling were other terms used to depict
the core brand image of Disney. These associations are all concepts that Disney
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wants to represent with its brand; through advertisements and exciting products
and services, Disney has successfully embedded the desired brand image in the
mind of consumers. Judgement Consumers in general have a favourable opinion of
the Disney brand. Brand quality is not an issue because Disney continues to offer
high quality products. Consumers also consider the brand credible and able to
ensure energetic entertainment. Disney is also seen as a leader in the entertainment
brand category.
Disney is a brand that sparks memories dating back to consumers’ childhoods.
Disney has been a well-established brand for many decades and has a defined
heritage. All tradition-based brands struggle with maintaining established brand
equity while simultaneously expanding the brand to keep it fresh. Avoid
Overexposure Disney is a globally recognized brand that releases numerous
impressions on consumers every day. Overexposure is currently less of an issue for
Disney than in the past, but it still demands the company’s attention. The size of the
Walt Disney Company causes it to be difficult to monitor everything, particularly the
smaller projects that might be easily forgotten. Corporate Branding Structure The
Walt Disney Company manages a complex web of brands, described in the brand
hierarchy. Because of the company’s complexity, it can be challenging to manage
such a range of brands. Disney is considering restructuring its brand hierarchy in
order to simplify its management. By examining past successful Disney branding
strategies and exploring consumer opinions, it is clear that some brands can be
collapsed, but others should remain separate from the Disney family brand.
Feelings As an entertainment brand, Disney has an advantage because it is
automatically associated with feelings of fun and enjoyment based purely on its
brand category membership. The sex most important feelings needed to build a
strong emotional brand base are warmth, fun, excitement, security, social approval
and self-respect. Disney is able to create positive emotions in its customers, and
these emotions set the tone for truly developing a deep relationship. Resonance
Disney begins with salience at an early age and continues to build the brand equity
pyramid throughout consumers’ lives, hoping to lead to brand resonance.
Consumers feel that people are easily able to build relationships with Disney
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because it generates such positive and touching emotions. Disney is unique because
it manages such a strong collection of brand characters. The characters, along with
Walt Disney himself, help to give the Disney brand almost a human or super- human
personality. According to a branding analysis performed by Interbrand, Disney was
ranked second among other strong brands on brand depth.
6.3 An Analysis of the impact of “Magical Gatherings” on the brand Image of
Walt Disney
One of the most visible and successful examples of corporate and brand image
building is the Walt Disney Corporation and its new vacation planning package,
“Magical Gatherings.”
By comparing the brand image of the Magical Gatherings vacation planning service
website to Haedrich’s (1993) roughly developed brand image criteria, the
researcher uncovered four themes that could be considered brand image building
techniques: (1) A Magical Gatherings vacation is a way of purging one’s guilt about
not spending more time with loved ones, (2) Buy, buy, buy, (3) The most magical
website on the World Wide Web, and (4) Only the best for our guests. These themes
provide valuable insight about what should be included in a successful brand image
and provide a launch pad for further research into the vaguely defined field of brand
image development.
The Walt Disney image, management techniques, and products are known
throughout the world, yet surprisingly few studies have been conducted to discover
how the Disney Corporation and its resulting products manage to be all that they
are. Most studies of the Walt Disney Corporation have targeted the content of its
popular movies, including “Pocahontas” (Ono & Buescher, 2001) and “Beauty and
the Beast” (Swan, 1999). These studies dealt with the movies’ representations of
minorities and emotions through animation and verbal content.
One major study, conducted by Van Maanen (1991), delved into the inner workings
of the Disney organizational culture and power structure. Van Maanen focused
mostly on Disneyland ride operators and how they are strictly trained and managed.
He discovered that all facets of employee life are governed and carefully observed
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by management in order to maintain careful control of the Disney image to park
guests. Because Disney employees are the people who represent the Disney
Corporation to the general public, they are carefully trained to project images of
helpfulness, caring, and sincerity. “False moves, rude words, careless disregard,
detected insincerity, or a sleepy or bored presence can all undermine the enterprise
and ruin a sale,” (Van Maanen, 1991, p. 59).
Waterman and Peters (1982) found much the same thing when they were allowed
backstage at Walt Disney World to observe cast member training first hand. Disney
sustains its magical, satisfying image by training its cast members from the very first
day to view their work as a “role” in “the greatest show on earth.” Nothing is left to
chance during training—cast members quickly learn the distinction between
“onstage” and “backstage” and are carefully prepared to deal with any situation in
an “approved” and appropriate manner. “The stars of the mass Francoeur UW-L
Journal of Undergraduate Research VII (2004)
people-handling business are McDonald’s and Disney. We find it nearly impossible
to fault either on its ability to serve customers with consistent distinction and
quality” (Waterman & Peters, 1982, p. 191).
How companies maintain a high level of consistency in image-building—especially
on a brand level—has received little attention thus far. Haedrich (1993) admits “the
mechanisms that help make brand images consistent . . . have so far remained
largely unexplored” (p. 89). While Disney has commonly been hailed as a brand
image success story, almost no research has been conducted to demystify how the
Disney Corporation actually puts brand image-building techniques to work.
McDonald and Christopher (2003) decided that successful brands must meet certain
criteria:
A successful brand has a name, symbol or design (or some combination of these)
that identifies the “product” of an organization as having a sustainable competitive
advantage [for example: a certain product has added services and is easier to buy or
use than another]. A successful brand invariably results in superior profit and market performance. Brands are only assets if they have a sustainable competitive advantage. 40
Like other assets, brands depreciate without further investment (p. 200). Disney and the “Magical Gatherings” Brand Image
The Walt Disney Corporation began with cartoonist Walt Disney. On July 17, 1955,
after many years of work in the animation business, Walt opened Disneyland—“a
place where ‘age relives fond memories of the past and youth may savor the
challenge and promise of the future’,” according to Disney (WDW College Program
brochure, pp. 2-3). In 1971, Disney opened an even larger theme park in Florida—
Walt Disney World. Today, the park spreads across 30,000 acres and employs over
35,000 people. Walt Disney World has grown from the original Magic Kingdom park
to include EPCOT (Experimental Prototype Community of Tomorrow), Disney-MGM
Studios, Animal Kingdom, Pleasure Island, Disney Marketplace, two water parks,
and numerous hotels, resorts, and convention facilities
(www.familytravelguides.com).
In October 2003, the Walt Disney Company launched “Magical Gatherings,” a
vacation planning service especially designed for larger groups of family and
friends. The service includes do-it-yourself vacation planning kits, a website offering
vacations personalized for a variety of interests, and toll-free numbers connected to
Disney vacation planner cast members
(www.disneyworld.disney.go.com/wdw/special/magicalgatherings.com).
The number of studies concerning any aspect of the Disney Corporation is limited,
as mentioned previously, and research concerning the Disney image or the brand
image of a Disney product is practically non-existent. The Disney studies mentioned
earlier spotlight certain aspects or products of the Disney organization, but none
look at the actual brand image Disney is trying to project and how it sets about
putting together and projecting that positive image. Although much research has
been conducted about brand images in general, few have opted to deconstruct a
particular brand image in order to learn what, exactly, makes up a successful brand
image.
A Magical Gatherings vacation is a way of purging one’s guilt about not spending
more time with loved ones.
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Reasons why a Magical Gatherings vacation is right for any family were plentiful
throughout the site. Pictures of smiling families eating ice cream together under the
EPCPOT ball or riding bicycles along a boardwalk illustrated Disney as the ideal
place to play and have fun with one’s family and friends. The pictures were
accompanied by captions spotlighting the importance of taking a vacation at Disney
World with loved ones. For example, one caption stated: “This year, the Walt Disney
World Resort celebrates Magical Gatherings experiences—the special occasions that
occur when you come together with friends and family in a place of enchantment to
share old memories and make new ones. There’s never been a better time to plan
your dream Walt Disney World Resort vacation. And now you can share the magic
with those that mean the most to you.” Another caption emphasized Disney’s
appropriateness as a vacation destination: “For larger traveling parties, we
recommend experiences that can be enjoyed together, without having to separate or
split up. The rides, shows and entertainment options are appropriate for all ages
and are well-suited to be shared. The dining selections feature restaurants that cater
to larger parties. And the recreational recommendations are comprised of fun
activities that encourage everyone to participate together.”
Another way the website touted its suitability for large groups of vacationers was
through specialized vacation packages for “kids,” “big kids,” “teens,” “active people,”
“couples,” and “character lovers.” Attractions, entertainment, dining, recreation, and
additional activities for every preference were categorized for easy viewing. This
allowed a visitor to mix and match vacation activities for a personalized vacation
that everyone in the family could enjoy.
The Magical Gatherings vacation planning guide was another feature of the website.
This easy-to-follow planning template allowed users to simply follow prompts and
fill in blanks to plan the “perfect” vacation for their groups.
Based on the messages and artifacts included in the Magical Gatherings website, it is
logical to assume that the website was designed to showcase how a Magical
Gatherings vacation can solve three major situations—(1) today’s families and
friends are growing apart, (2) the world is a dangerous place full of inappropriate
advertising, music, and entertainment, and (3) time with loved ones is precious and
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occurs too infrequently. The guilt a consumer might be feeling about one or all of
these situations seems easily purged with a Magical Gatherings vacation in Walt
Disney World.
Buy, Buy, Buy
Examples of cost muting and selective ambiguity were plentiful in the Magical
Gatherings website. Overall cost and individual prices were never mentioned. Of the
twenty-one pages analyzed, only five made any mention of costs in the form of
vacation packages, booking tickets and making reservations, or showing restaurant
and dining cost levels (though not actual prices). More emphasis was given to the
special discounts and rates given to larger groups of vacationers traveling as part of
a Magical Gathering, including merchandise, lodging, and dining deals. The site
encouraged users to follow “recommendations” for what types of tickets and
packages to purchase.
The entire planning and buying process is seamless and so simple that one could
almost forget any money has changed hands. Tickets and reservations are booked
through a step-by-step template that includes reminders and suggestions for
vacation “extras” such as character dining experiences, room upgrades, and others.
Overall, the website focused so much on the other aspects of a Disney World
vacation, including magic, characters, attractions, and resorts, that it was easy to
forget about the costs in all the excitement of planning a vacation.
The Most Magical Site on the World Wide Web
The presence of Disney fairy tale magic was a lesser theme throughout the website.
Pictures of fairy tale characters and Cinderella’s Castle were scattered liberally
throughout the site. Tinkerbell and pixie dust guided users through the online
vacation planning guide while the mouse arrow was “magically transformed” into a
magic wand.
Captions and text also proclaimed the magic of Disney. An excerpt from the Magical
Gatherings homepage stated: “Discover a magical place with four exciting Theme
Parks and two incredible Water Parks. Experience a world as big as your
imagination, where fantasy comes to life and vacations always end happily ever
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after.” This statement, and others like it in the website, equated a family vacation at
Disney World with a fairy tale full of memories made with loved ones.
By latching on to the Disney name, the Magical Gatherings brand automatically
assumed the characteristics of anything associated with Disney, such as “magical,”
“fun,” “excellent,” and “quality.” These mentions of the Disney name bring back
memories for people who have vacationed at Disney World before and get first-time
visitors excited about all there is to see and do at Disney World.
Only the Best for Our Guests
Another theme, although less prominent, was that the Disney Magical Gatherings
website could be considered the best vacation planning website on the Internet. The
site was comprehensive, covering every aspect of a vacation and offering customer
support at every step in the vacation-planning process—either through information
already on the website or through a vacation planner cast member standing by on
the other end of a toll free number. The major aspects of a Disney vacation (dining,
attractions, entertainment, recreation, and additional activities) were covered as
well as smaller details a user might not even think about unless they were
highlighted (what attractions are not operating, calendar of special events, festival
schedule, dining locator, tips for Disney travelers). “Guest- immonials” (thirtysecond video clips of families telling about their Disney vacations), colorful pictures
and graphics, and dazzling descriptions of shows and attractions gave visitors a
sneak preview of what a Disney vacation could be like.
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6.4 CONCLUSION
Within the Magical Gatherings website, Disney has not only met, but exceeded
Haedrich’s (1993) three criteria of a successful brand image. In meeting Haedrich’s
first criteria of outstanding product quality, a high degree of innovation, an
exceptionally efficient sales force, highly attractive advertising, or a particularly
favorable price, Disney presented the Magical Gatherings vacation planning service
in a beautifully designed website that showcased the product’s ability to design a
vacation for any preference. Specialized vacation packages, glowing descriptions
and pictures of Disney attractions, and a step-by-step planning guide showed users
a gold standard in quality vacations and support services. The website seemed to
“cast a spell” on visitors, refusing to let them go until they have admitted how much
they need and want a Disney vacation and have begun planning one. Although a
Magical Gatherings vacation may be one of the costliest in the world, little mention
is made of exact prices anywhere in the website. This cost muting diverts visitors’
attention away from the fact that a Disney vacation has a less-than- favorable price
and focuses their attention on how wonderful, unique, and unforgettable a Disney
vacation is.
To meet the second criteria of controlling disturbing factors such as situative,
economic, and social factors that could inhibit audiences from actually
purchasing/supporting a product or brand, Disney emphasized the inclusiveness
and all-encompassing characteristics of a Magical Gatherings vacation. A Disney
vacation offers something for every age and taste and all in a safe, fairy tale
environment. This responds directly to the two biggest arguments against taking a
vacation—(1) it is impossible to please everyone and (2) you cannot escape how
scary and dirty our world has become. Thus Disney is able to control the situative
and social factors affecting its customers’ decisions. Disney also controls the
economic factor of planning a Magical Gatherings vacation by rarely mentioning cost
directly, offering a wide selection of discount packages, and providing almost-tooeasy, fill-in-the- blank ticket and reservation forms.
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Thirdly, the Magical Gatherings website meets the criteria of referring to a strong
corporate image by prominently displaying the Disney name on every page, showing
many pictures of Disney World, and using words made famous by Disney, including
“magic,” “fairy tale,” and “dreams.” This tie-in to the corporate Disney image puts the
Magical Gatherings vacation planning service head-and-shoulders above its
competition before visitors even realize what an amazing product it is in its own
right.
Brand images are perhaps the number one concern of organizations because they
are what a potential customer relies on in making purchasing and supporting
decisions.
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