Corporate Branding Marketing

Corporate brand by any measure is extremely important to modern organisations. Corporate brand has turn into a beneficial asset for a enterprise, which some times have worth beyond the book worth.

To answer the query stated above it really is essential to explain what a corporate brand is. It is actually then also important to appear into the situation how a corporate brand is effective to an organisation. What kind of financial advantage it can give to an organisation and to what extent it helps organisations to achieve competitive advantages more than its competitors.

You will discover numerous definitions of corporate brand presented by different authors and scholars. A few of the defamations are as comply with:

David A. Aaker defined corporate brand as "As the brand that defines the organisation that deliver and stand behind the offering, the corporate is defined primarily by organisational associations. In particular, a corporate brand will potentially possess a rich heritage, assets and capabilities, individuals, values and priorities, a neighborhood or global frame of reference, in addition to a formance record."

(Brand portfolio technique by David A. Aaker, California management review vol46 no3 spring 2004.)

In line with Balmer (2003) the corporate brand is observed as a sixth identity kind referred to as the covenanted identity, which is viewed as independent and distinct. Balmer (2001) developed the mnemonic C2ITE (Cultural, intricate, tangible, ethereal and commitment), this reflects the corporate brands exceptional attributes and assists have an understanding of essential traits in the corporate brand.

Whilst Lawer and Knox (2004) state that a corporate brand is really a strategy to conceive, manage and communicate corporate brand values so that you can guide managerial decisions, actions and normative firm behaviour. It could then state that brand is normally the name of a item or mark of ownership.

So having the ability to express its self truly and openly after which communicate the message to its buyers clearly.

"The corporate branding philosophy, at it's core, represents an explicit covenant involving organisations and it's crucial stakeholder groups, including customers" (Balmer & Greyser, 2003)

Corporate branding can be defined as "Corporate branding refers to the practice of using a company's name as a product brand name. It is an attempt to leverage corporate brand equity to create product brand recognition."

wikipedia.org/wiki/Corporate_branding

The keeping of an organisations promise can lead to corporate brand equity; this is when consumers hold favourable, strong, and exclusive associations about the corporate brand in memory (Keller 1993). There are actually many positive aspects of corporate branding as corporate brands represent the class and well known by every body, for example once David Beckham said, "I can't even imagine using any nothing else then Adidas". Though he is the contracted model for Adidas but at the same time it reflects that Adidas as luxurious and expensive item and also a status symbol. This made sports persons with money buy that item. Rolex watches can also be an example for this, Rolex are known because the watches for high-class individuals. This makes folks with money buy the Rolex watches to show the class. This is the brand equity of Adidas and Rolex.

Brand equity can be transferred to other products as well. This can be observed in the case of VW buying the Skoda. Before VW took over Skoda's sales were declining but in recent years Skoda has improved and its sales has gone up as well due VW's transferred its brand equity to Skoda. G.M motors have also bought various corporate brands such as Daewoo and Volvo and have transferred the brand equity to them brands.

This does not stop here there are actually so many other benefits an organistaion can have by having a corporate brand. Newman (2001) suggests that success rate of a new item or service can increase by twenty percent if it has a corporate brand behind it. Also costs could be reduced when launching the solution or service than if it did not have a corporate brand supporting it.

This is due to the trust and credibility build by the organisations. Shoppers prefer to stay with the organisation they have dealt with before. When Mercedes build the 4*4 people have bought the vehicles even though it was the first time Mercedes has launched a 4*4 vehicle. Mercedes has achieved this through due to the string branding and consumer trust on them.

Corporate brand has a longer life as compare to other resources with in the corporation. For example Coca Cola the brand is much older then the plants and location used to make it. It can be also older then the human resources those make the item. Grant (1991) stated that the corporate brand tends to decay slowly, and strong corporate brands can decrease the competition in the market. Products have shorter lifecycle so corporate brands are preferred more than just solution brand.

A corporate brand is an intangible asset so it's difficult to copy as it can be not a item from a production line. Corporate brand represents a logo or a slogan that is protected by laws, which are in place. Slogans or logos are more secure then the item it self as it's easy to copy a product but it really is nearly impossible to copy a logo.

Corporate brand aids achieving the economies of scope, which means it truly is less costly for any firm to produce two separate products than for two specialized firms to produce them separately. For example Nike has a slogan of "Just Do It" across the globe and through its advertising Nike can promote its various products and services.

Due to advancement in technology and in communication world is becoming a small community. Consumers are more knowledgeable then ever. Globalisation is common between all the big organisations. Corporate brand is vital for the globalise organisations to show that their core worth is same wherever the product is.

Corporate branding is also very useful when organisations want to enter into a new market. This can be observed when Samsung entered into mobile communication market, Samsung did not have much experience in mobile market but their recent mobile model Samsung D500 has outclassed Nokia and Motorola's models. This is gain mainly through innovation but brand equity played its part as well. Samsung is brand which consumers can trust and is known to get a time.

In accordance with Balmer (2001) a corporate brand is observed as a rare entity due to brands exceptional pattern of development. Companies with corporate brands have competitive advantages over those that do not have corporate brand. The brand name, logo plays a vital role in awareness and it also provides the peace of mind to buyers. Olins (2001) classed Manchester United and British Airways as organisations with corporate brands. Reason that these organisations have corporate brands is because that's how they presented their brands through advertising and marketing such as T.V advertising, Billboards and other marketing and advertising campaigns. These companies have spend millions of pounds on advertising to have a corporate brand, as organsiations with corporate brand believes that this will give them a competitive advantage. It could be stated by considering Olins statement that corporate brand is very important for the organisations.

Davis suggests corporate brands are not required by some companies, for example those that may possess a portfolio of brands such as Unilever and Proctor and Gamble, tends to use the branding of products rather than implementing a corporate brand. This problem of importance of having a corporate brand has not been taken by these major organisations in past for example surf is actually a product by Unilever. Unilever's general emphasis is on item branding as compare to one corporate brand. But the importance of a corporate brand has been explored on these big companies.

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