1 d) Corporate brand in service firms

1. Corporate Branding KOM5331Moniza Waheedmonizawaheed.upm@gmail.comRosmiza Bidinrosmiza@upm.edu.my

2. Class Format: 3 face-to-face meetingsMeeting 1:-Discuss course outline-Discuss evaluation-Discuss 2.5 chapters-Discuss assignments (2)Meeting 2:-Discuss 2.5 chapters-Deadline of assignment 1-Kick start assignment 2Meeting 3:-Deadline of assignment 2-Presentations

3. Topics discussed in this course:1) The Corporate Brand2) Key Brand Building Concepts3) The Brand Building Process (half covered today)4) Service Brand Building Process5) People involved in the Brand Building Process6) Case Studies

4. 1) The corporate branda) Corporate brand characteristicsb) Role of the corporate brand in the brand portfolioc) Corporate brand versus corporate identityd) Corporate brand in servicesi) service brand characteristics ii) delivering the service brand

5. 1 a) Corporate brand characteristics- different than product brands- corporate brands are aimed at multiple stakeholders rather than consumers- defined by intangibility, complexity & responsibility- value of the corporate brand comes from its ability to differentiate itself in the mind of stakeholders- stands for values that provide quality, consistency, and trust for stakeholders

6. 1 b) Role of the corporate brand in the brand portfolio- brand architecture (branded house & house of brands)- branded house: a single brand that is used for all products, sometimes with a descriptive sub-brand name (e.g.,…….)- house of brands:a number of independent individual brands (e.g.,…..)

7. 1 c) Corporate brand vs corporate identity- All entities have an identity, but not all entities need a corporate brand“a corporate brand involves the conscious decision by senior management to distil and make known the attributes of the organization’s identity in the form of a clearly defined branding proposition” (Balmer, 2001)- The identity of the organization, therefore, lays the foundation for the corporate brand

8. 1 d) Corporate brand in service firms Service brands have more contact points with stakeholders compared to product brands. Service brand characteristics “Services are differentiated from goods by intangibility, inseparability, heterogeneity, and perishability” (Lovelock & Gummesson, 2004)

9. Delivering the service brand- a distinct brand personality should be created, and the service brand should not be offered as a commodity- the service brand should represent a valuable offer, and the firm must deliver a service truly valued by customers- the service company should strive to make an emotional connection so that true values become evident when customers experience the service- the brand must be internalized through verbalizing and visualizing

10. 2) Key Brand Building Concepts-brand perspectives“A brand is a mixture of attributes, tangible and intangible, symbolized in a trademark, which, if managed properly, creates value and influence. Value has different interpretations: from a marketing or consumer perspective it is"the promise and delivery of an experience;" from a business perspective it is "the security of future earnings;" from a legal perspective it is "a separable piece of intellectual property”…Brands offer customers a means to chooseand enable recognition within cluttered markets.” (Interbrand, 2005)

11. brand equity “A set of assets (and liabilities) linked to a brand’s name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and/or that firm’s customers.” (Aaker, 1996)

12. brand identity …identity is concerned with how managers and employees make a brand unique … “brand identity as what the brand stand for, gives it meaning, and makes it unique” (Melin, 1999) …brand identity is communicated by the firm through physical aspects (product, name) of the brand and through the brand personality

13. brand positioning …positioning is an acknowledged marketing tool for coordinating the company’s communication …the set of perceptions, impressions, and feelings that a customer has for a product or company is also the position …consumers make choices based on comparisons with competing products …The company must integrate product positioning with psychological positioning in order to avoid striving for a position they cannot achieve

14. -advantages of brand identity and brand positioning Improves brand memorability Provides meaning & focus to the organization Guides & enhances brand strategy Provides extension options The Bottom Line – provides a Value Proposition, Credibility to Other Brands, and Basis of Relationship

15. 3) The brand building process three general steps: strategic brand analysis brand identity system implementation of the brand identity

16. Strategic Brand Analysis analysis of customers, competitors, and the firm Customers Analyse motivation, trends, needs, and segmentation - Determine the functional, emotional, and self expressive benefits that customers seek Analyse current and future competition

17. b) Competitors Analyse through a positional map that groups competitors with similar strategies A well-known strategy is to attack competitors on their weakest points c) The Firm - assessment of the existing brand image, the brand’s heritage, and its strengths and weaknesses

18. 2) Brand Identity System The core identity is described as the central, timeless essence of the brand and is usually constant when the brand travels to new markets and products. Extended identity adds flexibility, texture, and completeness to the brand. The identity of the brand is based on the brand as product, organization, personality, and symbol.