By charles kulwa n reg no 42688

Benefits of corporate brands

Corporate brands are enormously assets, companies strong brands enjoy among others the following benefits

A strong corporate brand can have a market value more than twice its book value; it can reduce marketing cost by exploiting economies of scale in advertising and marketing (Hatch and Schultz, 2001)

A corporate brand gives consumers a sense of community, hence consumers are willing to pay more for some badge of identification, and for instance apples rainbow-coloured logo makes consumers feel part of a community (Hatch and Shultz 2001) 

Corporate brands provide a seal of approval. This is because a corporate brand enables consumers to know what they can expect of the whole range of products that a company produces. For instance Sony, whether applied to stereo, a competence, quality and care for detail shared by all the products that are sold under the Sony name (Hatch and Shultz 2001)

A strong corporate brand also help a company defend itself against outside assault and cushions a company in times of crisis ( Balmer and Gray,2003. For instance at some points journalist accused the body shop of lacking integrity in its testing of beauty products. The company overtly appealed to the public by citing its corporate brand. Which was firmly associated in peoples mind with strong ethical standards concerning animal rights (Hatch and Schultz 2001)

Corporate brands create common ground .the most successful corporate brands are universal and so paradoxically facilitated difference of interpretation that appeal to different groups (Hatch and Schultz 2001).this is true of corporate brands whose symbolism is robust enough to allow people across culture to share symbols even when they do not share the same meaning. A good example is Mc Donald golden arches.

Corporate brands differentiate organization from their competitors,  lead to the fostering of loyalty from a wide range of stakeholder groups and network and accord leverage to an organization, particularly those operating in traditional or in mature consumer markets, as well as providing  an aureole new technology companies such as Microsoft and Intel ( Balmer, 2001)

A strong corporate brands has a significant impact on the creation of positive perception of existing products and new products extensions

A corporate brand provides management with a holistic framework for conceptualising and aligning the many different activities by which companies express who they are and what they stand for. Thus, corporate branding provides a solid foundation for developing a coherent and engaging promise to all stakeholders. It acts a s a mechanism to align organizational sub culture across functional and geographical boundaries, enabling companies to balance issues of global recognition and local adaptation better (Schultz and de chenatony, 2002)

Further benefits of corporate brands are increased public profile, increased attractiveness to customers, increased product support, increased visual identification, and increased investor confidence, encapsulating organization values, and increased staff motivation Balmer (2002). Corporate brand result in consistency in consumer demand, give added value to products and services, contribute to as company financial margins