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
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