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Branded marketing by Innes Donaldson





Branded marketing by
Article Posted: 11/02/2017
Article Views: 490
Articles Written: 1483
Word Count: 655
Article Votes: 0
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Branded marketing


 
Advice,Business,Consumer
Corporate brand by any measure is very important to contemporary organisations. Corporate brand has become a valuable asset for a company, which some times have value beyond the book value.

To answer the question stated above it is important to explain what a corporate brand is. It is then also important to look into the issue how a corporate brand is beneficial to an organisation. What kind of financial benefit it can give to an organisation and to what extent it helps organisations to gain competitive advantages over its competitors.

There are several definitions of corporate brand presented by different authors and scholars. Some of the defamations are as follow:

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 have a rich heritage, assets and capabilities, people, values and priorities, a local or global frame of reference, and a formance record."

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

According to Balmer (2003) the corporate brand is seen as a sixth identity type 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 unique attributes and helps understand key characteristics of the corporate brand.

While Lawer and Knox (2004) state that a corporate brand is a way to conceive, manage and communicate corporate brand values in order to guide managerial decisions, actions and normative firm behaviour. It can then state that brand is generally the name of a product or mark of ownership.

So being able to express its self truly and openly and then communicate the message to its consumers clearly.

"The corporate branding philosophy, at it's core, represents an explicit covenant between organisations and it's key 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 unique associations about the corporate brand in memory (Keller 1993). There are many advantages 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 people with money buy that item. Rolex watches can also be an example for this, Rolex are known as the watches for high-class people. This makes people 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 seen 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 different corporate brands such as Daewoo and Volvo and have transferred the brand equity to them brands.

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

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