Corporate branding

From CEOpedia | Management online
Revision as of 05:22, 11 March 2023 by Sw (talk | contribs) (Article improvement)
Corporate branding
See also

Corporate branding is how a brand differentiates itself from its competitors. It is not difficult to find organizations that have mastered this technique.

Corporate branding, what is it?

To give a quick and simple definition, corporate branding is a clear promise between an organization and its key stakeholders. It is important that a company always keep her promise in all areas of the company. All attributes of an organization's identity must be communicated in the form of a well-defined branding proposition that verbalize the organization's efforts to communicate, differentiate and enhance its brand to main stakeholders [1]. Corporate branding is the systematic and conscious management of attitudes, communication and symbolism in order to achieve a good and positive reputation among an organization's target group [2].

Corporate brands and corporate identity

Corporate identity; definition

Brand identity has been studied from various fields. This interdisciplinary nature has resulted in a variety of definitions and conceptual frameworks that reflect the complex idea under it. Globally, brand identity includes a set of traits and aspects that determine how a brand is, thinks, and behaves. Brand identity is consequently an important concept in branding as it not only defines the purpose and meaning of the brand, but also the way it should follow [3]. According to de Chernatony L. the definition of corporate identity is the following; "The distinctive or central idea of a brand and how the brand communicates this idea to different stakeholders". And it includes the following components [4]:

  1. Vision: provides a clear sense of direction for the compnay
  2. Culture: determinant factor to achieve the vision
  3. Positioning: manifestation of the brand's functional values
  4. Personality: it brings the brand's emotional values to life
  5. Relationships with different stakeholders: staff, customers and other stakeholders

Links between the two ideas

A way to understand the relationship between corporate identity and corporate brand is to view the relationship as a form of harmonious blend; a new-born entity is created. This is based on the idea that a corporate brand develops from a corporate identity [5]. An organization's corporate identity is distilled into more easily defined, familiar, and understandable associations. These associations are like company shorthands: shorthands that are closely related to a company name or brand (Values, Behaviors, Standards, etc.). At this point, a separate corporate brand identity is created. These associations with corporate brand appellations and/or brands mean that corporate brands can have their own life as their own identity type. As alike, it is separable from the corporate identity and has its own value. As an evidence of that, corporate brands can even be sold or leased through franchise accord [6].

Corporate storytelling

Corporate storytelling has been proposed to demonstrate the importance of the corporate brand to internal and external stakeholders, establish a company's position against its competitors, and help companies connect with their employees. Storytelling has been suggested to offer knowledge transfer benefits by helping to organize, remember, and understand information. It is also proposed to generate emotion in brand communication which is nowadays very important. Because it suggests that emotional appeal evokes stronger emotions and interest, creating visual memories of the brand and thus capturing consumer attention. A brand image can be built or enhanced through an emotional approach [7]. Also a corporate brand identity should represent not only a functional and symbolic aspect, but also an emotional one. This is only possible thanks to storytelling [8].

Examples of Corporate branding

  1. Apple - Apple has used its iconic logo, the bitten apple, and its simple, yet powerful slogan “Think Different” to create an instantly recognizable brand that stands out from its competitors. Apple has also created a unique retail experience for its customers, which includes its Apple Store, with its signature Genius Bar and minimalist design.
  2. Nike - Nike sets itself apart with its combination of celebrity endorsements, bold advertising campaigns and distinctive swoosh logo. Through collaborations with high-profile athletes and celebrities, Nike has developed an aspirational image and positioned itself as a lifestyle brand.
  3. Coca-Cola - Coca-Cola is one of the world’s most iconic brands, and has become synonymous with refreshment and happiness. The brand has used its iconic red and white colour palette, along with its famous script logo, to create a strong, consistent brand identity.
  4. McDonald’s - McDonald’s has become one of the world’s most recognizable brands thanks to its distinctive golden arches logo and its popular advertising campaigns. The fast food chain has also created its own unique culture, with its Ronald McDonald mascot, Happy Meal toys and “I’m Lovin’ It” slogan.

Advantages of Corporate branding

A corporate branding strategy can be extremely beneficial for any organization as it establishes and strengthens their presence in the industry. Here are some of the advantages of corporate branding:

  • It helps to differentiate the company from its competitors and create a unique identity. Corporate branding allows a company to stand out from the crowd, and create an image and reputation that can help attract customers.
  • It allows for consistent messaging across multiple platforms, making it easier for customers to recognize the brand and its values.
  • It can help to increase customer loyalty and strengthen customer relationships. Through corporate branding, customers can learn more about a company's mission and values, and become more likely to trust and purchase from the company.
  • It increases brand awareness and recognition, which can lead to more sales over time.
  • Corporate branding also helps to build trust with customers and attract new customers. It shows that the company is reliable and has a strong reputation.

Limitations of Corporate branding

A corporate brand is a powerful tool, but there are some limitations that must be taken into consideration when implementing it. These limitations include:

  • Lack of control over how customers experience the brand: While a corporate brand can be used to create a certain image of the organization, it is ultimately up to the customer to determine how they experience the brand. This can make it difficult to ensure that the brand is being represented in a positive light.
  • Difficulty in creating a unified brand message: When trying to create a unified brand message, it is important to ensure that all members of the organization are on the same page. This can be difficult if the organization has multiple departments, each with their own unique ideas about how the brand should be represented.
  • High cost of implementation: Developing and maintaining a corporate brand requires a significant investment of time and money. This can be a barrier for small and medium-sized businesses that don’t have the resources to invest in proper branding.
  • Risk of becoming outdated: Since brands become embedded in the public consciousness, they can become outdated quickly if they don't evolve with the times. This can lead to a brand that is no longer relevant or appealing to customers.

Other approaches related to Corporate branding

  • Corporate positioning: Corporate positioning is a strategy used to differentiate a company from its competitors. It requires thoughtful analysis, research and creative messaging to ensure that the company’s mission and values are distinct from the competition.
  • Corporate identity: Corporate identity is the visual representation of a company’s brand. This includes the company’s logo, colors, fonts, slogans and other visuals that help to develop a memorable and recognizable brand.
  • Corporate culture: Corporate culture is the set of shared values, beliefs, goals, and behaviors that define an organization. This includes the company’s mission, vision, and values, as well as its attitudes towards employees, customers, and the community.
  • Corporate messaging: Corporate messaging is the way a company communicates its brand and values to stakeholders. It is important that this messaging is consistent across all channels, from traditional print media to digital channels such as social media and websites.
  • Corporate sponsorships: Corporate sponsorships are used to create brand recognition and goodwill for a company. By sponsoring events, charities, and causes, companies can demonstrate their commitment to the community and build relationships with potential customers.

In summary, corporate branding is an important tool to differentiate a company from its competitors. Other approaches related to corporate branding include corporate positioning, identity, culture, messaging, and sponsorships. Each of these approaches helps to create an image that is unique and memorable to customers.

Footnotes

  1. ↑ Foster, C., Punjaisri, K. and Cheng, R. (2010), p.401
  2. ↑ Foster, C., Punjaisri, K. and Cheng, R. (2010), p.403
  3. ↑ Buil I., Catalán S., Martínez E. (2014) p.6
  4. ↑ de Chernatony L. (2010), p.178
  5. ↑ Balmer, J.M.T. (2012), p.1075
  6. ↑ Balmer, J.M.T. (2012), p.1079
  7. ↑ Spear, S. and Roper, S. (2013), p.495
  8. ↑ Balmer, J.M.T. (2012), p.25

References

Author: MATHIEU Amaury

Retrieved from "https://ceopedia.org/index.php?title=Corporate_branding&oldid=78090"