Corporate Marketing

Sana Sapra, Sahiba Bannal Banveen Kaur, Akshay Nahata Nikash Sachar, Shail Aggarwal

Corporate Marketing and Service brands:

Moving beyond the fast moving consumer goods model
By Malcolm McDonald and Leslie de Chermetony

Why is the paper that you have chosen of particular interest to you?

Introduction

This paper interests me since it discusses the importance of Corporate Branding and that there are varying degrees of company associations as a brand name for its product or service

This paper examines the issues associated with the creation and development of service brands.
It initially considers the increasing importance of the services sector in modern economies and how service organisations have challenged the traditional approach to business. In todays world service corporates are playing a vital role in the present sinario than product orianted companies, this encouraged us to choose this particular article.

Introduction

The growing importance of the services sector has made firms aware that the creation and development of service brands represents a source of sustainable competitive advantage. Despite similarities between the principles of branding for goods and services, the specific nature of services requires tailored approaches. The case studies of the insurance and financial services sectors have illustrated some of the challenges marketers face when establishing service brands. The Liverpool Victoria Friendly Society and the NatWest Small Business Adviser brands are examples of how strong service brands can be developed by adjusting the traditional FMCG branding model to the service sector.

What is the main theme or question addressed in the paper?

Main Theme
Service has become a major factor in buying decisions and creating Corporate Image. It involves some interaction with customers to provide service but does not transfer ownership to the customer. Its challenging to create a brand distinction through service brand in creating corporate image. How does a brand and a successful brand differ Major difference between product and service branding What is the role of employees and customers in the delivery of the service Brands are not brands but actually a manufacturers label The theme of the article is how do you theoretically define a successful brand.

Main Theme

What role does the staff management play in brand recognition Knowing the difference between branding a service or a product How service organizations have challenged the traditional approach to business. On what basis does the organization build a brand? Difference between corporate identity and individual product branding Challenges faced by the marketers while establishing service brands.

According to research by Brooks in 1996, product brands and service brands can be developed through Setting of clear brand objectives Definition of clear positioning Selection of appropriate values as per the Corporate Strategy

How is this theme or question addressed?

 The theme that creation of Service

brand represent a source of competitive advantage in creating a Corporate Brand. The paper has various examples organisations who have given importance to Services.

Basic Structure or layout

E-journal from European Journal of Marketing

The theme of this paper is addressed in a literature review form. The paper also consist Case studies from the changing trend of current market scenio. The sorting of this paper is done through key words such as: Brands, Corporate communications, Corporate image, Services marketing.

Abstract or methodology

Key issues with the creation and development of service brands in corporate branding. Corporate versus individual branding and how Service organisations have challenged the traditional approach to business. The success and failure of corporate branding in financial services. Outlines the differences between product and service branding and considers how the fastmoving consumer goods (FMCG) approach to branding needs to be adjusted for the services sector.

What are the key findings and conclusions drawn?

 The key findings is that service

branding creates goodwill that builds up commitment to consistency and Corporate Image which helps the organisations to launch new products that can gain instant acceptability in the market as it can be linked to the heritage. Consumers feel more confident trying a brand which draws upon the name of a well established brand.

Key Findings

Increase in importance of the services in modern economies and the challenges faced by service organisations. Analysis of the success and failure or the brands in financial service sector by elaborating on the challenges of the service branding. The article also shows as to how the FMCG approach is moulded before being applied in service sector, with illustrating the difference between product and service branding.

Key Findings

The intangible nature of the services is seen in the article and the problems were also stated. The methods to overcome these problems were also given.

The roles played by the employees and customers while the delivery of service are stated and how these roles strengthen services brands
The advantages of Corporate branding as discussed in comparison to the individual product branding.

Conclusion
Staff plays a vital role in consumers eyes. For a brand to ensure that, it provides consistent service to its customers, they must see their staff is

Reliable- for e.g. being punctual Responsive- taking good care of the customer emotionally and psychologically Assurance- assuring the product is fresh and good quality Empathy- taking care of the customers needs and wants Appearance- staff uniform

If the staff provides its dedication and commitment for the brand, it makes the brand stronger in eyes of its customers and mcds is the best example of all times by providing trained educated staff across the world.

The way consumers evaluate a service brand depends largely on the extent to which they participate in the delivery of the service. In service sectors such as airlines and fast-food restaurants, the level of consumer participation is low, as all that is required is the consumers physical presence and the employees of the organization perform the whole service.
To involve consumers in the service-delivery process, organizations can implement different strategies, which are based on the following three factors:

defining the role of consumers;

Recruiting, educating and rewarding consumers; managing the consumer mix

What do you see as the practical implications for Corporate Marketing?

Product vs. corporate marketing

Product marketing
Description Critical resource Conducted by Scope A business function Creativity of marketers The Marketing department Single discipline (Marketing)

Corporate marketing
Business philosophy Attributes of the organisation All employees Multi-disciplinary (Marketing, HR, Strategy, etc.)

Marketing Mix

4 Ps

Everything the organisation says and does

Multiple stakeholder groups

Target audience

Customers

 The

Brand differentiation can be created by making the corporate values predominantly significant in the eyes of the consumer. This helps in the brand recall and gives a competitive edge to organizations. times corporate marketing helps in expanding a brand than individual product marketing

The paper conceptualises that most of the

Service providers such as LVFS and NatWest

believe that they can offer all their products through brands that are built on their corporate image.

But in cases of negative product marketing it

can affect the image of the parent brand.

Concept

disciplinary origins

Links to one or more of the 5 identity types in REDS

Corporate identity

Marketing Communications Graphic design

Marketing Economics Strategy Marketing Economics Social psychology Strategy Marketing and communications Marketing Psychology Organisational behaviour Organisational behaviour

Actual, Communicated, Conceived, Ideal, Desired

Actual, Communicated, Conceived, Ideal, Desired Conceived

Corporate branding

Corporate image and corporate reputation

Total corporate communications Corporate personality

Communicated

Actual, desired

Organisational identity/identification

Actual

Corporate identity
corporate identity is used meaning the sum of what is projected by an organisation

As mentioned in the article

American Express, Guardian Royal Exchanges Choices,Abbey National 5 Star Account, etc

They are identified for their supreme

cards

Actual identity
1. Dominant perspective

Graphic design
As mentioned in the article NatWest , the largest retail and commercial bank in the United Kingdom Since 2000
The logo Seeks to capture the essence of an organisation.

Organizational behavior
In a service oriented corporate brand can flounder because of insufficient attention to the role the staff plays in producing and delivering the service. Eg. Disney brand results from the firms insistence that employees recognise they are always on stage whenever in public, encouraging them to think of themselves as actors who have learnt their roles and are contributing to the performance and the enjoyment of visitors

Schools of Thought: (3) Multi-Disciplinary Perspective

It incorporates both graphic design and

organizational behavior

Disney a example from the service

corporates from the article is known for its iconic logo and the staffs motivation of work , their enthusiasm to make believe the Disney characters, makes the identity of this company wanted by the children.

Corporate image
corporate image plays an important role in services
marketing than in product marketing.

As services are intangible and often depend on

personal interaction, audiences look for a wider display of the organisations competencies than is the case in product marketing, and the impact of the communication of managements visions through employees on towards the customer becomes greater

competitive advantage exists in the eyes of

customers

IKEA

A strong global brand which attracts key consumer groups. It promises the same quality and range worldwide Strong concept based on offering a wide range of well designed, functional products at low prices

A 'democratic design' reaching an ideal balance between function, quality, design and price. IKEA's 'Cost Consciousness' means that low prices are taken into account when each product is designed from the outset.

Thank You!