Brands and Stakeholder Relationships

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Chapter Perspective: Changing World

Traditional
Product Focus Brand-Focus

Building Brand
Create Customers Relationships With
Customers

Reward: More Sales

Reward: Sales
and Profits

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What Does “Brand” Mean?

Brand: A perception resulting

from experiences with, and
information about, a company or
line of products
Branding: The process of creating
a brand image that engages the
hearts and minds of customers

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What Does “Brand” Mean?

Differentiates a Product From Its

Competitors

What a
Brand Makes a Promise to Consumers
Does

Serves As the Driving, Unifying

Force Directing All Functional
Areas, Including IMC

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Each of These Colleges Represents a Brand Image

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Think About It

Brands
Should colleges oversee and control the
working conditions under which their
licensed apparel is created?

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Brands are often represented by logos

Logos: Distinctive graphic designs

used to communicate a product,
company, or organization identity

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The Power of a Brand

Identical cereals tasted by consumers:

Vs.
59% Chose 41% Chose
Kellogg’s No Brand

Identical TV sets examined by consumers:

Vs.

Consumers willing to pay $75 more for Hitachi than GE

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Retailers are creating their own brands

Store Brands (a.k.a. house

brand or private label):
A brand used exclusively by one
chain of stores for a line of
products made to a store’s
specification

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How Are Brands Created?

Determining the
Desired Brand Position

3 Key
Developing Brand Identification
Steps

Creating Brand Image

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IMC In Action: Dr. Scholl’s

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Examples of Well Known Brand Logos

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Craftsman Is a Legally Protected Trademark of Sears

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The Marines Have Developed a “Tough” Image

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Aspects Fostered by the Company

Consistency Accessibility

Relationship
Aspects

Responsive-
Commitment
ness

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Aspects Arising from the Consumer

Relationship
Aspects

Trust Liking Satisfaction

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Maintaining Relationships Is Critical

Existing Brands Account for Most of the Brand

Communication With Consumers

Selling to Existing Customers Is Much Less Costly

Than Attracting New Customers

Current Heavy Users Typically Account for Most of

a Brand’s Revenue

Loyal Word of Mouth Advocates Can Be Highly

Persuasive With Other Consumers

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Maintaining relationships is critical

Customer Relationship
Management (CRM): The
optimization of all customer contacts
through the distribution and
application of customer information.
Simply stated, it is your promise, that
no matter how your customers interact
with you, you will always recognize
who they are
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Figure 3-5: Relative Importance of Different
Stakeholder Groups

+
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What Is Brand Equity and How Is It Created?

Brand equity: The intangible value

of a company beyond its physical net
assets
Broadening distribution

Brand extensions
4 Ways of
Leveraging Co-branding

Brand licensing

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Final Note:

One of IMC’s most important

contributions:
• Helping to build trust in brands…
• …therefore enhancing consumer
relationships
• Reason: An organization’s
communication with its
stakeholders influences everything else
it does

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