The term ‘corporate branding’ refers to the exercise of promoting the brand name that is attached to a corporate entity. This is in contrast to developing a brand for a specific product or service. The activities as well as thinking which go into corporate branding differ from product in addition to service branding as the scope of a corporate brand is usually much broader. It should also be noted that, while corporate branding is a distinct activity from product or service branding, these different forms of branding can, and often do, take place side-by-side within a given corporation.
Corporate Branding vs Product Branding
Corporate branding involves marketing various products or services under the name of a company. Product branding, on the other hand, is a marketing strategy wherein a business promotes and markets an individual product without the company name being front and centre in the advertising campaigns or even on the product labelling.
Management strategies for choosing which avenue to pursue or a combination of the two in branding vary by business and each approach produces results.
Corporate brands generally have the following attributes:
- A rich tradition and heritage
- A high level of capability and assets
- A local and international presence
- Influential and prominent founders Particular values
- Excellent performance records.
Communication Benefits of Corporate Branding
One advantage of corporate branding is the manner in which it facilitates communication between a company as well as its customers. Corporate branding typically makes use of trademarked images as well as slogans. Each of these is carefully selected in order to convey the company’s image of itself in addition to its preferred way of appearing to customers.
The words that a company makes use of to brand itself get at the core values and goals of the entity. They may also indicate the type of customers which the company wants to attract. Consumers synthesise this information and develop opinions before they experience a company’s products first-hand.
Cost Control in Corporate Branding
The process of corporate branding spreads out the cost of creating a brand image over an prolonged period of time. Thus, money is saved – something which is not done in creating as well as promoting a new brand image for each and every single new product.
In addition, corporate branding also permits companies to roll out novel products without a new brand strategy. Instead they are allowed to rely on the current corporate brand when the company is short on time.
An already-instituted corporate brand provides price flexibility. The business can elect to develop new brand images in the corporate brand for major new products. While doing this they can rely on the existing corporate brand for others.
Value in Corporate Branding
Powerful corporate brands attain value which is separate from the products that they represent. This value results from the time as well as money that corporations invest in developing a brand which, over time, becomes recognisable to consumers.
Those who enjoy a positive experience with products that carry the corporate brand will naturally respond more favourably to the brand in the future. Consumers who are acquainted with the brand but not its products will now have a built-in sense of the brand which makes marketing easier. Companies that have established brands can license the brand, sell it outright or use it as leverage in negotiating mergers and acquisitions.
To learn more about branding, check out our Brand Management Course.
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