The use of branding in marketing Essay Example

This shift towards corporate-level concerns requires strategic management and the understanding of its scope and importance by the CEO and the board of directors (Balmer and Greyser 2003, p.349).

Rethinking the Marketing mix: The 10 Ps of the corporate selling mix

Boyd et al. (1998) argue that the traditional 4 Ps of marketing, which are product, price, promotion, and place, should be decided upon in a consistent and integrated manner. These controllable elements are crucial in a marketing plan (Boyd et al.).

In 1998 (p.19), it was stated that the traditional selling mix of merchandise is the conventional approach. However, for Corporate level selling, a different marketing mix is utilized. Balmer and Greyser (2003) identified three differences between the regular selling mix and the corporate-level selling mix. Firstly, the elements in the corporate-level mix are broader than the traditional "4Ps" of the selling mix. Secondly, the elements of the traditional mix require a drastic reconfiguration. Lastly, the mixed elements have distinct disciplinary traditions.

They also go beyond the traditional organizational boundaries. Initially, in 1998, Balmer attempted to connect the traditional marketing mix to ten elements as shown in Exhibit 1 and discussed in Exhibit 2 (Balmer 1998, p.963-996). However, it has been argued that it is difficult to implement and remember the 10 elements of the new marketing mix compared to the 4Ps (Balmer and Greyser 2003).

The 10 Ps of the Corporate Marketing Mix:

The 10Ps of the marketing mix are further explained below.

• Doctrine and Ethos
• What the organization stands for, and how it undertakes its work.

• Personality
• The mix of subcultures within the organization contributes to its peculiarity.

• People
• They represent the life-blood of an organization's individuality. It is of import to see their interface with stakeholder groups and have an important function in merchandise and service quality.

• Merchandise
• What an organization makes or does: its nucleus concern or concerns.

• Monetary value
• What an organization charges for its merchandise and services, including the goodwill component in the rating of its corporate and merchandise trade names; the monetary value of the corporation's stock, and staff wages.

• Topographic place
• Distribution channels, company's relationships with distributors, franchising agreements.
• Promotion
• A concern with Entire Corporate Communications also visual identification, and branding policies.
• Performance
• How the organization's performance is rated by key stakeholders vis a vis the organization's espoused doctrine and ethos and how it is rated against rivals.
• Percept
• Questions relating to corporate image and reputation. The perception of the industry/country-of-origin/corporate brand may also

be important.

The Branding Concept

There has been significant understanding of the nature of branding and the development of effective branding strategies in recent years. Developing successful and effective brands requires resources, efforts, and belief in the concept of branding (Wong and Merrilees 2008). The literature on brand management has expanded beyond consumer perception to include how employees approach the brand and make it stand out in the market. De Charnatony (1999) emphasizes the importance of considering an organization's values and corporate culture when deciding on brand promises. Brand management should be integrated across the entire company and not solely seen as a marketing function. This has led to the emergence of Corporate Branding.

Corporate Stigmatization

The concept of corporate stigmatization is essential in contemporary competition, as argued by Knox et Al. (2000). It goes beyond solely branding the product and involves the company's identity (Ind 1997). A key aspect is the integration of corporate activities into a strategic model that conveys the company's functional and emotional values, delivering on the brand promise (de Chernatony 2002).

De Charnatony and Harris (2000) state that both consumers and employees influence the perception of a corporate brand. They emphasize the importance of employees in shaping and upholding a positive corporate brand. The authors suggest that since the brand is central to the organization, it is crucial for employees to actively participate in its development. This involvement showcases their values, attitudes, professional expertise, and cultural identities (Morsing and Kristensen 2001).

According to

Hatch and Schultz (2003), the corporate brand not only influences the perception of customers and management, but also impacts other stakeholders such as employees, investors, suppliers, spouses, regulators, specific interests, and local communities. Therefore corporate branding is a concern for multiple stakeholders. As mentioned earlier, one important aspect of corporate-level marketing is the involvement of people, particularly the employees of the organization. Harris and de Charnatony (2001) argue that employees play a crucial role in building relationships with all stakeholders and adding value to the brand.

Corporate Brand Characteristics

Balmer and Greyser (2003, p.303) have identified five characteristics of a corporate brand: Cultural: a corporate brand embodies "cultural roots".

An administration's uniqueness is derived from the combination of sub-cultures present within it. Forces are considered the main stakeholder group of an administration. Personnel express the administration's distinctiveness through their actions, words, and creations. It is important for Human Resource to understand their role in managing, preserving, and improving the corporate brand. The corporate brand itself is inherently complex, as evidenced by its four other dimensions.

The dimensions of a corporate trade name include a combination of 'soft' and 'hard' elements. These elements pertain to the name of the company and can be categorized into multiple dimensions. The impact of a corporate trade name is extensive, involving various stakeholders and surpassing conventional organizational boundaries. Corporate trade names are communicated through controlled, uncontrolled, and tertiary/viva-voce channels. Tangible aspects of a corporate trade name include the business scope, geographical coverage, performance-related matters, net income boundaries, and more.

The text discusses various elements of corporate branding, including architecture, graphic design features like interior design, and sound. A corporate brand encompasses both

tangible and subjective aspects that elicit an emotional response from stakeholders. One crucial aspect of corporate branding is the need for complete organizational commitment.

Model for Corporate Branding

According to Hatch and Schultz (2003), a successful corporate brand expresses values and desires that attract key stakeholders to the organization and make them feel a sense of belonging.

The determinations and behaviors upon which a company is built are influenced by an attractive force and sense of belonging. This attractive force is tapped into by a strong corporate trade name, offering symbols that allow stakeholders to express and maintain their values.

Vision, Culture, and Image

According to Collins and Porras (1996), vision encompasses the core purpose and values of a brand, providing a system of guiding principles. They define vision as the desired future state of the organization. On the other hand, the culture of the organization consists of employees' values and assumptions, guiding their behavior in various situations (Wilkins and Ouchi 1983). Hatch and Schultz (2003) have demonstrated in their study that Vision, Culture, and Image are the three foundational elements of corporate branding.

Corporate Communication

According to Dubrin (1994), corporate communication can be defined as the sending, receiving, and understanding of messages. It is the fundamental process through which managers and professionals accomplish their work and serves to gather and disseminate information. David Lawton (2007) emphasizes the importance of effective and timely communication. He believes that employees should be informed as early as possible about the organization's strategy, business goals, products and services, company interactions, values, ethos, and performance expectations.

Forms of Corporate Communication

Van Riel (1992) identifies three forms of corporate communication: marketing communication, which focuses on sales support;

organizational communication, which deals with public affairs, environmental communication, labor market communication; and management communication, which aims to persuade individual subordinates that the organization's goals are desirable, manage change processes, and motivate employees.

Corporate Communication: A Key Management Strategy for Corporate Branding

Corporate communication plays a crucial role in effectively conveying an organization's vision, culture,and image to important stakeholders. Therefore,it can be considered as a central management strategy (Yamauchi 2001).

Balmer (1995) states that if communication is misdirected, it can negatively affect the organization's image. According to Harris and de Charnatony (2001), organizational-level communication helps employees understand their brand's identity and behave consistently, thereby enhancing their performance in delivering the brand promise. They also suggest that increased bilateral communication between management and employees regarding branding leads to a more positive perception of the brand by employees. Furthermore, Gilly and Woolfinbarger (1998) point out that consumer advertisements also impact employees' perception of the brand and service role.

Thomson et Al.(1999) argue that effective internal communication between a brand and its employees enhances their intellectual and emotional engagement with the brand.

Strategic human resource management

According to Hendry and Pettigrew (1986), strategic human resource management (SHRM) involves the planning, organizing, and managing of a consistent personnel system that is based on employment policy and manpower strategy. This is supported by a "philosophy" that views the organization's people as a "strategic resource" for achieving competitive advantage. Baker (1999) has identified several key features of SHRM. These include:

• The internal integration of personnel policies and their external integration with the overall strategy
• Line management responsibility for HR implementation and policy decisions
• Individual-focused rather than collective
  

employee relations

the RBV can explain the enduring value of corporate branding and that a strong and well-managed brand qualifies as a sustainable valuable resource. Additionally, employees are an important resource. According to de Charnatony and Dall'Olmo Riley (1997), service branding relies on the actions and attitudes of employees. Ensuring that employees deliver the promised level of service is essential for a service organization (Punjaisri et al.).

In 2009, Ashforth and Mael (1989) provided support for the notion that an employee's societal identity is derived from the uniqueness and standing of a group, as well as the prominence of out-groups. Tajfel (1982) further suggests that people derive a sense of self-worth from their membership in specific social groups. It can be contended that the stronger the alignment between an organization's values and an employee's values, the greater the likelihood of the employee being drawn to the organization (Schneider 1987).

In summary, corporate stigmatization leads to employees' identification with the brand and a sense of unity. This is achieved through the transmission of the brand's unique values to employees. Corporate stigmatization also influences employees' behavior as they embody and uphold the brand's values, which in turn affects their performance and meets customers' expectations. The process of corporate stigmatization is facilitated by brand identification, brand commitment, and brand loyalty among employees. Elements such as corporate communication and training contribute to the establishment of corporate stigmatization.

In 2009, the concept of brand designation was defined as the extent of employees' psychological attachment to the brand, which influences their willingness to put extra effort towards achieving brand goals (Burmann and Zeplin, 2005, p.284). According to Armstrong (2001), commitment refers to an employee's loyalty and

attachment to the organization. Generally, when committed employees strive to fulfill the brand promise, they meet the expectations of customers towards the brand (de Charnatony and Segal-Horn, 2003). Reichheld (1996) conceptualizes brand loyalty as the willingness to remain with the current company.

According to Punjaisri et al. (2009), the loyalty of employees is crucial for service organizations to effectively meet customer demands. Therefore, it can be argued that if there is a positive relationship between brand identity, brand commitment, and brand loyalty, the performance of employees in delivering the brand promise will improve.

Performance

Armstrong and Baron (1998) state that "if you cannot define performance, you cannot measure or manage it".

According to Otley (1999), performance can be defined as both the work and the achieved results. On the other hand, Rogers (1994) argues that performance should be defined as the results of work because they are closely linked to the strategic goals, client satisfaction, and economic contributions of the organization. Armstrong and Baron (1998) propose that performance is influenced by personal factors, leadership factors, team factors, system factors, and contextual factors.

To measure performance, various metrics are mentioned in the literature. Examples include Kaplan and Norton's balanced scorecard method, BCG's brand value creation method, the path analysis method, the gap analysis method, and the house of quality (QFD) method. This thesis will specifically focus on Kaplan and Norton's balanced scorecard method.The Balanced Scorecard Method, introduced by Kaplan and Norton (1992, 1993), involves evaluating various performance measures at four different levels.

These are:

• The fiscal position ( for case ROI ).
• The client position ( for case client

satisfaction/loyalty ).

According to Olson and Slater (2002), not all companies will give the same weight or equal weight to the four positions. It depends on the strategy adopted by the administration. Niven (2002), however, claims that although there may be a particular emphasis on some positions, all perspective measures should reflect a company's strategic direction.