Brand Name and Corporate Image, Essay Example

Corporate image could be thought of as the perceptions held by different stakeholders about an organization that markets and/or produces products and/or services while brand name could be thought of as the perception held by different stakeholders, especially consumers about a line of product/service offered by an organization(Linton).

Corporate image and brand name may or may not be closely related to each other because some companies have quite similar corporate and brand images while others strive for distinction between corporate image and brand names, often due to the large number of brands marketed by such companies. Nike, Apple, Adidas, and Samsung could be thought of as the companies where corporate image and brand names are closely linked. Other companies like P&G, Colgate-Palmolive, and Unilever offer hundreds of brands and, thus, strive for clear distinction between corporate image and brand names. But even when the focus is on keeping brand names and corporate image separate, it is not always possible to draw a clear line due to the growing importance of corporate social responsibility as well as more informed consumers. Different stakeholders, especially consumers are increasingly becoming conscious of the ethical nature of commercial operations of the companies they do business with and dissatisfaction with one or more of the brands also influences the corporate image in their minds. Similarly, when a brand line disappoints consumers, it may hurt the corporate image as well as did happen when Coca-Cola introduced New Coke in the 1980s but it didn’t sit well with the company’s consumers (Kocek, 2014).

Corporate image could also be understood as the personality of the company. This personality is shaped by a number of factors such as the competitive strategies of the company, its ethical conduct, its treatment of various stakeholder groups, its organizational culture, and its history. For example, when people think of Apple, they think of a company driven by innovation and creativity. Corporate image doesn’t always positively co-relate with a company’s profitability as we have seen in the case of Wal-Mart. Wal-Mart may be one of the largest and most profitable companies in America but the company’s corporate image has been hurt by a number of negative perceptions such as low wages for employees and predatory business practices that drive small competitors out of business. But companies understand positive corporate image can help further enhance profitability, hence, their focus on public relations activities.

In the same way, brand name could be understood as the personality of the product which may or may not be same as corporate image. It is especially true when a company offers a number of brands who each have different personality, often intended and shaped by the company itself. For example, P&G offers a wide number of brands in fabric care category only(P&G) and each brand has different personality. Tide is seen as upscale fabric detergent line and usually sold at premium prices as compared to other brands whether from P&G or its rivals. On the other hand, P&G also marketsGain fabric detergent line which is sold at much more affordable price points.

One similarity between corporate image and brand name is that they can be both used to achieve differentiation from the competition and strengthen competitive position in the market. It is usually said the customers’ perceptions are the truth. Positive corporate image and brand name perceptions result in more loyal customers which may also result in greater pricing power.

References

Kocek, C. (2014, February 7). The Difference Between a Business and a Brand. Retrieved July 27, 2014. Web.

Linton, I. (n.d.). Difference Between Company & Brand. Retrieved July 27, 2014. Web.

P&G. (n.d.). Global Fabric and Home Care. Retrieved July 27, 2014. Web.