Corporate Branding and its Impact

This assignment examines the concept of corporate branding and its influence on various aspects of a business. It investigates how corporate branding strategies shape brand identity, contribute to customer loyalty, and ultimately impact firm performance. The analysis draws upon relevant literature and explores theoretical frameworks that underpin effective corporate branding practices.

CORPORATE
BRANDS

As per the detailed study, corporate branding is considered as practice that helps in
promoting business and lead business to various developments. In other aspect, corporate
branding is also referred as combination of activities that promotes brand name of a corporate
entity. With an assistance of this, companies can easily increases sales of its products and
services. It has been identified that the management performs various activities that are differed
from promotion of product and services (Hatch, 2008). Key motive behind corporate branding
activities is to enhance the presence of brand in the market and lead business to impressive level
of success. In addition to this, it is attempt that is made by management to enhance credibility of
new product by using established company name. Current essay is focused towards evaluation of
various factors that plays key role in building corporate brand. It will also provide a discussion in
regard to the impact of collective working and engagement aspects on building corporate
branding (Roll, 2009).
It has been noticed that the corporate branding is significant for every organization
because it helps business in presenting themselves a unique brand in the marketplace. It also
helps in meeting sales target and improves profit margin ratio. Key purpose of corporate
branding activities is to establish brand identity in the competitive market. It creates better brand
image in the market that attracts more customers towards products and services which is
beneficial for sustainable development (Kavaratzis, 2009). In addition to this, corporate branding
helps in attracting customers that is also advantageous for effective customer base. One of key
benefit of the corporate branding decreases the need of large marketing initiatives for every new
product. It also helps customers to understand the services and quality of product that company
offers in the market (Foster, 2010).
For example, the Mercedes-Benz is more focused towards corporate branding in
appropriate manner that allows business to cut down its cost of marketing activities. Company
invest less on promotion of new launched product by using corporate brand. It is one of most
significant technique that provides business various monetary as well as non-monetary benefits.
It has been witnessed that the company personality can be enhanced in the market by accessing
corporate branding (Balmer, 2009). With an effective designing of corporate branding the
company can easily define business personality. It reflects the competency of the firm,
dedication of employees and feel of products. For example, the BMW is having optimistic
2

corporate brand and it can be reflected in its advertising. In promotion activities company rarely
focuses on the product name and they mostly focus on the comfort and classification they offer
in the market. However, company present itself as expert of the industry who have efforts to
meet customer needs and requirements (Muzellec, 2009). These kinds of features allows
customer to identify products and services that are recognized under brand name. Management
of organizations focuses on activities that build strong relationship with customers. It is also
beneficial to have advancement in loyalty aspects and lead business to impressive level of
success. It has been identified that the corporate brand influences both the core of the company
as much as the customers (Gotsi, 2008).
With an improved focus on corporate branding the business firm can easily focus on
effective identification of its products and services. It allows management to have effective
designing of logo so that customers can easily identify brand by features present in the logo.
Different colour combination, unique design helps customers to have immediate recognition of
the brand. It also builds effective brand image in the market and provide various opportunities.
For example, Bentley also consider corporate branding as significant aspect for success of
organization (Hatch, 2010). Company logo is well known in the market and it helps in
identification of brand name. Bentley has designed its logo by considering colour, features and
design which helps in effective branding. With a use of corporate branding company can also
target customers in appropriate manner. It allows business to have efforts in desired form so that
business can have better opportunities in the market. For example, Levis present its products by
reflecting that they provide high class denim's (Booth, 2011). Company is using its luxurious
features in creating better brand image in the market.
Furthermore, corporate branding reduces the marketing initiatives which saves the cost
for the company. For this aspect, it is essential for the organization to build its corporate brand
among the consumers so that they would remain loyal towards the brand (Rindell and Strandvik,
2010). Furthermore, there are several approaches which can be used by the companies to build
their corporate brand. Moreover, the main approach which can be used for building the brands
for their corporate is through promotion. Further, the organization must do the building of brand
not by direct promotion but through indirect promotion. The main approach which can be used
by the organization is through the conference with the other leading organization which have
3

been initiated by the government. For instance, General Motors (GM) have been working on a
project with the World Trade Organization (WTO). The project is for identifying the key areas
where traders may face issues in reaching to their customers effectively. If the company is
associated with the WTO then publicity of the company will be done automatically (Micelotta
and Raynard, 2011). This way brand of the company can easily be identified by the customers.
This is how the corporate brand can be build. Furthermore, by doing this, organization can get
the opportunity to get identified in the whole world because the\y get the name of WTO linked
with them. However, while doing this kind of indirect promotion, organization has to face many
issues such as approaching the WTO is a very difficult and costly process. GM have to incur
good amount of money to approach and get linked with the WTO. Along with that, entire focus
is required to be shift on this project which may affect the working of the company (Tu, Wang
and Chang, 2012).
Moreover, the alternative approach for building corporate brand is by doing corporate
social responsibility (CSR). It is the key approach which can build the corporate image in the
market and this will attract lot of customer for the company. For this aspect, company must fulfil
all the responsibility towards all the stakeholders (Peterson and Jeng, 2010). Organization is
required firstly fulfil the responsibility towards the most important assets of the company that is
employees. Organization should provide fair remuneration and healthy and safe environment for
working. Along with that, employee welfare must be done so that so that they remain loyal
towards the organization and this way they can promote the companies brand by their own
(Servaes and Tamayo, 2013). Along with that, organization must remain adhere towards the
legislation being introduced by the government. This way, legal responsibility can be duly
fulfilled by the organization which will eventually reduce the government interference so that
organization can achieve their goal on time. If there will be less legal actions then company can
maintain its reputation in the market for longer period of time. Along with that, company should
be highly responsible towards the society and the customers. For this aspect, company can
provide education to the weaker section of the society and also it can provide employment
opportunities to the weaker section of the society in order to build the economy of the nation.
This way, company's brand image can be built (Joyce Stuart, 2011). For example, TESCO
carries out the CSR activities in a effective manner and this has helped the organization to build
4

its corporate brand among the customers and society. However, this approach involve heavy cost
which can generate losses for the organization. On the contrary, this approach will generate good
profit and will create goodwill for the longer period of time (Liao, Balmer and Wang, 2010).
Along with that, for building corporate company can also use other approaches as well.
By providing effective after sales services, firm can strongly build the corporate brand. This is
the most effective way which will help the organization to achieve tits goal. Furthermore, this
kind of services also leads to word of mouth publicity (Anisimova, 2010). It is because if the
company will; provide effective services then it will raise the motivation and satisfaction level of
the customers. This will eventually leads to the word of mouth publicity. This is how corporate
branding can be done in an effective and efficient manner. In order to support this approach,
BMW is the best suitable example. This company provides high quality after sales services. In
this, the employee of this company do the servicing of the car by coming home. These services
will bound the person to do word of mouth publicity. However, this approach is a costly
approach because, firm has to hire personnels for after sales services and also effective training
has to be provided (Balmer, 2012). Along with that, if the staff member do any mistake then it
will negatively impact the corporate image of the company.
In order to build the corporate brand using several approaches company should consider
their stakeholders as well. The stakeholders of the company plays an important role in building
the corporate brand for the firm (Juntunen, Juntunen and Juga, 2011). It is because, stakeholders
are linked directly or indirectly with the organization's working and the relation with them
impacts the performance of the company. As it is known that the employees of the company are
the vital assets of the firm and they are main actors who play role in building the corporate
image. Furthermore, if the organization provides good working environment for working,
healthy and safe surroundings at workplace, fair remuneration and timely motivation, welfare
and recreational activities to be carried out at workplace then this will make the employee feel
secured and satisfied about their job. This will make the employees loyal towards the
organization. Thus, this will make the staff members to do word of mouth publicity about their
organization (Järventie-Thesleff, Moisander and Laine, 2011). Along with that, if the brand
image of the company is build in the market then employee will feel privileged as they are
working in such a reputed firm.
5

Furthermore, shareholders is also responsible in building the corporate brands as they are
the owners of the company. If their values get maximized and they buy more and more shares in
the company will easily build the corporate image in the market which will attract more and
more investor (Urde, 2013). If there will be more investors then the company can expand
themselves in global market. Therefore, organization can easily achieve its goals. Along with
that, the company can build its corporate brand in a stronger manner. Furthermore, the can also
achieve several benefits that is profits of the company will get increase, reputation of the firm
will be raised in the market and most importantly, the brand image will be highly built among
other shareholders and also among the customers (Servaes and Tamayo, 2013).
In a similar manner, the other internal stakeholders such as manager and director of the
company plays essential role in building the corporate brands of the firm. They can make the
strategies for building the corporate image in the market (Abratt and Kleyn, 2012). For this
aspect, they can follow several approaches of corporate branding by analyzing their cost and
benefits so that best suitable approach can be adopted. Along with that, they can also joint hands
with the reputed organization such as WTO and EU so as to raise their reputation in the market.
In addition to this, they should also manage their employees in a well manner so that they can
remain highly satisfied so they can corporate with the organization during change This will
create competitive advantage for the organization and thus, company can easily build its
corporate brand (Jurisic and Azevedo, 2011). Therefore, directors and managers have the dual
role to play while building corporate brands. They have to link with the external parties and at
the same time they have to manage the workforce of the organization so that effective
performance can be done.
On the other hand, there are many external stakeholders which plays a vital role in
building the meaning behind the corporate brand. Foremost stakeholder is the government which
plays the essential role in the corporate branding of the organization (Rindell and Strandvik,
2010). It is important for the company to follow all the laws and regulations defined by the
government while carrying out its working. It is because, by following the laws organization can
mitigate the legal actions which will help in maintaining the company's reputation in the market.
Furthermore, the most important stakeholder is the customers. Company must satisfy their
customers in order to build strong corporate brand. It is because the customers can impact the
6

reputation of the company in both positive as well as negative manner. For this aspect,
organization must provide innovative products to their customers with effective price. Further,
the organization should also provide effective offers on the products in order to attract them
towards the company (Anisimova, 2010). Along with that, the company must provide effective
after sales services which should be of high quality so that customers remain satisfied and they
do the word of mouth publicity of the brand. This is how, stakeholders plays an effective role in
building the meaning behind the corporate brand (Urde, 2013). This can be supported by the
example of International Hotels Group (IHG), in this company, stakeholder have played crucial
role in determining the meaning of the corporate brand (IHG, 2016).
As per the detailed study of the corporate branding, it can be said that the engagement
and collective working have great impact on the building of corporate brands. It has been
identified that the businesses are nowadays more focused towards customer brand engagement
model. This model helps in having integrated working with consideration of customer needs and
perception. Other than this, organisations are also promoting engagement by focusing on social
media tools so that goals of building corporate brand can be accomplished in appropriate manner
(Mandhanya, 2010). For example, the businesses have designed their own social media pages
where they convey significant information to customers. Businesses are share information about
developments within organisation and marketplace. It allows management to have direct
interaction with customers and identify needs in appropriate manner. Engagement with
customers through social media tools also facilitates in building corporate brand. For example,
the number of small businesses are presenting their working and other aspects on the social
media pages (Booth, 2011). It attracts customers and helps in building better brand image in the
market. In order to have effective engagement of activities the businesses are also having access
to e-crm tools. It helps in building better relationship with customers and manage work activities
in appropriate manner. In other aspect, it can be stated that the businesses are using e-crm tools
to enhance engagement with customers and partners (Hatch, 2010). For example, the e-crm
allows to record business activities that means the services can be delivered to customers in more
desired form. These kinds of developments are also beneficial to have advancement in corporate
branding.
7

CSR activities is also one of critical way that provides effective engagement with diverse
factors. In this, management can have working with social communities and other authorities by
focusing on CSR activities. For example, the Nestle can organize health awareness camp with
corporation of NHS. It will facilitate in contributing development of various social aspects.
These kinds of activities bring social development which will create good image in the market. It
is also beneficial for building better corporate brand (Hatch, 2010). Other than this, feedback
services also provides better ability to have engagement with customers which assist in building
better brand image. For example, the customer of Audi is facing issue in regard to engine and
feedback system of company is effective. In this situation, customer can easily share its issue
with executives and workforce need to provide better assistance to customer. If client is having
easy access to after sales services along with convenience factor then morale of user will be
boosted. It is advantageous for sustainable development and improvement in corporate brand
(Gotsi, 2008).
In addition to this, business firms are also focused towards collective working within
organisation so that work activities can be accomplished in appropriate manner. For example, the
management of Tesco has established a quality team that make sure about the quality aspects.
With an improved focus on collective working the issues in regard to quality can be monitored
effectively (Hatch, 2008). It will provide high quality of products to customers which enhances
their satisfaction level. Improved level of satisfaction among target group is beneficial for
effective building of corporate branding. Companies are also focused towards co-creation
activities so that goals and objectives can be accomplished in appropriate manner (Kavaratzis,
2009). It has been identified that the management consider key expectations of stakeholders so
that services and activities can be designed in optimistic form. For example, the British Airways
is effectively meeting the key needs of government authorities. It will enhance company image
in front of government which is advantageous for building corporate brand.
As per the above essay, it can be concluded that the corporate branding is one of
significant aspect for every organisation. It helps in targeting customers effectively so that goals
and objectives can be accomplished in desired form. It has been identified that the improved
focus on corporate branding can easily increase sales of company products and services.
Corporate branding activities are mostly performed to have effective presence of brand in the
8

market which is beneficial for sustainable development. Other than this, there are number of
alternative strategies that can be used by companies to have effective building of corporate
branding. Classification of activities can be CSR activities, word of mouth advertising, etc.
Business firms are also focused towards effective identification of stakeholders needs so
that activities can be designed in appropriate manner. If businesses are meeting key needs of
stakeholders that means satisfaction level among target customers is also high. It reflects that the
stakeholders plays key role in building corporate brand. It has been noticed that the effective
designing of corporate branding strategies facilitate in defining business personality.
Furthermore, corporate goals can be accomplished by building strong corporate image in the
marketplace.
9

REFERENCES
Journals and Books
Abratt, R. and Kleyn, N., 2012. Corporate identity, corporate branding and corporate reputations:
Reconciliation and integration. European Journal of Marketing. 46(7/8). pp.1048-1063.
Anisimova, T., 2010. Corporate brand: the company-customer misalignment and its performance
implications. Journal of Brand Management. 17(7). pp.488-503.
Balmer, J. M., 2009. Aligning identity and strategy: Corporate branding at British Airways in the
late 20th century. California Management Review. 51(3). pp.6-23.
Balmer, J. M., 2012. Strategic corporate brand alignment: Perspectives from identity based views
of corporate brands. European Journal of Marketing. 46(7/8). pp.1064-1092.
Liao, M. N., Balmer, J. M. and Wang, W. Y., 2010. Corporate brand identification and corporate
brand management: how top business schools do it. Journal of General Management.
35(4). p.77.
Booth, N., 2011. Mapping and leveraging influencers in social media to shape corporate brand
perceptions. Corporate Communications: An International Journal. 16(3). pp.184-191.
Foster, C., 2010. Exploring the relationship between corporate, internal and employer branding.
Journal of Product & Brand Management. 19(6). pp.401-409.
Gotsi, M., 2008. Corporate re-branding: is cultural alignment the weakest link?. Management
Decision. 46(1). pp.46-57.
Hatch, M. J., 2008. Taking brand initiative: How companies can align strategy, culture, and
identity through corporate branding. John Wiley & Sons.
Hatch, M. J., 2010. Toward a theory of brand co-creation with implications for brand
governance. Journal of Brand Management. 17(8). pp.590-604.
Järventie-Thesleff, R., Moisander, J. and Laine, P. M., 2011. Organizational dynamics and
complexities of corporate brand building—A practice perspective. Scandinavian
Journal of Management. 27(2). pp.196-204.
Joyce Stuart, H., 2011. An identity-based approach to the sustainable corporate brand. Corporate
Communications: An International Journal. 16(2). pp.139-149.
10

Juntunen, M., Juntunen, J. and Juga, J., 2011. Corporate brand equity and loyalty in B2B
markets: A study among logistics service purchasers. The Journal of Brand
Management. 18(4-5). pp.300-311.
Jurisic, B. and Azevedo, A., 2011. Building customer–brand relationships in the mobile
communications market: The role of brand tribalism and brand reputation. The Journal
of Brand Management. 18(4-5). pp.349-366.
Kavaratzis, M., 2009. Cities and their brands: Lessons from corporate branding. Place Branding
and Public Diplomacy. 5(1). pp.26-37.
Mandhanya, Y., 2010. Employer branding-a tool for talent management. Global Management
Review. 4(2). pp.20-25.
Micelotta, E. R. and Raynard, M., 2011. Concealing or revealing the family? Corporate brand
identity strategies in family firms. Family Business Review. pp. 89-95
Muzellec, L., 2009. Corporate branding and brand architecture: a conceptual framework.
Marketing Theory. 9(1). pp.39-54.
Peterson, R. A. and Jeng, J., 2010. Exploring the impact of advertising and R&D expenditures on
corporate brand value and firm-level financial performance. Journal of the Academy of
Marketing Science. 38(6). pp.677-690.
Rindell, A. and Strandvik, T., 2010. Corporate brand evolution: corporate brand images evolving
in consumers' everyday life. European Business Review. 22(3). pp.276-286.
Servaes, H. and Tamayo, A., 2013. The impact of corporate social responsibility on firm value:
The role of customer awareness. Management Science. 59(5). pp.1045-1061.
Tu, Y. T., Wang, C. M. and Chang, H. C., 2012. Corporate brand image and customer
satisfaction on loyalty: An empirical study of Starbucks Coffee in Taiwan. Journal of
Social and Development Sciences. 3(1). pp.24-32.
Urde, M., 2013. The corporate brand identity matrix. The Journal of Brand Management. 20(9).
pp.742-761.
Online
IHG. 2016. [Online]. Available throuhg <http://www.ihg.com/hotels/gb/en/reservation?
qAdlt=1&qBrs=6c.hi.ex.rs.ic.cp.in.sb.cw.cv.ul.vn&qChld=0&qFRA=1&qGRM=0&qPS
t=0&qRRSrt=rt&qRef=df&qRms=1&qRpn=1&qRpp=20&qSHp=1&qSmP=3&qSrt=s
11

DD&qWch=0&srb_u=1&icdv=99615773&sitrackingid=829891338&glat=SEAR&icdv
=99615773>. [Accessed on 26th May, 2016].
Roll, M., 2009. Corporate Branding Strategy Defined. [Online]. Available throuhg
<http://www.brandingstrategyinsider.com/2009/07/corporate-branding-strategy-
defined.html#.V0auWaW1Gko>. [Accessed on 26th May, 2016].
12