Lecture 3 PDF

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Lecture 3 – Brand orientation Meaning maketh the brand…. (Lecture 1) Understand brand equity in all its forms… (lecture 2) 1. Customer based brand equity 2. Employee based brand equity 3. Financial brand equity An interesting viewpoint… - “strong brands aren’t given; they must be earned over and over again. Therefore, most companies nowadays seem to agree that brand building is not a project but a process.” (Gromark and Melin, 2011). The importance of being brand oriented - The brand is more than just a marketing and advertising activity. Under the right conditions, it can engage employees and customers. It can power strategy. It can align decision making and behaviours… but to recognise the full potential of the brand, it must be lifted to a higher realm than marketing and advertising. It needs to be placed where it rightly belongs – at the heart of business strategy. (Carabi and Gjols – Andersen, 2017). The context of brand orientation… - “Any customer can have a car painted any colour that he wants so long as it is black” Henry Ford. The evolution of business orientations - Production orientation o Focus is on production and distribution efficiency o Own operations become obsession - Product orientation o Focus is on continuous product improvement o Ignores changing markets and environments - Sales orientation o Focus is on finding and converting prospects o Emphasis is on transactions, not relationships - Market orientation o Focus is on the customer o Goal is understanding the needs and wants of customers - Brand orientation o Focus is on the customer, competitor and your own brand o Goal is making brand at the heart of the organisational decision making - Q: how different is market orientation versus brand orientation? Not really different. Market vs brand orientation… - If an organisation is only market-oriented, then it’s still in the discussion about products and markets. Brand orientation is an additional degree of sophistication. It

becomes a little bit more difficult because one has to both be market-oriented and brand oriented. An organisation can never only be brand oriented. There have to be products that are demanded and that work together with your brand. To be brand oriented is market orientation ‘plus’. (Ollie Tegstam, SVP – Nestle, 1999).

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“An approach in which the processes of the organisation revolve around the creation, development and protection of brand identity in an ongoing interaction with target customers with the aim of achieving lasting competitive advantages in the form of brands.” (Urde, 1999). “One must have the courage…. To see the brand as more than just a passive result of marketing activities and instead use it as an active ingredient in organisational decision making. Only then can it bring engagement, meaning and value to employees and customers and only then can the brand’s full potential be realised.” (Carabi, 2017).

Drivers and barriers to brand orientation adoption: Drivers - Product based differentiation difficult to sustain - Increasing media costs - Integration of markets/globalisation - Brand vs employer brand – both should treated as one - Strong competition/need to differentiate - Changes in the environment - Commercial Barriers - Lack of financial resources - Time constraints - Perceived lack of relevance/ Lack of CEO support - Short term focus on sales activities/ lack of long-term planning - Organisational structure and culture

Assessing the level of brand orientation: The brand orientation wheel. - Approach - Implementation - Goals and follow up - Relationships - Identity development and protection - Operational development - Responsibility and roles - The top managements participation o Gromark and melin, 2011 Example: Apple Internal Branding. - Video (Event September 2019) - Shows how the branding between their products are interlinked - Learn, create share. o These products empower people do creative/innovative things everyday. The focus on building Brand Pride: - “In today’s world, loyalty is hard to come by. So its more important than ever to help employees feel pride in their company. Brand is the greatest source of pride. Company has, so it is critical to help employees understand, feel and buy into its true meaning and purpose. The results will be brand proud employees who will share their pride and in turn, help customers stay customers, because brand pride is contagious.” (Silverman, 2016). Person/Organisation Fit - The perception, the value and the emotional significance of oneness with or belongingness to the organisation. (Wieseke et al., 2009). Why is internal branding so important? - Raise employees’ confidence to endorse the firm - Committed and loyal - Improve intention to stay; develop brand ambassadors Needs ‘buy-in’ from company leadership and front-line employees

Key takeaways:

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Brand orientation might sound simple but in reality, is incredibly difficult to carry out It is important to create a brand-oriented culture that spurs all to act and behave in line with the brand across all touchpoints It is precisely because of its difficulty that brand orientation is so beneficial. It makes it challenging for competitors to imitate its way of working and increases organisational commitment to make it (the brand) last...