identity. However in the identity approach focus is often on a corporate as opposed
to product level branding. The idea of corporate branding is the assumption that
creating one unified (at corporate level) message across all functions will elevate
brand management from a tactical operational discipline involving only the
marketing and sales department to a strategic, corporate level involving the whole
organization. Creating one unified message across functions hence requires one
unified corporate identity.
Corporate branding implies deserting product branding with its narrow
marketing-driven focus on tactical, functional processes. Product branding has
been criticized for having a too narrow, external perspective, detached from the
organization behind the products. Corporate branding is an attempt to accom-
modate these weaknesses. Product branding is based on short-term advertising
ideas, while corporate branding is based on a long-term brand idea. Corporate
branding also expands the parameters of differentiation by enabling companies to
use their rich heritage actively to create strong brands. Corporate branding
involves the whole organization and emphasises the pivotal role employees play if
they are to succeed in the creation of a strong corporate brand. Values and beliefs
held by employees are key elements in the differentiation strategy. Corporate
branding is a ‘move towards conceiving more integrated relationships between
internal and external stakeholders linking top management, employees, customers
and other stakeholders’ (Schultz et al. 2005, p. 24).
Table 5.1Product and corporate branding
Product branding Corporate brandingFoundation Individual products The company/organization
Conceptualization Marketing, outside–in Cross-disciplinary, combines
thinking inside–out and outside–in
thinking
Brand receivers Consumers All stakeholders
Core processes Marketing and Managerial and
communication organizational processes
Difficulties • Create and sustain • Alignment of internal and
differentiation external stakeholders
- Involvement of • Create and communicate
employees and use of credible and authentic
organizational cultural identity
heritage • Involvement of multiple - Limited involvement subcultures internally, and
of stakeholders other multiple stakeholders
than consumers externally
Brand equity comes from Superior product attributes, The visual and behavioural
good advertising identity of the corporation
and communication
SourceSchultz et al. (2005), by courtesy of Copenhagen Business School Press.
The identity approach 51