measure is very important to contemporary organisations. Corporate brand has become a valuable asset for a company, which some times have value beyond the book value.
To answer the question stated above it is important to explain what a corporate brand is. It is also important to look into the issue how a corporate brand is beneficial to an organization. What kind of financial benefit it can provide to an organization and to what extent it helps organisations to gain competitive advantages over its competitors.
There are several definitions of corporate brands presented by different authors and scholars. Some of the defamations are as follow:
David A. Aaker defined corporate brand as “a corporate brand that will define the corporate heritage, assets and capabilities, people, values and priorities, a local or global frame of reference, and a formance record.”
(Brand portfolio strategy by David A. Aaker, California management review vol46 no3 spring 2004.)
According to Balmer (2003) the corporate brand is seen as a covenanted identity, which is viewed as independent and distinct. Balmer (2001) developed the mnemonic C2ITE (Cultural, intricate, tangible, ethereal and commitment), reflecting the corporate brands.
While Lawer and Knox (2004) states that a corporate brand is a way to conceive, manage and communicate corporate brand values in order to guide managerial decisions, actions and normative firm behaviour. It can then state that the brand is generally the name of a product or a mark of ownership.
So being able to express its self is true and openly and then communicate the message to its consumers clearly.
“The corporate branding philosophy, at it’s core, represents an explicit covenant between organisations and it’s key stakeholder groups, including customers” (Balmer & Greyser, 2003)
Corporate branding can be defined as “corporate brand brand name.” It is an attempt to leverage corporate brand equity to create product brand recognition. ”
The keeping of an organization promise can lead to corporate brand equity; This is what consumers hold, strong, and unique associations about the brand in memory (Keller 1993). David Beckham said, “I can not even imagine using any nothing else then Adidas”. Though he is the contracted model for Adidas. This made sports people with money buy that item. Rolex watches can also be for example, Rolex watches for high-class people. This makes people with money buy the Rolex watches to show the class. This is the brand equity of Adidas and Rolex.
Brand equity can be transferred to other products as well. This can be seen in the case of VW buying the Skoda. Before VW got Skoda’s sales declining but in recent years Skoda’s Skoda’s transfer of its brand equity. G.M motors have also bought different corporate brands such as Daewoo and Volvo and have transferred the brand equity to them brands.
This does not stop here there are many benefits of corporate brand. Newman (2001) suggests that the success rate of a new product or service may be a corporate brand behind it. Also costs could be reduced when launching the product or service.