From Brand Vision to Brand Evaluation, Third Edition: The strategic process of growing and strengthening brands PDF
Preview From Brand Vision to Brand Evaluation, Third Edition: The strategic process of growing and strengthening brands
From Brand Vision to Brand Evaluation The Strategic Process of Growing and Strengthening Brands Third edition Leslie de Chernatony AMSTERDAM(cid:2)BOSTON(cid:2)HEIDELBERG(cid:2)LONDON(cid:2)NEWYORK(cid:2)OXFORD PARIS(cid:2)SANDIEGO(cid:2)SANFRANCISCO(cid:2)SINGAPORE(cid:2)SYDNEY(cid:2)TOKYO Butterworth-HeinemannisanimprintofElsevier ButterworthHeinemannisanimprintofElsevier LinacreHouse,JordanHill,OxfordOX28DP 30CorporateDrive,Suite400,Burlington,MA01803,USA Firstedition2001 Secondedition2006 Thirdedition2010 Copyright(cid:2)2010,LesliedeChernatony.PublishedbyElsevierLtd.Allrightsreserved. TherightofLesliedeChernatonytobeidentifiedastheauthorofthisworkhasbeen assertedinaccordancewiththeCopyright,DesignsandPatentsAct1988. Nopartofthispublicationmaybereproduced,storedinaretrievalsystemortrans mittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording orotherwise,withoutthepriorwrittenpermissionofthepublisher. PermissionsmaybesoughtdirectlyfromElsevier’sScience&TechnologyRights DepartmentinOxford,UK:phone(+44)(0)1865843830;fax(+44)(0)1865853333; email:[email protected],youcansubmityourrequestonlineby visitingtheElsevierwebsiteathttp://elsevier.com/locate/permissions,andselecting ObtainingpermissiontouseElseviermaterial. BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary LibraryofCongressCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheLibraryofCongress ISBN13:9781856177733 ForinformationonallButterworthHeinemannpublications visitourwebsiteathttp://books.elsevier.com PrintedandboundinGreatBritain 101112 109876543 ToCarolyn, Gemma and Russell,with love Preface In2001whenthefirsteditionofthisbookwaspublished,itwasoneof theearlybookstochallengethenormthatbrandingisaboutmanaging relationshipswithcustomers.Theconventionwasthatbrandsuccess comes from finding new gaps, or poorly satisfied customers, devising a positioning and personality for an offering, then integrating organ- isational capabilities to delight customers, the Finance Director and shareholders.Theauthor’sresearchandconsultingshowedthatbetter performance could be achieved by defining the target for branding as customersandemployees.Simplyput,brandingpromisesarewasted unlessstaffunderstandthebrandpromise,arecommittedtodelivering the brand promise and are more likely to genuinely deliver an authenticbrandexperiencewhentheirvaluesalignwiththeespoused values of the brand. Not unsurprisingly, and in fact rather reassuringly, this book’s first P re mover advantage encouraged other authors to devote time to fa c e researching the impact different internal strategies have on brand performance. A plethora of publications mushroomed. Interestingly, , some introduced terminology that branched away from internal branding, e.g. corporate branding, brand identity, brand reputation, etc. What unites their work is the recognition that brands thrive becauseofabalancedapproachtomanagingstakeholderinteractions. More is being spoken about internal brand building and many brand success stories are being attributed to the importance of the brand ambassador role of staff. Research is also broadening its horizon to understand the problem of the brand saboteur, since by appreciating how and why these employees damage brands, their harmful impact can be minimised. Organisations internationally developing either productsorservicesinconsumerandbusinesstobusinesssectorsare increasingly perturbed by the way that technology is shortening the sustainability of any competitive advantage from brands’ functional advantages. Recognising that brands are clusters of functional and emotional values resulting in promises about unique and welcomed experiences, interest is growing in the importance of sustainable emotional values and the associated brand experiences. More managersarenowseeking toharmonisethewaythevaluesfromstaff contribute to real brand experiences. Customers are more likely to be regardedasactiveco-producersofbrandvalueandthosecorporations thathavethrivingbrandsempowervaluealignedemployeestodeliver genuine, rather than controlled, brand experiences. Within this context there are a significant number of organisations internationally who are adopting more corporate, rather than line brandingstrategies.Thisisnotastrategywhichemphasisesthename of the corporation. Rather it draws on corporate strategy to integrate a brand vision with an appropriate organisational culture. The organisationalcultureenthusiasticallyembracesthecontributionstaff makethroughbeingthelivingembodimentsofthebrandandthereby enabling customers to have trusted and welcomed customer experi- ences in businessto businessand consumer markets. Contributions tobranddifferentiation resultsfrom an amalgamofthe way that employees’ knowledge and skills contribute to what the customer receives (functional values), along with the way that employees’ behaviour and feelings give rise to how the brand is received(emotionalvalues).Competenciesplusorganisationalculture are drivers of sustainable brand differentiation, which are being har- nessed by forward thinking successful corporations. Brand manage- mentdefinesanexternallyanchoredpromiseandconsidershowstaff can be orchestrated to ensure vibrant commitment to delivering the e promise.Theterm‘‘orchestrated’’isdeliberatelyused,asthisbookis c efa not about mechanistic branding, i.e. where control mechanisms keep Pr staff ‘‘on-brand’’ in terms of behaviour. Rather, this is a more , humanistic text where the CEO is the metaphorical conductor, sug- gesting ideas to harmonise an integrated approach for employees to deliver the brand promise. In the future, maybe a better metaphor could be jazz, whereby employees sense when they need to take the lead indifferent customer interactions. No longer are staff being recruited just because of their intellect, experienceandsectorknowledge.Inaddition,theyarebeingrecruited according to the extent to which their values align with the values of thebrandstheywillbesupportingandwhethertheywishtoproudly strive towards achieving the brand’s vision. Customers are more sophisticatedandcanseethroughstaffwhopaylipservicetoabrand’s values, doing little more than acting out a branding role. They welcomeinteractingwithstaffwhogenuinelybelieveinwhatabrand stands for and are committed to its delivery. When co-ordinating the activities of individuals, less effort is demanded supervising employees whose values align with their brand’s values. Brand management goes beyond solely focusing on customers and instead adopts a more balanced approach of satisfying stakeholders. The classical model of a source inside an organisation instigating an offer that has perceived value and controlling communication with customers has gone. Instead customers learn about brands, amongst otherways,throughinteractingwithemployees,communicatingwith otherstakeholdersandbyselectivelyusingmarketercontrolledmedia. Toensuretheirbrandisperceivedasanintegratedoffering,managers are moving away from the model of policing staff, to one where the team coach is a better metaphor. This helps them speak and act with similar voices and spirits about the brand. Organisations are increas- inglyrecognisingthatitisinappropriatetohaveonewayofspeaking, since an organisation is not about clones. Rather, commonalities are beingencouraged.Bybeingmoreopenwithstaff,providingthemwith more brand information and through having the confidence to empowerstaffwhoarealignedwiththebrand’svalues,employeesare more likely to present a more coherent message about their brand. Moreover,byrecognisingthat thebrandbuildingprocessstartsatthe staff recruitment stage and continues through the brand induction, training and appraisal stages, closer integration helps ensure a more coherent approach to internal brand management. In the new branding world, where the challenge is motivation and co-ordination, brand management is less about a brand manager, but rather about a brand’s team. This may be composed of individuals with diverse functional backgrounds, representing a variety of departments (e.g. marketing, HR, customer service, etc.) inside and P re outside an organisation. Successful brands are more likely to emerge fa c when mechanisms are developed to ensure all members of the e brand’s team have values which are aligned with the brand and , internal differences in perceptions about the brand are rapidly surfaced and resolved. Thus, this bookis about: (i) having a more balanced perspective that looks both inside and outsidean organisation tosatisfystakeholders’ needs; and (ii) developing integrated brands through a planning process that seeks to bring about a brand vision through an appropriate organisationalculturewithstretchingobjectives,resultingresults in an attractive brand essence, coherently enacted to meet the regularly monitored performancemetrics. Numerous international consultancy projects undertaken using the materialinthepreviouseditionsshowedthattheideasandthemodel for growing and strengthening brands worked. Regardless of the continent, or of the sector, managers spoke about the need for a stra- tegic, holistic, pan-company approach to brand management that satisfied both internal and external stakeholders. These comments were also echoed in Executive Education workshops and courses for MBA and MSc studentswho were taking acareerbreak to strengthen their management competencies. As time has passed, more research hasbeenundertakenandnewlearningsurfacedfrominteractingwith managers and students. These stimulated revisions to the second edition. The result is a refreshed text that augments the principles of the previous editions with new material. Each chapter has been updated, the examples, exercises and readings have been supple- mented and new advertisements included. Yearsofworkingwithmanagersandstudents(bothpostgraduateand undergraduate), brought home the importance of enabling them to internalise ideas. Explaining new concepts is part of the process, but another contributor is getting people to apply the ideas to particular problems. This book follows this philosophy by raising questions in the activities sections in each chapter, then proposing, in the discus- sionsections,possibleideasformovingmattersforward.Attheendof eachchapter,exerciseshavebeendevisedtoenablereaders putmore of theideas into practice. This book is intended for both business school students and managers. It is grounded in a considerable literature, which draws on numerous disciplines. By pulling on such a rich literature, it has been possible to not only acknowledge the work of many respected writers, but to then build on this to develop the logic behind the e ac systematic brand planning model. ef Pr Atheory isonlyasgoodasitsapplicability.Assuch,throughoutthis , book there are examples and advertisements that strive to bring the material to life. Generalisability is a further consideration in the adoptionofabrandbuildingmodelandtheideaswithinthisbookcan be applied across different geographical continents in consumer, businesstobusiness,productandservicessectors,aswellasbothfor profitand not forprofitsectors. This bookis divided into three parts. Part One: The changed notion of brand management The first two chapters lay the foundations for the move away from classical brand thinking. Chapter 1 presents the case for managing brands by adopting both an external and internal perspective. A unifying definition of a brand is proposed and the move to team-based brand management explored. Chapter 2 reviews the spectrum of brand interpretations to enable people to realise that in the same organisation there may be different interpretations of a brand, resulting in sub-optional use of branding resources.Itconsidershowdifferentinterpretationscanbesurfacedin order to have amorecoherent approach. Part Two: Planning for integrated brands Chapter3focusesontheneedforanintegratedbrandingprogramme. It considers instances where inconsistencies can arise in branding programmes and reviews some models to minimise inconsistencies. Thesequential,iterativeprocessforbuildingandsustainingbrandsis overviewed. Part Three: Employing the brand building process The remainder of the book goes through each block of the process for building and sustaining brands, explaining the key issues and consideringtheir applications. Chapter 4 focuses on the three elements of a powerful brand vision, P i.e. an envisioned future, the brand purpose and the brand values. re Ways to surface these three elements and encourage coherence are fac e explored. , Chapter5acknowledgestheimpactorganisationalculturecanhaveon the nature of the brand, considers how to characterise an organ- isation’sculture,discusseshowtoalignstaffwiththedesiredculture and explores the culture characteristics associated with enhanced brand performance. Chapter 6 discusses the importance of setting long and short term objectives and the use of catalytic mechanisms to focus employees’ attention on achieving these. Chapter 7 reviews the five forces in the brandsphere that enhance or impede brand success, i.e. the corporation, distributors, customers, competitorsandthemacro-environment,andconsidershowtoassess thefavourability of these forces to capitaliseon opportunities. Chapter8considershowthecorenatureofabrandcanbesummarised throughthefivelevelsofthebrandpyramid,andcrispstatementofthe brand essence. Alternative models are presented. The integration between the brand pyramid and the brand’s positioning and person- ality isdiscussed. Chapter 9 explores some of the factors critical to ensuring the brand promise comes true. Mechanistic then humanistic implementation considerations are reviewed. The detailed form of the brand is clarified using the eight components of the atomic model of the brand. Chapter 10considers how abrand’s progress can be evaluated. I am most grateful to Karen Duffy, who provided superb secretarial support. The ultimate thanks go to my wife Carolyn, who gave me the gift of time to complete this new edition. I thank our daughter Gemma and sonRussellforbeingsoconsiderateduringthepreviouseditionsabout their fatherspending solongin his study. ProfessorLesliede Chernatony e c a ef Pr ,
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