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4th International Brand Conference – Corporate Strategy and Branding
In turbulent times, it is more necessary than ever for managers to innovate and to be fully involved in the marketing of their products and services to capitalize on tightening markets. Branding is the only sustainable way to achieve this.
Branding is not only important in developing a marketing-mix strategy but can contribute to developing a corporate strategy. A brand’s values and meanings should be infiltrated within organizations and implemented in a corporate strategy. Hence, to reinforce the importance of this concern, the theme of the Fourth International Brand Conference, “Corporate Strategy and Branding”, was chosen.
The conference was held for the first time at the Hong Kong Convention and Exhibition Centre, with the appearance of Prof. John Quelch from Harvard Business School and Prof. Steven Shugan from University of Florida as well as CEOs from local and multinational firms. Highlights of the conference include Prof. Quelch’s presentation on global brand building and Prof. Shugan’s presentation on brand anti-loyalty programs.
Quelch defined a brand as “a club”, where it is not the products but the users who create the brand meaning. The analogy was directed at product-oriented companies to recognise the importance of having a market-orientation. Quelch also gave a three-stage model for brand building from function to imagery to emotion. In order for a brand to be successful, it must fulfil basic functions, to create user experience and usage imagery in order to form emotional bonds with consumers. To achieve these brand objectives and to grow its business, a brand can follow a linear path, with appropriate cognitive, affective and behavioural strategies.
Prof. Shugan shared his perspective on loyalty programs and its legitimacy as a marketing asset to a firm. Shugan debunked traditional loyalty programs through their abuse of brand locking (setting high switching barriers) and thereby creation of a “false” customer loyalty. Customer loyalty programs, Shugan, warned are “shams” as they create liabilities for organizations through future obligations by compromise of short term revenue. Shugan recommends companies to invest in programs that are truely marketing assets which increase customer utility and deliver promises.
In the new Media Forum, Roland van Kralingen talked about emotional branding with a focus on affective marketing strategies to influence consumers’ emotions, moods and feelings. Van Kralingen believes that “winning brands of the future- must be masters of emotions” to transform a market through product champions. He reinforces that “emotional branding is needed to break through the brand clutter” and in order to do so, he quotes, “it (a brand) must engage the heart as well as the mind” (Jeremy Bullmore).
His argument was later augmented by BBH’s creative director Johnny Tan with his company’s philosophy of “zagging,” (or not following the trend), in contrast to the world’s “zigging”. He uses his firm’s commercial examples to manifest this philosophy.
The final session, Dialogue with four CEOs of local and international firms, on brand management of “living brands”, highlighted the need for brands to develop alongside people through incorporating culture and lifestyle in design.
Overall, the conference was well received by the public. One participant applauded the benefits of the conference: “the ideas are innovative……forefront of global trends. Perhaps they are using a new perspective to brand old strategies but it is necessary for marketers, especially for corporate brands marketers, I believe there is value in this.”
The success of the Brand Conference not only placed the Asian Centre for Brand Management on the pedestal of the local business community but also strengthened the centre’s position through its recognition as a legitimate force in branding.
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