subject: The Good And Bad Of Corporate Branding [print this page] According to several online business sources, corporate branding is the process in which a company markets its products using the company name as a brand name. For example, Disney, Lego, Microsoft and Google, are all corporations that sell products and/or services using their company name as the brand name.
People all over the world have some in contact with some form of corporate branding. Everyone knows the name and logo of Disney. Everyone can just look at the symbol for Lego and know, without ever seeing a letter, that it belonged to Lego. That is what corporate branding is all about its about saturating the market with your corporate logo so that when someone looks at something made by that company there is a subconscious pull to purchase this item made by this company that is such a part of their lives.
Corporate branding is so effective that brands that use their corporate logos and name as the brand name see more sales per year than companies with several brand names. Disney owns Pixar, but Pixar wouldnt be as popular without the name Disney attached to it. Everyone loves Disney; it has been a part of the American imagination for many years. So when grownups and children alike see the name Disney they are immediately willing to purchase that item because they know the brand is a good one, and Disney is a company that has always made excellent products.
Corporate branding also has a down side. Putting a companys name out there in the main stream of capitalism can lead to devastation if mistakes are made and things go wrong. For instance, McDonalds is still trying to live down the legal debacle that occurred over one cup of spilt coffee. Now the company has to raise its costs in order to supply coffee cups with the words, Caution Hot! written on the side. Now, when people buy coffee from those well known golden arches, there is always the fear of getting burned by the coffee or the costs.
With the world going online where what people see is what they get, corporate branding is becoming more important than ever. Just image how easy it would be to just flash a well known logo or company name and have billions of people click on it because of its popularity. People trust names they know, and they are willing to shell out the extra cash for products and services from these companies rather than go with the unknown company that costs less.
Corporate branding has made companies millions in revenue, all because they marketed themselves, their good name and a great product.
