Corporate Brand Vs. Product Strategy
Corporate branding and development of a product strategy are related but distinct concepts. Companies use corporate image advertising to develop strong, positive associations with their brands. Especially favorable associations like high quality, great service or exclusive features can translate across a corporation's products. A product strategy is part of a marketing approach to position a specific product in the marketplace.
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Brand Basics
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A corporate brand is the meaning behind a company's name and the symbols it uses to connect customers with its name. In essence, a recognizable and trusted brand name is what makes it possible for two similar products to have wide variance in price points. Nike, for instance, is one of the most recognized and valued brands in the world. Nike resells shoes that are manufactured by other companies. By putting the brand name Nike on a quality shoe, the perception of worth of that shoe goes up significantly in the minds of consumers. Nike has an established brand for quality shoes and apparel.
Corporate Branding
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Companies like Nike do not get their reputations simply by having a good name and placing a few ads. The most valuable brands are built over time by consistently delivering and reinforcing messages that resonate with their target markets. Wal-Mart is firmly entrenched as the premier low-cost discount store. Target, meanwhile, has separated itself with an image represented by its slogan, "Expect more. Pay less."
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Linking Brands to Products
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A product strategy is closely tied to corporate branding, because highly valuable brands are able to leverage their name credible when selling certain products. Theoretically, each product marketed and sold by a more reputable brand carries more weight among consumers than a less reputable, or recognized brand. In his July 2010 "Forbes" article, "The World's Most Valuable Brands," Kurt Badenhausen indicates that Apple is one of the world's most valuable brands. This is why Apple stores experience massive lineups outside of stores when they launch virtually any new product.
Product Strategy Basics
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A product strategy actually begins before a product is even created. When a company completes research and conceives a new product, it must consider several key marketing factors prior to development. A basic consideration is what price point the product will fall into. Developing and marketing a high-end, mid-range or low-cost product carries significant differences. Developing and marketing design features and benefits that are unique versus competition is another important product strategy factor. Distribution of the product through certain channels is also vital. Companies must plan its marketing and sales process to coincide with development of the product. This is similar to the importance of knowing the purpose and function of a new building before you construct it.
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References
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