TAILIEUCHUNG - Corporate Marketing and Service brands: Moving beyond the fast moving consumer goods model

Social media is not the only emerging channel P&G is using to connect directly with consumers. In November 2011 the company announced a partnership with a start-up called Mobeam to distribute digital coupons via mobile phones. The companies plan to begin testing the solution—which requires enhancements to existing handsets—in 2012. Diageo is another CG manufacturer that has also turned to social media—Facebook specifi cally—to enhance its consumer marketing efforts and drive retail beverage sales. The global spirits maker expanded its brands’ collective fan base from to 12m in one year, and an in-house study conducted with Facebook and. | Corporate Marketing and Service brands Moving beyond the fast moving consumer goods model By Malcolm McDonald and Leslie de Chermetony Abstract The purpose of this paper is to examine the issues associated with the creation and development of service brands. It initially considers the increasing importance of the services sector in modern economies and how service organisations have challenged the traditional approach to business. By analysing the success and failure of brands in the financial services sector the paper goes on to illustrate the major challenges associated with service branding. Then the paper outlines the differences between product and service branding and how the fast-moving consumer goods FMCG approach to branding needs to be adjusted before being applied to the services sector. Particular emphasis is placed on the intangible nature of services and how problems linked to intangible offerings can be overcome. The paper then provides an analysis of the roles of employees and customers in the delivery of the service and how these roles can be strategically designed to strengthen services brands. The paper concludes with a discussion of whether corporate or individual branding is appropriate. The Importance of Brands The rise of relationship marketing as a topic of scholary research has established forever that the link between suppliers and customers is not just a physical product or service but a relationship that encourages the elements shown in Figure 1. Intangibles 80 per cent of the impact but Organization From Christopoher . and McDonald . 1995 1 This relationship is personified by the organisations name or by the brand name on the product itself. ICI IBM BMW KODAK and Cadburys are excellent examples of company brand names. Persil Nescafe Dulux and Fosters are excellent examples of product brand names. This raises the issue of the difference between a brand and a successful brand. The Sinclair C5 the Coop and Accrington Stanley are .

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