Importance of Brand Image by Pujarini Ghosh

: Good Morning Sir, I have been pondering upon the importance of IMC for a firm and a few questions seem to trouble me quite a bit.

: Go ahead Amar, you can ask me anything about IMC and I will be more than happy to clear your doubts.

: Sir, why is a corporate’s image so vitally important?

: Amar, before talking about its importance, tell me what you understand by a corporate’s image or a brand image.

: Brand image is the current view of the customers about a brand. It can be defined as a unique brand of associations with in the mind of target customers. It signifies what the brand presently stands for. It is a set of beliefs held out by a specific brand. (Brand image is the over-all impression in consumers’ minds that is formed from all sources.)

: Yes, you are right, Amar. Brand image is the impression in the consumers' minds of a brand's total personality - both real and imaginary qualities as well as shortcomings. Brand image is developed over time through advertising campaigns with a consistent theme, and is authenticated through the consumers' direct experience. Advertising, consumer promotions, trade promotions, personal selling, the company’s website and other marketing activities, all affect consumer perceptions of the firm. A strong brand image creates a major advantage for any product or service. A company’s image has a bottom line that can even be assigned a value in financial terms. Advertising managers and other marketing experts are expected to create messages that not only sell product in the short term, but also build the firm’s image over time. A strong IMC foundation combines understanding of the firm’s image and brands with assessment of consumer and business buyer behaviours. Then the marketing team can prepare consistent messages designed to reach all of the individuals who might purchase a company’s goods and services. When the image of an organization or one of its brands is somehow tarnished, sales revenues and profits can plummet. Rebuilding or revitalizing an image is a very difficult task.

 : But specifically how does a corporate’s image mould the consumer perspective?

: From a consumer’s perspective, the corporate image serves several useful functions, which include:

•         Providing assurance regarding purchase decisions of familiar products in unfamiliar settings
•         Giving assurance about the purchase when the buyer has little or no previous experience with the product or service
•         Reducing research time in purchase decisions
•       Providing psychological reinforcement and social acceptance of purchases

: So, is it because the brand image helps consumers’ make purchase decisions with or without prior experience with a particular product/service of the brand that the brand image is so important for the corporate?

: You are absolutely correct Amar. Let me illustrate with an example, in India the image of the Tatas is associated with highest levels of quality and ethics. So consumers intend to associate quality with the wide array of its product/service offerings – starting from Tata Salt and Tata Tea to Tata Indigo and Tata Nano to a Raga or Fast Track watch to a dinner or a night’s stay at the Taj. However this is just one aspect of the importance of a strong image for a company. Can you think of other ways in which the image of a brand can be important for the company?

: I can guess, Sir, can the company use its brand image to extend consumers’ feeling to the new products that it brings to the market?

: Yes, you are right, take the example of the initial hype with the Tata Nano – it was a mere reflection of the brand image which was imposed onto the product prior to any first-hand experience of consumers with the product itself.

: Sir, can a strong positive brand image lead to consumer loyalty and hence frequent repurchases?


: Yes indeed it can, continuing with the Tata example, if you were given a choice of buying Tata Tea and 502 Pataka Chai, would you not be motivated to buy the Tata brand more frequently?

: Indeed, I would. And it also gives the Tatas the ability to charge a slight premium or fee for its tea over its competitors. That would lead to a direct impact on its revenue. I never thought that a strong brand image could result in a direct revenue enhancement.

: Yes, but that is not all, there are other benefits that a company can derive from a strong brand image like:

•        Higher level of channel power
•         More favourable rating by financial observers and analysts
•        The ability to attract quality employees

Tell me Amar, would you not like to join the Tata group when they come for your campus recruitments?

: I would be more than willing to and I want to thank you Sir, for throwing so much light on the topic and clearing my doubts.

: I am happy that now you realise the importance of Brand image for a company. You can always contact me if you have any further doubts.

: Thank you Sir, bye.



: Take care, Amar.