While external branding is not the primary focus of this thesis, it does warrant a brief mention in the context of brand alignment research, given that the analysis seeks to understand how an organisation builds its
internal capability to meet its external market position, in a manner that derives competitive advantage and ultimately, sustainable shareholder value through business performance. The literature review therefore takes a position on internal branding and brand alignment, with reference to meeting its external brand promise to market.
For purposes of clarity, brand refers to the actual resource in the form of a tangible product or an intangible reputation in the case of a corporate brand, whereas branding refers to the process or act of building or creating a brand (Keller, 2008:13).
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2.2.1 The external focus of brand
There is a vast body of literature relating to research that has been
conducted in the field of branding (Aaker, 2002; Ambler, 2003; Kapferer, 2008; Keller, 2008). Given that the external focus of brand is not the primary intention of this study, consideration of the topic is furnished in an overview of several definitions by leading academics and marketing practitioners covering different dimensions of the topic.
Based on the foundation of the 4 P model of marketing (Kotler, 2001), the promotion silo is largely the module that drives the summation of all
marketing communication and brand activity. It fundamentally has an external focus and is further pinpointed by Kotler (2001:17) in his
definition that it is ‘a seller’s promise to deliver a specific set of features, benefits and services to the buyer’. This promotion’s categorisation of brand emphasises its external orientation, but does not address the role of brand internally to the organisation.
Keller (2008:3) offers that a brand is a name, term, sign, symbol or design, or a combination thereof, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition. This definition straddles both the rational and tangible, as well as the symbolic, emotional and intangible differences of the product or service. It is fundamentally anchored in the differentiation approach to competitive advantage.
Aaker (2002:7) underpins the importance of brand and business by
defining brand equity as the set of assets and liabilities linked to a brand, that is, its name and symbol that adds or detracts from the value
provided by a product or service to an organisation and/or to the firm’s customers. He further posits that the key asset contributors to building
29 brand equity comprise brand awareness, brand loyalty, perceived quality and brand associations. Several authors, including McDonald and Mouncey (2009) and Salinas (2011), build on the importance of brand metrics and measurement in quantifying the role of brand while the considerable work of Ambler (2003:54) explores the concept of brand equity and brand valuation in some depth, suggesting that it quantifies the state of the marketing asset. Based on this, the net change in the valuation from the beginning to the end of the financial period is employed to adjust the short term results. This is an area of branding that is covered later in this chapter and brings into focus the potential validation of brand and
competitive advantage, through the financial quantification of its economic value.
In a shift towards the more emotive aspects of branding, Gobe (2001:8) places all the emphasis on this aspect of branding, defining it as follows: ‘Branding is not only about ubiquity, visibility, and functions; it is about bonding emotionally with people in their daily life. Only when a product or a service kindles an emotional dialogue with the consumer, can this
product or service qualify to be a brand’. This definition carries a strong relationship focus to the brand building process and highlights emotional connections across all target market segments, with particular emphasis on driving beyond awareness and creating true customer advocacy. A succinct definition is offered by Knapp (2000:7) who suggests that branding is defined as ‘the internalised sum of all impressions received by customers and consumers resulting in a distinctive position in their
“mind’s eye” based on perceived emotional and functional benefits’. In building on this definition however, he further suggests that brands are often inconsistently defined and are not fully recognised for the strategic value that they add to organisations; a topic that will be returned to later in this chapter.
30 Ind (2007:20) adopts an interesting view that suggests that brand forms an explicit expression from a combination of the corporate message and experience, creating a certain expectation of performance and delivery in the mind of its recipient – this, he suggests, constitutes the promise of that brand to the market; this concept is returned to later in this chapter when exploring the connection with the internal brand.
Notwithstanding the fact that the above is only a brief overview of several of the key definitions relating to the field of branding, it is highly evident that the primary focus of the subject falls on the external view of brand and how it connects with consumers and other external stakeholders of the organisation. This limitation is addressed in the ensuing section; and in many respects, is an issue that underpins this entire thesis.
2.2.2 The limitations of an externally focused view
The fundamental limitation of the external focus of brand building relates to the distinct lack of effort and understanding of the brand internally, particularly in the context of the service organisation whose employees are expected to deliver against the external expectations and perceptions created in the market.
In the work carried out by Gobe (2001:68), much emphasis is placed on moving beyond the identity and visual aspect of brand building towards a strong emotional connection; again the emphasis is placed on achieving this with the external market or customer with no consideration given to the people inside the organisation who are expected to make that
connection and deliver sustainably on that promise. Aaker and
Joachimsthaler (2000:87) argue the point that many companies make grandiose brand promises to the market that they are unable to keep,
31 relying heavily on advertising and brand promotion to build equity
through prioritising the external market and largely ignoring the internal aspect. They recognise this shortcoming and suggest that a higher
prioritisation needs to be placed on the internal communication efforts in the organisation ahead of taking the brand externally.
Mitchell (2002:100) suggests that this external orientation at the expense of the internal message is confusing to employees and threatens internal perceptions of the organisation’s integrity. He posits that employees need to hear the same messages that are extended externally. Gapp and
Merrilees (2006:161) argue that internal branding should be viewed as a management strategy and is an emerging sector of brand management, which is receiving an increasing level of attention given its role as a method of communicating a common message to the organisation’s employees.
Keller (2008:156) confirms that much of the branding literature has taken an external perspective, focusing on strategies and tactics that firms
should adopt in order to manage and build brand equity with customers. He further reinforces this view, suggesting that the positioning of a brand and the essence of its meaning with consumers lies at the heart of
marketing activity. He does however suggest that the internal brand is equally important and that the brand positioning is explained and
communicated internally; recognising that there is a growing interest and need for further research in this critically important area of branding, a need that this thesis addresses.
Internal marketing as the repository in which internal branding resides and has traditionally been viewed is therefore considered next. It is a discipline of marketing that is geared toward the internal audience of brand, essentially the management and staff within the organisation.
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