Brand Building Strategies Used By New Ventures Marketing Essay

There exists a little window of chance in which a new venture has to last in and following trade name values provides an added avenue of success. Corporate individuality proves a valuable construct from which to get down this trade name constructing thought as every administration, merely like every person, has an individuality. This individuality is alone and can take to a competitory advantage ( Westcott Allesandri, 2001 ; Baker & A ; Balmer, 1997 ; Marwick & A ; Fill, 1997 ; van Riel & A ; Balmer 1997 ) . Models of corporate individuality vary somewhat in respects to the elements which constitute the construct but by and large are considered to be ; civilization, symbolism, and communicating ( Birkigt and Stadler ‘s, 1986 as cited in He and Balmer 2007 ) There has been limited research done on the relevancy of corporate stigmatization to start-ups and even less as it related to corporate individuality. The bulk of literature has focused on the function of the enterpriser as an influence on the corporate trade name. For start-ups the creative activity of a corporate trade name is non a precedence, but its ability in developing a competitory advantage and therefore increasing the opportunities of endurance, can non be ignored. The challenge is to equilibrate brand-building against the resource restraints faced by start-ups. Corporate individuality provides an chance by which these obstructions can be minimised and the foundation upon which a corporate trade name built can be laid.

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Research Question:

How does a start-up company leverage the construct of corporate individuality to construct a trade name within the resource restraints built-in to its nature?

In the academic context, the research will add new penetrations to the construct of corporate stigmatization through researching the construct in context to concern to concern service administrations and besides start-ups, literature in the context of the research is really limited. It will besides farther exemplify the nexus between corporate individuality and corporate stigmatization.

In the industrial context, the conceptual theoretical account will supply a strategic apprehension of the possible application of corporate individuality at the early phase of organizational development and how it can be used as a strategic tool for constructing a trade name.

Literature reappraisal

First the construct of corporate individuality is defined and explained. Second, its strategic importance is described followed by its relevancy to the specific research context, branding in start-up administrations. Literature associating to branding in service and concern to concern ( B2B ) administrations will besides be outlined as it is relevant to the market sectors the instance survey company under research operates within.

A corporate trade name has the same aims as merchandise stigmatization but is applied to the administration as a whole. The added value created is applicable to all of its goods and services as opposed to an single point and supply stakeholders a warrant of quality, organizational stableness and a warrant of public presentation, it creates a compact between stakeholders and an administration, a promise ( Balmer and Gray, 2003 ) . The construct of corporate trade names is of peculiar involvement to B2B administrations as there is normally an array of merchandises that are sold and the corporate trade name is the best agencies for pass oning with clients and stakeholders ( Beverland et al, 2007 ) . Corporate trade names give the feeling that they are inseparable from corporate individuality as both are considered to be “ administration centred ” , intending elements of forces and civilization personify their nucleus subjects ( Leitch and Richardson, 2003 ) . The of import nexus between the two constructs is that should an administration choose to construct a corporate trade name so there must be alignment between what the company say they are, ( corporate individuality ) , and what they promise to be ( corporate trade name ) . The nexus between corporate individuality and corporate trade name is through the corporate image. The image of the administration is created through communicating of its corporate individuality and will be the footing upon which a corporate trade name is built ( Rode and Vallaster, 2005 ) . Corporate Identity was originally contrived by Walter Margulies in 1978 which spoke to corporate design purely in a graphical design context, dwelling of company logo, company names and other symbols that identified the administration. Olins ( 1978 ) broaden the apprehension of corporate individuality from its ocular individuality origins to the strategic tool it is today, which can project who you are, what you do and how you do it to the external and internal stakeholders. Today, the “ Strathclyde Statement is defined as the all across-the-board definition of corporate individuality and it was developed by the International Corporate Identity Group. It is used by practicians and faculty members as a definition of corporate individuality which articulates the multidisciplinary nature of the country and its difference from trade name direction ( van Riel and Blamer, 1997 ) , It besides points out that corporate individuality is a resource for corporate stigmatization and is an chance for administrations to distinguish themselves in the market place ( Balmer, 2001 ) For the intent of this research paper we will concentrate on the corporate individuality from the angle of the the corporate selling mix attack which is said to be influenced by the selling subject and aims to “ place the constituents that fuse together to represent an entity ‘s individuality ” Balmer and Greyser ( 2007, p.34 ) . The strategic value of the corporate individuality is achieved through the successful direction of its elements, civilization, symbolism and communicating. Corporate individuality direction reflects the doctrine of the administration through the elements of the corporate individuality mix ( Marwick and Fill,1997 ) . The communicating of the administration ‘s civilization through symbolism can make a favorable corporate image which over clip will make a favorable corporate repute ( Westcott Alessandri, 2001 ) . Branding in concern to concern markets, although holding similarities to consumer markets, besides has several differences. Branding has traditionally been thought of as redundant due to the belief that purchasers are more rational than consumers, and hence less likely to be influenced by emotional variables in the purchasing determination of merchandises. Mudambi ( 2002 ) clarified this state of affairs demoing that purchasers in B2B markets can be influenced by trade names. Her survey identified three bunchs of purchasers, extremely touchable houses were the first bunch and they made up 49 per cent of the houses investigated – where touchable facets such as monetary value and physical merchandises are more of import than intangibles – Branding receptive house bunch, stand foring 37 per cent and the concluding bunch were identified as being low involvement houses who could be influenced through trade name communicating which increases client perceptual experiences of the importance of the purchase determination ( de Chernatony & A ; McDonald, 2003 p.201 ) . Mudambi ( 2001 ) made it clear that branding does hold a topographic point in B2B selling and although the determination doing procedure was chiefly rational there are emotional influences that can consequence the concluding determination. There are several difference between SME ‘s and big house selling. These indicate that SME ‘s focal point on short-run non long-run ends and are centred around action non planning, and there is an overall matter-of-fact and intuitive attack to selling ( Moriarty et al, 2008 ) . The selling procedure chiefly depends on word of oral cavity and usage of personal, societal and concern webs for information assemblage, thought testing and advice ( Hill and Wright, 2001 ) . Wong & A ; Merrilees ( 2005 ) argue that whether a company tries to or non a trade name will be created in the consumers mind and therefore, a company should hold an input into this procedure to guarantee the highest opportunity of a positive trade name being achieved. Culture has been defined as the “ gum ” which holds the administrations together ( Dowling 1993 as cited in Hatch and Schultz, 2002 ) . Harmonizing to the organizational behavioral school of idea, this point of view is said to be excessively straightforward by Hatch and Schultz ( 1997 ) who expanded the definition of civilization to intend the realization and reading of cardinal thoughts of the administration by its members. Symbolism originates from corporate ocular individuality and was one time equated with administration individuality ( van Riel & A ; Balmer, 1997 ) . Historically, many corporate individuality practicians had their roots in in writing design and its nucleus intent was to supply visibleness of the company. Now its function is in pass oning corporate scheme ( van Riel & A ; Balmer, 1997 ) by distinguishing the company through the usage of symbols to the populace. Ccommunication interacts with both behaviors and symbolism. There is communicating within the administration and there is communicating to the populace and to stakeholders through ocular individuality. Corporate communicating translates a corporate individuality into corporate image or corporate repute ( Dowling, 2001 as cited in Otubanjo & A ; Melawar, 2007 ) . Management Communication- Primarily internally focused and involves troughs of all degree pass oning with employees. This is to accomplish integrity of vision, making or keeping trust, pull offing a alteration within an administration and actuating employees ( Pincus, 1991 as cited in Melewar et al 2006 ) .

Marketing Communication – This is concentrated externally and involves pass oning with clients and possible clients, its focal point is in bring forthing gross revenues ( Van Riel, 1995, p.10 as cited in Melewar et al 2006 ) .

Organizational Communication – Is the messages that are conveyed to all stakeholders and the general populace from the administration as a whole. It is rooted in public dealingss but now maps to include many facets and is structured to talk to specific mark groups ( Melewar et al 2006 ) .

Balmer and Gray ( 1999 ) extended this theoretical account by presenting entire corporate communicating which consisted of ;

Primary communicating this is achieved through direct contact with company staff, merchandises, direction, etc.

Secondary communicating which consists of all planned and controlled communicating, this includes van Riel ‘s three classs above.

Third communicating, these being the uncontrolled communications which are a consequence of media describing, involvement groups and so on.

The above classifications of corporate communicating highlight that it is of strategic value to cognize who you are pass oning with, how you communicate with them and guarantee a consistence in the communicating message.

The literature on webs associating to start-ups is limited. An article by Premaratne ( 2001 ) illustrates three types of histrions in entrepreneurial webs, societal, back uping and inter-firm webs. Social webs are personal friends, household or familiarities, back uping webs are bureaus like moneymans, authorities and non-government bureaus, and inter-firm webs include other agreements in which two or more independent administrations cooperate to execute concern activities. Networking has the benefits of sharing costs, increasing proficient transportations and information sharing, this beneficially impacts an SME ‘s ability to surpass stronger competitions, provides easy entry into new markets and entree to extra resources ( BarNir and Smith, 2002 ) .

We have outlined the literature as it relates to the corporate individuality mix and stigmatization relevant to the current research. Corporate individuality can supply a path for making competitory advantage through the successful direction of civilization, symbolism and communicating. Literature in the service and B2B sectors indicate that corporate stigmatization is good chiefly because it increases the tangibleness of service merchandises and prevents B2B merchandises going trade goods.

Methodology

The research doctrine adopted is phenomenology. Phenomenology is the scientific discipline of phenomena and is concerned with understanding human behavior from the participants ain frame of mention ( Collis & A ; Hussey, 2003, p. 53 ) As the research aim is researching a comparatively developing field, branding in start-ups, it seems appropriate to follow a method of theory coevals ( Rode and Vallester, 2005 ) . The primary informations aggregation will dwell of in-depth interviews, observation of the administration and documental analysis. Secondary information aggregation will chiefly dwell of documental informations including written stuffs such as journal articles, books and company web site.

An interpretivism/social constructionism doctrine will be adopted as the research is of an explorative nature whereby the research worker will be detecting the manner in which the administration behaves, communicates and positions itself in order to achieve the research purpose This multi-method attack, where different methods of informations is collected, has the added benefit of utilizing triangulation to verify that the information is supplying a ‘true province of personal businesss by analyzing where the different informations intersect ” ( Silverman, 2005, p. 121 ) . The “ start-up ” commenced operations in January 2008 and is a Joint Venture with an established investing bank, here on known as ( EIB ) . There are presently 13 people working with the company, six of them being portion of the founding squad. They combine the construct of installation direction with funding of nucleus and non-core assets of administrations and supply an integrating service between the two services. Unlike many consultancy houses the “ start-up ” will spouse with the client through the execution procedure as opposed to go forthing them with a study of what to make, they aim to go a sure long term concern spouse with their clients. The methods available for the analysis of qualitative research include analytic initiation, grounded theory, discourse analysis and narrative analysis Saunders et Al ( 2007, p.492 ) . Analytic initiation may non be suited for my research as it requires a figure of instance surveies which can be examined to find a specific result, this research is merely looking at one administration and discourse analysis is best suited to research that uses a subjectivist ontologist ( Saunders et Al, 2007, p.502 ) design.

Grounded Theory is defined as “ the theory that was derived from informations consistently gathered and analysed through the research procedure. In this method, informations aggregation, analysis and eventual theory base in close relationship to one another ” ( Strauss and Corbin 1998, p. 12 as cited in Bryman and Bell 2007, p. 585 ) . Grounded Analysis allows texts that have been gathered as a consequence of interviews or as company studies to be analysed through cryptography and placing subjects and classs. The construction is derived from the informations as opposed to being imposed upon the informations ( Easterby-Smith et Al, 2008 ) .