Effectiveness Of Marketing Strategies And Corporate Image .

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ijcrb.webs.comJUNE 2012INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESSVOL 4, NO 2Effectiveness of Marketing Strategies and Corporate Image onBrand Equity as a Sustainable Competitive AdvantageAlireza AminiPh.D. Student of OBM2, Ferdowsi University of MashhadMahdi DaraniSenior Student of Business Management in Tehran University- Qom CollegeMinoo AfshaniSenior Student of Business Management in Ferdowsi University of MashhadZahra AminiGraduate of Accounting in Alzahra University of TehranAbstractHaving favorite corporate image and powerful brand equity build a strategic position inmarket for corporations. This position plays vital role of sustainable advantage. Therefore, wefocus on the impacts of marketing strategies such as channel performance, value-orientedprice, promotion, and after-sales service on brand equity directly and by corporate imageindirectly. The explored results of Chi-square test analysis show that all the marketing-mixefforts positively affect the overall value of brand equity, which is a proxy of marketperformance, via the three dimensions of brand equity. Corporate image mediates the effectof the marketing-mix efforts on the three dimensions of brand equity.Keywords: Marketing Mix, Corporate Image, Brand Equity, Competitive AdvantageIntroductionBrand equity is a valuable intangible asset for many successful companies in marketplacecompetition (Voleti, 2008).The brand equity generates a type of added value for productswhich help companies' long term interests and capabilities (Chen, 2008).Establishing strong brand is a strategic priority for many companies since general beliefsindicate that powerful brands can be a strength point and a competitive advantage forcompanies in their target markets. Therefore, brand distinguishes product from a similar oneand penetrates into the way of consumers' perception and cognition. When brand Elementsare ideal in consumers' minds, brand equity is deemed positive and it is considered asnegative if it is not ideal in their minds (Amini, 2010) This competitive advantage is seen inthe format of product ideal price, increasing the productivity of marketing strategies,increasing profit margin and cash flow, rising in demand and customers' satisfaction,facilitating brand expansion, bargaining power, less risk-taking than rivals(Bekhradi, 2009),entry-barriers, and retaining customers, reducing customers' gaining costs and valuegeneration for shareholders (Laboy, 2005). As brand strength increases, industrial buyersbecome more likely to repurchase and pay a price premium (Bendixenetal., 2004; Roberts &Merrilees, 2007; Taylor & et.al, 2007). Higher brand reputation would lead to more assuranceof the Industrial product quality (Cretu & Brodie, 2007).2Organizational Behavior ManagementCOPY RIGHT 2012 Institute of Interdisciplinary Business Research192

ijcrb.webs.comJUNE 2012INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESSVOL 4, NO 2Borghini and Cova (2006) explain that Brand equity is a basis for sellers' cultivatingrelationships with buyers. Webster and Keller (2004) also explain that sellers with higherbrand equity are more likely to develop and maintain their relationships with buyers. A strongbrand helps sellers to reinforce their control over the relational exchange with buyers. Forexample, Intel successfully launched the “Intel Inside” campaign, which brought Intel moreof such control. In sum, brand equity is instrumental to making the buyer–seller relationshipstronger, and in turn, this stronger relationship leads to the higher brand equity (Kim & Hyun,2011).When the brand equity of a product is high enough, target buyers behave positivelytowards the product. For example, they pay more for the product, purchase it repeatedly, andengage in favorable word-of-mouth behaviors, and so on. In this respect, a firm can enhanceits competitive position and increase financial performance by making its brand stronger(Keller, 2008).Beside of Brand equity, marketing mix concept determines organization performance path byusing controllable variables in where it has many uncontrollable factors (e.g., market) (darani,2010; Jandaghi & et.al, 2011b, p.5). Costumer purchase persuasion can be stimulant orsynthetic of under control or out of control stimulants (Agrawal & Schmidt, 2003, p.34).Costumers’ loyalty is the result of strategic and favorites marketing activities as well as theenvironmental impacts and marketing affairs potentially lead to alter costumer behavior(Taylor, 2004, p.218). This loyalty, on one hand, causes to repurchase that expands theproduct market share, and on the other hand, provides situations that lead to higher pricingbrand (Chaudhuri & Holbrook, 2001, p.92). Brand equity and marketing strategy have mutualrelationship. As jandaghi & et.al (2011a) and Seyyed Javadein & et.al (2011) imply thatBrand equity has a considerable importance in marketing strategy and it has vital role inattracting, retaining, and supporting customer. Brand equity has strategic role and importancein gaining competitive advantage and corporations strategic management decisions.Corporate image also is an intuitively appealing concept. A favorable image can boost salesthrough increased customer satisfaction and loyalty. Many firms now realize the importanceof actively attracting and retaining highly skilled, quality employees as a necessarycomponent of their competitive advantage (Kim & et.al, p.1207).Home appliance and Video & Audio Products market is, inter alia, a market where brandequities and corporate image are highly important and customers' decisions are too sensitivein such market since, in one hand, home appliance is considered as sustainable goods andconsumer wants to use for several years and, on the other hand, consumer should pay arelative high price. Thus, he/she tries to evaluate the options carefully to achieve the highestideality. The brand equity is a tool which helps consumer in such situations (Amini, 2010).Then, in order to direct this subject, we pay to assay effectiveness of marketing strategies inframework of mix marketing in direct to create positive corporate image and powerful brandequity in order to obtain sustainable position and competitive advantage in market andincrease their productivity of performance.Research theoretical framework and Conceptual Model1. Sustainable competitive advantage (SCA)Because of the importance of SCA to the long-term success of firms, a body of literatureaddresses its content as well as its sources and the different types of strategies that may helpcompanies to achieve SCA (Kim, 1999). a firm has a sustained competitive advantage when afirm is implementing a unique value creating strategy which any current or potentialcompetitors do not implement simultaneously and when these other firms are unable toduplicate the benefits of this strategy. In clear phase, sustainable competitive advantage is theCOPY RIGHT 2012 Institute of Interdisciplinary Business Research193

ijcrb.webs.comJUNE 2012INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESSVOL 4, NO 2long-term benefit of implementing some unique value creating strategy which any current orpotential competitors do not implement simultaneously, along with the inability to duplicatethe benefits of this strategy (Kim & et.al, 2011, p.1207). If companies want to obtainsustainable competitive advantages, they can implement strategies that exploit their internalstrengths and external opportunities and avoid their external threats and internal weaknesses(Chen & et.al, 2009). Having SCA is the most important value for companies. One of thefactors that make SCA is Brand and corporate image. The creation and maintenance ofbrands are becoming more important in today’s intensely competitive environment. Investingin branding activities creates brand equity (Seetharaman & et.al, 2001, p.245).2. Brand EquityBrand equity can be regarded as a managerial concept, as a financial intangible asset, as arelationship concept or as a customer-based concept from the perspective of the individualconsumer (Tuominen, 1999, p.73). In marketing literature, brand equity is being operationalin two manners: those who have considered consumer's perceptions such attitude on brand,brand awareness, brand association, and conceived quality; and those who have addressedconsumer's behaviors such as loyalty to brand, extra payment, etc. Both methods calculatebrand equity via consumer's perspective (Bahreinizadeh, 2006; rahmanseresht &Bahreinizadeh, 2006).Equity exists when the customers are aware of the brand, loyal to the brand and perceive thebrand as having quality. Awareness, loyalty, and quality perception are three maincomponents of a successful brand (Seetharaman & et.al, 2001, p.245). Aaker (2006)expresses that there are three dimensions of brand equity included brand awareness withassociations (brand awareness and brand association), perceived quality, and brand loyalty asshown in figure 1.Brand equity makes value for both customer and firm. Brand equity creates value forcustomer by increasing process of efficiency information, making sure in decision-making,reinforcing purchase, and contributing to self-respect and trust. In addition, for a firm, brandequity creates loyalty to brand, improvement of benefit margin, obtaining influence leverbetween retailers, and accessing to difference competitive advantage in rivalry field (Amini,2010, p.46). According to Yoo & et.al (2000), the overall value of brand equity is adopted asa proxy of market performance. In an overall view, brand equity is defined in terms of themarketing effects uniquely attributable to the brand. That is, Brand equity relates to the factthat different outcomes result from the marketing of a product or service because of its brandelement, as compared to outcomes if that same product or service did not have hat brandidentification (Tuominen, 1999, p.72).One reason for studing brand equity arises from a strategy- oriented incentive in order toprovide marketing productivity. Having more values, larger rivalry, and immense demand inmost markets, has been able to increase efficiency of marketing expenses. Therefore,marketers need to take consumers behaviors as a base for making better strategy decisionabout target market and positioning. In order to obtain productivity in marketing, perhaps oneof the most precious assets of one corporation is knowledge and awareness of brand that wasmade in consumer mind about investiture in corporation obvious marketing plans (Amini,2010, p.45).3. Marketing StrategiesMarketing strategy is the overriding principle a firm uses to organize and allocate itsresources to generate profit from customers that are, in the aggregate, part of the market, withCOPY RIGHT 2012 Institute of Interdisciplinary Business Research194

ijcrb.webs.comJUNE 2012INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESSVOL 4, NO 2reasonably clear parameters concerning its size and components (Kim, 2004). Aaker (2009)notes that marketing strategy can involve a variety of functional area strategies includingpositioning, pricing, distribution, and global strategies. Successful marketing strategy needsSCA in its planning and implementation. Marketing mix concept determines organizationperformance path by using controllable variables in where it has many uncontrollable factors(e.g., market) (darani, 2010, p.5). Costumer purchase persuasion can be stimulant or syntheticof under control or out of control stimulants (Agrawal & Schmidt, 2003, p.34). Costumers’loyalty is the result of strategic and favorites marketing activities as well as the environmentalimpacts and marketing affairs potentially lead to alter costumer behavior (Taylor, 2004,p.218). This loyalty, on one hand, causes to repurchase that expands the product marketshare, and on the other hand, provides situations that lead to higher pricing brand (Chaudhuri& Holbrook, 2001, p.92).It is essential to mention that every one of the marketing mix elements is potential source forcompetitive advantages as it may be needed different combination of them in dissimilarsituation of market. For example, price will be important for prospering in some market. Inother some, distribution may be important and in some cases, reputation and reliability can bethe best base for competition. Marketer duty is to observe costumer and competitor anddevelop mix or synthetic of activities which both they have competitive advantages and theypresume quite utilization from organizational capabilities (Jandaghi, 2011b, p.4).Economic and generative managers must be sensitive toward these elements and consider toeach one that cause to increase or decrease production, degrade or upgrade product quality,decelerate and accelerate distribution, increase or decrease price, stop or grow sale and loseor gain brand validity (Jandaghi, 2011b, p.5).4. Corporate ImageCorporate image is a valuable asset that companies need to manage (Abratt & Mofokeng,2001). A favorable image can boost a firm's sales through increased customer satisfaction andloyalty, as well as attract both investors and future employees. It weakens the negativeinfluence of competitors, enabling organizations to achieve higher levels of profit (Kim &et.al, 2011, p.1208).Corporate image can be defined as a particular type of feedback from those in a given marketregarding the credibility of the identity claims that the organization makes (Cretu & Brodie,2007).Corporate brands serve as a powerful navigational tool for a variety of stakeholders rangingfrom investors and employees to consumers (Bridson & Mavondo, 2011, p.190). In today’scompetitive environment, many companies need to project a strong and positive reputation totheir stakeholders, namely the employees, consumers, investors and the public. Companiesmust try to project an image that is stable yet exciting, aggressive, yet public-oriented,diversified yet focused on som