Publication detail

Brand Image Developed in Co-creation Concept on the Level of Product and Corporate Competition

MRÁČEK, P. VESELÁ, J. ZICH, R.

Original Title

Brand Image Developed in Co-creation Concept on the Level of Product and Corporate Competition

Czech Title

Vývoj image značky za použití konceptu ko-kreace na úrovni produktové a korporátní konkurence.

English Title

Brand Image Developed in Co-creation Concept on the Level of Product and Corporate Competition

Type

conference paper

Language

en

Original Abstract

Practically anywise interpreted image creates an important alternative for the competitive advantage development from the point of competitive struggle. A general agreement in the issue of its importance - quite surprisingly - does not provide any unambiguous direction for the understanding of essential links. These can be seen namely in three levels. The first one is the image itself, the second one is represented by the character of competition and the third one is then the method of image development. Generally, three levels of image can be distinguished, i.e. class image, product image (resp. brand image) and corporate (company) image. Provided that any company focuses on the development and introduction of corporate brands, these should comply with the overall image of such company, and such a process must be the part of corporate strategy. Such perception of the term "image" certainly demands corresponding understanding of the competition. Especially as regards the element of corporate and product image the approach, distinguishing competition in the level of companies and products, can be identified as contributive. A basic process of the interproduct competition includes individual customers making their purchase decision among competing products. Should a pre-requisite be valid that customers primarily do not make decision among products, but among various files of characteristics, associated with these products, then product image must be included in these characteristics as well. Nevertheless, should we broaden the understanding of competition with intercompany competition, e.g. in the context of understanding of the competition as a complex rivalry among various business eco-systems, we must involve also other levels of image, minimally corporate image. All three above identified types of image are closely interconnected, and in practice they cannot be considered separately. A support to such contention can be also found in the works of Porter. Though he stresses that crucial is the competition in the level of business units, thus placing stress rather to the area of products, at the same time he highlights considerable support to the corporate strategy, which corporate strategy should give just to the business units. The complexity of the whole issue is deepened by growing stress on the approaches involving customers in the value formation. Prahalad and Ramaswamy in this context find the future trend of competitive activities in a new approach to the value formation, the basis of which is the co-creation of the value in cooperation of consumers and companies, with a particular individual in the centre. The image, as a fundamental component of the product, is undoubtedly an important part of such co-creation. However, such approach demands more detail research of the natural relations of mutual influence of the development of image in the concept of co-creation in the various levels of competition. The paper delimitates possible view on these links on the basis of research in the automobile industry sector.

Czech abstract

Prakticky jakkoli pojímaná image představuje z hlediska konkurenčního boje významnou alternativu rozvoje konkurenční výhody. Všeobecná shoda v otázce jejího významu překvapivě nedává jednoznačný směr pro chápání zásadních souvislostí. Ty lze spatřovat zejména ve třech rovinách. První z nich je vlastní image, druhou představuje charakter konkurence a třetí pak způsob rozvoje image. Obecně lze rozlišit tři úrovně image a to druhovou image, produktovou image, respektive image značky a firemní (podnikovou) image. Pokud se firma zaměří na vývoj a uvádění korporátních značek, je nezbytné, aby tyto byly v souladu s celkovou image společnosti, a tento proces musí být jednoznačně součástí podnikové strategie. Toto vnímaní pojmu image jednoznačně vyžaduje odpovídající pojetí konkurence. Zejména s ohledem na prvek korporátní a produktové image lze za přínosný označit přístup odlišující konkurenci na úrovni firem a produktů. Klein zde zdůrazňuje, že firma může soutěžit s firmou a produkt s produktem, nicméně otázka, kde je vlastně primární těžiště konkurence, nabízí dvě možné odpovědi. První přístup považuje mezifiremní konkurenci za primární a soutěž mezi produkty je pak jejím derivátem. Druhá možná perspektiva naopak soutěžení mezi produkty chápe jako primární a soutěž mezi firmami je pak jakýmsi agregátním efektem. Toto v zásadě jednoduché odlišení s sebou ale přináší další podstatný problém pochopení rozdílného mechanismu konkurence mezi firmami a v konkurenci mezi produkty. Klein tvrdí, že není nejmenší důvod předpokládat, že by byl stejný. Základní proces meziproduktové konkurence zahrnuje individuální zákazníky rozhodující se při nákupu mezi konkurenčními produkty. Platí-li předpoklad, že zákazníci se primárně nerozhodují mezi produkty, ale mezi rozdílnými souhrny charakteristik, které jsou s těmito produkty spojeny, je nutné zahrnout do těchto charakteristik i image produktu. Pokud ovšem rozšíříme chápaní konkurence o mezifiremní soupeření, například v kontextu chápání konkurence jako komplexní rivality mezi rozmanitými podnikatelskými ekosystémy, je nutné pracovat i dalšími úrovněmi image, přinejmenším tedy s image firmy. Všechny tři výše zmiňované druhy image ostatně pojí velice úzký vztah a v praxi je nemožné o nich uvažovat odděleně. Pro tato tvrzeni lze nalézt oporu i u Portera. Ten sice zdůrazňuje, že stěžejní je konkurence na úrovni obchodních jednotek, což evokuje spíše důraz na oblast produktů, ale současně vyzdvihuje nutnou podporu firemní strategie, kterou by měla dávat právě obchodním jednotkám. Z toho vyplývá, že je reálně možné spojovat rozvoj více úrovní image v okamžiku, kdy se firma cíleně snaží prosadit v rámci více úrovní konkurence. Komplexnost celého problému prohlubuje rostoucí důraz na přístupy zapojující zákazníka do tvorby hodnoty. Prahalad a Ramaswamy (2005) v tomto kontextu shledávají budoucnost konkurenčních činností v novém přístupu k vytváření hodnoty, jehož základem je spoluvytváření hodnoty v součinnosti spotřebitelů a firem, jehož středem je konkrétní jedinec. Image, jako významná součást produktu, je bezpochyby důležitou součástí této spolutvorby. Tento přístup ovšem vyžaduje podrobnější zkoumání zákonitostí vzájemného ovlivňování rozvoje image v koncepci spolutvorby na různých úrovních konkurence. Příspěvek vymezuje možný pohled na tuto provázanost na základě výzkumu v oblasti automobilového průmyslu.

English abstract

Practically anywise interpreted image creates an important alternative for the competitive advantage development from the point of competitive struggle. A general agreement in the issue of its importance - quite surprisingly - does not provide any unambiguous direction for the understanding of essential links. These can be seen namely in three levels. The first one is the image itself, the second one is represented by the character of competition and the third one is then the method of image development. Generally, three levels of image can be distinguished, i.e. class image, product image (resp. brand image) and corporate (company) image. Provided that any company focuses on the development and introduction of corporate brands, these should comply with the overall image of such company, and such a process must be the part of corporate strategy. Such perception of the term "image" certainly demands corresponding understanding of the competition. Especially as regards the element of corporate and product image the approach, distinguishing competition in the level of companies and products, can be identified as contributive. A basic process of the interproduct competition includes individual customers making their purchase decision among competing products. Should a pre-requisite be valid that customers primarily do not make decision among products, but among various files of characteristics, associated with these products, then product image must be included in these characteristics as well. Nevertheless, should we broaden the understanding of competition with intercompany competition, e.g. in the context of understanding of the competition as a complex rivalry among various business eco-systems, we must involve also other levels of image, minimally corporate image. All three above identified types of image are closely interconnected, and in practice they cannot be considered separately. A support to such contention can be also found in the works of Porter. Though he stresses that crucial is the competition in the level of business units, thus placing stress rather to the area of products, at the same time he highlights considerable support to the corporate strategy, which corporate strategy should give just to the business units. The complexity of the whole issue is deepened by growing stress on the approaches involving customers in the value formation. Prahalad and Ramaswamy in this context find the future trend of competitive activities in a new approach to the value formation, the basis of which is the co-creation of the value in cooperation of consumers and companies, with a particular individual in the centre. The image, as a fundamental component of the product, is undoubtedly an important part of such co-creation. However, such approach demands more detail research of the natural relations of mutual influence of the development of image in the concept of co-creation in the various levels of competition. The paper delimitates possible view on these links on the basis of research in the automobile industry sector.

Keywords

Brand image, competition, corporate, product, co-creation concept.

RIV year

2012

Released

20.09.2012

Publisher

Brno University of Technology

Location

Brno

ISBN

978-80-214-4581-9

Book

Trends in Economics and Management for the 21st Century

Pages from

114

Pages to

127

Pages count

209

BibTex


@inproceedings{BUT94535,
  author="Pavel {Mráček} and Jitka {Veselá} and Robert {Zich}",
  title="Brand Image Developed in Co-creation Concept on the Level of Product and Corporate Competition",
  annote="Practically anywise interpreted image creates an important alternative for the competitive advantage development from the point of competitive struggle. A general agreement in the issue of its importance - quite surprisingly - does not provide any unambiguous direction for the understanding of essential links. These can be seen namely in three levels. The first one is the image itself, the second one is represented by the character of competition and the third one is then the method of image development. Generally, three levels of image can be distinguished, i.e. class image, product image (resp. brand image) and corporate (company) image. Provided that any company focuses on the development and introduction of corporate brands, these should comply with the overall image of such company, and such a process must be the part of corporate strategy. Such perception of the term "image" certainly demands corresponding understanding of the competition. Especially as regards the element of corporate and product image the approach, distinguishing competition in the level of companies and products, can be identified as contributive. A basic process of the interproduct competition includes individual customers making their purchase decision among competing products. Should a pre-requisite be valid that customers primarily do not make decision among products, but among various files of characteristics, associated with these products, then product image must be included in these characteristics as well. Nevertheless, should we broaden the understanding of competition with intercompany competition, e.g. in the context of understanding of the competition as a complex rivalry among various business eco-systems, we must involve also other levels of image, minimally corporate image. All three above identified types of image are closely interconnected, and in practice they cannot be considered separately. A support to such contention can be also found in the works of Porter. Though he stresses that crucial is the competition in the level of business units, thus placing stress rather to the area of products, at the same time he highlights considerable support to the corporate strategy, which corporate strategy should give just to the business units. The complexity of the whole issue is deepened by growing stress on the approaches involving customers in the value formation. Prahalad and Ramaswamy in this context find the future trend of competitive activities in a new approach to the value formation, the basis of which is the co-creation of the value in cooperation of consumers and companies, with a particular individual in the centre. The image, as a fundamental component of the product, is undoubtedly an important part of such co-creation. However, such approach demands more detail research of the natural relations of mutual influence of the development of image in the concept of co-creation in the various levels of competition. The paper delimitates possible view on these links on the basis of research in the automobile industry sector.",
  address="Brno University of Technology",
  booktitle="Trends in Economics and Management for the 21st Century",
  chapter="94535",
  howpublished="print",
  institution="Brno University of Technology",
  year="2012",
  month="september",
  pages="114--127",
  publisher="Brno University of Technology",
  type="conference paper"
}