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management of long-term relationships with lead users and communities of customers. In this case, users are not only a source of technical and functional feedbacks on products and services, but may effectively participate in the
sensemaking process. Conclusions and future research: the need for new capabilities
From a theoretical point of view, the paper aims at contributing to the debate on soft innovation by emphasizing the crucial role of brand in it. We posit that two relevant dimensions
– meanings and relations – represent crucial drivers of non-technical innovation and that the firm has to carefully develop appropriate strategy to manage them. Specifically,
the firm can approach brand strategy and management in order to support the creation and spread of distinctive meanings as well as to establish profitable relations with customers that help the firm nurturing and enriching such
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Table 1 – The case studies
analyzed Company name Bisazza
Dainese Industry and products
Leading company in the glass mosaic and gold leaf decoration
market Leading company in the design and production
of protection systems for the sports Brand
Bisazza Dainese
Headquarter Alte Vicenza
Molvena Vicenza Age Year of foundation
1956 1972
Size turnover, employees 100 Ml € 1096 employees
105 Ml € 250 employees Productive sites
3 factories Italy, India 2 factories in Tunisia
Commercial networks 12 flagship stores 16 commercial
branches and 6,000 points of sales 90 flagship franchisees and 20 direct points of
sale all over the world Source: authors‘ elaboration
Table 2 –Bisazza and Dainese:
some important elements of the brand strategy as a driver of sense-
based innovation. Bisazza
Dainese
Meaning development New product meaning: furnishing
applications as fashion from functionality to experience
Focus on design and art to create meaning luxury products and
develop brand identity New product meaning: ―protection‖ from head-
to-toe Investments to legitimate Dainese as a point of reference for biker communities in the
―protection‖ domain Relationship management
Involvement of opinion leaders specialized journalists and interior
designers to support sense sharing and promotion Investment on
internal and external designers network Bisazza Design Studio to
develop and sustain meaning creation
Co-creation processes with customers bikers both at the functional technical and non-
technical level: to beta test, to produce and distribute user-generated content D-
club Collaboration with research centers, universities and designers for protection,
ergonomics and style protection + fashion
Source: authors‘ elaboration
186
Session 7.3 A Framework for Public Sector Branding
Ramesh Venkat, Saint Mary‘s University, Canada A Strategic Investigation into the Notion of Corporate Identity in the Non-profit Sector:
a Case Study of Greenpeace Switzerland T C Melewar, Brunel University, U.K.
Armin Ledergerber, Zurich University of Applied Sciences, Switzerland The Role of Strong Organisational Identity to Cope Current Changes and Challenges of Regulations on Early
Childhood Industry in Australia Sene Gide, University of Sydney, Australia
Brand Hypocrisy Sanne Frandsen, Copenhagen Business School, Denmark
187
A Framework for Public Sector Branding
Ramesh Venkat, Saint Mary‘s University, Canada
Introduction Governments at all levels worldwide are faced with the challenge of improving effectiveness, having to deliver more
services under resource constraints and satisfying citizens have greater expectations based on their experience in the private sector Jordon, 2005; Martin 2010; Zampetakis Moustakis, 2007. Greater responsiveness to citizen needs and
accountability are at the heart of many public sector and governmental reforms Aucoin Davis, 2005; Pollit Bouckaert, 2000; Thomas, 2007; Thompson, 1993.
As public sector organisations look to improve their performance and effectiveness they have turned to the marketing concept Kotler Lee, 2007; Whalen et al., 2010. We see evidence of marketing orientation in public sector
organisations that have a trading or business orientation such as postal services, state or provincial liquor commissions and national airlines e.g., Graham, 1995; Daniels, 2007. Yet, most public sector organizations lack formal marketing
planning processes as well as a focus on client needs when developing or delivering services CEPM, 2006. The American Customer Satisfaction Index rating for public sector in 2009 was about 68.7, whereas across all sectors the
national index stood at approximately 76 see
www.theacsi.org , which suggests that public sector organisations have a
long way to go in their pursuit of customer and market orientation. Based on a review of relevant literature and a case study, this paper proposes a general framework for public sector
branding. It is hoped this will assist public sector organisations as well as trigger scholarly interest in this topic.
Significance of Brand Building The Context
The public sector context is quite different from the private sector, as outlined in Table 1. Given their monopoly, establishing the need for customer orientation or brand building can be a hard sell. Traditional definitions of brand
such as the AMA definition, which focuses on visual elements and differentiation from competition make little sense to public sector executives. It is, therefore, proposed that the brand be defined as the
consumer‘s or citizen‘s perception of the overall reputation of the organization
. Everything that the organization does – how well it meets the needs of its
customers, how well it treats its clients and the overall experience it provides – will determine this perception.
The view of brand as salience has been instrumental in establishing many of today‘s leading consumer brands, especially low-
involvement brands Miller Berry, 1998; Romaniuk Sharp, 2004. ―Brand as image‖ perspective holds that consumers gravitate to brands that match their current or aspirational self-image Aaker, 1996; Miller
Berry, 1998; Kuksov, 2007. This works for higher involvement products. A third perspective is that brand is nothing but reputation of the product or the firm e.g., Chong, 2007; Milewicz Herbig, 1994.
―Brand as a reputation‖ will require every part of the organization working together to deliver customer experience that is consistent with the brand promise. This will require an organization-wide effort, unlike the salience view which is
largely communications driven. Salience and image building as the basis for brand building makes little sense in public sector, where competition and the need to differentiate do not exist. The three perspectives on brand are compared in
Table 2. Role of Brand in Public Sector
If differentiation or influencing choice is not the reason for building a brand, why should public sector organisations engage in brand building?
Criticism Regarding Accountability . Public sector organizations in many countries are undergoing changes to become
more accountable e.g., Aucoin Davis, 2005; Jordon, 2005; OECD, 2002. They are also attempting to become more customer or citizen-centric Chen, Yu Chang, 2005; Whalen et al., 2010. The criticism faced by governmental
agencies for being uncaring and wasteful is now leading them to be concerned with reputation management. A focus on brand can provide these organisations a process for managing reputation with key stakeholders.
Threat of Privatization . Many public sector organisations in domains such as utilities, telecommunications, postal
services, health care, among others, have been privatized or face the threat of privatization. Organisations that lack customer orientation and a coherent brand strategy will be ill-prepared for such a scenario. Forward looking public
sector organisations can use potential privatization as a motivation for bringing a strong brand orientation cf. Landor 1999.
Building Customer or Citizen Relationships . For customers served by public sector organisations, the superior
reputation of an organization can lead to greater trust. Trust in public sector may not be declining Van de Walle, Van Roosbroek, Bouckaert, 2008, but it remains low in industrialized countries Edelman Trust Barometer 2010. Trust
is a vital component of a long-term relationship between a service provider and the customer e.g., Morgan Hunt,
188
1994. Ability of public sector organizations to perform and satisfy its customers determines customer satisfaction and eventually the level of confidence and trust that customerscitizens have in their government Heintzman Marson,
2005. Trust in the public sector organization or brand can lead to favourable feelings, willingness to donate, support, volunteer and so on.
Attracting and Retaining Talent . Beyond the clients, public sector organisations all over the world are greatly concerned
about their ability to attract and retain the best talent. In the US, a McKinsey report highlights this challenge Dohrmann, Kennedy Shenoy, 2008. Cutbacks, hiring freezes, lack of meritocracy and lower compensation are
often cited as causes of declining employee morale in the public sector. Strong brand reputation not only will create closeness between the customers and the organization, but it will also make it easier for an organization to attract and
retain talent. In today‘s social media driven world, brand reputation makes an organization attractive or unattractive to both customers and employers.
As evident from the service-profit chain literature, customer satisfaction is dependent on internal service quality and employee satisfaction Heskett, Sasser Schlesinger, 1997. However, unlike the private sector where profit is at the
end of the service-profit chain, in the case of public sector it will be trust and confidence in government or public sector Heintzman Marson, 2005 or even a greater level of citizen engagement.
Framework for Public Sector Branding
The author‘s experience in helping a Canadian public sector agency with their brand building and stakeholder brand- engagement strategy forms the basis of this section. This organization is located in an eastern province in Canada,
employs over 1000 people across more than 40 offices and serves nearly a million citizens.
Initial discussions with senior management, who expressed an interest in branding, revealed that not all of them had a common understanding of branding or why it was needed. After several discussions with senior management,
consensus was reached and a model which draws from the public-sector value-chain was created to show how a strong brand can help the organization see Figure 1. Then the following steps unfolded see Figure 2.
Step 1: Discovery. Brand building requires knowledge of the organizational culture, employee perception of their
organization and work, client perception of the organization, organizational mandate, resources, opportunities and challenges. This internal and external analysis is crucial to creating a brand that everyone can believe in and embrace.
Focus groups and surveys of employees, focus groups with clients as well as analysis of strategic and business plans formed the discovery phase.
Step 2: Defining the Brand DNA and its Architecture. Having gained deep knowledge of the mindset and culture,
Brand DNA was developed. This included articulation of brand values, purpose, brand value propositions and brand identity. Instead of defining the brand only from the point of view of the external customers, the relevance of the brand
for employees was also defined through employee value propositions. This is based on the notion that building brand reputation will take whole-hearted support of employees. While all stakeholders provided input, brand DNA definition
was developed mainly through facilitated sessions with senior management. However, to get feedback and ensure buy- in from middle managers, facilitated workshops were conducted.
A corporate branding architecture is more appropriate for public sector organisations that do not have individual products which are branded separately cf. Whalen et al. 2010. In this specific organization, there are five unrelated
service areas – each of which historically had its own unique name, identity and even service location. Citizens did not
see these five entities as belonging to one organization or part of a single brand. This necessitated a master-brand - sub- brand structure, with the corporate brand serving as the master brand Aaker, 2004.
Step 3: Brand Implementation . This step involved the following phases.
Phase 1: Identification of brand steward senior most official and brand champions all Managers and their respective roles. The brand champions went through a training session which involved discussion of how adherence to the brand values and brand DNA will impact their
work. Phase 2: The brand champions trained all employees in their domain. Employees developed a list of on-brand and off-brand behaviours.
Phase 3: Employees received skills training required to provide meet service standards and provide superior customer experience. This included ―soft‖ skills as well as subject matter program knowledge training.
Phase 4: A redesigned customer-friendly web site was a major component of the new communication and brand engagement strategy. There was no mass media campaign. Consistency in brand logo was established.
Co-location of services one-stop and investments in information technology to enhance customer experience are currently underway.
Step 4: Stakeholder Brand-Engagement Initiative . Mechanisms for ongoing interaction of stakeholders and their
involvement in the creation and delivery of services co-creation in some areas are being established. Guidelines for obtaining regular feedback from stakeholders have been established.
189
Conclusion Public sector organisations are not likely to spend vast sums of money on advertising to build the brand nor is it
essential to do. This means brand reputation is built through the delivery of consistently good employee and customer experience. In order the effectively implement such an experiential brand, aligning processes, training and motivating
employees and securing commitment of senior executives becomes important. The proposed framework takes an inside-out branding approach. This internal branding emphasis was required to create the right cultural environment
Bergstrom et al. 2002. Customers will experience the brand over time through their direct experience rather than be bombarded with brand messages.
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