Glossary

Employer Brand

Employer Brand

Employer Brand

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The employer brand is the image of an employer that is firmly etched into people's minds. The brand expresses the company's strategic positioning and its values, internally as well as externally. Its function is to make sure that both current and potential employees perceive the company as an attractive employer. It should provide clear differentiation from the competition and give employees a credible sense of identification with the company.

While the company brand considers the organization as a whole, the employer brand focuses on the company's positioning as an employer. It influences both the internal as well as external perception, so it is an essential component of strategic corporate management.

Some of the central goals of an employer brand are performance motivation, living the corporate culture, and emotional employee retention through personal identification with the corporate values. When the brand is integrated and managed by the top level of management, it can best convey consistent brand messages and engrain the company culture.

These days, monetary incentives only lure or motivate employees for the short term. Such incentives do not generate long-term dedication to the company. Rather, employees need to feel that they are contributing to a higher purpose that corresponds to their own value system.

Companies use the instrument of employer branding to meet the growing challenges of the job market. Employer branding shows potential applicants what values are central to the company and what makes it credible, attractive, and differentiating. By communicating their value systems, companies can attract, motivate, and retain the "right talents" (not the best, but those that fit best).

Attractiveness and awareness are the parameters of the study "Deutschlands 100 TOP-Arbeitgeber" (Germany's 100 TOP Employers), which annually determines the best employers.

Our recommendation:

Study: Employer Branding: Using the brand to discover the right talent

Article: Without a strong employer brand, companies have no future

 

Employer Branding

Employer Branding

Employer Branding

Image Source: ©Jupiter Images / Getty Images


Employer branding encompasses all strategic measures intended to build, implement, and manage the employer brand.

The goal is to position the company as a credible, attractive, and unique employer by means of development and communication of a brand-strategic No.1 position – internally as well as externally. A successful brand attracts the right "potentials" and retains them, increases motivation, strengthens the company culture, and generates a strong image of the employer in the minds of those targeted by the communication. In the medium term, the business result and brand value are increased.

All this is based on the employer brand strategy, which is applied within the strategic framework of the corporate brand. Employer branding is therefore a crucial management tool for personnel marketing, significantly influencing and driving the entire (brand-centered) corporate strategy.

Work-Life balance, career opportunities, or training options are often declared employer branding measures, even though they do not offer and differentiation from other employers. The BrandTrust Employer Branding Study has revealed that 53 % of employees today base their decision for an employer on whether the company's values match their own personal values.

It follows, then, that the crucial component for employees is individual, emotional identification with the corporate values. Krones, for instance – a mid-sized manufacturer of bottling and packaging technology – offers a multiple choice test on its Facebook page that lets potential employees find out if they are 'Kronese' and share the company's values.

 

Our recommendation:

Study: Employer Branding: Using the brand to discover the right talent

Article: Without a strong employer brand, companies have no future

 

Energy brands

Energy brands

Energy brands

Energy brands

The energy market is highly saturated and the lion's share of participants tries to differentiate by means of pricing. The potential of the brand is not tapped.

What is different about energy brands?

Brands did not become significant for energy companies until 1996 – as a result of market liberalization within the EU. That goes for both B2B brands and B2C brands.

The objective of the liberalization was: To establish a domestic market, destroy monopolistic structures and stimulate competition among energy providers – for the benefit of consumers. A host of new providers emerged. Since 2011, numerous providers of renewable energy have joined the mix, because Germany turned away from nuclear energy in the wake of the reactor disaster in Fukushima. In 2017, Germany had roughly 1,190 energy providers.

For consumers, this high degree of market saturation means: They have to try to get their bearings in a huge and very confusing flood of offers. They are exposed to enormous information overload.

Today's energy market is defined by price wars

Counter to the original goal of liberalization, some energy providers merged to form oligopolistic mega-corporations. In 2010, the market share of the four largest providers RWE, EnBW, E.ON and Vattenfall was nearly 45 %. The result was a merciless price war that continues to this day.

For consumers, price now seems to be the key criterion: Between 2012 and 2014, about half of the German population switched providers using energy comparison portals.

What could the management of energy brands look like?

In a highly saturated market like the energy market, providers can still escape the prevailing price wars: with a strong brand. Such successful brands have a specific personality, which has emerged from previously delivered peak performances. In brand management this is called the brand core.

Energy brands can emphasize their uniqueness with brand core values. They differentiate from the competition, increase their credibility and attractiveness. Consumers appreciate them because they offer orientation within overabundance.

Strong energy brands thus enjoy consumers' trust – and can escape the pricing spiral that way.

Further information:

Building brand trust – Here's how

Establishing a brand

Establishing a brand

Establishing a brand

Bildquelle: ©nadezhda1906 - Fotolia.com

Once a brand is established, it is etched into the consumer's psyche in a monopoly position (see Hans Domizlaff: „Die Gewinnung des öffentlichen Vertrauens" (Gaining the public trust)).

Target groups are familiar with the brand. It usually dominates a particular market segment or is one of the key players in that segment.

An established brand is associated with fixed values. These have generally settled into value clusters through consistently delivered peak performances, and the customer has learned them.

Event brand

Event brand

Event brand

Definition Event brand

An event brand is an event that takes place regularly and is perceived by people as attractive or even desirable. It therefore has a strong appeal.

How does an event become a brand?

This is how you can recognize a strong event brand: it offers unique, specific experiences. That's why it is widely known beyond its core target group and fan community. Its distinct specificity clearly sets it apart from its competitors.

These are the success drivers for event brands:

  • Clear timing: if an event always takes place according to the same laws - every year, at the same time, in the same place - it creates a highly efficient and long-lasting attractiveness. Nevertheless, the effect of this kind of timing is usually underestimated.
  • Concentration on a core theme: If an event wants to become a brand, it needs a strict, unmistakable focus. The temptation to use the presence of many participants for other things is great. However, a broad focus would stand in the way of the requirement that an event brand must be unmistakable. Event brands therefore need boundaries, just like other brands.
  • Emotional added value for visitors: Large brand events create a sense of community and belonging. They socialize their theme far beyond the narrow fan community.

There are these types of event brands

Destination brands benefit from event brands

Strong event brands can have a considerable influence on the success of destination and regional brands, as they make their values directly tangible. They contribute to their brand core.

 

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