Corporate Brand Building. 2 CORPORATE IMAGE - WHAT IS IT? Corporate Identity Individual Interpretation Corporate Image = $ Lundquist, O. S., Rønning,

Corporate Brand Building

2

CORPORATE IMAGE - WHAT IS IT?

CorporateIdentity

IndividualInterpretation

CorporateImage = $

Lundquist, O. S., Rønning, L., Sandberg, G., ‘Corporate Identityand Corporate Image, En litteraturstudie av begrepenes definisjoner,Diplomoppgave, Siviløkonomstudiet, BI (1997).

Behavior

Symbolism

Comm

unic

atio

nCorporate Identity Corporate

Image

Corporate Identity

van Riel, p. 33.

Corporate Image in Relation to Corporate Identity

CORPORATE IDENTITY

• The way in which an organization presents itself– Symbols– Communication– Behavior

• Referred to as Corporate Identity (CI) Mix

• Personality manifested through this mix

Peggy Simcic Brønn 5

CORPORATE IDENTITY MEDIA

• Product• Price• Logos• Name• Stationery• Brochures• Signs

• Visit cards• Buildings• Uniforms• Sponsorship• Packaging• Work environment• Figure or “character”


IMPORTANCE OF IDENTITY

• Raises motivation among employees

• Inspires confidence in stakeholder groups

• Acknowledges important role of customers

• Acknowledges vital role of financial groups

7Peggy Simcic Brønn

TYPES OF CORPORATE IDENTITY

• Monolithic -- Shell, Philips, BMW

• Endorsed -- GM, L’Oreal

• Branded -- Unilever

Corporate Image

An image is the set of meanings by which an object is known and through which people describe, remember and relate to it. That is the result of the interaction of a person’s beliefs, ideas, feelings and impressions about an object. (Dowling, 1986)

van Riel, p. 74

Corporate identity and reputation

CorporateIdentity

Names,Self-Representations

CustomerImage

CommunityImage

InvestorImage

EmployeeImage

Corporate Reputation

Fombrun, C. J., Reputation, Harvard Business School Press

Reputational risk management cycle

Corporate Citizenshi

p

Corporate Performanc

e

Safety

Net

Opportunity Platform

Reputational Capital

Fombrun, C. J. et al., “Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk,” Business and Society Review, 105:1, 85-106.

Media

Activists

Investors

Employees

Partners

Customers

Regulators

Community

Safety

Net

Threat of BoycottThreat of Legal Action

Threat of Illegitimacy

Threat of Exposure

Threat of Misunderstanding

Threat of Defection

Threat of Rogue Behavior

Threat to Value

Managing the downside of reputational risk


CommunityMedia

Activists

Investors

Employees

Partners

Customers

Regulators

Opportunity

Platform

Promise of advocacy

Promise of legal action

Promise of legitimacy

Promise of favorable coverage

Promise of loyalty

Promise of collaboration

Promise of commitment

Promise of value

Managing the upside of reputational risk


Reputation is the most important commercial mechanism for conveying information to consumers. It is a distinctive capability that accrues competitive advantage to an organization.

John KayFoundations of Corporate Success


CORPORATE IMAGE IS THE PERCEIVED SUM OF THE ENTIRE

ORGANIZATION - ITS OBJECTIVES AND PLANS. IT ENCOMPASSES

PRODUCTS, SERVICES, MANAGEMENT STYLE,

COMMUNICATIONS ACTIVITIES AND ACTIONS AROUND THE

WORLD. G.A. Marken


WHY DO WE NEED TO CARE ABOUT IMAGE?

Consumers are more sophisticated than ever before

There is more distrust than ever regarding motives of big business

There has been more changes in the last ten years than in the last 80

There is a clear relationship between a positive image and profitability

Image is no longer solely the realm of marketing, but rather a strategic instrument of top management.

De Soet (CEO Dutch KLM)

When having to choose similar products, 9 out of 10 consumers base their decisions on the reputation of the company.

Mackiewicz


TODAY’S SITUATION

• Quality and good service taken as given

• Programs such as TQM and ISO9000 have worked

• Organizations need new differentiators, new USP’s (unique selling propositions)– Advocacy advertising– Green advertising


REASONS FOR IMAGE ‘MANAGEMENT’

• General promotion value

• Encourage favorable behavior towards organization

• Build sales

• Attract shareholders

• Attract and motivate employees/build morale

• Reduce cost of capital

• Aid in relations with community/government

• Serve corporate objectives

• Create familiarity and favorability

• Create position in industry

• Can demand premium prices

19Peggy Simcic Brønn

IMAGE LEVELS

• Product class

• Brand

• Company

• Sector

• Shop

• Country

• User


Some Factors Controlling Company Image

Reality of company*

Newsworthiness of company

* Including Diversity of Company

Communica-tions effort Time Memory

decay+ + x - =

Company Image

van Riel, p. 95


KEY ATTRIBUTES OF REPUTATION (Fortune)

• Financial soundness• Value as a long-term

investment• Use of corporate

assets• Innovativeness• Quality of

Management

• Ability to attract, develop and keep talented people

• Quality of products and services

• Community and environmental responsibility

Management/Employees

• Quality of Management

•Quality of work conditions (physical and social)

•Quality of strategies

Products/Services

• Quality

• Satisfaction

• Technology

• Value

• Selection

Ethics/Community

• Equal employment

•Socially responsible

•Protect jobs

•Contributes to charity

•Helps the community

•Conserves energy

•Environmentally conscience

•Supports culture

•Responsible citizen

Finances

• Sound investment opportunity

• Pays dividends

• Reporting practices

• Stock price

• Diversified

• Wise use of assets

• Consistent growth


What are the most important things to know about a company to judge its reputation?

Bus. General City Business

Editors Public Investors Press (percentage)

• Financial

Performance 42 9 65 80

• Quality of

Management 28 9 91 71

• Quality of Products/

Services 8 47 20 0

• Customer Services 6 18 0 20

Example of how different image aspects vary in importance to different groups.

24

America’s Most Admired Companies, Fortune 1999

The Top Ten

Rank Company1 General Electric2 Microsoft3 Dell Computer4 Cisco Systems5 Wal-Mart Stores6 Southwest Airlines7 Berkshire Hathaway8 Intel9 Home Depot10 Lucent Technologies

25

The Bottom Ten

Rank Company 495 Humana 496 Revlon497 Trans World Airlines498 CKE Restaurants499 CHS Electronics500 Rite Aid501 Trump Resorts502 Fruit of the Loom503 Amerco504 Caremark Rx

America’s Most Admired Companies, Fortune 1999


BARRIERS TO ACHIEVING ‘DESIRED’ IMAGE

• “CEO disease” (refusal/inability to be reflective)

• Mental models

• If it’s not broke don’t fix it

• Inability to read environment

• Confusion regarding who’s job it is


OPTIMAL - AN INTEGRATED EFFORT

• Unified image

• Data base management-driven integration

• Integrated customer contact points

• Stakeholder-based integration


Goal: Credible Image

• Believable message

• Clearly stated

• Continually and consistently

• Through appropriate channels

• At the appropriate level of understanding

The Three I’s - Mission Oriented

• Identity: Who we are

• Image: What we are

• Ideas: What we stand for and

believe

The co-orientation model

Organization’s perception of

Stakeholder A’s views

Organization’s perception of

Stakeholder A’s views

Stakeholder A’s definition

and evaluation of an issue

Stakeholder A’s definition


Stakeholder A’s perception of

organization’s views

Stakeholder A’s perception of

organization’s views

Organization’s definition


Organization’s definition


UNDERSTANDING

ACCURACY

CONGRUENCYCONGRUENCY

Issue

AGREEMENT

McLeod, J. M. and Chaffee, S. H., Interpersonal Approaches to CommunicationsResearch, American Behavioral Scientist (1973)

31

Ensuring internal understanding and external acceptance

Understanding

Openness

Clarity

Strength

Company

Attention

Acceptance

TrustInternalEnvironment

ExternalEnvironment

Schultz, M., Ervolder, L., Hulten, J., ‘The Integration Between Corporate Culture, Identity and Image: The Emergence of a New Industry?, Working Paper, Copenhagen Business School (1997).

What you have

How you intend to

use it

The organization Corporate

VisualsCorporate

Identity

AudiencePerceptions

Monitoring

Corporate Identity: Era 1 -- Badging

Source: Bamber Forsyth in White, J. and Mazur, L. Strategic Communications Management, Addison Wesley, London, 1996.

What you have

How you intend to

use it

The organization

CorporateVisuals

CorporateIdentity

AudiencePerceptions

Monitoring

Corporate Identity: Era 2 -- Visuals plus Communication

Source: Bamber Forsyth in White and Mazur

Corporate

Communications

What you have

How you intend to

use it

The organization

CorporateIdentity

AudiencePerceptions

Monitoring

Corporate Identity: Era 3 -- The integrated approach

Source: Bamber Forsyth in White and Mazur

Corporate

Communications

Corporate Behavior

Process

Vehicles

Corporate Values

Documents

Corporate Brand Building. 2 CORPORATE IMAGE - WHAT IS IT? Corporate Identity Individual Interpretation Corporate Image = $ Lundquist, O. S., Rønning,