CORPORATE IMAGE - WHAT IS IT?
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Transcript CORPORATE IMAGE - WHAT IS IT?
Corporate Brand Building
Peggy Simcic Brønn
1
CORPORATE IMAGE - WHAT IS IT?
Corporate
Identity
Individual
Interpretation
Corporate
=
Image
$
Lundquist, O. S., Rønning, L., Sandberg, G., ‘Corporate Identity
and Corporate Image, En litteraturstudie av begrepenes definisjoner,
Diplomoppgave, Siviløkonomstudiet, BI (1997).
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Corporate Image in Relation to
Corporate Identity
Behavior
Corporate
Identity
Corporate
Image
Corporate Identity
van Riel, p. 33.
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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
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CORPORATE IDENTITY MEDIA
Product
Price
Logos
Name
Stationery
Brochures
Signs
Visit cards
Buildings
Uniforms
Sponsorship
Packaging
Work environment
Figure or “character”
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IMPORTANCE OF IDENTITY
Raises motivation among employees
Inspires confidence in stakeholder
groups
Acknowledges important role of
customers
Acknowledges vital role of financial
groups
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TYPES OF CORPORATE
IDENTITY
Monolithic -- Shell, Philips, BMW
Endorsed -- GM, L’Oreal
Branded -- Unilever, Orkla
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Measuring Corporate Identity
Overall corporate identity
Cobweb
Star method
Laddering
Keller’s Mannheimer CI test
Measuring individual elements of CI mix
Behavior -- organizational climate studies, ROIT
Communication -- organizational climate studies,
communications audits
Symbolism -- facilities audit, graphic design audit
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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
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Corporate identity and
reputation
Fombrun, C. J., Reputation, Harvard Business
School Press
Corporate
Identity
Names,
Self-Representations
Customer
Image
Community
Image
Investor
Image
Employee
Image
Corporate Reputation
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 Kay
Foundations of Corporate Success
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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
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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
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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
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REASONS FOR IMAGE
‘MANAGEMENT’
Aid in relations with
General promotion
community/
value
government
Encourage favorable
Serve corporate
behavior towards
objectives
organization
Create familiarity
Build sales
and favorability
Attract shareholders
Create position in
Attract and motivate
industry
employees/build
Can demand
morale
premium prices
Reduce cost of
capital
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IMAGE LEVELS
Product class
Brand
Company
Sector
Shop
Country
User
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Some Factors Controlling
Company Image
Reality of
Newsworthiness Communica+ tions effort
company* + of company
x Time -
Memory
=
decay
Company Image
* Including Diversity of Company
van Riel, p. 95
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Keller’s Corporate Image
Dimensions
Common product attributes, benefits, attitudes
quality, innovativeness
People and relationships
Customer orientation
Values and programs
Concern with environment, social responsibility
Corporate credibility
Expertise, trustworthiness, likability
Keller, in Schultz, Hatch, and Larsen, The Expressive
Organization
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Dowling’s Description Attributes
Importance and selection of attributes depend
on stakeholder group -- their beliefs about what
is distinctive, central and enduring in their
relationship with the organization
Common image attributes
Credible
Innovative
Successful
Well managed
Expert
Environmental concern
Dowling, in Creating Corporate Reputations
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Measuring Corporate Image
Hit lists (Fortune, MMI, Financial
Times)
Barometers (R + M)
CIPA Model of Motivation
CS Technique
Natural grouping (Research
International)
Photosort (FHV/BBDO)
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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
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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
Finances
• Sound investment opportunity
• Pays dividends
•Contributes to charity
• Reporting practices
•Helps the community
• Stock price
•Conserves energy
• Diversified
•Environmentally conscience
• Wise use of assets
•Supports culture
•Responsible citizen
• Consistent growth
Example of how different image aspects vary in
importance to different groups.
What are the most important things to know
about a company to judge its reputation?
Bus.
Editors
(percentage)
Financial
Performance
42
Quality of
Management
28
Quality of Products/
Services
8
Customer Services 6
General City
Business
Public
Investors Press
9
65
80
9
91
71
47
18
20
0
0
20
America’s Most Admired
Companies, Fortune
Top Ten 1999
Top Ten 2000
1. General Electric
2. Microsoft
3. Dell Computer
4. Cisco Systems
5. Wal-Mart Stores
6. Southwest Airlines
7. Berkshire Hathaway
8. Intel
9. Home Depot
10. Lucent Technologies
1. General Electric
2. Cisco Systems
3. Wal-Mart Stores
4. Southwest Airlines
5. Microsoft
6. Home Depot
7. Berkshire Hathaway
8. Charles Schwab
9. Intel
10. Dell
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America’s Most Admired
Companies, Fortune
The Bottom Ten 1999
The Bottom Ten 2000
495. Humana
496. Revlon
497. Trans World Airlines
498. CKE Restaurants
499. CHS Electronics
500. Rite Aid
501. Trump Resorts
502. Fruit of the Loom
503. Amerco
504. Caremark Rx
526.
527.
528.
529.
530.
531.
532.
533.
534.
535.
Trans World Airlines
Trump Hotels & Casinos
Kmart
Bridgestone/Firestone
America West Holdings
LTV
US Airways Group
Federal-Mogul
Warnaco Gr
CKE Restaurants
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Problems with Hit Lists
Give little diagnostic information -- more a
beauty contest
Do not discriminate among images of
different stakeholders
Do not distinguish between corporate
image and reputation (as defined by
Fombrun)
Dowling, in Creating Corporate Reputations
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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
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OPTIMAL - AN INTEGRATED
EFFORT
Unified image
Data base management-driven
integration
Integrated customer contact points
Stakeholder-based integration
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Goal: Credible Image
Believable message
Clearly stated
Continually and consistently
Through appropriate channels
At the appropriate level of
understanding
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The Three I’s - Mission
Oriented
Identity: Who we are
Image: What we are
Ideas:
What we stand for and
believe
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The co-orientation model
Issue
Organization’s
definition
and evaluation of
an issue
UNDERSTANDING
AGREEMENT
CONGRUENCY
Organization’s
perception of
Stakeholder A’s
views
Stakeholder A’s
definition
and evaluation of
an issue
CONGRUENCY
ACCURACY
McLeod, J. M. and Chaffee, S. H., Interpersonal Approaches to Communications
Research, American Behavioral Scientist (1973)
Stakeholder A’s
perception of
organization’s views
Ensuring internal understanding and
external acceptance
Openness
Clarity
Internal
Environment
Attention
Company
External
Environment
Trust
Understanding
Strength
Acceptance
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).
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Monitoring
What
you have
The
organization
Corporate
Visuals
Corporate
Identity
How you
intend to
use it
Corporate Identity: Era 1 -- Badging
Source: Bamber Forsyth in White, J. and Mazur, L. Strategic
Communications Management, Addison Wesley, London, 1996.
Audience
Perceptions
Monitoring
What
you have
Corporate
Visuals
The
organization
How you
intend to
use it
Corporate
Identity
Corporate
Communications
Corporate Identity: Era 2 -- Visuals plus Communication
Source: Bamber Forsyth in White and Mazur
Audience
Perceptions
Monitoring
What
you have
Corporate
Behavior
The
organization
How you
intend to
use it
Process
Corporate
Communications
Corporate
Identity
Vehicles
Corporate
Values
Corporate Identity: Era 3 -- The integrated approach
Source: Bamber Forsyth in White and Mazur
Audience
Perceptions