Transcript CORPORATE IMAGE - WHAT IS IT?

Corporate Brand Building
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 Identity
van Riel, p. 33.
Corporate
Image
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
CORPORATE IDENTITY MEDIA
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Product
Price
Logos
Name
Stationery
Brochures
Signs
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Visit cards
Buildings
Uniforms
Sponsorship
Packaging
Work environment
Figure or “character”
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IMPORTANCE OF IDENTITY
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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
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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
Corporate identity and reputation
Corporate
Identity
Names,
Self-Representations
Customer
Image
Community
Image
Investor
Image
Employee
Image
Corporate Reputation
Fombrun, C. J., Reputation, Harvard Business School Press
Reputational risk
management cycle
Opportunity
Platform
Corporate
Citizenship
Reputational
Capital
Corporate
Performance
Safety
Net
Fombrun, C. J. et al., “Opportunity Platforms and Safety Nets: Corporate Citizenship
and Reputational Risk,” Business and Society Review, 105:1, 85-106.
Managing the downside of
reputational risk
Media
Community
Threat of
Illegitimacy
Regulators
Threat of
Exposure
Threat of Boycott
Activists
Threat to
Value
Safety
Net
Threat of
Legal Action
Threat of
Misunderstanding
Investors
Threat of Rogue
Behavior
Employees
Customers
Threat of
Defection
Partners
Fombrun, C. J. et al., “Opportunity Platforms and Safety Nets: Corporate Citizenship
and Reputational Risk,” Business and Society Review, 105:1, 85-106.
Managing the upside of
reputational risk
Media
Promise of
favorable
coverage
Promise of
legitimacy
Regulators
Promise of
advocacy
Promise of legal
action
Opportunity
Platform
Activists
Community
Promise of value
Promise of loyalty
Investors
Promise of
commitment
Promise of
collaboration
Employees
Customers
Partners
Fombrun, C. J. et al., “Opportunity Platforms and Safety Nets: Corporate Citizenship
and Reputational Risk,” Business and Society Review, 105:1, 85-106.
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
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’
• 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
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IMAGE LEVELS
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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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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
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(percentage)
Financial
Performance
42
Quality of
Management
28
Quality of Products/
Services
8
Customer Services
6
General City
Business
Public
Investors Press
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65
80
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20
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America’s Most Admired Companies,
Fortune 1999
The Top Ten
Rank
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10
Company
General Electric
Microsoft
Dell Computer
Cisco Systems
Wal-Mart Stores
Southwest Airlines
Berkshire Hathaway
Intel
Home Depot
Lucent Technologies
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America’s Most Admired Companies,
Fortune 1999
The Bottom Ten
Rank
495
496
497
498
499
500
501
502
503
504
Company
Humana
Revlon
Trans World Airlines
CKE Restaurants
CHS Electronics
Rite Aid
Trump Resorts
Fruit of the Loom
Amerco
Caremark Rx
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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
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Unified image
Data base management-driven integration
Integrated customer contact points
Stakeholder-based integration
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Goal: Credible Image
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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
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