Peggy Simcic Brønn1 Corporate Brand Building. Peggy Simcic Brønn2 CORPORATE IMAGE - WHAT IS IT?...

Peggy Simcic Brønn 1

Corporate Brand Building


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


CORPORATE IDENTITY MEDIA

ProductPriceLogosNameStationeryBrochuresSigns

Visit cardsBuildingsUniformsSponsorshipPackagingWork environmentFigure 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


TYPES OF CORPORATE IDENTITY

Monolithic -- Shell, Philips, BMW

Endorsed -- GM, L’Oreal

Branded -- Unilever, Orkla


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


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


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 givenPrograms such as TQM and ISO9000

have workedOrganizations 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


IMAGE LEVELS

Product classBrandCompanySectorShopCountryUser


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


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


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 Expert Innovative Environmental concern Successful Well managed Dowling, in Creating Corporate Reputations


Measuring Corporate Image

Hit lists (Fortune, MMI, Financial Times)

Barometers (R + M)CIPA Model of MotivationCS TechniqueNatural grouping (Research

International)Photosort (FHV/BBDO)


KEY ATTRIBUTES OF REPUTATION (Fortune)

Financial soundness

Value as a long-term investment

Use of corporate assets

InnovativenessQuality 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.


America’s Most Admired Companies, Fortune

Top Ten 1999

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

Top Ten 2000

1. General Electric2. Cisco Systems3. Wal-Mart Stores4. Southwest Airlines5. Microsoft6. Home Depot7. Berkshire Hathaway8. Charles Schwab9. Intel10. Dell


America’s Most Admired Companies, Fortune

The Bottom Ten 1999

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

The Bottom Ten 2000

526. Trans World Airlines527. Trump Hotels & Casinos528. Kmart529. Bridgestone/Firestone530. America West Holdings531. LTV532. US Airways Group533. Federal-Mogul534. Warnaco Gr535. CKE Restaurants


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


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 imageData base management-driven

integrationIntegrated customer contact pointsStakeholder-based integration


Goal: Credible Image

Believable messageClearly statedContinually and consistentlyThrough appropriate channelsAt 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)


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

Peggy Simcic Brønn1 Corporate Brand Building. Peggy Simcic Brønn2 CORPORATE IMAGE - WHAT IS IT?...

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