Corporate Brand Building Peggy Simcic Brønn 1
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). Peggy Simcic Brønn 2 Corporate Image in Relation to Corporate Identity Behavior Corporate Identity Corporate Image Corporate Identity van Riel, p. 33. Peggy Simcic Brønn 3 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 4 CORPORATE IDENTITY MEDIA Product Price Logos Name Stationery Brochures Signs Visit cards Buildings Uniforms Sponsorship Packaging Work environment Figure or “character” Peggy Simcic Brønn 5 IMPORTANCE OF IDENTITY Raises motivation among employees Inspires confidence in stakeholder groups Acknowledges important role of customers Acknowledges vital role of financial groups Peggy Simcic Brønn 6 TYPES OF CORPORATE IDENTITY Monolithic -- Shell, Philips, BMW Endorsed -- GM, L’Oreal Branded -- Unilever, Orkla Peggy Simcic Brønn 7 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 Peggy Simcic Brønn 8 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 Peggy Simcic Brønn 9 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 Peggy Simcic Brønn 11 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 Peggy Simcic Brønn 12 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 Peggy Simcic Brønn 13 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 Peggy Simcic Brønn 15 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 Peggy Simcic Brønn 16 IMAGE LEVELS Product class Brand Company Sector Shop Country User Peggy Simcic Brønn 17 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 Peggy Simcic Brønn 18 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 Peggy Simcic Brønn 19 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 Peggy Simcic Brønn 20 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) Peggy Simcic Brønn 21 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 Peggy Simcic Brønn 22 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 Peggy Simcic Brønn 25 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 Peggy Simcic Brønn 26 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 Peggy Simcic Brønn 27 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 Peggy Simcic Brønn 28 OPTIMAL - AN INTEGRATED EFFORT Unified image Data base management-driven integration Integrated customer contact points Stakeholder-based integration Peggy Simcic Brønn 29 Goal: Credible Image Believable message Clearly stated Continually and consistently Through appropriate channels At the appropriate level of understanding Peggy Simcic Brønn 30 The Three I’s - Mission Oriented Identity: Who we are Image: What we are Ideas: What we stand for and believe Peggy Simcic Brønn 31 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). Peggy Simcic Brønn 33 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
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