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
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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”
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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TYPES OF CORPORATE
IDENTITY
Monolithic -- Shell, Philips, BMW
Endorsed -- GM, L’Oreal
Branded -- Unilever, Orkla
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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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
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
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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
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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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
Peggy Simcic Brønn
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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
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
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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
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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).
Peggy Simcic Brønn
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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