Peggy Simcic Brønn2 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 Brønn3 Behavior Symbolism Communication Corporate Identity Corporate Image Corporate Identity van Riel, p. 33. Corporate Image in Relation to Corporate Identity
Peggy Simcic Brønn4 CORPORATE IDENTITY zThe way in which an organization presents itself ySymbols yCommunication yBehavior zReferred to as Corporate Identity (CI) Mix zPersonality manifested through this mix
Peggy Simcic Brønn5 CORPORATE IDENTITY MEDIA zProduct zPrice zLogos zName zStationery zBrochures zSigns z Visit cards z Buildings z Uniforms z Sponsorship z Packaging z Work environment z Figure or “character”
Peggy Simcic Brønn6 IMPORTANCE OF IDENTITY zRaises motivation among employees zInspires confidence in stakeholder groups zAcknowledges important role of customers zAcknowledges vital role of financial groups
Peggy Simcic Brønn8 Measuring Corporate Identity zOverall corporate identity yCobweb yStar method yLaddering yKeller’s Mannheimer CI test zMeasuring individual elements of CI mix yBehavior -- organizational climate studies, ROIT yCommunication -- organizational climate studies, communications audits ySymbolism -- facilities audit, graphic design audit
Peggy Simcic Brønn9 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
Peggy Simcic Brønn11 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 Brønn12 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 Brønn13 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
Peggy Simcic Brønn15 TODAY’S SITUATION zQuality and good service taken as given zPrograms such as TQM and ISO9000 have worked zOrganizations need new differentiators, new USP’s (unique selling propositions) yAdvocacy advertising yGreen advertising
Peggy Simcic Brønn16 REASONS FOR IMAGE ‘MANAGEMENT’ zGeneral promotion value zEncourage favorable behavior towards organization zBuild sales zAttract shareholders zAttract and motivate employees/build morale zReduce cost of capital z Aid in relations with community/ government z Serve corporate objectives z Create familiarity and favorability z Create position in industry z Can demand premium prices
Peggy Simcic Brønn18 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
Peggy Simcic Brønn19 Keller’s Corporate Image Dimensions zCommon product attributes, benefits, attitudes yquality, innovativeness zPeople and relationships yCustomer orientation zValues and programs yConcern with environment, social responsibility zCorporate credibility yExpertise, trustworthiness, likability Keller, in Schultz, Hatch, and Larsen, The Expressive Organization
Peggy Simcic Brønn20 Dowling’s Description Attributes zImportance and selection of attributes depend on stakeholder group -- their beliefs about what is distinctive, central and enduring in their relationship with the organization zCommon image attributes yCredibleExpert yInnovativeEnvironmental concern ySuccessful yWell managed Dowling, in Creating Corporate Reputations
Peggy Simcic Brønn21 Measuring Corporate Image zHit lists (Fortune, MMI, Financial Times) zBarometers (R + M) zCIPA Model of Motivation zCS Technique zNatural grouping (Research International) zPhotosort (FHV/BBDO)
Peggy Simcic Brønn22 KEY ATTRIBUTES OF REPUTATION (Fortune) zFinancial soundness zValue as a long-term investment zUse of corporate assets zInnovativeness zQuality of Management z Ability to attract, develop and keep talented people z Quality of products and services z 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) zFinancial Performance42 9 65 80 zQuality of Management28 9 91 71 zQuality of Products/ Services 8 47 20 0 zCustomer Services 6 18 0 20 Example of how different image aspects vary in importance to different groups.
Peggy Simcic Brønn25 America’s Most Admired Companies, Fortune zTop Ten 1999 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 z Top Ten 2000 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 Brønn26 America’s Most Admired Companies, Fortune The Bottom Ten 1999 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 z The Bottom Ten 2000 526. Trans World Airlines 527. Trump Hotels & Casinos 528. Kmart 529. Bridgestone/Firestone 530. America West Holdings 531. LTV 532. US Airways Group 533. Federal-Mogul 534. Warnaco Gr 535. CKE Restaurants
Peggy Simcic Brønn27 Problems with Hit Lists zGive little diagnostic information -- more a beauty contest zDo not discriminate among images of different stakeholders zDo not distinguish between corporate image and reputation (as defined by Fombrun) Dowling, in Creating Corporate Reputations
Peggy Simcic Brønn28 BARRIERS TO ACHIEVING ‘DESIRED’ IMAGE z “CEO disease” (refusal/inability to be reflective) zMental models zIf it’s not broke don’t fix it zInability to read environment zConfusion regarding who’s job it is
Peggy Simcic Brønn30 Goal: Credible Image zBelievable message zClearly stated zContinually and consistently zThrough appropriate channels zAt the appropriate level of understanding
Peggy Simcic Brønn31 The Three I’s - Mission Oriented zIdentity: Who we are zImage: What we are zIdeas: 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 and evaluation of an issue Stakeholder A’s perception of organization’s views Stakeholder A’s perception of organization’s views Organization’s definition and evaluation of an issue Organization’s definition and evaluation of an issue UNDERSTANDING ACCURACY CONGRUENCY Issue AGREEMENT McLeod, J. M. and Chaffee, S. H., Interpersonal Approaches to Communications Research, American Behavioral Scientist (1973)
Peggy Simcic Brønn33 Ensuring internal understanding and external acceptance Understanding Openness Clarity Strength Company Attention Acceptance Trust Internal Environment External Environment 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 Visuals Corporate Identity Audience Perceptions 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 Corporate Visuals Corporate Identity Audience Perceptions 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 Corporate Identity Audience Perceptions Monitoring Corporate Identity: Era 3 -- The integrated approach Source: Bamber Forsyth in White and Mazur Corporate Communications Corporate Behavior Process Vehicles Corporate Values