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 mm un ica tio Corporate Image Co sm oli mb Sy Corporate Identity n Behavior Corporate Identity van Riel, p. 33. Peggy Simcic Brønn 3

CORPORATE IDENTITY z. The way in which an organization presents itself y. Symbols y. Communication y. Behavior z. Referred to as Corporate Identity (CI) Mix z. Personality manifested through this mix Peggy Simcic Brønn 4

CORPORATE IDENTITY MEDIA z Product z Price z Logos z Name z Stationery z Brochures z Signs z Visit cards z Buildings z Uniforms z Sponsorship z Packaging z Work environment z Figure or “character” Peggy Simcic Brønn 5

IMPORTANCE OF IDENTITY z. Raises motivation among employees z. Inspires confidence in stakeholder groups z. Acknowledges important role of customers z. Acknowledges vital role of financial groups Peggy Simcic Brønn 6

TYPES OF CORPORATE IDENTITY z. Monolithic -- Shell, Philips, BMW z. Endorsed -- GM, L’Oreal z. Branded -- Unilever, Orkla Peggy Simcic Brønn 7

Measuring Corporate Identity z Overall corporate identity y. Cobweb y. Star method y. Laddering y. Keller’s Mannheimer CI test z Measuring individual elements of CI mix y. Behavior -- organizational climate studies, ROIT y. Communication -- organizational climate studies, communications audits y. 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 Peggy Simcic Brønn 10

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 Peggy Simcic Brønn 14

TODAY’S SITUATION z. Quality and good service taken as given z. Programs such as TQM and ISO 9000 have worked z. Organizations need new differentiators, new USP’s (unique selling propositions) y. Advocacy advertising y. Green advertising Peggy Simcic Brønn 15

REASONS FOR IMAGE ‘MANAGEMENT’ z Aid in relations with z General promotion community/ value government z Encourage favorable z Serve corporate behavior towards objectives organization z Create familiarity and z Build sales favorability z Attract shareholders z Create position in z Attract and motivate industry employees/build z Can demand morale premium prices z Reduce cost of capital Peggy Simcic Brønn 16

IMAGE LEVELS z. Product class z. Brand z. Company z. Sector z. Shop z. Country z. User Peggy Simcic Brønn 17

Some Factors Controlling Company Image Reality of Newsworthiness + Communicacompany* + of company tions effort x Time - Memory = decay Company Image * Including Diversity of Company van Riel, p. 95 Peggy Simcic Brønn 18

Keller’s Corporate Image Dimensions z Common product attributes, benefits, attitudes y quality, innovativeness z People and relationships y Customer orientation z Values and programs y Concern with environment, social responsibility z Corporate credibility y Expertise, trustworthiness, likability Keller, in Schultz, Hatch, and Larsen, The Expressive Organization Peggy Simcic Brønn 19

Dowling’s Description Attributes z Importance and selection of attributes depend on stakeholder group -- their beliefs about what is distinctive, central and enduring in their relationship with the organization z Common image attributes y. Credible y. Innovative y. Successful y. Well managed Expert Environmental concern Dowling, in Creating Corporate Reputations Peggy Simcic Brønn 20

Measuring Corporate Image z. Hit lists (Fortune, MMI, Financial Times) z. Barometers (R + M) z. CIPA Model of Motivation z. CS Technique z. Natural grouping (Research International) z. Photosort (FHV/BBDO) Peggy Simcic Brønn 21

KEY ATTRIBUTES OF REPUTATION (Fortune) z Financial soundness z Value as a long-term investment z Use of corporate assets z Innovativeness z Quality of Management z Ability to attract, develop and keep talented people z Quality of products and services z Community and environmental responsibility Peggy Simcic Brønn 22

Products/Services Management/Employees • Quality of Management • Quality of work conditions (physical and social) • Quality of strategies • 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 Peggy Simcic Brønn 23

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 z z (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 Peggy Simcic Brønn 24

America’s Most Admired Companies, Fortune z Top Ten 1999 z 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 z The Bottom Ten 2000 495. 496. 497. 498. 499. 500. 501. 502. 503. 504. 526. 527. 528. 529. 530. 531. 532. 533. 534. 535. Humana Revlon Trans World Airlines CKE Restaurants CHS Electronics Rite Aid Trump Resorts Fruit of the Loom Amerco Caremark Rx Peggy Simcic Brønn Trans World Airlines Trump Hotels & Casinos Kmart Bridgestone/Firestone America West Holdings LTV US Airways Group Federal-Mogul Warnaco Gr CKE Restaurants 26

Problems with Hit Lists z. Give little diagnostic information -- more a beauty contest z. Do not discriminate among images of different stakeholders z. 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 z “CEO disease” (refusal/inability to be reflective) z Mental models z If it’s not broke don’t fix it z Inability to read environment z Confusion regarding who’s job it is Peggy Simcic Brønn 28

OPTIMAL - AN INTEGRATED EFFORT z. Unified image z. Data base management-driven integration z. Integrated customer contact points z. Stakeholder-based integration Peggy Simcic Brønn 29

Goal: Credible Image z. Believable message z. Clearly stated z. Continually and consistently z. Through appropriate channels z. At the appropriate level of understanding Peggy Simcic Brønn 30

The Three I’s - Mission Oriented z. Identity: Who we are z. Image: What we are z. Ideas: What we stand for and believe Peggy Simcic Brønn 31

The co-orientation model Issue Organization’s definition and evaluation of an issue Stakeholder A’s definition and evaluation of AGREEMENT an issue UNDERSTAND ING CONGRUENCY Organization’s perception of Stakeholder A’s views CONGRUENC ACCURACY Stakeholder A’s perception of organization’s views Mc. Leod, J. M. and Chaffee, S. H. , Interpersonal Approaches to Communications Research, American Behavioral Scientist (1973) Peggy Simcic Brønn 32

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 Audience Perceptions How you intend to use it Corporate Identity: Era 1 -- Badging Source: Bamber Forsyth in White, J. and Mazur, L. Strategic Peggy Simcic Brønn Communications Management, Addison Wesley, London, 1996. 34

Monitoring What you have Corporate Visuals The organization How you intend to use it Corporate Identity Audience Perceptions Corporate Communications Corporate Identity: Era 2 -- Visuals plus Communication Source: Bamber Forsyth in White and Mazur Peggy Simcic Brønn 35

Monitoring What you have Corporate Behavior The organization How you intend to use it Process Corporate Communications Corporate Identity Audience Perceptions Vehicles Corporate Values Corporate Identity: Era 3 -- The integrated approach Source: Bamber Forsyth in White and Mazur Peggy Simcic Brønn 36