organizational and manageial communication corporate communication and the corporate brand chapter 5

Organizational and Manageial Communication

Corporate Communication and the Corporate Brand

Chapter 5

Peggy Simcic Brønn 2

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


Behavior

Symbolism

Comm

unic

atio

nCorporate Identity Corporate

Image

Corporate Identity

van Riel

Corporate Image in Relation to Corporate Identity


Corporate identity Idea of organization and how it is presented

externally Defined by top management and agencies Mass media and impersonal channels

Organizational identity How an organization’s members perceive it

Who we are, what we stand for

Interpersonal channels


CORPORATE IDENTITY MEDIA

StationaryLiteratureTransportationPackingArchitectureSignsMarketing/Sales

Examples: Product Price Name Brochures Visit cards Buildings Uniforms Sponsorship Work environment Figure or “character” Logos


IMPORTANCE OF IDENTITY

Raises motivation among employees – creates a ‘we’ feeling

Increased productivityPremium pricingCost savingsProtection from competitionAbility to cut through information clutterInspire confidence in the organization


TYPES OF CORPORATE IDENTITY

Monolithic -- Shell, Philips, BMW

Endorsed -- GM, L’Oreal

Branded -- Unilever, Orkla, P&G


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


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.

Marken 1994/95

Corporate identity and reputation

CorporateIdentity

Names,Self-Representations

CustomerImage

CommunityImage

InvestorImage

EmployeeImage

Corporate Reputation

Fombrun, C. J., Reputation, Harvard Business School Press


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

Quality and good service taken as given Organizations need new differentiators, new USP’s

(unique selling propositions)

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


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

Communica-tion effort

Time

Memory decay

+

+

x

- = Company Image


Keller’s Corporate Image Dimensions

Common product attributes, benefits, attitudes quality, innovativeness

People and relationships Customer/(stakeholder) orientation

Values and programs Concern with environment, social responsibility

Corporate credibility Expertise, trustworthiness, likability


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


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


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

Top Ten 2001

1. General Electric2. Southwest Airlines3. Wal-Mart Stores4. Microsoft5. Berkshire Hathaway6. Home Depot7. Johnson & Johnson8. Fed Ex9. Citigroup10. Intel


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 Lists Such as Fortune, MMI, Financial Times

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


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


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

organizational and manageial communication corporate communication and the corporate brand chapter 5

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