Chapter 4Identity, Image, Reputation and

Corporate Advertising

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Looking at image on a personal level

Just as individuals wear certain clothes, drive certain cars, style their hair in certain ways to express their individuality, so too do corporations.

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What are Identity and Image?

Identity – the manifestation of the company’s reality as conveyed through the organization’s name, logo, motto, products, services, buildings, uniforms, etc created by the organization and communicated to a variety of constituencies.

Image – is the organization as seen from the viewpoint of its constituencies.◦Depending on which constituency is involved,

an organization can have many different images.

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What are Identity, Image & Reputation?

Corporate IdentityNames, Brands, Symbols, Self-presentations

Corporate Reputation

Customer Image

Community Image

Investor Image

Employee Image

is perceived by…

Sum of perceptions equals…

Differentiating Organizations through Identity and Image

Is there really a difference between buying petrol from Shell or from Esso?

The products and service are the same. If the two petrol stations are located next to each other,

what makes you buy from one instead of the other?Shell – a lot of advertising and education on

environmentally friendly energy/ cleaner energy sources.

Esso – better returns on its shares/ Valdez oil spill in 80s

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Shaping Identity

1. A Vision that Inspires◦ Having a vision that encompasses the

company’s core values, philosophies and goals

◦ “Communication is effective if organizations can rely on a sustainable corporate story as a source of inspiration… Stories are hard to imitate, and they promote consistency in all corporate messages” – Van Riel

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Shaping Identity… cont’d

2. Names and Logos◦ A company’s value can be influenced by the

success of its corporate branding strategy◦ E.g. Coca Cola has a value that exceeds its

total tangible assets because of its strong brand name.

◦ Companies often change names to signal identity changes – to make their identities better reflect their realities, or to account for organizational changes e.g. acquisition and merger.

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Shaping Identity: Names and Logos

Philip Morris changed its name to Altria in 2001 because it wanted its identity to reflect more accurately its reality as a diversified company (it is also US’s largest food company through its Kraft division)◦But some saw the change as an attempt by the

company to distance itself from tobacco litigation.

Price Waterhouse Coopers came about because of a merger in 1998 between Price Waterhouse and Coopers & Lybrand.

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Shaping Identity: Names and Logos

Logos are important because of their visual nature – allow to communicate even more about a company than its name.

Most recognizable logos in the world today – McDonalds, Coca Cola, Nike.

Logos can be stylized depictions of names, e.g. McDonald’s “M” or simply symbols, e.g. Nike’s “swoosh”

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Putting it All Together: Consistency is Key

An organization’s vision should manifest itself consistently across all its identity elements, from logos, mottos to employee behavior.

E.g. In 1994 Federal Express changed its name to FedEx, as it realized many of its consumers were using the shorter version of its name and also using it as a verb.

It paired it with a new motto “The World on Time” – synonymous with punctual overnight delivery.

Together with new uniforms, transport vehicles, service centers and employee mantra of “service without excuses” all gave a consistent commitment /message.

It showed that the company was in touch with its customers.

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Identity Management in Action

1. Conduct an Identity Audit◦ Consultants conduct interviews with top managers

and review company literature, advertising, products and facilities.

◦ They research perceptions among the important constituencies (employees, customers, analysts).

◦ Typical problems include symbols or names that conjure up incorrect impressions of the company.

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Identity Management in ActionBB

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Identity Management in Action

2. Set Identity Objectives◦ Goals set by senior management.◦ Important that emphasis is on constituency

response (how each constituency should react to specific identity proposals), rather than company action.

◦ E.g. “Putting a new logo on the outside of our stores will make customers more aware of dramatic transformations that are going on inside”.

◦ “As a result of this change process, analysts will recognize our organization as more than just a one-product company”

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Identity Management in Action – Set Identity Objectives

E.g. Kentucky Fried Chicken wanted to change its image and menu in the mid 1990s, due to changing American dietary habits (more health conscious). It repositioned itself by changing its name to just KFC (eliminating the word “fried”) and included healthy items in its menus like broiled chicken and salad.

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Identity Management in Action – Set Identity Objectives

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Identity Management in Action

3. Develop designs and names◦ Consultants should be involved.◦ A balance between professional opinion of a

designer and a manager’s own instincts.◦ E.g. if the company is undergoing a global

expansion, it might add “international” to its name.◦ If a firm has a lot of equity built into one product, it

might change its name to that of its product, e.g. Consolidated Foods changed its name to “Sara Lee”.

AstraZeneca International

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Identity Management in Action

4. Develop Prototypes◦ Once final design is selected and approved,

consultants develop models – e.g. product packaging, uniform, stores, etc

◦ Criticism can come from those who were not involved in the decision-making process

◦ Thus a diversity of people and viewpoints should be involved in the process from the beginning.

◦ BUT don’t compromise on a design and take the one that everyone agrees with, just because it brings the least criticism.

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Identity Management in Action

5. Launch and Communicate◦ Important to reduce chances of info leaking to

public before formal introduction◦ Build drama?◦ Press conference - display new design in variety of

contexts and more importantly explain the strategy behind the program.

◦ In addition, can use advertising, Webcasts, blogs, etc.

◦ Important to assure constituencies that the change is not only cosmetic, but strategic.

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Identity Management in Action

6. Implement the Program◦ Can take anywhere from a few months to years◦ Resistance is inevitable◦ To ensure consistency across all uses, develop

identity standards– e.g. a manual that shows staff and managers how to use the new identity consistently and correctly.

◦ Sometimes companies need to communicate its new identity program with other firms – e.g. Accenture had to train more than 100 other firms, including ad agencies, printers, Web designers on how to use its new logo.

◦ Monitoring and being flexible

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Image: In the Eye of the Beholder

Constituencies sometimes have perceptions of an organization even before they even begin to interact with it.

Based on what they have read about the organization/ industry, stories from others, etc.

After interaction with company, it is hoped constituencies’ perception improves.

Customer interaction with frontline employees are especially significant, even more than any advertising. ◦ Can affect the image of the company in the

consumer’s mind more profoundly.

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Building a Solid Reputation

Why Reputation Matters◦ The intangible entity of reputation is a source of

competitive advantage.◦ Companies with strong reputations can attract and

retain the best employees, loyal customers and business partners- all of which contribute to growth and success.

◦ Reputation can also help companies weather crises more effectively

◦ E.g. Johnson&Johnson survived the Tylenol crisis in 1980s without long term damage.

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Building a Solid Reputation

Measuring and Managing Reputation◦ PR firms develop diagnostics for helping in

constituency research.◦ Employees are a good starting point.

E.g. IBM asked 50,000 employees to post ideas about how IBM’s values could be applied to improve its operations.

◦ Customer’s perceptions must align with co’s identity, vision and values.

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Building a Solid Reputation

Corporate Philanthropy – desire to benefits humanity◦ Sometimes perceived as self-serving, especially when

the charitable activity relates directly to the business the company is in.

◦ E.g Philip Morris charitable activities met with skepticism from the public – viewed as an attempt to “undo” its negative image, rather than true concern for the community.

◦ Programs should be consistent with a co’s vision to be perceived as credible, rather than “check-the-box”

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What is Corporate Advertising?

The paid use of media that seeks to benefit the image of the corporation as a whole rather than its products alone.

Should reflect a unified strategy.Three categories:

◦ Image advertising◦ Financial advertising◦ Issue advocacy

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Advertising to Reinforce Identity or Enhance Image

As companies merge/ enter new businesses they need to explain their new vision and strategy to its constituents.

Allows companies to differentiate themselves from rivals.

E.g. Wii advertising campaign incorporated traditional media, word-of-mouth and digital communications platforms. It appealed to non-traditional audiences like mothers and made them official Wii ambassadors. All ads had signature phrase “Wii would like to play”.

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Advertising to Attract Investment

To stimulate interest in a company’s stock among potential investors and analysts

Although analysts focus on company financials, a research showed that many decide to invest in a company based on its “strength of management”

A strong corporate advertising campaign can even have a positive effect on a company’s stock price

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Advertising to Influence Opinions

Also called Issue/ Advocacy advertisingUsed by companies to respond to external threats from

either government or special interest groupsTypically deals with controversial subjectsE.g. Amway ran a series of ads that positioned the

company as environmentally aware- aimed at arguing with critics who charged Amway with environmental neglect.

Risk with taking a stand – can alienate certain constituencies in the process

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Who uses Corporate Advertising and Why?

The bigger the company, the more likely it is to have a corporate advertising program.

Used more by companies in “controversial” industries, e.g. tobacco, oil, pharmaceuticals – because they all have image problems to deal with (health concerns, drug recalls, environment pollution, etc)

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Who uses Corporate Advertising and Why?

Why?1. Increase Sales

◦ Effect is not immediate◦ Difficult to determine Return-On-Investment (ROI),

but new tools being developed◦ Through corporate advertising, companies can draw

out features about themselves that they think will appeal to the public, and make consumers want to buy from them.

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Who uses Corporate Advertising and Why?

2. Create a Stronger Reputation◦ Creates goodwill by informing constituents about

what the organization is all about, especially if it does beneficial things people are not aware of.

◦ Amoco (oil company) ran a campaign in the late 90s showing an airplane landing at night with the headline “Amoco helps make coming home a little safer”.

◦ This shifted the public’s attention away from thinking of Amoco as “another big oil company”.

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Who uses Corporate Advertising and Why?

3. Recruit and Retain Employees◦ E.g. In 2002, GE launched a campaign with employee

related themes : diversity in leadership, volunteerism at the company, the GE Fund, the GE Mentoring program. The ads featured profiles about current GE

employees and showed photographs of them as children.

This boosted employee morale and attracted potential employees, and enhanced a company’s image with non-employee constituencies as well, e.g. consumers.

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AdvertisementBB

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Advertisement

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Logo Timeline

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Logo Timeline

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Logo Timeline

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Logo Timeline

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Logo Timeline

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Logo Timeline