Chapter 4 Identity, Image, Reputation, and Corporate Advertising 4-1

Image & Identity What are image and identity? How do you build a solid reputation? Is corporate identity a trend? How can you differentiate based on image and identity? How do you manage the unmanageable?

Points to ponder… Why choose Petronas over Shell? Why study/work in USM? Do you know that Nestle paid six times the net asset value to buy Rowntree and its spectacular portfolio of brand including Kit Kat and Smarties.

General scenario… Competition increases Competitors can copy processes, products, systems, services, technology, quality, etc There is only identity/ brand that remains as a differentiator

Importance Importance of corporate identity Customers Inspires confidence (van Riel, 1995) Increases visibility and reach (Keller and Aaker, 1998) Improves credibility (Fombrun and van Riel, 2004) Aids learning (Allesandri, 2001)

CORPORATE IDENTITY Identity components (Melewar and Karaosanoglu, 2006) Corporate structure – brand structure, organizational structure Corporate strategy – positioning and differentiation strategy Corporate culture – mission, vision, values Corporate behaviour – company, management and employee behaviour Corporate design – slogan, architecture, office layout, location, website Corporate communication – marketing, management and organizational comm.. Industry identity

Importance Importance of corporate identity Employees Helps internalize the company’s values (Dutton and Dukerich, 1994 Recruits and retains employee (Fanning, 1990) Instills identity/brand values into key processes (Organ, 1990) Increases identification (O’Reilly and Chatman, 1986) Media, Investors, Financial analysts Reputation (Whetten and Makey, 2002) Attracts favourable responses (Fombrun and van Riel, 2004)

Managing the Unmanageable Step 1: Conduct an identity audit Step 2: Set identity objectives Step 3: Develop designs and names Step 4: Develop prototypes Step 5: Launch and communicate

What are Identity, Image & Reputation? Corporate Identity Names, Brands, Symbols, Self-presentations is perceived by… Community Image Customer Image Investor Image Employee Image Sum of perceptions equals… Corporate Reputation

Advertising: The Corporation is the Message What is Corporate Advertising? Where does it come from?  Who uses it and why? Should all companies use corporate advertising?

Companies Use Corporate Advertising to: Increase Sales  Create Goodwill Retain and Recruit Employees Enhance the Financial Effort