1. Corporate Brand Building

2. 2 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).

3. Behavior Symbolism Communication Corporate Identity Corporate Image Corporate Identity van Riel, p. 33. Corporate Image in Relation to Corporate Identity

4. 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

5. Peggy Simcic Brønn5 CORPORATE IDENTITY MEDIA Product Price Logos Name Stationery Brochures Signs Visit cards Buildings Uniforms Sponsorship Packaging Work environment Figure or “character”

6. Peggy Simcic Brønn6 IMPORTANCE OF IDENTITY Raises motivation among employees Inspires confidence in stakeholder groups Acknowledges important role of customers Acknowledges vital role of financial groups

7. Peggy Simcic Brønn7 TYPES OF CORPORATE IDENTITY Monolithic -- Shell, Philips, BMW Endorsed -- GM, L’Oreal Branded -- Unilever

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

9. 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

10. Reputational risk management cycle Corporate Citizenship Corporate Performance Safety Net Opportunity Platform Reputational Capital Fombrun, C. J. et al., “Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk,” Business and Society Review, 105:1, 85-106.

11. Media Activists Investors Employees Partners Customers Regulators Community Safety Net Threat of Boycott Threat of Legal Action Threat of Illegitimacy Threat of Exposure Threat of Misunderstanding Threat of Defection Threat of Rogue Behavior Threat to Value Managing the downside of reputational risk Fombrun, C. J. et al., “Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk,” Business and Society Review, 105:1, 85-106.

12. Community Media Activists Investors Employees Partners Customers Regulators Opportunity Platform Promise of advocacy Promise of legal action Promise of legitimacy Promise of favorable coverage Promise of loyalty Promise of collaboration Promise of commitment Promise of value Managing the upside of reputational risk Fombrun, C. J. et al., “Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk,” Business and Society Review, 105:1, 85-106.

13. 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

14. Peggy Simcic Brønn14 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

15. Peggy Simcic Brønn15 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

16. 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

17. Peggy Simcic Brønn17 TODAY’S SITUATION Quality and good service taken as given Programs such as TQM and ISO9000 have worked Organizations need new differentiators, new USP’s (unique selling propositions) –Advocacy advertising –Green advertising

18. Peggy Simcic Brønn18 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

19. Peggy Simcic Brønn19 IMAGE LEVELS Product class Brand Company Sector Shop Country User

20. Peggy Simcic Brønn20 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

21. Peggy Simcic Brønn21 KEY ATTRIBUTES OF REPUTATION (Fortune) Financial soundness Value as a long-term investment Use of corporate assets Innovativeness Quality of Management Ability to attract, develop and keep talented people Quality of products and services Community and environmental responsibility

22. 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

23. Peggy Simcic Brønn23 What are the most important things to know about a company to judge its reputation? Bus. General City Business Editors Public Investors Press (percentage) Financial Performance42 9 65 80 Quality of Management28 9 91 71 Quality of Products/ Services 8 47 20 0 Customer Services 6 18 0 20 Example of how different image aspects vary in importance to different groups.

24. 24 America’s Most Admired Companies, Fortune 1999 The Top Ten Rank Company 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

25. 25 The Bottom Ten Rank Company 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 America’s Most Admired Companies, Fortune 1999

26. Peggy Simcic Brønn26 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

27. Peggy Simcic Brønn27 OPTIMAL - AN INTEGRATED EFFORT Unified image Data base management-driven integration Integrated customer contact points Stakeholder-based integration

28. Peggy Simcic Brønn28 Goal: Credible Image Believable message Clearly stated Continually and consistently Through appropriate channels At the appropriate level of understanding

29. The Three I’s - Mission Oriented Identity: Who we are Image: What we are Ideas: What we stand for and believe

30. 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)

31. 31 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).

32. 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.

33. 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

34. 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