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Corporate Brand Building

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CORPORATE IMAGE - WHAT IS
IT?

Corporate Individual Corporate


Identity Interpretation Image
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Corporate Image in Relation to
Corporate Identity

Behavior

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Corporate Identity
van Riel, p. 33. 3
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

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CORPORATE IDENTITY MEDIA

 Product  Visit cards


 Price  Buildings
 Logos  Uniforms
 Name  Sponsorship
 Stationery  Packaging
 Brochures  Work environment
 Signs  Figure or “character”

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IMPORTANCE OF
IDENTITY

 Raises motivation among employees


 Inspires confidence in stakeholder
groups
 Acknowledges important role of
customers
 Acknowledges vital role of financial
groups
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TYPES OF CORPORATE
IDENTITY

 Monolithic -- Shell, Philips, BMW


 Endorsed -- GM, L’Oreal
 Branded -- Unilever, Orkla

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Measuring Corporate Identity

 Measuring individual elements of CI mix


 Behavior -- organizational climate studies, ROIT
 Communication -- organizational climate studies,
communications audits
 Symbolism -- facilities audit, graphic design audit
 Overall corporate identity
 Cobweb
 Star method
 Laddering
 Keller’s Mannheimer CI test
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Cobweb Model

 Cobweb theory is the idea that price


fluctuations can lead to fluctuations in
supply which cause a cycle of rising and
falling prices.
 In a simple cobweb model, we assume
there is an agricultural market where
supply can vary due to variable factors,
such as the weather.
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Assumptions of Cobweb theory
In an agricultural market, farmers have to decide how much
to produce a year in advance – before they know what the
market price will be. (supply is price inelastic in short-term)
A key determinant of supply will be the price from the
previous year.
A low price will mean some farmers go out of business.
Also, a low price will discourage farmers from growing that
crop in the next year.
Demand for agricultural goods is usually price inelastic (a
fall in price only causes a smaller % increase in demand)

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STAR Method

The STAR interview method is a technique


that helps candidates prepare for interview
questions that determine whether they will
be able to handle specific situations
associated with a job. STAR stands
for: situation, task, action and result.
This method will help you prepare clear and
concise responses using real-life examples.

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Situation
Set the stage for the story by sharing context around the
situation or challenge you faced. Share any relevant details.

Task
Describe your responsibility or role in the situation or
challenge.
Action
Explain how you handled the situation or overcame the
challenge. If the action was carried out by a team, focus on
your efforts.
Result
What was the outcome you reached through your actions? If
possible, quantify your success or provide concrete examples
of the effects of your efforts.
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Laddering Technique

The purpose of laddering is to uncover the basic


emotions that feed into a customer’s decision to
purchase a certain product. Laddering, when
looked at metaphorically, connects a person’s
beliefs and values with their decision to buy
your product. Each question you ask is a rung
on the ladder that brings you one step closer to
gaining this insight.

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By using the laddering technique in your market
research strategy, you will gain a better
understanding of your customers, clients, or
employees, which can be put to use in your
daily operation. Armed with this information,
your organization will be able to build new
product concepts, create more effective
marketing materials, and appeal to your
audience more effectively.
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Keller’s Mannheimer CI test

Keller (1990), has developed mannheimer CI


test to measure the internal effect of
corporate identity and employee identification
to their company. A corporate identity evokes
reactions which in turn affect the culture and
behavioral shifts within the organization. This
dynamic instrument can yield results that will
point the way toward an effective internal
branding strategy.
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Based on this model five dimensions assess
the employee involvement.
1.Identification skill; the need, willingness
or fear to identity
2.Performance; the willingness or
motivation to perform
3.Satisfaction; with career or job
4.Corporate identity: information, style of
leadership and atmosphere in the company
5.Evaluation: of company
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Keller's Brand Equity Model

Peggy Simcic Brønn 19


Keller’s Corporate Image
Dimensions

 Common product attributes, benefits, attitudes


 quality, innovativeness
 People and relationships
 Customer orientation
 Values and programs
 Concern with environment, social responsibility
 Corporate credibility
 Expertise, trustworthiness, likability

Keller, in Schultz, Hatch, and Larsen, The Expressive


Organization
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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

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Corporate identity and
reputation
Fombrun, C. J., Reputation, Harvard Business
School Press

Corporate
Identity

Names,
Self-Representations

Customer Community Employee


Investor
Image Image Image
Image

Corporate Reputation
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 23
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
24
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

Peggy Simcic Brønn 25


Advocacy Advertising
Advocacy advertising is the use of marketing to support a
particular message or cause. Unlike commercial
advertising, advocacy advertising is considered to be
undertaken in the interest of a group or the public and
typically does not promote a product or service. Funding
for advocacy advertising can be through non-profit
organizations, corporations, or private advocacy groups.
Some governments require that organizations engaging in
advocacy advertising clearly state how the funding is
provided.

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Green Advertising
Green advertising is the type of advertising where the focus is
to promote your product around the premises of environment or
environmental situations.
Green advertising can be used in two ways:
1. Show that your product is made up of natural resources and
is herbal and environmental friendly. This helps in positioning
your product as natural and better.
2. Show that you as a company is concerned for environmental
degradation and you are working towards it either directly or
indirectly. In this way, companies either make products which
helps environment or they invest the money or resources in
environment protection activities.

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

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IMAGE LEVELS
 Product class
 Brand
 Company
 Sector
 Shop
 Country
 User

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Some Factors Controlling
Company Image

Reality of Newsworthiness Communica-


company* + of company + tions effort x Time - Memory =
decay
Company Image
* Including Diversity of Company

van Riel, p. 95

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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

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KEY ATTRIBUTES OF
REPUTATION (Fortune)

 Financial soundness  Ability to attract,


 Value as a long-term develop and keep
investment talented people
 Use of corporate  Quality of products
assets and services
 Innovativeness  Community and
 Quality of environmental
Management responsibility

Peggy Simcic Brønn 32


Management/Employees Products/Services
• Quality
• Quality of Management
• Satisfaction
•Quality of work conditions
(physical and social) • Technology
•Quality of strategies • Value
• Selection
Ethics/Community
Finances
• Equal employment
• Sound investment opportunity
•Socially responsible
• Pays dividends
•Protect jobs
•Contributes to charity • Reporting practices
•Helps the community • Stock price
•Conserves energy • Diversified
•Environmentally conscience • Wise use of assets
•Supports culture
• Consistent growth
•Responsible citizen
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. General City Business
Editors Public Investors Press
(percentage)
 Financial
Performance 42 9 65 80
 Quality of
Management 28 9 91 71
 Quality of Products/
Services 8 47 20 0
 Customer Services 6 18 0 20
America’s Most Admired
Companies, Fortune
 Top Ten 1999  Top Ten 2000

1. General Electric 1. General Electric


2. Microsoft 2. Cisco Systems
3. Dell Computer 3. Wal-Mart Stores
4. Cisco Systems 4. Southwest Airlines
5. Wal-Mart Stores 5. Microsoft
6. Southwest Airlines 6. Home Depot
7. Berkshire Hathaway 7. Berkshire Hathaway
8. Intel 8. Charles Schwab
9. Home Depot 9. Intel
10. Lucent Technologies 10. Dell

Peggy Simcic Brønn 35


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

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OPTIMAL - AN INTEGRATED
EFFORT

 Unified image
 Data base management-driven
integration
 Integrated customer contact points
 Stakeholder-based integration

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Goal: Credible Image

 Believable message
 Clearly stated
 Continually and consistently
 Through appropriate channels
 At the appropriate level of
understanding

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The Three I’s - Mission
Oriented

 Identity: Who we are


 Image: What we are
 Ideas: What we stand for and
believe

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The co-orientation model
Issue

Organization’s
Organization’s UNDERSTANDING Stakeholder
StakeholderA’sA’s
definition
definition definition
definition
and
andevaluation
evaluationofof and
andevaluation
evaluationofof
an AGREEMENT
anissue
issue an
anissue
issue

CONGRUENCY CONGRUENCY

Organization’s
Organization’s ACCURACY Stakeholder
StakeholderA’s
A’s
perception
perceptionofof perception
perceptionofof
Stakeholder
StakeholderA’s
A’s organization’s
organization’sviews
views
views
views

McLeod, J. M. and Chaffee, S. H., Interpersonal Approaches to Communications


Research, American Behavioral Scientist (1973)
Ensuring internal understanding and
external acceptance

Openness Attention

Clarity Internal External


Environment Company 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 41
Monitoring

What
you have

The Audience
Corporate Corporate
organization Identity Perceptions
Visuals
How you
intend to
use it

Corporate Identity: Era 1 -- Badging

Source: Bamber Forsyth in White, J. and Mazur, L. Strategic


Communications Management, Addison Wesley, London, 1996.
Monitoring

What
you have
Corporate
Visuals
The Audience
Corporate
organization Identity Perceptions

How you
intend to Corporate
use it Communications

Corporate Identity: Era 2 -- Visuals plus Communication

Source: Bamber Forsyth in White and Mazur


Monitoring

What
you have Corporate
Behavior
Process
The Audience
Corporate
organization Corporate
Identity Perceptions
Communications
How you
intend to
Vehicles
use it
Corporate
Values

Corporate Identity: Era 3 -- The integrated approach

Source: Bamber Forsyth in White and Mazur

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