Monday, June 16, 2008

Identity, Image, and Reputation

Corporations’ identity and image are essential parts of a company’s communication. A corporation’s identity usually gives the stakeholders a first impression about a company. Therefore, it is important for a company to be aware of it and deliberately present a certain image that is advantageous for her business.

What Are Identity and Image?
A company’s identity is the message that a company sends in tangible form. The visualization is conveyed through the organization’s name, logo, buildings, uniforms and all other tangible pieces created by the company, and communicated to the constituencies. Based on these evidential messages, constituencies form perceptions about the organization. The reflection of the organization’s identity by the constituencies is the image an organization has.

Differentiating Organizations through Identity and Image
Companies try with their limited resources to shape their identity and image so that they have some distinguishing characteristics among torrent of competitors in a globalize world. Nowadays products become more and more similar all over the world, therefore companies on the one hand need to distinguish from competitors and consumers on the other need a distinction in order to know from which company a certain product comes. So, it is important for companies to pursue a certain image and communicate a unique identity.

Shaping identity
The identity communicated by the company should be defined in her mission statement and visualized in a homogenous manner to this statement. Furthermore, this identity should be inimitable. Names and logos are the most important parts of a company’s communication in terms of perception by consumers; one think of the Coca-Cola characters or the Nike logo. They should be communicated throughout the entire company, from the logo on the building, the employees’ uniforms, to the product. Additionally a motto could accompany the logo in order to display the company’s core competences, FedEx: “The world on time”.

Identity Management in Action
A method that has been successfully used by corporations in order to manage the identity process consists of six steps and will be presented now. The first step is to examine what the current public image of this company is and how close it is to the self-image of the company. This examination should be conducted by external, professional consultants to get the most objective results.
In step two, now that the company knows how it is perceived by the public, it should be examined how close the public perception is to the image that is communicated. The company should be absolutely certain about her self image, so that the second step, the setting of identity objectives, can be performed. It is essentially important that the constituencies’ response is taken into consideration, rather than an arbitrarily made decision based solely on the firm’s action. No change should be made just for the sake of change.
If the public perception though is apart from the company’s self image, based on step two, designs and names should be developed in step three. Here again professional consultants should be contracted and create in close collaboration with the company, and based on the results thus far, a corporate design and name if necessary. The name of course should have some connection either to the company’s background, or business or history. Furthermore, the logo should accurately reflect the company’s reality. Eventually, the final decision should based on both parties, the professional consultants’ and the company’ ideas as well. It is important that a good balance is prevalent in their collaboration.
The fourth step, once the final design in step three was selected and approved by everyone, would be now to develop a prototype. In order to prevent a total failure, before the official launch of the new identity the constituencies should be involved, i.e. in form of a poll conducted by professional consultants.
If the effect on the constituencies is the desired result, the new name and logo should be launched. The new design should be clearly displayed and communicated from now on. Advertising and news releases could be additionally used as communication tools.
The sixth and final step is the implementation the program. The implementation can take up to several years, depending on the size of the company. Resistance will be inevitably; therefore the company should establish standards that are to be followed by every employee. The process of implementation should be monitored throughout this time, and in some cases flexibility can be allowed. Finally over the years minor changes might be necessary to be performed, and then again professional consultants should evolve those changes in harmony with the company.

Image: In the eye of the beholder
The identity communicated by the company and the image based on the constituencies’ behavior can sometimes differ. Constituencies might be preoccupied by other publications or what they heard from friends. Therefore it is important for companies to keep interaction with constituencies in order to correct their public image. And by constituencies not only customers, but every stakeholder should be considered of, especially employees. A word to mouth communication by employees can cause a much more positive effect on a company’s image than just the company’s communication itself. On the other hand bad reports by employees can cause incredible damage, therefore the company should communicate and train its employees.
Building a Solid Reputation
What comes after an image is a company’s reputation. If the organization’s identity and its image are aligned the foundation for a solid reputation exists. According to Charles Fombrun a company should try to shape a unique identity and project a coherent and consistent set of images to the public. The difference between reputation and image is that reputation is build over time and is not simply a perception at a given point in time.
Reputation is important, because as mentioned before a report by friends or relatives, or opinion leaders like Forbes and several other magazines and media personalities can change the perception of the public about a certain company. If the people are biased due to those reports, the communication of a corporation’s identity is severely affected. On the other hand, a positive reputation can be more than helpful in case of crisis. Therefore, a company should always monitor the constituencies’ perceptions and try to measure its reputation.
A good way for a company to enhance its reputation is to show social and environmental responsibility. Do good things and talk about it, is the motto. Corporations can use news releases and advertisement to display their social responsibility, and of course their core competencies that distinguish them among others.

Examples:
KFC (formally known as Kentucky Fried Chicken) is a good example how a company successfully changed its image. KFC desired to change its image and menu as a result of changes in American dietary habits. One of the most important things that needed to be eliminated was the word Fried in the company’s name, because in its new menu KFC offered also broiled chicken. Thus, it was decided to use only the initial from that time on. The question was if people would recognize KFC as Kentucky Fried Chicken. KFC had a strong corporate identity and its major brand recognition characteristic was Colonel Sanders. So, KFC kept Colonel Sanders with the new logo, and successfully established an image change from just fast-food to health conscious fast-food.
Fed-Ex (formally known as Federal Express) also successfully changed its name. FedEx found out that this abbreviation was used many customers as a verb “Let’ FedEx this…” and so decided to change its entire corporate identity to this abbreviation. Its launch advertisement read in 1994: “We’re changing our look to FedEx. Isn’t that what you call us anyway?” With the new name FedEx also launched a new slogan “The world on time”. The name, paired with the new slogan, had the intention to let FedEx become a synonym for timely accurate delivery.

Experiences:
One the biggest advertising campaigns I remember is when the German Post became privatized, and in order to work more effectively it added an additional digit, from four to five digits now, to the ZIP-Code. There was big uncertainty among the population which was used for decades to the old system. Finally, the campaign was successful by clarifying how the new ZIP-Code system works and the Post could keep its reputation as a reliable deliverer.

References:
Argenti, Paul A. (2007). Corporate Communication (4th ed.). New York, NY: McGraw Hill, pp. 65-83.

Links:

http://www.harrisinteractive.com/

http://www.reputationinstitute.com/

http://www.washingtonpost.com/wp-dyn/content/article/2007/07/01/AR2007070101355.html

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