Amity School of Business

Amity School of Business

Public Relations & Corporate Image

Module – I
Corporate Image and its implications in Society

Ms. Manita Matharu

1
 Amity School of Business

Text & References:

Text:
• Public Relations: Principles, Cases and Problems, H. Frazier
Moore, Frank B. Kalupa, R.D. Irwin, Edition 9

References:
• Marketing Management, Philip Kotler, Pearson
• Integrated Marketing Communications, PR Smith with Jonathan
Taylor, Korgan Pages
• IMC, Tom Duncan, McGraw Hill

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 Amity School of Business

CORPORATE IMAGE - WHAT IS IT?

Corporate Individual Corporate

Identity Interpretation Image
=
$

Lundquist, O. S., Rønning, L., Sandberg, G., ‘Corporate Identity

and Corporate Image, En litteraturstudie av begrepenes definisjoner,
Diplomoppgave, Siviløkonomstudiet, BI (1997).
 Amity School of Business

WHY DO WE NEED TO CARE ABOUT IMAGE?

1. Consumers are more sophisticated than ever before

2. There is more distrust than ever regarding motives of big
business
3. There has been more changes in the last ten years than in the
last 80
4. There is a clear relationship between a positive image and
profitability
 History of CI Amity School of Business

• Emerged around the middle of 20th

century
• Originally understood as symbolism
• Important names: Walter Margulies and
Wolff Olins
 Definition: CI Amity School of Business

• …what makes a company unique and special.

It’s the company's approach to business, its
values and business culture.
• This will be reflected in the way the company
works, the quality of its products, its
communication and marketing strategies, its
management and leadership style and its visual
appearance.
 Definition: Corporate identity Amity School of Business

• Van Riel (1995: 27) : Corporate identity

can be seen as ‘the self-portrayal of an
organisation, i.e. the cues or signals it
offers via its behaviour, communication
and symbolism’.
 Corporate identity Amity School of Business

• …can be defined as ”the sum of all

methods an organisation uses, willingly
and unwillingly, to identify itself to its
publics. This is based on an organisation’s
philosophy (goals, vision, mission), history,
people and its aesthetic expression. “
 Amity School of Business

Corporate culture
• One of the most important parts
of CI is corporate culture
• Corporate culture focuses on the
human part of the organisation,
the ‘language, norms, folklore,
ceremonies, and other social
practices that communicate the
key ideologies, values and
beliefs guiding action'. (Morgan,
1986: 135)
 Amity School of Business

Corporate Identity and Image

Corporate ID: Refers to the combination of ways in which an
organization’s personality is expressed.
Tangible elements of ID:
Logos
Colors
Type face & House Style
Less Tangible elements of ID:
Behavior
Culture
Values, Philosophy, Mission
Communication Style
 Corporate Identity Amity School of Business

• In marketing, a corporate identity is the "persona" of a

corporation which is designed to accord with and facilitate the
attainment of business objectives. It is usually visibly manifested
by way of branding and the use of trademarks

• Corporate Identity is how a corporation, company or organization

expresses itself visually.
- Product advertising
- Job interview

• Corporate Identity must be informed and driven by

- Clear Vision / Mission
- Set of values
 Amity School of Business

• You must know what the Company stands for

-professionally managed
-proven processes / structures

• Many companies, such as McDonald's have their own identity that

runs through all of their products and merchandise.
The trademark "M" logo and the yellow and red appears
consistently throughout the McDonald's packaging and
advertisements. Many companies pay large amounts of money for
the research, design and execution involved in creating an identity
that is extremely distinguishable and appealing to the company's
target audience.

• Corporate Identity is the reality of the tangible points of public

contact eg.. The buildings, vehicles, uniforms, business forms etc
-DIFFERENTIATION
 Amity School of Business

Corporate Image in Relation

to Corporate Identity

Behavior

Corporate
Sy

Identity Corporate Image

mb

n
tio
oli

ica
sm

un
m
m
Co

Corporate Identity

van Riel, p. 33.

 Amity School of Business

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
 Amity School of Business

Corporate identity is often viewed as being

composed of three parts:
– Corporate design (logos, uniforms, corporate
colours etc.)
– Corporate communication (advertising, public
relations, information, etc.)
– Corporate behavior (internal values, norms,
etc.)

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 Amity School of Business

Corporate image embraces everything

from visual impression of a corporate logo,
letterhead, uniform, leaflet or
advertisement, aroma in a shop,
reception, canteen or offices, soft carpet,
attractive wallpaper, air-conditioning etc
 Amity School of Business

CORPORATE IDENTITY MEDIA

• Product • Visit cards

• Price • Buildings
• Logos • Uniforms
• Name • Sponsorship
• Stationery • Packaging
• Brochures • Work environment
• Signs • Figure or “character”
 Amity School of Business

Corporate Identity Mix

• CI is the prime interface between an organization
and its key audiences

- annual report, website

- advertising communications
- staff communications
- architecture & interior design
- uniforms, signages
- product design & packaging
 Amity School of Business

IMPORTANCE OF IDENTITY

• Raises motivation among employees

• Inspires confidence in stakeholder groups
• Acknowledges important role of customers
• Acknowledges vital role of financial groups
 Benefits Amity School of Business

 Public Profile and Recognition

 Better Customer Relations
 Brand Support
 Better Visual Representation
 Financial Advantages
 Express Culture and Values
 Staff Motivation
 Support for Communication
 Amity School of Business

Example of Corporate Identity Reflected

Through Logo’s

If you look at the center of this logo, you can see two people enjoying a
Tostito chip with a bowl of salsa. This logo conveys an idea of people
connecting with each other.
FIGURE 4.1 Amity School of Business
Components of a Corporate Image

Tangible Elements Intangible Elements

1. Goods and services sold.

1. Corporate, personnel, and
2. Retail outlets where product
environmental policies.
is sold.
2. Ideals and beliefs of
3. Factories where product is
corporate
produced.
personnel.
4. Advertising, promotions, and
3. Culture of country and
other forms of
location
communications.
of the company.
5. Corporate name and logo.
4. Media reports.
6. Employees
2-22
 Amity School of Business

A corporate identity is the overall image of a corporation or

firm or business in the minds of diverse publics, such as
customers and investors and employees.

It is a primary task of the corporate communications

department to maintain and build this identity to accord with
and facilitate the attainment of business objectives. It is
usually visibly manifested by way of branding and the use of
trademarks.
 Amity School of Business

Corporate identity comes into being when there is a

common ownership of an organizational philosophy
that is manifest in a distinct corporate culture — the
corporate personality. At its most profound, the
public feel that they have ownership of the
philosophy.

Corporate identity helps organizations to answer

questions like “who are we?” and “where are we
going?” Corporate identity also allows consumers to
denote their sense of belonging with particular
human aggregates or groups.
 Amity School of Business

In general, this amounts to a corporate title, logo and

supporting devices commonly assembled within a set of
guidelines. These guidelines govern how the identity is
applied and confirm approved colour palettes, typefaces,
page layouts and other such.

Corporate identity is often viewed as being composed of

three parts:
Corporate design (logos, uniforms, corporate colours etc.)
Corporate communication (advertising, public relations,
information, etc.)
Corporate behavior (internal values, norms, etc.)
 Amity School of Business

Corporate identity is the way corporate actors

(actors who perceive themselves as acting on behalf
of the company) make sense of their company in
ongoing social interaction with other actors in a
specific context. It includes shared perceptions of
reality, ways-to-do-things, etc., and interlocked
behaviour.

Corporate actors construct different identities in

different contexts.
 Amity School of Business

• Four key brand requirements are critical

for a successful corporate identity strategy

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 Amity School of Business

Differentiation.
In today’s highly competitive market, brands need to
have a clear differentiation or reason for being. What
they represent needs to stand apart from others in
order to be noticed, make an impression, and to
ultimately be preferred.

Relevance.
Brands need to connect to what people care about
out in the world. To build demand, they need to
understand and fulfill the needs and aspirations of
their intended audiences.
 Amity School of Business

Coherence.
To assure credibility with their audiences, brands must be
coherent in what they say and do. All the messages, all the
marketing communications, all the brand experiences, and all
of the product delivery need to hang together and add up to
something meaningful.

Esteem.
A brand that is differentiated, relevant and coherent is one
that is valued by both its internal and external audiences.
Esteem is the reputation a brand has earned by executing
clearly on both its promised and delivered experience.
 Amity School of Business

Designers identify the essence of the company

and turn it into a concept backed by strong
visuals symbols and logos.

Sony Vaio is a well known brand of laptops. But did you know that the name
Vaio logo also had a hidden meaning? Well, the first two letters represent the
basic analogue signal. The last two letters look like a 1 and 0, representing the
digital signal.
 Amity School of Business

The old logo of Baskin

Robbins had the number 31
with an arc above it.

The new logo took this idea

to the next level. The pink
parts of the BR still form the
number 31, a reference to
the 31 flavors.
TYPES OF CORPORATE
IDENTITY

 Monolithic -- Shell, Philips, BMW

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

 Mental picture that springs up at the mention of a

firm's name. It is a composite psychological
impression that continually changes with the firm's
circumstances, media coverage, performance,
pronouncements, etc. Similar to a firm's reputation
or goodwill, it is the public perception of the firm
rather than a reflection of its actual state or
position.

2-33
 The image of Apple computer, for example, as
a successful business in the last 30 years. But
its identity (conveyed by its name and
multicolored bitten-off-apple logo) as an
innovative and pathbreaking firm has survived
almost intact during the same period.

2-34
 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)

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 Corporate Image

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
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 Amity School of Business

REASONS FOR IMAGE ‘MANAGEMENT’

• General promotion value • Aid in relations with

• Encourage favorable community/
behavior towards government
organization • Serve corporate objectives
• Build sales • Create familiarity and
• Attract shareholders favorability
• • Create position in industry
Attract and motivate
employees/build morale • Can demand premium
• Reduce cost of capital prices
 Amity School of Business

IMAGE FORMATION
Communications Communities
Attitude &
behaviour of
Quality of
employees
goods &
services
Corporate
Organisation Image Experience
Structure &
Culture

Financial Corporate
Performance Social
Physical
Responsibility
Environment 38
 Amity School of Business

Goal: Credible Image

• Believable message
• Clearly stated
• Continually and consistently
• Through appropriate channels
• At the appropriate level of understanding
 Amity School of Business

Promoting the Right Image

• Creating the right image.
• Conveys a clear message about the organization.
• Should portray the nature of the firm.
• Fit with products being sold.
• Rejuvenating an image.
• Easier than changing a well-established image.
• Add new elements but continue current image.
• Changing an image
– Extremely difficult.
– Necessary when
• Target market has shrunk or disappeared.
• Current image not consistent with industry trends.
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 Amity School of Business

The Three I’s - Mission Oriented

• Identity: Who we are

• Image: What we are
• Ideas: What we stand for and believe
 Logo Recognizability

McDonald’s Golden Arches logo is recognizable

enough to stand on its own.
2-42
 Benefits of Logo Recognizability

 Aids in recall of specific brands.

 Aids in recall of advertisements.
 Reduces shopping effort.
 Reduces search time and evaluation of
alternatives.

2-43
 Test for Effective Logos

• Should be easily recognizable.

• Should be familiar.
• Logos aid in memory and recall
• Should evoke positive feelings.

2-44
 Packaging
• Traditional elements
• Protect the product inside
• Provide for ease of shipping, moving, and
handling
• Provide for easy placement on store shelves
• Prevent or reduce the possibility of theft
• Prevent tampering
• New trends
• Meet consumer needs for speed, convenience
and portability
• Must be contemporary and striking
• Must be designed for ease of use

2-45
 Labels

• Must meet legal requirements.

• Provide another marketing opportunity.

2-46
 Brand Equity

 The set of characteristics unique to a brand

that allows the company to charge a higher
price and retain a greater market share than
would otherwise be expected for an
undifferentiated product.

2-47
 Benefits of Brand Equity

• Higher prices
• Channel power
• Additional retail shelf space
• Reduces customer switching behavior
• Prevents erosion of market share

2-48
 Building Brand Equity

1. Research current brand image.

2. Decide what makes the brand unique.
3. Communicate brand’s uniqueness.
4. Spend heavy on advertising.
5. Deliver on uniqueness.
6. Increase market penetration and continue
commitment to the brand.

2-49
 OPTIMAL - AN INTEGRATED EFFORT

 Unified image
 Integrated customer contact points
 Stakeholder-based integration

 IMAGE THE JOB OF THE WHOLE ORGANIZATION - THEREFORE THE WHOLE

ORGANIZATION NEEDS TO BE INVOLVED.

 MARKETING AND PR ARE SEPARATE FUNCTIONS, BUT THEY MUST WORK

CLOSER TOGETHER - THEY ARE COMPLEMENTARY.

 MARKETERS TYPICALLY DO MORE PR TASKS THAN THE OTHER WAY AROUND,

BUT AT ITS MOST EXCELLENT, PR PRACTITIONERS ARE THE STRATEGIC
COMMUNICATORS.
Contributors to corporate image

• Corporate Image Media Communications

Employee Communications Investor
Communications Consumer
Communications Government
Communications Community
Communications Crisis Communication

2-51
 Some Factors Controlling
Company Image

Reality of Newsworthiness Communica- Memory

company* + + tions effort x Time - =
of company decay

Company Image

* Including Diversity of Company

van Riel, p. 95
Peggy Simcic Brønn

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 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
 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
 Amity School of Business

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
 Amity School of Business

• Reputation is the sum values that stakeholders’ attribute

to a company, based on their perception and
interpretation of the image the company communicates
over time.
• Reputation is a collective term referring to all
stakeholders’ views of corporate reputation, including
identity and image.
- Prof Gary Davies,
Manchester Business School

Reputation = Experience - Expectations

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 Amity School of Business

• 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

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 Amity School of Business

• REPUTATION IS THE OPINION THAT OTHERS HAVE OF

YOU - GOOD, BAD, FAVORABLE OR UNFAVORABLE.

• ORGANIZATIONS MUST PROVIDE QUALITY

PRODUCTS/SERVICES
(HAVE GOOD MANAGEMENT AND MAKE A PROFIT.
MOST COMPANIES DO THIS, THEREFORE THIS IS NOT ENOUGH TO
STAND OUT.)

• REPUTATION - HARD WON EASILY LOST.

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 Amity School of Business

From Identity to Image to

Reputation
 Amity School of Business

KEY ATTRIBUTES OF REPUTATION (Fortune)

1. Financial soundness
2. Value as a long-term investment
3. Use of corporate assets
4. Innovativeness
5. Quality of Management
6. Ability to attract, develop and keep talented people
7. Quality of products and services
8. Community and environmental responsibility
 Management/Employees Products/Services

• Quality of Management • Quality

• 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
• Reporting practices
•Contributes to charity
•Helps the community • Stock price
•Conserves energy • Diversified
•Environmentally conscience • Wise use of assets
•Supports culture • Consistent growth
•Responsible citizen
 HOW TO Amity School of Business

DEVELOP
• A ofREPUTATION
Quality Products and Services
• Passion for Brand
• Customer Relationship Marketing
• Strong Corporate Governance and Compliance
• Integrated Risk and Issue Management
• Crisis Planning
• Corporate Responsibility (CR)
• Strong Brand Values, Experience and
Communications
• Organisational Culture and Structure
• Contract Fulfilment
• Business Presentation and Conferences
 HOW TO Amity School of Business

DEVELOP
•
•
A REPUTATION
Customer facing Staf
Innovation
• Vision and Leadership by CEO
• Investor Relations and Public Afairs
• Intelligence Gathering
• Developing Media Profile
• Adaptive and ability to Reinvent
• Community Relations
• CEO’s Reputation
• Core Competencies
• Establishing Networks and Alliances
• Understand the Market
• Develop Brand Experience: “Moments of Truth”
 HOW TO Amity School of Business

DEVELOP
A Strategies
• Clear REPUTATIONand Resources
• Learning from Other’s Mistakes
• Listening to Customers’ Opinions
• Audit and Assurance
• Measuring and Evaluation
• IP Protection
• Stakeholder Analysis, Mapping and
Engagement
• Deliver on Customer Promise
• Think Global, act Local
 Amity School of Business

A REPUTATION PLAN
CEO leadership and senior management commitment

Communication audit

Frame your corporate communicational structure

Implementing programme and resources

Maintaining and evaluating

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 Amity School of Business

IMAGE vs REPUTATION
IMAGE REPUTATION

Is built Is earned

Is a cost Is an asset

Is fast Is careful

Is opportunistic industrious
 Amity School of Business

TOOLS

IMAGE REPUTATION

Advertising Corporate Social

Responsibility
Promotions Strategic sponsorships

Direct mail Media outreach

Competitions Internal communications

 Amity School of Business

Concept of
corporate social responsibility

CSR in Equation Form Is the Sum of:

Economic Responsibilities (Make a profit)

Legal Responsibilities (Obey the law)
Ethical Responsibilities (Be ethical)
Philanthropic Responsibilities (Good corporate citizen)

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 Amity School of Business

Corporate Social Responsibility in a globalized industrial world

is about making the business investment and the community
promise sustainable for the company and for the communities
we operate in, its people and environment. It demands
responsible governance-based principles of:

 LEADERSHIP
 INTEGRITY
 RESPECT
 COMMITMENT
 RELATIONSHIPS
IT’S ABOUT RESPONSIBLE CITIZENSHIP
 Amity School of Business

CSR – A NEW OUTLOOK

CSR focus - People, Planet and Profit (“Triple Bottom-line” )

• Stakeholders in a business - customers, employees, shareholders,

communities and environment

• Sustainable development and profits are inter-related

• Corporate profits need to be analyzed in conjunction with social

prosperity
 Amity School of Business

CSR – THE INITIAL STEPS

Evolved through the concept of ‘giving’ – an integral part of Indian

culture
 Philanthropy
 Religious donations

Modern connotation
 Gandhian concept of Trusteeship
 Bombay Plan (1944-45) – First initiative by leading business
houses (Tata, Bajaj, Birla group through FICCI)
 Individual initiatives by individual corporate
 Amity School of Business

CSR – FOCUS AREAS

Traditional
– Education
– Health

Contemporary
– Capacity Building – skill development, training
– Sustainable Development – environmental protection
– Community Development – education, health, poverty
alleviation
– Social Challenges – women's’ empowerment, girl child
 Amity School of Business

CSR – Internal & External

Internal (carried out within the organization) viz.
• Energy and water conservation
• Employee welfare – training, healthcare
• Affirmative action – employment of backward sections
• Corporate governance

External (within vicinity or for society at large), viz.

• Community development
• Capacity building
• Environmental protection
• Healthcare
• Creating awareness - education, health, social issues
• E-initiatives – Online Information, education, etc.
 Amity School of Business

Common Pitfalls while planning a

CSR Programme

• Selecting an inappropriate CSR activity

• Effective launch, ineffective implementation
• Spreading resources too thin
• Weak monitoring mechanism
• Projected or perceived as a ‘green wash’ or ‘white wash’
• Often mistaken for a Public Relations exercise
 Amity School of Business

CSR PROGRAMME BENEFITS

• Positive public image

• Retaining staff, enhancing employee morale
• Higher productivity, reduction in costs and
increase in Profitability
• Positive engagement with government
 Amity School of Business

Building an effective
CSR PROGRAMME

It shows the direction to build

a corporate image
&
building sustainable reputation
 Amity School of Business

PHASE 1 – CONCEPTUALISATION

• Identify key areas of focus viz, skill development,

education,health, etc.
• Define the programme - will it be Internal or
External or Both
• Involve management from various levels in
identifying focus areas (maybe create a
committee, selecting candidates from top,
middle and lower management)
 Amity School of Business

PHASE 2 – RESOURCE ALLOCATION

• Define your channel viz, in-house team, NGO,

etc.
• Define budgets
• Identify key people to implement and monitor the
programme
• Define milestones to achieve
• Define monitoring mechanism
 Amity School of Business

PHASE 3 – LAUNCH

• Launch the programme

• Run the programme
• Obtain necessary registrations
 Amity School of Business

PHASE 4 – RUNNNING THE PROGRAMME

• Annual/ bi-annual/ quarterly results and reviews

• Monitor and report success and/or failure
• Take corrective action
 Amity School of Business

The test of a successful CSR activity :

Sustainability
• Can it be continued and replicated?
Capacity building
• Does it lead to development of skills, living standards?
Environmental protection
• Does it help conserve, protect and replenish resources?
Company image
• Does it give the company’s image a boost?