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 companys values (Dutton and Dukerich,

1994

Recruits and retains employee (Fanning, 1990)

Instills identity/brand values into key processes (Organ, 1990)
Increases identification (OReilly 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:
Step 2:
Step 3:
Step 4:
Step 5:

Conduct an identity audit

Set identity objectives
Develop designs and names
Develop prototypes
Launch and communicate

What are Identity, Image & Reputation?

Corporate Identity
Names, Brands, Symbols, Self-presentations
is perceived by

Customer
Image

Community
Image

Investor
Image

Sum of perceptions equals

Corporate Reputation

Employee
Image

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