Corporate Identity, Image and Brands

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Corporate identity, image and
brands
Lecture
LAMC318
Learning outcomes
• understand the concepts of corporate identity and corporate
image
• understand the difference of visual identity and corporate
identity
• recognise the process involved in developing a corporate
identity programme
• identify the importance of corporate identity and image for
an organisation’s overall communication plan
• understand the concepts of brand and branding
Key Reading

Chapter: Corporate Image, Identity &
Reputation in Tench &Yeomans, Chapter 13,
pp250-264
Additional, if interested:
 Klein, Naomi (2000), No Logo, London:
Flamingo, pp. 3-61
History of CI
Emerged around the middle of 20th
century
 Originally understood as symbolism
 Important names: Walter Margulies and
Wolff Olins

Definition: CI


…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

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

…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. “
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)
Aim of a corporate identity
Internal goals:
 Raising motivation and morale
 Rationalisation and cost reduction
 Inspiring confidence among the external target
publics
 Acknowledging the vital role of the customer
 Acknowledging the vital role of financial target
groups
The components of CI strategy
 Corporate
behaviour
 Visual identity
 Corporate communications
Corporate behaviour
How an organisations interacts with its
 employees
 customers
 financial stakeholders
 government and society
Happy??
Corporate behaviour

Corporate behaviour follows the
parameters of the lived corporate culture

This requires careful design and
implementation of a corporate vision or
mission
Vision/mission
A vision or mission contributes to the
organisation’s goals in a variety of ways:
• It informs staff about the desired values and
norms of the organisation.
• It contributes to the development of specific
guidelines for employees and their work
Vision / mission cntd
• It supports management in providing appropriate
and systematic leadership for the organisation.
• It can show the individual employee how he or
she can contribute through their own behaviour to
the achievement of the organisation's goals.
• A vision or mission is also of external value as it
defines how an organisation perceives itself.
Example: Boots’ vision
Our goal is to make Boots a more modern,
competitive and efficient retail business, in order
to deliver value to our shareholders.
We will continue 'Building a better Boots' by
focusing on our core healthcare market, with all
the potential for growth it contains. We will
continue to develop products that customers
know they can only get from us. We will continue
to ensure that we offer value. We will do more to
ensure that our stores are where our customers
want them and are easy to shop. We will continue
to focus on the expertise of our people and the
customer care they offer.
Visual identity or corporate
design

It’s the visual representation of an
organisation’s identity

'The visual style of a company influences
its place in the market, and how the
company's goals are made visible in its
design and behaviour.' (Olins, 1989).
Corporate design
includes various elements
Logo
 Colours
 Typefaces for stationary and slogans

Logo
Its aim is to
'encapsulate in a simple memorable form
the central attribute or attributes of an
organisation [and to] trigger appropriate
associations and responses' (Bromley,
1993: 158)
Characteristics of a logo
• It attracts attention and works as a
signpost.
• It is informative and memorable.
• It is of aesthetic value that doesn't date
easily.
• It can easily be adapted to a variety of
contexts and frameworks
Colour
Another design element that can be used for
quick identification purposes
 Red
colour of Coca-Cola
 Blue
Boots
 Green:
Marks & Spencer
 Orange - clever example of combining colour &
slogan

Logos, Colours & Typefaces
1880s
2005
Typefaces


The use of a particular typeface can also
express identity through the use of conservative
typefaces such as Courier or Times or more
innovative designs such as Avant Garde.
However, it is crucial to consider the lifecycle of
style elements and the costs involved should
they date quickly.



The British Airways logo was designed in 1997
by Newell & Sorrell.
The colours are blue (Pantone 281) and red
(Pantone 485). The additional colour is grey
(Pantone 877).
British Airways uses its proprietary typefaces
Mylius Sans and Mylius Serif, both designed by
Rodney Mylius at Newell & Sorrell.
The T-Mobile logo was designed in 2001 by
Interbrand Zintzmeyer & Lux . The colours
are magenta (Pantone Rhodamine Red) and
grey (Pantone Cool Gray 7).
T-Mobile uses its proprietary typefaces
TeleAntiqua and TeleGrotesk, which are based
on ITC Century and Neue Helvetica
respectively.
Design process - summary

All style elements need to be carefully
considered, tested and evaluated on an ongoing basis.

Once the house-style is decided, a house-style
manual will be developed that covers all
possible uses of style elements and acts as a
reference-guide for employees.
Corporate communication


…refers to all communication strategies, tactics
and techniques an organisation uses to
represent itself, its products and services to the
target audiences.
…helps to transmit the corporate identity
internally and externally through strategically
planned and coordinated efforts.
Design process - ctnd

As Bromley points out: 'The design process can
be sophisticated, comprehensive and
expensive. Complex organisations need to coordinate design proposals with corporate
policies and practices. This maximises the
benefits of their visual identity because the
visual identity has to work effectively across
divisions within the company, across products,
across communications (stationery and
packaging), across cultures and over a
considerable period.' (Bromley, 1993: 159)
Corporate image




Corporate identity refers to the self-presentation of an
organisation.
The identity is relayed in various ways to the publics
who interpret the organisation’s behaviour, directed
communication and symbolisms.
The individual members of those publics then form an
image of the organisation which is based on their
interpretation of the identity.
This might also be influenced by direct experiences
they had with the organisation or by accounts of
opinion leaders such as family, friends, the media,
etc.
Relationship between Corporate
Identity and Image
Public A
Public C
Public B
Experiences
Symbolism
Corporate
Identity
Corporate image
Behaviour
Directed Communication
The importance of a favourable
image

“A positive corporate image is a condition
for a continuity and strategic success. It is
no longer solely the field of attention of
marketing, but a strategic instrument of
top management”
CEO Dutch KLM, De Soet
Benefits of a favourable image




A sound CI is a incentive for the sales of
products & services
It helps the company recruit the right employees
It is important to the financial world & investors
A sound corporate image creates emotional
added value for a company which ensures that
a company is always one step ahead of its
competitors.
Benefits of a favourable image
Research has shown that 9 out of 10
consumers report that when choosing
between products that are similar in
quality and price, the reputation of the
company determines which product they
buy!
 Example: Lager

Favourable image: example
CORPORATE REPUTATION
EXPLAINED

The principle difference between corporate
image and corporate reputation is that
reputations are formed over a long time.

However, as with corporate image, reputations
can be good, bad, unwanted, out of date etc
The benefits of a positive corporate
reputation

Can give distinctiveness and a competitive
advantage

can contribute to profits

can act as a safeguard in times of adversity
Reputation as a control mechanism?


Balmer argued that the organization’s reputation can
act as a standard governing behavior i.e. “Would my
actions be in line with the company’s good/bad etc
reputation”
Can be used by employees, those in recruitment etc
He developed the DEAR principle to explain the
above………………………...
THE DEAR PRINCIPLE
D=
DECISIONS
E=
EVALUATED
A=
AGAINST the
R=
REPUTATION
REPUTIONS ALSO APPLY TO..



The corporate brand
part of an organization (business unit/subsidiary)
what an organisation makes as well as how it behaves
“I would buy their cars but I would not
wish to work for them!”
Finally……….a word of caution

Although a valuable resource (in many instances) a corporate
reputation is NO GUARANTEE of business survival or of
success.
Consider Olivetti which had an enviable reputation as a
leading manufacturer of typewriters but took insufficient
account of technological developments in the field..Olivetti
computers ?
SUMMARY: CI & Reputation

The concepts of image and reputation are laden with different
meanings.

Perception is important because it effects our behavior

Unlike images a reputation is formed over a long time

In considering perceptions held of an organisation consideration
should also be given to the image/reputation of the industry,
country of origin, corporate and product brands, as well as
those of its subsidiaries.
Brands and branding

The particular concern here is with the ways in
which an increasing number or products or
services have come to be regarded as brands.

It was not always so, and in many poorer parts
of the world today brands still do not occupy the
position they do in the so-called developed
countries. Staple foodstuffs, for example, are
bought and sold on markets in developing
countries without being branded.
Brands and branding Reading

Shimp, Terence (2000) Advertising.
Promotion. Supplemental Aspects of
Integrated Marketing Communications,
5th ed., Fort Worth: Dryden Press, pp.
216-32
History of brands
In the 19th century the link between
consumer and producer was broken
 Intermediaries such as wholesalers and
brokers tried to exert influence on
consumers
 Manufacturers hit back by branding their
products with distinctive name and
appropriate marketing communications

History of brands

Some of the most familiar brands date
back to 19th century
Heinz - since 1869

However, the pendulum
has recently swung
back in favour of
retailers, especially
supermarkets, which
now vigorously brand
themselves and their
products.
What is the appeal of brands?
Two dimensions:
1)
2)
Brand appeal for the consumer
Brand appeal for the producer
Brand appeal - consumer
Authenticity
 Consistency

‘At its simplest, a brand is a recognisable and
trustworthy badge of origin, and also a promise
of performance.’ (Cowley 1996: 21)

E.g.:
Brand appeal - consumer
Rational or functional appeal
 Helps them to make a choice
 saves time and effort through a reduction
of perceived risk
 Based on trust
 In semiotic terms - brands have a
denotative meaning

Brand appeal - consumer
Connotative dimension:
 I.e. Those less easily defined
associations which are triggered in
people’s hearts and minds
 Culturally and individual personal
experience determined
 Emotional and symbolic

Brand appeal - consumer
E.g. many adults continue to use a brand
such as Johnson’s because it evokes
childhood memories
 Or many Scots reaffirm their cultural
identity by drinking Irn-Bru instead of
Coca-cola

Brand appeal - consumer
This aspect is well captured by Roderick
White, who writes that ‘a brand has a
place in people's minds, as a brand,
whereas a mere product is simply a way
of fulfilling a physical need’ (White, 1993:
5).
 Elements are a distinctive & evocative
name & logo together with the corporate
image

Perceptual map of brands example Channel
Modern
C4
Niche
Mainstream
ITV
BBC1
BBC2
Oldfashioned
Brand appeal - consumer


In addition to the rational and emotional aspects
of consumers’ relationships with brands Shimp
identifies a third factor, which he calls the
‘experiential’. Thus the impact of a brand on the
senses (its look or taste, for instance) is
considered a separate aspects from the other
two.
Brands have to live up to expectations - 80% of
the demise of brands is down to disappointing
customers’ expectations.
Brand appeal - producer


Branding provides one of the main ways to
differentiate a product or service from those of
competitors (positioning).
Another potential advantage to producers
concerns the addition of new products. The socalled stretching or extending of brand names
can be successfully made to apply to these,
rather than the riskier option of launching them
as brands on their own account.
Brand appeal - producer
The calculation is that something of the
original brand values will be transferred to
the new item, whether it be Mars ice
cream (stretching) or Camel clothing
(extension).
 Consumers also derive reassurance for
new goods and services associated with
the “ur-brand”

Brand appeal - producer
The brand concept has extended beyond
the world of goods &services
 Individuals (e.g. Schumacher, Beckham)
 Countries (e.g. Cool brittania)
 Corporate brands (e.g.Sony, Granada)

Cool Britannia? What’s that
(just in case anyone asks…)
NB: Cool Britannia “Who was to blame? David Beckham, Ginger
Spice and her Union Jack dress, Princess Diana, Oasis, Tony
Blair? Surely all of them, and more. The phrase Cool Britannia
began to appear in the British press near the end of 1996, shortly
after Newsweek declared London to be the coolest capital city on
the planet. Anything with a red, white and blue flag was trendy,
Americans started talking in mockney accents, Ben & Jerry icecreams named their vanilla, strawberry and chocolate shortbread
tubs 'Cool Britannia'. For a brief moment the empire was reborn until, in mid-1997, the rest of the world saw through the facade. “
http://www.bbc.co.uk/cult/ilove/years/1996/fashion2.shtml, 20/11/05
Even people can
be brands



E.g. David Beckham
Paid himself £19.7
last year out of
endorsements
according to his
company
Named as the
biggest “personal”
brand ever
Brand appeal - producer

The role of of brands today is so big that
brand equity (formerly goodwill) can be a
company’s most important asset.
E.g. When Nestle bought Rowntree
 Or value of dot.com companies

Trends in brands
Growth of own label or private brands
 A decline in brand loyalty due to products
becoming virtually indistinguishable and
customers’ price awareness and growth
of sales promotions

Brands conclusions



As Klein says, brands have come to dominate
the world of commerce and much more
besides, to the extent that we now live in a
‘branded world’.
Brands matter to organisations because they
are major assets.
They consequently need to be managed
carefully, with occasional adjustments being
made in response to marketing research, but
without compromising core values.
Brands - conclusion cntd.


At the end, they matter because they embody
meanings for consumers. It is clear that in the
information age this is now truer than ever.
As products and services quickly become
essentially indistinguishable from the
competition, they rely increasingly on branding
to differentiate themselves and their users.
Bibliography




Cowley, Don (ed) (1996), Understanding
Brands, London: Kogan Page
Klein, Naomi (2000), No Logo, London:
Flamingo
Randall, Geoffrey (1997), Branding, London:
Kogan Page
White, Roderick (1993), Advertising. What it is
and how to do it, 3rd ed., London:McGraw-Hill.
Thank you and have a nice day!
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