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

200
5

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

on-going 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

co-ordinate 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.

Corporate

Identity

Corporate image

Public A

Public B

Public C

Experiences

Symbolism

Behaviour

Directed Communication

Relationship between Corporate
Identity and Image

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:

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

Niche

Mainstream

Modern

Oldfashioned

BBC2

ITV

BBC1

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
so-called 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 ice-creams 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.