Identity, Image, and Reputation

Identity, Image, and Reputation

A close alignment between a company’s identity and image is helpful to generate a strong reputation. In the following will be explained what identity and image are and how they can be managed.

What are identity and image?

The definition of identity given in the book “Corporate Communication” written by Paul A. Argenti is as follows. A company’s identity is the visual manifestation of the company’s reality conveyed through the organization’s name, logo, motto, products, services , buildings, stationary, uniforms, and all other tangible pieces of evidence created by the organization and communicated to a variety of constituents.
The image is then the reflection of the organization’s identity. The identity program is a success, when these images accurately reflect the company’s reality.

Differentiating organizations through identity and image

Since today the completion is very intense, many products are very homogenous and the buying decision of consumers is based only on the company’s image. Therefore, companies should pay more attention to their identity and image and make them more powerful.

Shaping identity

The identity-building can be controlled and managed by an organization, in contrast to the image part of reputation. There are several things that will contribute positively in creating an organization’s identity. First a company should think about an inspirational corporate vision, which includes the company’s core values, philosophies, standards and goals. It can help to think about this vision as a narrative or story to ensure the consensus between the company’s vision and the messages it sends to its constituents.
Secondly, the company’s name and logo also shape a company’s identity and differentiates them in the marketplace. They are a part of corporate branding and serve as a kind of identification tag. This allows the consumer to recognize a product of a certain company very quickly and effortlessly.
Last but not least, consistency is very important for a company’s identity. The organization’s vision should manifest itself throughout all identity elements, including names and logos.

Identity management in action

A method that has been used successfully to create or change a company’s identity, includes six steps:
1. Conduct an identity audit / How is your current image respectively reputation?
2. Set identity Objectives
3. Develop designs and names
4. Develop prototypes
5. Launch and communicate the new identity to the public
6. Implement the program

Image: In the eye of the beholder

Constituencies often have perceptions about a company even before they interact with it. Perceptions are built by what the constituents have heard, seen, and read about a company previously. After interacting with the company those perceptions may change. That is the reason why organizations are so concerned with the quality of each and every interaction.

Building a solid reputation

For a good reputation the organization’s identity and image have to be aligned. Therefore it should be a goal to first shape a unique identity, and second to project a coherent and consistent set of images to the public.
A good reputation is favorable because it can give companies a competitive advantage. Companies with a good reputation can attract and retain the best talent, loyal customers, and business partners. In order to mange reputation, employees can be a good starting point, as they need to have the company’s vision and value in mind when acting with customers. Additionally a company has to pay attention to philanthropy and social responsibility, as they are gaining visibility and importance in the eyes of many constituencies.

Conclusion

Many managers underestimate the value of corporate reputation. They need to understand the importance of it and learn how to manage these critical resources.


Examples / Experience

Years ago, Aldi GmbH, a grocery discounter in Germany, was perceived by a lot of people as not a good place to buy food. Its reputation was to have a bad customer clientele, as well as no quality food. Today its reputation totally changed. Now, almost everybody buys in that store, especially because of its low prices and the good food quality. I personally love this store and buy almost all my groceries over there.

Another example of a company trying to improve its image is McDonald’s. They tried to change their image of unhealthy fast food by selling salads for example. In addition they ran advertisements promoting the idea that they are now selling good and healthy food. However, I personally do not think that they really achieved their goal. A lot of people still associate McDonald’s with very unhealthy fast food.


Links:
Developing a company image:
http://www.smallbusinessnotes.com/operating/marketing/image.html

A Reputation Institute:
http://www.reputationinstitute.com/main/home.php

Homepage of Aldi GmbH:
http://www.aldi.com/