IV

CORPORATE IMAGE AND

CORPORATE REPUTATION
WHAT DO YOU UNDERSTAND
ABOUT CORPORATE IMAGE &
REPUTATION?
CORPORATE IMAGE (CONT.)

 Main focus of this topic is Corporate Image

 In this chapter we will discuss all the phases

in building Corporate reputation
CORPORATE IMAGE
To obtain competitive advantage Companies
must
1. Identify specific ways to differentiate their
products and services

2. Develop a positioning strategy including

how many differences to promote and
which differences to promote and

3. Effectively communicate the positioning

using various marketing elements
(marketing mix)
CORPORATE IMAGE (CONT.)
 Differentiation dimensions
1. Product,

2. Services,

3. Personnel,

4. Channel or

5. Image
CORPORATE IMAGE (CONT.)
 Three Phases of Corporate Image
Phase
Phase II Phase
Phase II
II Phase
Phase III
III

Corporate
Corporate Corporate
Corporate
Identity/
Identity/ Reputation
Reputation
Image
Image
Branding
Branding
CORPORATE IMAGE (CONT.)

 Positioning – the act of designing a

company’s offering and image so that they
occupy a meaningful distinct competitive
position in the target customers’ minds

 Illustrated in the following Diagram

POSITIONING CAN BE ACHIEVED
THROUGH
POSITIONIN
G
Cultural
Symbol

Benefit Attribute

Product
Competitors
Class

Product Application/
User Use
Price-Quality
Relationship
 CORPORATE IDENTITY
 Refers to the external “personality” projected by a
company

 It integrates

1. The look and feel of designs and communications, &

2. The Company’s behavior

 CORPORATE IDENTITY
(CONT.)
Aspects of Corporate Identity includes
1. Branding – consisting of Logo, Colour Scheme
and a general look and feel across a product
family

2. Communications – consisting of advertisements,

press releases, news features, and phone service

3. Corporate behavior and ethics are also crucial

component of corporate identity
 Brand and Reputation

What is the difference between brand and

reputation – are they the same?

Brand = promise

Reputation = delivery on the promise

Brand equity - has been defined as:
 The component of overall preference not explained
by objectively measured attributes; and
 The set of consumer associations & behaviours that
permits the brand to earn greater volume or margins
than it could without the brand name.
CO-BRANDING OPPORTUNITIES
 Ingredient branding
 Intel inside compaq
 Cooperative branding
 Joint
venture e.g.: Citbank, Mastercard and
American Airlines points card
 Complementary branding
 Encourageco-consumption of more than one
brand such as Oreo shakes in Dairy Queen
CORPORATE IMAGE
 Is the way the public perceives the company or its
products.

 Can be solely created by the Company or by others

like Media, Journalists, labor unions, etc

 Coveys a singular message that establishes the

product’s character and value proposition

 Conveys this message in a distinctive way so that it is

not confused with similar messages from competitors

 Delivers emotional power so that it stirs the hearts

as well as the minds of buyers
 An effective image
 Coveys a singular message that establishes
the product’s character and value proposition

 Conveys this message in a distinctive way so

that it is not confused with similar messages
from competitors

 Delivers emotional power so that it stirs the

hearts as well as the minds of buyers
COMPONENTS OF A CORPORATE
IMAGE
Tangibles Intangibles
Goods and services Corporate, personnel, and
environmental policies
Retail outlets (sale) Ideals and beliefs of corporate
personnel
Factories/processing centers Culture of country and
(produce) location of company
Communication media: ads, Media reports
promos, literature, docs…
Name/Logo
Pricing & Labeling
Employees
CORP. IMAGE ROLE - CONSUMER’S
VIEW
 Assurance of familiar products
(e.g. Coke)

 Assurance of familiar company

(e.g. IBM)

 Reduction of purchase research time

 Psychological reinforcement & social

acceptance
 CORP. IMAGE ROLE –
CORPORATION’S VIEW (SELF-VIEW)
 Extends +ve consumer feelings to new products

 Enables higher pricing

 Enables increased repeat buying

 Endorses +ve W.O.M.

 Attracts quality employees

 Increased financial viability as ranked by analysts

and corp. raters
PROMOTING DESIRED IMAGE
1. Image must accurately portray firm and
coincide with products and services sold.

2. Easier to re-enforce or rejuvenate than it is to

change well-established
(e.g. New Coke vs. Coke Classic)

3. Difficult to “next to impossible” to develop

new image
(sometimes divorce and/or new company is easier)

4. Recovering from –ve or “bad press” happens

fast (overnight) …building/rebuilding can take
years!
 CORPORATE REPUTATION
 The overall estimation in which an organization is
held by its internal and external stakeholders based
on its past actions and probability of its future
behavior.
 The main benefits of a good corporate reputation
can be found in:
 Customer preference in doing business with you when
other companies’ products and services are available at a
similar cost and quality;
 The ability to charge a premium for products and
services;
 Stakeholder support for the company in times of
controversy;
 The company’s value in the financial marketplace.
 CORPORATE REPUTATION (CONT.)
 Even though it is believed that corporate reputation plays
a very important role in the achievement of business
objectives, few companies have a formal system in place
to measure the value of their corporate reputation.
 Possible reasons include:
 Reputation is an intangible and complex concept, which takes
time to change.
 The dollar value of improvements to a growing reputation is
difficult to quantify.
 Senior managers are obliged to deal with more immediate and
demanding operational priorities – reputation is a long-term
concept.
 Reputation ranges over such a broad area of the organization’s
activities that it is difficult to allocate specific responsibility for
work on enhancing the corporate reputation to individual
functional areas.
 Cost
 CORPORATE REPUTATION
(CONT.)
 There are two main sources of a Corporate
Reputation

Experience - a person’s past dealings with the

company and

Information – the extent and nature of their

direct and indirect communication with the company.
 CORPORATE REPUTATION (CONT.)
 Sources of information about the company that
enabled business ‘influentials’ to form a view on
Its reputation were:

Source of information Proportion

Personal Experience 64%
Major Business Magazines 37%
Articles in National Newspapers 35%
Word of Mouth 31%
Articles in Trade Journals 30%
Television News 14%
Articles in Local Newspapers 24%
Television Current Affairs Programs 13%
 MAIN COMPONENTS OF CORPORATE
REPUTATION
 Ethical: the organization behaves ethically, is admirable, is worthy of
respect, is trustworthy.
 Employees/workplace: the organization has talented employees, treats
its people well, and is an appealing workplace.
 Financial performance: the organization is financially strong, has a
record of profitability, and has growth prospects.
 Leadership: the organization is a leader rather than a follower, is
innovative.
 Management: the organization is well managed, has high quality
management, and has a clear vision for the future.
 Social responsibility: the organization recognizes social
responsibilities, supports good causes.
 Customer focus: the organization cares about customers, is strongly
committed to customers.
 Quality: the organization offers high quality products and services.
 Reliability: the organization stands behind its products & services,
provides consistent service.
 Emotional appeal: (it is an organization I feel good about, is kind, and
is fun.
 STEPS TO BUILD REPUTATION
 Conduct research to know key stakeholders better.
 Assess stakeholder strengths and weaknesses, and
focus on the gap between internal realities and
stakeholder perceptions.
 Research the main factors comprising the reputation of
your organization and align them with policies, systems
and programs in all functional areas. This produces a
powerful re-orientation of priorities and behaviors.
 Set plans to exceed stakeholder expectations.
 Involve the CEO as the greatest ally or champion of a
reputation program.
 Measure regularly against targets and act to improve
the results.
 CORRELATION BETWEEN PR
INVESTMENT AND REPUTATION
 companies which invested in corporate
communication experienced a better reputation
than companies which didn’t
Corporate communication
Ranking of companies
spending US $ million
Top 100 $32

Second 100 $23

Third 100 $13

Fourth 100 $5

Bottom 76 $4
 Traditional PR
• Less strategic
• Non-integrated
• Focus - short-term
• Key people involved
• Aims to give the best
possible image
• Media relations focused
• Focus on transactional
stakeholders
1980, 1990s, 2000
Reputational
Management
• Strategic in nature
• Integrated
• Holistic - long-term
• Involves all employees
• Aims to deliver an image and
brand promise
• Uses all forms and opportunities
to communicate policy and values
• Greater emphasis on multiple
stakeholder relationships
2010
 CORPORATE REPUTATION
(CONT.)
 Stakeholders

CONTRACTUAL COMMUNITY
Employees Consumers
Distributors Regulators
Suppliers Government
Shareholders Local Community
Lenders Media
Alliances NGOs
Customers Trade Groups
 CORPORATE REPUTATION
(CONT.)
Changing Attitudes
 Corporate value can no longer be
determined by short-term profit and
sales. Long-term, sustainability is the
key.

 Old systems deemed employees as cost

factors, not as value creating elements
and stakeholders.
 V

PERSONAL SELLING
 PERSONAL SELLING
 One of the oldest forms of promotion

 Person to person communication between a salesperson

and a prospective customer

 Oral communication with potential buyers of a product

with the intention of making a sale

 Often occurs through face-to-face meetings or via a

telephone conversation, though newer technologies
allow contact to take place over the Internet including
using video conferencing or text messaging (e.g., online
chat).
 ROLES OF A SALES TEAM
Can be summarized as

1. Prospecting

2. Communicating

3. Selling

4. Servicing

5. Information gathering

6. Allocating
 HOW DOES A CUSTOMER BUY?
 People Buy not because they understand the bank’s
Product or Service, but because they feel the bank
understands THEM. Consequently, buying is not one
but a bunch of 5 decisions.
 Our integrity and judgment
“You are there to take or give.”
 Our bank’s is dependable and has a good after-sale service;
“Employees may make a distinction between themselves and the bank,
but the prospect does not. “
 Product or Service- Suitability, quality, delivery.
 Price - Value for their investment. (VFM – value for money)
 “When” because no one wants to spend money before it’s
necessary
 OBJECTIVES OF PERSONAL
SELLING

 Building Product Awareness

 Creating Interest

 Providing Information

 Stimulating Demand

 Reinforcing the Brand

 DISTINCT FEATURES OF PERSONAL
SELLING
 Oldest method of business promotion

 Most reliable promotion method

 Expensive method of promotion

 Face-to-Face interaction

 Persuasion

 Flexibility

 Promotion of sales

 Supply of Information

 Mutual Benefit
ADVANTAGES OF PERSONAL SELLING
 Personal selling is a face-to-face activity; customers
obtain a relatively high degree of personal attention
 The sales message can be customized to meet the needs
of the customer
 The two-way nature of the sales process allows the sales
team to respond directly and promptly to customer
questions and concerns
 Personal selling is a good way of getting across large
amounts of technical or other complex product
information
 The face-to-face sales meeting gives the sales team a
chance to demonstrate the product
 Frequent meetings between sales team and customer
provide an opportunity to build good long-term
relationships
 PREPARATION – 4 CS
 Before venturing to personal selling know
your 4 Cs

 Commodity / Product / Service

 Customer

 Competitor and

 Company
 STEPS IN THE SELLING PROCESS
 Step One - Lead Generation

 Step Two - Prospecting and Qualifying

 Step Three - Pre-approach

 Step Four - Approach

 Step Five - Handling Objections

 Step Six - Closing the Sale

 Step Seven - Post sale follow up

 STEP ONE - LEAD GENERATION
The following could be considered as some of the sources
 Branch dossier / Branch database
 Identify potential for buying in existing clients
 Reference from existing clients
 Winning back lost customers
 Customer call register / enquiry register
 Attracting competitors’ customers
 Newspaper Advertisements
 Sub-registrar office, Urban development authority etc
 Pensioner’s list, employees list from govt. depts.,
Corporate etc
 Directories, Trade Associations like Chamber of
Commerce, District Industries Centre etc
 References from Staff
 Cold canvassing i.e. door to door
 STEP TWO - PROSPECTING AND
QUALIFYING
Prospecting, involves finding qualified sales leads.
Not every consumer is going to be willing and able
to buy. Hence,

 Sift the leads into prospects and

suspects.

 Keep the record of suspects for future

use.

 List the prospects for follow up.

 STEP THREE - PRE-APPROACH
This step involves collecting information about the
potential customer prior to the initial visit. This
means;
 Research the profile of the prospect from
secondary sources – Financial
 Credit Worthiness
 Track record
 Family background
 Other Activities
 Key Person (s)
 List out the likely needs of the prospect
 Prepare for the appropriate solutions to offer
 Fix prior appointment at a time and venue suitable
to them
 STEP FOUR - APPROACH
This step involves:
 Need Identification
Ice Breaking
Need Exploration
Listening actively

 Presentation - explanations on how the

features of the product will provide benefits to the
customer
 THERE ARE TWO APPROACHES

 The AISHC Model

 Attention seeking

 Identifying the Needs

 Solutions to satisfy the needs

 Handling objections

 Closing the sale

 The AIDA Model - Suitable for sales presentations
 Demonstrates that consumers must be aware of a
product's existence,
 Be interested enough to pay attention to the product's
features/benefits, and
 Have a desire to benefit from the product's offerings.
 Action, the fourth stage, would come as a natural
result of movement through the first three stages.
 can be portrayed by “The AIDA Funnel” illustrated
below
STEP FIVE - HANDLING OBJECTIONS
 First, try to anticipate them before they arise.

 'Yes but' technique allows you to accept the

objection and then to divert it.

 Ask 'why' the client feels the way that they do.

 'Restate' the objection, and put it back into the

client's lap.

 The sales person could also tactfully and

respectfully contradict the client
The objections could be of various types

 Comparison with competitors’ products

 Gaps in either their understanding or in the
adequacy of information.

 The person is merely afraid to take a decision.

 Objection should be clearly understood and

addressed immediately.

 The attempt should be to convince about the

benefits of the products/services on offer and the
competitive advantage over the those of the
competitors
 STEP SIX - CLOSING THE SALE
The list of closing techniques is almost endless. Below are
some of them
 Assumptive “Close”
 Acting as if they are ready to decide
 The Alternate or Choice “Close”
 Offering a limited set of choices
 ‘I recommend close’
 Encourage them to the close by making the only option
attractive
 The benefits “Close”
 Addingup the pros and the cons and ensuring people can
afford what you are selling
 The ultimatum or last chance “Close”
 Emphasizehow now is the best time to buy and the negative
consequences of not buying
 STEP SEVEN - POST SALE FOLLOW
UP
 This is the final step of the personal selling
process.

 Here any agreed upon actions must be completed

(i.e. bonus, rebate) and stay in touch after the
sale.

 Customer retainment is critical to future sales, i.e.

following up after the Sale to ensure customer
satisfaction and repeat business.
SUMMARY PERSONAL SELLING TIPS
 Know more about the customer
 Prepare Tables and Charts, if necessary
 Be appropriately dressed and make a favorable impression
 Better to take an appointment rather than just dropping in on a
customer.
 Be punctual, never be late
 Practice Basic Etiquette and courtesies
 Spend a minute or two making polite enquiries
 Do not waste the customers time
 Ask questions and listen to the answers
 Set goals and determine to be successful
 Try to build relationships, not to sell products
 Tell the truth. Integrity has long term value
 Be a financial advisor, not a salesman
 We should be convinced ourselves. If we are not convinced, clients
will not be!
 Provide responsive and anticipatory after-sales service
TH
AN
K
YO
U