Corporate image is the mental picture that springs up at the mention of a firm's name. This image continually changes with the firm's circumstances, media coverage, performance, pronouncements, etc. It is similar to a firm's reputation or goodwill, it is the public perception of the firm rather than the reflection of its actual state or position. Unlike corporate identity, it can change overnight from positive to negative to neutral or the reverse.
Large firms use various corporate advertising techniques to enhance their image in order to improve their desirability as a supplier, employer, customer, borrower, etc because corporate image is designed to be appealing to the public so that the company can spark an interest among consumers, create share of mind, generate brand equity and thus facilitate product sales.
The Nature of Corporate Image
It is the opinion of consumers, clients, partners and the public about the prestige of the company, quality of its goods and services and even the reputation of heads of the company combines to form the image of a company or brand. Corporate image, describes the manner in which a company, its activities, and its products or services are perceived by outsiders. In today's competitive business climate, many companies actively work to create and communicate a positive image to their customers, shareholders, the financial community, and the general public to achieve one thing, influencing purchase decision, thereby increasing the bottom line of the company.
Building A Corporate Image
To acquire a corporate image, some factors should be taking into account. First is the corporate policy of the company. The policies of a company determines the line of actions the company is likely to take to help it compete in the market space. The company is free to take any decision to make its products and services easy and affordable to every consumer. From this perception, one can deduce that corporate policy comes in to play an important role in the formation of a corporate image.
Just as corporate policy is an important factor, so is corporate cultures, our second factor. Corporate cultures are the norms and values that the company takes up while serving the consumers with their products and services. This aspect of the corporate image is very essential for the company to maintain a high and a world class service to its customers. Their chief motto is the satisfaction of the customers from whom they derive their main income including their profit and the fame of corporate organization.
The third factor is, organizational design which refers to the structure of the company from its management level to its front line staff is also a factor that cannot be left out in building a corporate image. Organizational design also ensures and encompasses the inter-personal relationship among the members of the staff of the company from the top level to the bottom level. It includes the various departments of the company which offer their services to the customers in a united manner.
FEEDBACK
Feedback is essential to the management of corporate image. Business owners and managers need accurate information on how they and their company are perceived if they are to make sound decisions. Ideally, feedback should be continuous. As a practical matter, continuous feedback can be elicited from salespeople, clients, employees, and other local business owners. Based on such input, modifications may be made in the company's communication methods or, if warranted, a formal study of the corporate image may be initiated. In addition to systematically utilizing internal sources, it is prudent to undertake a serious review of the business's reputation (both internally and externally) on a regular basis.
Society's growing expectation that corporations be socially responsible is a factor stimulating the current interest in corporate image. Many of today's consumers consider the environmental and social image of the firms in making their purchasing decisions. Some companies have recognized this reality and reaped tremendous benefits by conducting themselves in socially and environmentally responsible manner.
It takes time, energy and money to create and maintain a positive corporate image. In a corporate world, maintaining a good company image is key.
Also See Corporate - Go Green