Corporate Image Meaning, Factors Influencing Corporate Image

16/11/2020 0 By indiafreenotes

In simple words, the picture that comes in mind when we think of a particular company is the corporate image. The image can be positive as reliable, trustworthy, reasonable, high quality, or it can be negative as harmful, expensive, poor quality etc.

Unlike corporate identity, corporate image is purely based on the customer’s perspective. This perspective can be changed from good to bad the moment something negative is flashed in news about the company or its products. We have seen companies endorsing real life doctors in their advertisements to promote their brands and create a reliable image for their products.

Especially companies doing business in medicines, baby care products, dental, creams etc. use expert medical practitioner’s opinion to convince their consumers. Companies dealing in high end products like gold, diamond, platinum even expensive cosmetics ranges endorse eminent film personalities in their commercials to promote reliability and elegance.

All these are done in an endeavour to create a positive corporate image. However, brand image changes from time to time. We have witnessed in real life some of the companies being accused of to lose their brand image overnight.

However, if they win the legal battle and a clean chit from the health federation, slowly they are able to re-establish their image in the market.

Factors Influencing Corporate Image

  1. Mission and vision: Mission defines “who you are and where are you going” and vision is the “big picture” illustrating what you expect to achieve.
  2. External image: It consists of customer service management, quality of products and services and media.
  3. Established business relationship: It is a vital relationship between your organisation and stakeholder groups.
  4. Be transparent to your stakeholders: Being truthful is the key to business success particularly while managing issues and crisis.
  5. Cheaper technology: The increasing cost of traditional mass media advertising and the relatively cheaper opportunities offered by the internet many organisations are re-examining their media presence and ways to control it.
  6. Varied choices: Many organisations today use a range of media including corporate blogs websites banners and sponsored online communities.

As discussed earlier corporate image is highly subjective and fluid in nature. It may change from positive to negative and vice versa. Therefore, companies put in a lot of effort to sustain a positive image in the market.

However, there are several warning signs of a deteriorating corporate image. For example: high attrition rate, losing customer base, frauds with the government, sinking in the stock market etc. may tarnish the image in the global market. Irrespective of the size of the company it is important that they strive towards protecting their image as it takes a long time to grow.

Ever since globalisation maintaining a clean corporate image has been of high priority for organisations. A company maintaining its business in multiple geographical locations or expanding in home country is always under a threat of being projected with dissimilar images that might go in contrary to the actual corporate image.

In addition to all these factors there is also a growing expectation in society about the organisation’s involvement in altruistic or philanthropic activities.

For example, certain corporations actively promote organ donations, caring for animals, protection of nature, patronizing farmers, sponsoring child education etc. Such contribution to social causes enhances the brand image of the organisation and they are crucial in sustaining the image as well. Organisations try to create favourable impressions in the minds of those who matter to them.