Marketing communication: principles and practice

I D E N T I T Y
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I M A G E
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A N D R E P U T A T I O N
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Management thinking is clearly moving towards greater emphasis on the
development of relationships among stakeholders and wider acknowledge-
ment of environmental influence on the ‘bottom line’ through the impact of
reputation (Kent, 1996). Environmental monitoring is required to assess,
enhance, and maintain corporate reputation as a measure of stakeholder
expectations.
if we don’t have reputation, we don’t have anything.
(Steve Melcher, CEO, Allied Dunbar & Eagle Star, 
PR Week
, 2 May 1997: 12)
Yet, many managers simply do not understand how corporate reputation
arises or its effect on morale, profitability, and the ability of the corporation’s
people to achieve their goals and objectives in the long term.
A leading scholar in the field has stated that:
A corporate reputation is a perceptual representation of a company’s
past actions and future prospects that describes the firm’s overall appeal
to all of its key constituents when compared with their leading rivals.
(Fombrun, 1996: 72)
According to Kay (1993) reputation is the most important commercial
mechanism for conveying information to consumers, but is not equally
important in all markets.
Who says that reputation is an important criterion in determining
purchasing decisions? Fearnley’s study (1992) produced the findings that
are represented by Figure 10.1.
The same survey showed that both consumers and purchasing managers
believe that corporate reputation is a wasted asset. Yet, many academics
and practitioners believe that it can be a source of sustainable competitive
advantage. But in what terms?
I D E N T I T Y
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