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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THE MANAGEMENT OF CORPORATE REPUTATION
Image development or improvement efforts have to be based on reality.
If the image is false and our performance is good, it’s our fault for being
bad communicators. If the image is true and reflects our bad perfor-
mance, it’s our fault for being bad managers.
(Bernstein, 1984)
Every organization has a range of reputations, whether managed or not. Each
observer holds some attitude towards the corporation and this assessment
of standing and personality may differ markedly from that intended by
conscious cultivation through public relations, marketing, and selling efforts.
There are two possible reasons for an image problem (Grönroos, 1990):
1 the organization is known but has a negative image (and the experiences
of customers are probably bad)
2 the organization is not well known, and thus has an unclear image or image
based on out-of-date customer experiences
The creation of a strong reputation requires a continuing investment of
management time and other resources, and must reflect the company if it is
to be successful. Reputations fade if they are not continually renewed (Emler,
1990). Reputation needs to be managed, and cultivation of a distinctive
reputation needs to be active. Problems may be real image problems or image
communication problems. 
When problems of technical and/or functional quality exist, a communi-
cation campaign alone is not going to work. At best it will be a waste of money.
Reality always wins in the long run. An image advertising campaign that is
not based on reality only creates expectations. If expectations are higher as
a result, but the experiences of reality are unchanged, the perceived service
quality is affected in a negative way, and the image is damaged. Problems
with service performance (technical and/or functional quality) cause an image
problem, and internal actions that improve the performance of the firm are
needed if the bad image is to be improved.
If the image is unknown, there is a communication problem. There is no
in-depth image based on experience. Perhaps the performance has changed
but insufficient interaction has taken place for the new reality to be
experienced. Advertising can speed up the process of image improvement.
It is important to realize that image is not what is communicated if the
communicated image does not correspond with reality. When there is an
inconsistency, reality wins and the corporation is perceived as untrustworthy
– this damages image even more.
A dialogue between the firm and its stakeholders must communicate ethics,
mission, and values. Presentation of image will never suffice. The spheres of
experience of all people with rights and responsibilities to the business must
be understood. In managing reputation, it is necessary to cultivate different
reputations in different groups, and to use appropriate methods in each.