The Value Of Corporate Image

“There is just no way any management with any intelligence and foresight cannot recognize the value of a corporate image. It is the best, single marketable investment that a company can make.” – Malcolm Forbes

Corporate image is the outward expression of everything a corporate brand stands for. Its component parts – logo, color scheme, typographic scheme, layout parameters, photographic and illustration style, message strategy, copy tone and personality – all work together to communicate the value attributes that differentiate the promise the brand makes. So it’s no wonder Malcolm Forbes was so vehement about its value. For without a properly developed brand image, every message a corporation sends is inherently less effective than it should be, and can even damage the brand.

THE GOAL OF A CORPORATE IMAGE PROGRAM

A brand is the promise a company makes to its customers, investors, employees and partners. Like all promises, brands have three parts: Behavior, expression and experience. Behavior is what an organization does in support of its core purpose. Successful companies are those whose brand promise matches what its stakeholders experience. The corporate image is the connective tissue between behavior and experience. Its job is to symbolize what differentiates the promise from all other offers, and it must do so in a manner that links management’s intentions with the needs and desires of the market.

THE COMPETITIVE MANDATE

The average American is exposed to over 5,000 brand messages every day (some studies say as many as 10,000). Add the fact that every customer has the ability to turn you off, tune you out, or simply hit delete. In an environment like this, it takes a commitment to consistent, compelling brand expression to rise above the noise and maintain a desired position in the minds of your tribe. That means a corporate image must accurately communicate, on an intellectual and emotional level, everything a brand stands for, and it must do so in a way that will endure cultural evolution, economic flux and competitive pressure. When it can do this effectively, it can seize a position above the noise.

INVESTING IN CORPORATE IMAGE

In spite of the importance of a corporate image, on a relative basis, the cost is surprisingly low. Generally speaking, the design phase of a comprehensive corporate identity program runs from a few thousand dollars for a small organization to perhaps a few million for a major corporation, when all the implementations are included. Design costs usually include the strategic briefing, market research and client interaction, in addition to the creative development and production work that goes into delivering the final product.

The cost of designing a corporate image can be far less than the cost of a single ad, less than a single employee’s salary, less than the CEO’s bonus. Yet one of the most commonly cited reasons for not investing in corporate image is cost.

CORPORATE IMAGE APPLICATIONS

Every organization has a set of operational applications, such as business stationery, trade dress, presentation materials, and other expressions. They also have their promotional materials, which include web sites, advertising, print collateral and the like. The list can be long, of course, but no matter how many applications an organization has, the cost of producing them within the context of a well-managed design program is no more than the cost of producing them without one. In fact, a design program usually reduces the cost of producing deliverables, because it creates economies of scale in printing, fabrication of signage and graphics, production of audiovisual messaging and other support work.

LAUNCHING A NEW CORPORATE IMAGE

The launch of a new identity program for an existing organization can be complicated. Decisions about introducing new materials are often made in light of the cost of disposing of legacy materials, such as stationery and brochures. There is always a desire to save materials that have already been paid for, but like most other business decisions, a simple cost/benefit analysis can guide management to a sound choice.

That being said, many companies hang on to legacy materials till they run out, even though they cost relatively little to produce. The problem is when stakeholders see two different images being expressed through various media, they become confused. They make up their own stories about what is happening to the brand, and the brand becomes vulnerable to predatory and opportunistic competitors.

A well-planned launch campaign helps manage the costs of roll-out and minimizes the confusion that can occur in transition. More importantly, a new corporate image is an opportunity to connect with stakeholders and reinforce not only the brand promise, but why it’s relevant, how it’s being improved and what the public can expect from the brand in the future.

THE PAYOFF

Investing in corporate image at start-up, or in the makeover of an existing image, can pay off in a big way. Customers are brought closer to the core value promise through more exciting, more meaningful brand expression. Identity changes are newsworthy, so business media are excited about covering them. Buzz about the change attracts more people to the tribe. Employees, customers, investors, partners and influencers are energized and can begin to coalesce around your brand promise in a new and powerful way. The risk of confusion with other brands is minimized. Aside from the impact on brand awareness and loyalty, however, there are very real benefits in terms of cash savings. Lost opportunity cost associated with weak messaging is recouped. Hard costs connected to production of deliverables can be reduced.

PROTECTING THE BRAND

In addition, a consistently managed corporate identity program makes it easier to defend your intellectual property. You may find yourself in court someday, prosecuting a trademark infringement. If your identity program is inconsistent, if your logo files are not tightly managed, if your adjunct typography, color schemes or taglines vary from application to application, it may be hard to convince a judge your identity is really yours, or really worth defending. So a proper corporate identity program, which includes trademark registration and copyright applications as appropriate, ensures the intellectual property that expresses your brand promise is legally protected.

THE BOTTOM LINE

Corporate image design streamlines and amplifies your message, creates excitement, energizes your stakeholders and reduces your costs. It also provides you with legal protection if you come under attack from competitors. So consider carefully the value you place on the promise you make to your market, and use design to make your brand your most valuable asset.