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Unlock This CourseEvery business has an image - whether they actively manage it or not. The way customers, suppliers, employees and the wider public view a business can make or break its success. In this session, we'll explore how businesses create and maintain a positive image and reputation and why it matters so much.
Key Definitions:
A positive image helps businesses stand out in crowded markets. Think about why you choose certain brands over others. Often it's not just about price or quality, but how you feel about the company. Businesses with strong positive images can charge premium prices, attract better employees and recover more quickly from mistakes.
Trust is at the heart of a good reputation. Customers need to trust that products will work as promised, employees need to trust they'll be treated fairly and communities need to trust that businesses won't harm their environment. Trust takes time to build but can be lost in an instant.
Businesses use many different strategies to create and maintain a positive image. Here are some of the most important:
A business's brand is made up of many elements that work together to create an overall impression:
Logo, colours, packaging, store design, uniforms and website appearance all create visual cues that customers associate with the business. Think of McDonald's golden arches or Coca-Cola's red and white - instantly recognisable worldwide.
The tone, language and messages used in advertising, social media and customer service create a 'voice' for the brand. Compare Innocent Smoothies' friendly, conversational style with the professional tone of a bank like HSBC.
What the business stands for and how it acts matter enormously. Does it treat staff well? Is it environmentally responsible? Does it support good causes? These actions speak louder than words.
CSR has become increasingly important for businesses wanting to build a positive image. It involves taking responsibility for the company's effects on the environment and social wellbeing.
Reducing carbon footprint, minimising waste, using sustainable materials and protecting natural resources. For example, Patagonia encourages customers to repair rather than replace their clothing and uses recycled materials in its products.
Supporting communities, ensuring fair treatment of workers throughout the supply chain and promoting diversity and inclusion. TOMS Shoes donates a pair of shoes to a child in need for every pair purchased.
No amount of clever marketing can make up for poor products or services in the long run. Businesses build strong reputations by consistently delivering quality. Apple has built its reputation on innovative, high-quality products with attention to detail in design and user experience.
How a business treats its customers has a huge impact on its reputation. Great customer service means:
John Lewis is famous for its customer service and "never knowingly undersold" promise, which builds trust with shoppers.
Greggs, the UK bakery chain, has successfully transformed its image from a basic bakery to a popular food-on-the-go retailer. They achieved this through:
The result? Greggs has attracted new customer groups and seen significant growth in sales and profits. Their share price increased more than fivefold between 2013 and 2020.
Building a positive reputation requires investment and effort, but the benefits are substantial:
Customers are more likely to return to businesses they trust and respect. They're also more likely to recommend these businesses to friends and family, providing valuable word-of-mouth marketing.
Businesses with strong positive reputations can often charge higher prices. Think about how much more people will pay for a Nike trainer compared to an unbranded one of similar quality.
When problems occur (as they inevitably do), businesses with strong reputations find it easier to recover. Customers are more willing to forgive mistakes if they already trust the business.
Even the best businesses sometimes make mistakes or face crises that damage their reputation. The key to recovery is how they respond:
In 2018, KFC faced a major crisis in the UK when it ran out of chicken due to problems with a new delivery supplier. Hundreds of restaurants had to close temporarily.
KFC's response was masterful:
The result? Instead of lasting damage to their reputation, KFC won praise for their honest, human response. Their apology was even awarded a prize at the Cannes Lions advertising festival.
How do businesses know if their efforts to build a positive image are working? They use various methods to measure their reputation:
A positive image and reputation are valuable business assets that:
In today's connected world where information spreads instantly, managing image and reputation has never been more important. Businesses that invest in building positive perceptions among their stakeholders are more likely to succeed in the long term.