Corporate reputation is a very important concept in the world of marketing. It is also very relevant for brands. They need to understand this concept properly in order to maintain a good image in the market and to use it for their growth. So what does it mean? And why is it important for brands. Let’s discuss.
What is corporate reputation?
The concept of corporate reputation is quite an important one, when it comes to the growth of the business. In simple words, the overall sum of estimation of the organization that is held by the internal and external stakeholders of the organization is called corporate reputation . It is the impression that is built in the mind of various stakeholders about the organization. The actions of the organization in the past, along with the future predictions associated with it are a few of the key determinants of this concept.
Why is it important?
By looking at the definition, one can easily see how and why this concept is important for brands. Let’s discuss some of the reasons at length to understand why having a good corporate reputation is vital for brands, in this day and age:
Higher brand loyalty
Brand loyalty is the customer’s faith in a brand. Loyal customers keep coming back to a particular brand and are hesitant to switch to its competitors. Every brand strives to achieve this in the long run. The stakeholders look at a brand in a good light when it has a good brand reputation. Likewise, there is a higher chance of them staying loyal to the brand.
An edge over the competitors
Another advantage of having a good corporate reputation in the market is that the brands can have an edge over their competitors. In a market like the one that exists today, product differentiation is harder to achieve, by the day. A brand needs to stand out in the minds of the customers to make a mark. Having a good corporate reputation can help them to do that. Ask yourself, which brand are you likely to try? One which has a good reputation in the market, and is marked by positive word of mouth? Or one that does not have a good reputation?
Higher share price
Shareholders are very important stakeholders for every brand. They are the ones that are literally putting their money on the brand. A potential shareholder usually looks at a lot of factors before investing. One such factor is corporate reputation. If the reputation of the brand is good in the market, shareholders will deem it to be a much safer bet. Similarly, brands that have a good corporate reputation can set a higher price for their shares in the market, naturally. Think about it, what kind of a brand will be a safer bet for the shareholders where they will not hesitate much to even pay more? One which has a good reputation or one that does not?
Higher retention of employees
Employees of an organization are one of the most important stakeholders. They help to bring the planned actions to life with continuous work and efforts. An organization needs to make sure that their employees are motivated and happy. Having a good corporate reputation also means that there is a higher chance that the organization can retain their employees. It also means that brands attract high-quality talent. Being the best PR agency in Delhi, we understand the importance of each stakeholder in the making of a brand.
These are just some examples of the advantages that having a good corporate reputation in the market can offer to the brand. Having a good corporate reputation in the market is quiet essential nowadays. Especially with the amount of competitors present, having a good corporate reputation can give the brand an edge over others and can help them to stand out. Having said that, building a positive corporate reputation is a continuous and a long term process. But with constant efforts, good communication, and quality work, it is something that an organization can easily achieve.