Экономические науки/6. Маркетинг и менеджмент

Amirbekova D.K., Master’s candidate

Kazakh British Technical University, Kazakhstan

The main factors identifying the image of the company

The high level of competition in industries caused by globalization processes influences to the customers’ purchasing intentions, willingness to buy products from one company and ignore others. Such kind of decisions based on the factors which identify the image of the company and influence to the perception of that company by stakeholders. The image is mostly characterized by positive reputation of the company and ability to satisfy customers’ needs with high quality products for reasonable price. Image of the company can be negative or positive but it can be shaped and changed. Strengthening factors which identify image of the company will help to build long – term relationships with stakeholders and gain market share.

Image is the part of perception and evaluation processes of the company by stakeholders. Image of the company has two dimensions. It can be created in the way company plans to do it, but it can be perceived differently by different groups of peoples. It means that factors which identify image of the company have different influence and percept differently.

Process of forming image of the company has two stages. The first one is development of positive image of the company. The second one is perception of created image by stakeholders. So, image of the company can be divided on two categories: the functional attributes and emotional meanings [1]. Functional attributes are quality, price, and service. These attributes created by the company in order to bring special message to target group. Emotional meanings are subjective opinion and perception of the brand. Emotional meanings connected with the perception of functional attributes and adopting them with own emotions and subjective opinion about the company. Functional attributes and emotional meanings influence to the stakeholders and form their attitude to the image of the company. But there are also other factors which identify the image of the and can be created by company [2]:

· Corporate identity

· Brand

· Corporate citizenship behavior

· Corporate spirit

Each company has corporate identity which makes it different from competitors. This factor includes logo, name of the company. Logo of the company helps to represent company to the stakeholders and create recognition of the company. Image of the company cannot be developed without brand. Brand has great impact to the image of the company but it is hard process to create it. When brand of the company is connected with company name and in cases where stakeholders associate brand with name of the company this factor has an effect to the image of the company. Openness to the society and corporate citizenship behavior identifies the social image of the company. Positive attitude to society helps to shape positive image. Corporate spirit of the company connects with its image as a result of corporate culture and sharing the same ideas and goals. Strong internal connection of employees builds corporate spirit.

Image of the company also can be identified by external factor such as industry where company operates. This external factor cannot be created by company because perception of industry already influences and identifies the image of company in a positive or in a negative way. For example, oil and gas industry associated with high level of salaries, but at the same time with the negative impact to the environment. So, companies in that industry can have negative image because of its influence to the ecology. At the same time, companies in the industry form the image of industry. BP oil spill in Gulf of Mexico in 2010 negatively influenced to the industry and to the company’s image because of extensive damage to the environment. Also, there was some cases when customers considering a boycott of BP gasoline stations. Another external factor is image of home - country of the company. Positive image of home – country creates positive image of the company because of halo – effect. The same halo – effect occur in positive perception of one product of the company which affect to the positive perception of the whole company and it others products.

The forming of positive image of the company takes long time but it can be ruined easily. Positioning as a tool helps to create internal factors which identify image of the company. It designs identity of the company, so it’s clear for stakeholders and connects with the company. Superior competitive positioning has four key components [3] such as analyzing own brand and brand of competitors, creating attributes of own brand which is different from competitors’, creating attributes of own brand which are not so unique but essential, clearly identified essence of the brand and its difference from other companies. Another way to shape and create positive image is public relations. It’s aimed to create favorable image of the company and refute undesirable rumors [4]. Nowadays, a public relations as a marketing communication has great impact to the shaping attitude to the image of the company. Mix of advertising and public relations brings more positive results for presenting company in most favorable position.

Brand of the company is one the main factors which identify image of the company. It is associated with strong market position of the company and has huge impact to the perception of the company. Brand makes product of the company well recognized and easily creates image of the company. In cases when brand perceived positively, image of the company perceived positively as well. For Kazakhstan companies, a brand of the company is challenging factor because it requires a long time to create desirable perception from stakeholders of some products and company in general. MPP Consulting identified the rating of top 50 valuable brands of Kazakhstan “Kaz Brand – 2011”. The calculated value of the brand includes only the cost of the brand (its name) without production facilities, infrastructure, patents, inventions and other intellectual property [5]. According to this rating the most expensive brand is “Karagandinskoe” which costs $95 million USD. The second place is “BTA Bank” which is $90 million USD. Despite the financial problems of the bank in the past years it’s well recognized. The third place belongs to “Rakhat” company which located in Almaty city and costs $83 million USD. These three brands have best perspectives for future development and advantage in creating image of the company on global markets.

The factors which identify image of the company can be specified to each industry but the main factors are the same for all kind of companies. Company’s image creation with the perspectives for its globalization brings more challenge to the company but at the same time helps to build stronger position at local market. Perception of the company’s image by stakeholders can be different, changeable and based on biases. In such kind of situation, brand becomes the main factor to identify image of the company because of its recognition of company’s identity and uniqueness.

To summing up, image of the company plays major role in company’s global position and has an effect to global market share. In this conference paper we described the main factors which identify image of the company. The results of it we will include in our further research.

Bibliography:

1. Stern, B., Zinkhan, G.M., Jaju, A. Marketing images. Construct definition, measurement issues and theory development. Marketing theory: articles. Volume I (2): 201-224. SAGE: 2001, p. 211.

2. Zinkhan, G.M., Ganesh, J., Jaju. A., Hayes, L. Corporate image: a conceptual framework for strategic planning. Retrieved November 27, 2011 from http://www.terry.uga.edu/~ajaju/papers/AMA2001.pdf., pp. 3-4.

3. Keller, K. L. (2009). Brand Planning. Shoulder of Giants, p.7.

4. Kotler,P.(2009). Principles of Marketing. 4^th European Edition. Moscow: Viliams.,p. 1050.

5. KazBrand 2011. Top 50 Kazakh Brands. Retrieved November 27, 2011 from http://www.mppconsulting.com.ua/ukrbrand/kazbrand2011.pdf., p. 3.