What Impact Is Your Reputation Having On Your Brand?

Good or bad, all of us have a reputation. It’s not defined by strangers or the general public. Our reputation is defined by those who know us.

This is especially important for anyone who is marketing themselves.

The same is true for business brands. Every product, every service, every company or organization has a reputation. It too is defined by those who have experience with the brand.

There are those who love it. And there are those who hate it. Both viewpoints contribute to defining the value of the brand.

Note: strong brands must have people who hate it (e.g. Microsoft vs. Apple, Coke vs. Pepsi). As a marketer, if you’re not taking a stand to make someone unhappy, then you don’t have a significant brand.

The question is, “Is your brand reputation increasing or decreasing the value of your brand?”

3 Sides of Reputation

When it comes to reputation, business leaders and marketers are trying to do one of 3 things:

1. Build a reputation. Starting from scratch is tough. Owners of a start-up company must realize that their reputation is formed rather quickly. It happens as customers experience the products and services, encounter the various parties involved in the distribution channel, and interact with employees. For start-ups, one “bad apple” can spoil the whole reputation pie. But achieving enough consecutive wins can lead a brand from being virtually unknown to being a billion dollar business.
2. Change the reputation. IBM used to be known as a company that made computer hardware. They had a reputation for building large, expensive computer systems. In the 1990s, Lou Gerstner, IBM’s CEO at the time, managed to change IBM’s reputation to services. This was a huge undertaking that, while risky, paid off in a big way. Today, selling computer hardware is only a part of their business and the IBM brand is now synonymous with services. More importantly, IBM brand equity was not only restored, it increased significantly.
3. Rebuild a reputation. Hollywood superstars, rock stars, and other egocentric brands are prone to failure when the individuals behind the brand mess up. Some do this in a big way by crossing the line with their fans. For example, in 2003 the Dixie Chicks publicly criticized President Bush’s wartime policy that really offended their fan base. They quickly found themselves banned from country radio stations, their top-10 single disappeared in days from the top of the charts, and a major marketing sponsor ended their contract. Since then, the Dixie Chicks have been trying to rebuild their reputation, but their brand equity has been significantly depleted. Even after taking a hiatus for several years, the band has struggled to leave the political controversy behind.

Other than being consistent, there is no simple formula for creating a strong reputation. And even after building a positive reputation it can be lost overnight. But with a little luck, you never know when your reputation will suddenly impact your brand in a positive way.

 

What one thing can you do today to help improve the reputation of your brand?