Here’s a question that’s probably been bothering you for a while. One that pops into your mind when you notice the price of Nike Air Jordans or you are going to try Airbnb on the next family vacation and it’s on the front page of your paper.
“What the hell is the difference between brand equity and corporate reputation?”
Well, we’re going to tell you.
It’s all about stakeholders, your relationships with them, and the impact they can have on your company.
Brand equity looks at one stakeholder group – customers and prospects.
Certainly, these are important folks. Their key behavior is to buy what you’re selling. Very important. And brand equity measures the success of your marketing in building customer relationships.
Corporate reputation, on the other hand, looks at lots of stakeholders who can help or hinder your company’s ability to achieve its strategic goals.
To name a few:
These multiple stakeholders’ behaviors are crucial.
A solid corporate reputation greatly increases the odds that their behaviors will benefit your company.
Brand Equity = one stakeholder group and one behavior.
Corporate Reputation = multiple stakeholders and multiple behaviors.
Three tips for doing great corporate reputation research:
You will not get the whole story if you don’t. Joseph Hall wrote, “A reputation once broken may possibly be repaired, but the world will always keep their eyes on the spot where the crack was."