Business Communication Chapter 4 Identity Image Reputation And Corporate Advertising Teaching Notes Identity Image

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

Chapter 4

Identity, Image, Reputation, and Corporate Advertising

This is a rich chapter with strong ties to management and corporate communication

strategy. I find that students usually enjoy thinking about image, identity, and

reputation so you should have no trouble generating good discussions on the topic.

In addition, we are all bombarded with so much corporate advertising that it’s easy

for all students to feel like experts on the subject – after all, as consumers we are the

core constituent for this communications channel!

For the class itself, I recommend reading Wally Olins’ book, Corporate Identity, from

Harvard Business School Press when teaching the concepts of identity and

Teaching corporate advertising is easy to do because such rich examples are

available for you to use. For more general information, I would rely on Garbett’s

book, Corporate Advertising, which I mentioned in the text. Garbett treats this

subject in depth and covers all major topics. You should also refer to Chapter Five in

The Power of Corporate Communication for a more managerial focus on this subject

and additional examples to use in class.

About a month prior to teaching this class, I start collecting a wide variety of good

examples to use in class. Business magazines are a good source for corporate ads as

You can find the best television ads on Sunday morning television, on Meet the Press

for example, as well as on the nightly network news broadcasts. One recent Sunday

on Meet the Press gave me all I needed to use for the class and included a great

example from GE. In addition, virtually any company or ad agency would be

delighted to have you show ads for them.

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

Another way to deal with the problem of finding ads is to assign the chapter and let

students find examples for a homework assignment. Tell them each to bring in four

An interesting twist on these exercises would be to look at some of the anti-

corporate advertising now published. Not only is this a good way to show what

consumers may distrust in corporate ads, it can also be entertaining as the protest

ads are often fairly clever mockeries, such as the well-known ‘Obsession For Men’

spoof with a male model staring down his pants. You could refer to several sources

for examples; the most well-known is the Canadian-based AdBusters, with a website

at www.adbusters.org.

The key discussion to have with students is about the notion of reputation for all

constituencies and image for specific ones in determining the success or failure of

any organization. I give the example of two hotels in my introduction to the chapter,

but you can personalize this by talking to students about any two organizations that

represent opposite ends of some spectrum – for example, consider Bergdorf

Goodman versus Wal-Mart. Why do we have certain impressions about some

organizations and not others? What elements go into creating these impressions?

A good exercise that will take 10 or 15 minutes to emphasize these points is to list

three or four companies or products within an industry (for example Cadillac,

Mercedes Benz, Lexus, Lincoln, and Infiniti) and ask the students to describe

Another important concept for students to understand is the notion of image versus

identity. I have defined image as “a mirror image of the organization’s reality” and

identity as “physical manifestations of that image.” This takes a while to understand,

but you can bring the point home very easily by using specific company examples.

Again, I would urge you to use examples that you are personally familiar with rather

than just sticking with the ones I’ve mentioned.

I also encourage you to review two articles that I wrote several years ago. “The

Name Game: How Corporate Name Changes Affect Stock Price” was written with my

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

class. “Managing Corporate Identity” looks at some of the same information covered

in this chapter, but it has more of a managerial focus. You should also look at

Chapter Four, “Identity, Image, and Reputation: From Vision to Reality”, in The

Power of Corporate Communication by Paul A. Argenti and Janis Forman (2002). This

chapter has different examples as well as a managerial slant.

Other Options

Other companies to consider that have made big changes recently are mentioned in

the text and should be explored in the context of this case. An excellent example is

AT&T, which is mentioned in the chapter. After undergoing a series of mergers and

acquisitions, AT&T needed to establish a new and updated identity to progress from

a company simply known for landlines to a brand known for wireless, media, data

Another exciting approach is to look at the reputation or image of your college or

university and compare it to other institutions. Students will enjoy discussions of

the Wall Street Journal, US News, or Bloomberg BusinessWeek rankings. Similarly,

the college or university’s identity program can be analyzed in the context of this

chapter. (See the material that accompanies this chapter for more on this.)

If you are interested in this subject beyond what I have provided in the chapter and

in this note, I would strongly urge you to look at some of the books in my

bibliography. Christopher Lorenz’s book, The Design Dimension (Blackwell, 1990),

takes the discussion into the realm of product design as well as what we talk about

You can also get a local graphic designer to come in and give a presentation when

you cover this material. They can talk about the importance of design elements and

give specific examples of their work. I do this every year, and find it to be the best

way to handle the subject.

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

Teaching Note

JetBlue Airways

Purpose of the Case Study

1. To describe how an unexpected crisis can threaten the reputation of a highly

regarded and profitable company;

2. To illustrate how an unlikely series of events can reveal critical business

problems and communication issues;

Identifying the Business Problem

Valentine’s Day 2007 changed the course of history for JetBlue Airways. The upstart

low-fare airline – which had enjoyed unprecedented acclaim from customers and

industry observers during its first eight years – suddenly found itself in the midst of

its first major operational catastrophe. A winter storm that enveloped the New York

metropolitan area and JetBlue’s hub at John F. Kennedy International Airport left

scores of the company’s passengers stranded in planes on the tarmac for six hours

or longer. Thousands of other customers waited in vain at the airport for flights that

would inevitably be cancelled.

The flight disruptions at JFK plunged JetBlue’s entire operation into chaos. The

company’s planes and flight crews were soon out of place, forcing the carrier to

cancel approximately 1,200 flights over a six day period.

i

The cancellations cost the

airline an estimated $20 million in revenue and $24 million in flight vouchers to

ii

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

JetBlue representatives issued repeated apologies in the days that followed the

meltdown at JFK, but these words did little to quell customers’ frustration. Worse,

members of Congress soon threatened to intervene if the airline industry failed to

take action. Neeleman challenged his executive team to develop a bold, compelling

solution to JetBlue’s newfound image problem. After considering multiple image

The corporate communication team arranged for Neeleman to appear on more than

a dozen television news and talk show programs on February 20, including The

Today Show and The Late Show with David Letterman. Neeleman had already

starred in videos posted to JetBlue’s Web site and YouTube in which he said he was

“humiliated and mortified” by the company’s failures.

v

Through numerous written

and spoken mea culpas, Neeleman begged JetBlue’s customers for forgiveness.

The most daring component of Neeleman’s redemption plan was the JetBlue

Airways Customer Bill of Rights. The CEO described the bill of rights as a written

covenant between the company and its customers. The bill of rights specified in no

uncertain terms the monetary compensation customers would receive if JetBlue

Despite the best efforts of JetBlue’s leaders to make amends for the crisis, fallout

was inevitable. JetBlue founder David Neeleman ceded the CEO position to second–

in command Dave Barger on May 10, 2007, but retained his role as Chairman of the

Board.

vi

European carrier Lufthansa swooped in and announced the purchase of a

19% stake in JetBlue in December of 2007.

vii

Time will tell whether JetBlue’s public apologies and its customer bill of rights are

enough to repair the company’s reputation among customers, employees, investors,

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

Assessing Critical Constituency Issues

Like all U.S. commercial airlines, JetBlue Airways serves and appeases a complex

network of interdependent constituencies. Company leaders must continually

evaluate the specific needs of each constituency and tailor outreach efforts

appropriately. JetBlue counts among its most important stakeholders:

• Customers. Bad weather and a series of miscues on the part of JetBlue

officials left hundreds of passengers stranded in planes on the tarmac at JFK

International Airport on February 14, 2007, while thousands more across the

country waited in vain to complete their travel. As the crisis unfolded,

Neeleman and his leadership team knew they had to find a way to make

amends to customers who were impacted by the service disruptions.

• Employees. Even David Neeleman admitted that JetBlue let its employees

down in the wake of the operational crisis that began at JFK on Valentine’s

Day 2007. Exemplifying JetBlue’s renowned customer–centric, “can do”

attitude, many of the company’s employees sought to help the carrier recover

from the meltdown. Their offers to assist were frequently lost or ignored,

however, due to communication breakdowns and flawed protocols. Internal

communication vehicles, such as company e-mail and the “Blue Notes”

electronic bulletin, were insufficient in helping JetBlue leaders connect with

• Shareholders. With over a thousand flights cancelled in six days, JetBlue

investors knew the company would suffer financially from the Valentine’s

Day 2007 crisis. What they did not know at the time: JetBlue was willing to

do whatever it took to win back customers who had been impacted by the

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

to Dave Barger, and the Lufthansa investment all represent key ongoing

issues in the minds of JetBlue shareholders in 2008.

• Federal Government. JetBlue’s operational crisis as a result of the 2007

winter storm attracted significant media coverage, and in turn became a hot–

button issue on Capitol Hill. Several members of Congress soon took to the

• Competitors. Before its launch, low-fare upstart JetBlue shocked the legacy

carriers by announcing that every seat on its planes would come standard

with a personal television featuring satellite-fed live programming. Eight

years later, JetBlue again surprised its competitors by putting a laundry list

of performance guarantees in writing in the form of a customer bill of rights.

None of JetBlue’s rivals – not even those recently affected by similar weather-

• Media. As the ice storm wreaked havoc on JetBlue’s operations in New York

on Valentine’s Day 2007, company officials witnessed firsthand how quickly

the media can turn on an industry favorite. Shortly after the crisis

commenced, broadcast, print, and online outlets churned out tales of woe

from outraged JetBlue customers. In the public eye, JetBlue was suddenly

transformed from an offbeat and customer-friendly low-fare carrier to what

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

Articulating the Most Desirable Outcomes

• Restore the faith of disillusioned JetBlue Airways customers whose travel

plans were affected by the 2007 winter storm-related crisis

• Win over new customers by differentiating the company from legacy airlines

and other low-cost carriers

• Earn favorable coverage by U.S. media outlets as JetBlue continues to expand

• Reassure shareholders and Wall Street that JetBlue remains a viable and

promising vehicle for investment

Applying Communications Best Practices

The Page Society’s “Page Principles” can be effectively applied to the JetBlue case as

a means of evaluating their corporate communication:

• Tell the truth. JetBlue officials never attempted to deny the company’s

culpability in the operational meltdown that began at JFK International

Airport on Valentine’s Day 2007. While the crisis was initially caused by an

untimely ice storm in the northeast United States, company officials soon

• Prove it with action. “Talk is cheap,” said David Neeleman on February 19,

2007. “Watch us.”

viii

Neeleman backed up his talk with the announcement of

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

• Listen to the customer. After stumbling badly in the days that followed

February 14, 2007, JetBlue began methodically repairing the damage it had

caused by first listening to its loyal customer base. Many devoted JetBlue

customers were caught in the operational meltdown in New York and across

the country, and Neeleman vowed to win back as many of these air travelers

• Manage for tomorrow. Although JetBlue officials saw the tide of public

opinion toward the company turn quickly following its so-called “Valentine’s

Day Massacre,” the goodwill it had generated since its launch eight years

earlier did serve to alleviate the situation. David Neeleman and his executive

team knew public apologies for the crisis would only go so far. After all, many

• Conduct public relations as if the whole company depends on it. In this

instance, the very survival of JetBlue Airways was contingent on the success

of its public relations efforts. The company lost tens of millions of dollars in

• Realize a company’s true character is expressed by its people. JetBlue’s

considerable annual expenditures on employee recruitment and training

seemed to payoff during this crisis. While some employees were hampered in

their efforts to help the company, many took it upon themselves to devise

solutions and workarounds in the absence of direction from JetBlue

headquarters. Case in point: the two JetBlue pilots who took a $360 taxicab

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

• Remain calm, patient and good-humored. Perhaps the hardest time to

maintain one’s composure and sense of humor is during a crisis. Numerous

stories nevertheless emerged about the poise, patience, and creativity

exhibited by JetBlue employees aboard stranded planes, behind ticketing

counters, and in front of reporters’ microphones. For example, flight

Discussion Questions

1. What image restoration strategies should JetBlue Airways employ to rebuild

its reputation as a customer-centric company?

2. If you were in charge of JetBlue’s external communication effort, how would

you try to make amends with customers who were delayed aboard planes or

in terminals for hours?

3. How could JetBlue have better communicated with its internal stakeholders

across the country on Valentine’s Day and during the days that followed?

4. When addressing the company’s stakeholders, how much blame for the crisis

would you place on the inclement weather on Valentine’s Day?

5. What is the best way to publicly explain the hundreds of additional flight

cancellations that were necessary because of JetBlue’s decision to “reset” its

operations?

6. Should the corporate communications team at JetBlue arrange for CEO David

Neeleman to appear on the national television news and talk show circuit

following the crisis? What are the potential benefits and risks to the

company’s reputation?

7. What are the financial and reputational risks of publicly committing to an

initiative like the JetBlue Airways Customer Bill of Rights?

8. What concerns might JetBlue’s shareholders as well as members of its legal

and finance departments have about a proposed JetBlue Airways Customer

Bill of Rights?

9. Could JetBlue ever retract its Customer Bill of Rights once it is made public?

10. If implemented, how would you market the JetBlue Airways Customer Bill of

Rights to external and internal stakeholders?

Chapter 04 – Identity, Image, Reputation, and Corporate Advertising

Teaching Notes

i

Elsasser, J. (2007). “True blue: After a customer relations crisis, lessons learned at

JetBlue”. Public Relations Strategist, 13(3), 14-19.

ii

Ibid.

iii

Benoit, W. (1995). Accounts, excuses, and apologies: A theory of image restoration

strategies. Albany, NY: State University of New York Press.

iv

Ibid.

v

Bailey, J. (2007, February 20). “JetBlue to begin paying penalties to its stranded

Passengers”. The New York Times, p. C1.

vi

“JetBlue Airways names Dave Barger as new CEO”. (2007, May 10). Retrieved

August 17, 2015, from JetBlue Airways names Dave Barger president and chief

executive officer