Reputation: How It Is Built and Maintained, and The Role of PR

Reputation: How it is built and
maintained, and the role of
A report by MSLGROUP India, a part of Publicis Groupe, and Eikona PR Measurement
PR

2
CONTENTS
Preface
What is reputation management?
The India opportunity
Online and offline PR
Implications for the organisation
Impact on PR
3
4
6
8
10
11

3 3
Preface
Businesses are getting increasingly conscious of the
power of reputation. It is customers’ perception of a
company that drives purchase decisions. It is also what
attracts talent and assures partners that they are doing
business with a company they can trust. So, it’s not just
the end users that corporations are looking to impress;
they are striving to connect with all stakeholders, which
include employees, vendors, the community and the
government.
For the public relations (PR) industry, this is a paradigm
shift. Its scope is widening from the narrow media
relations space to leading the overall brand building and
maintenance function. It is now up to the PR industry
to evolve from being second fiddle to advertising and
corporate communications to becoming the leader in the
marketing communications ecosystem.
This report, jointly authored by MSLGROUP India
and Eikona PR Measurement, analyses the growing
importance of reputation management and its impact on
the PR industry.
India is a diverse, complex market, and these are
interesting times for communications professionals
as they strive to strike a balance between traditional
and new-age media on the one hand, and modern
communications tools like social media on the other.
Smart corporations have begun to acknowledge the role
PR can play in reputation management and ultimately
help achieve business objectives that go beyond
numbers.

4
What is reputation management?
Brand building is part of most corporations’ DNA.
However, in the past few years, communication experts
have understood that sustaining the desired brand image
is a greater challenge. It is here that corporate reputation
and its management comes into play.
Your corporate reputation is based on stakeholders’
perception of you – both in terms of your past and your
potential. It is an intangible asset, but it has tangible
implications on your balance sheet.
In most cases, companies erroneously believe that
their reputation is what they think of themselves rather
than how they are thought of. This is where it differs
from branding. Communicators are recognising that
while branding can shape reputation, it is reputation
management that can create the right buzz about your
brand.
A report on www.reputationmanagementfor.com
summarised reputation as:
1. External perceptions of you
2. External conceptions of you
3. Behaviours that give rise to these perceptions
4. How people report their perceptions and conceptions
It is important to understand that corporate houses
do not have one single reputation. It is imperative,
therefore, that just as products are tailored to target
groups, reputation is managed taking into account the
stakeholders your company engages with.
While the core task of every business will remain the
creation of demand and its satisfaction, what creates the
ecosystem is ‘people’ – those who businesses want to
build relationships with, from partners to consumers.
Some, without really contributing to the top line, have a
say. One set forms opinions and influences another set,
say, regulators. Another significant part of this system
is employees. And then there are the investors awaiting
signals that nudge them to provide funds in the hope of
high returns.
What binds and makes these multiple wheels of the
business wagon move is a silent, yet intricate DNA strand
called reputation. A brand without reputation, therefore,
is a lifeless logo.
This is where it differs from
branding. Communicators
are recognising that
while branding can shape
reputation, it is reputation
management that can create
the right buzz about your
brand.

5
Today, reputation management plays a multi-
dimensional role. Jaideep Shergill, CEO of MSLGROUP
India, said: “It moves consumers to trust your brand,
convinces investors that they are making the right choice,
attracts potential employees and gives staff a sense of
pride. Communicators are calling this the ‘Reputation
Economy’, and rightly so. Reputation management could
be the fuel for your growth.”
Building and monitoring reputation
1. Identify how you are perceived by stakeholders. Does
the perception align with your vision, mission and
goals?
2. If yes, strengthen that perception. If not, rectify it.
3. Have a strategy to promote the right content about
your organisation, which will shape your reputation.
4. Back it with a social and digital media promotion plan.
5. Monitor the progress and modify the plan accordingly.
6. Be interactive while managing your reputation online.
Informing is not enough; interaction is the key. Watch
out for negative content. Verify its credibility and
address the issue. If it is detrimental, take necessary
action.
Reputation management can be categorised into three
brackets:
• Creation: The initial stage of a venture is the most
important as it lays the foundation for its future and
gives you something to consolidate.
• Maintenance: This is important for an established
organisation that enjoys a strong reputation. It is
essential that the organisation continues to have a
positive and reliable image among its stakeholders.
• Revival: Some circumstances are unavoidable;
there could be a situation in which your reputation
takes a beating. However, that can’t be the end of
the road; you need to go the extra mile to cover lost
ground. This needs a systematic and comprehensive
approach.
Online reputation management
Online Reputation management can be broadly
categorised into:
1. Observing what people say: MSLGROUP India’s 2012
report ‘E-commerce in India: Evolution, Growth and
Challenges’ discussed how the consumer experience
today revolves around the internet. Right from the
thought of buying, to making the decision and to
finally sharing the product experience, the internet
is the consumer’s companion. If your product and
service strikes a chord with the user, there is a chance
that s/he will advocate it. However, if you get it wrong,
be prepared for an avalanche of negative comments.
More often than not, it’s the negative comments that
attract support as people join in to voice the problems
they have faced.
2. Managing what people see: For online reputation
management to succeed, it would be ideal to manage
what people read about you online. Given the digital
explosion, this is tough but watching out for negative
content and restricting its damage can save you a lot
of trouble in the long run.
Loss of reputation and its consequences
It takes years, sometimes decades to build
reputation. But even a single blunder can have
serious repercussions and lead to loss of face. This is
especially true in the case of crisis management.
Lost in a maze of expansion and growth projections,
senior executives often lose sight of crisis
management strategies. In the next few years,
reputation management will evolve as one of the
major instruments of crisis management.
There is no denying that perception is reality and how
the public perceives you in a crisis says a lot about
your reputation. In the highly competitive media
space, journalists are hungry for a scoop and if you
are caught on the wrong foot, the media will have a
field day.
The power of social media is undisputed. Negative
comments go viral in no time. Remember, by the time
you come back with your defence, the controversy
would have lost its bite and you will find few takers.
Why you need
reputation
management
Creation
Maint
enance
Revi
val

6
The India opportunity
There are few markets as complex as India. On an
average, every month, about 45,000 corporations or
marketers communicate through advertising to create
awareness about themselves, and demand for their
60,000 B2B and B2C products and services.
How many of these use PR? Given the clutter, are they
communicating about themselves and their offerings
through the year? Given the advertising costs, how are
they managing communications objectives? These
are critical questions for those in the business of
communication.
Normally, most product categories’ presence in the
annual advertising communications calendar does not
exceed four months. On the other hand, PR support for
the same products stretches to at least eight months of
the calendar.
Another aspect weighing on marketers’ minds – both in
terms of print as well as television advertising – is the
problem of advertisement avoidance.
HOW AD AVOIDANCE HAS AFFECTED TV
Market Genre Drop in ad viewership - Drop in ad viewership -
Prime Time (7 pm-11 pm) Afternoon (12 noon-3 pm)
*HSM Hindi GEC 23% 30%
*HSM Hindi Movies 29% 33%
*HSM Hindi News 39% 25%
*HSM Music 29% 25%
West Bengal Bangla Regional 23% 23%
Maharashtra Maharashtra Regional 14% 15%
All India Infotainment 34% 32%
*Hindi-speaking market. Source: Eikona PR Measurement. All data for cable and satellite audiences, 4+ years old

7
The table above shows that only a fraction of the
categories have shifted their advertising philosophy from
‘buy me’ to ‘why me’. The factors that build belief are
missing. Consumers are experiencing an information
explosion; they are not satisfied with merely information
about products or services. They instead want a
360-degree perspective that includes value for money,
product lineage, corporate philosophy, credibility, ethics
and sustainability.
For the PR industry, this is a huge window of opportunity.
Siddhartha Mukherjee, senior vice-president, Eikona
PR Measurement, said: “The potential and deliveries
that advertising brought to a brand custodian as a
standalone communications tool has lost its firmness.
Today, custodians need integrated help through PR. It’s
early days, but editorial/content is emerging as the new
tool for communicators. Media agencies, which typically
comprised the planning and buying functions, are
gradually exploring the content space as well.
“Most businesses are yet to recognise how PR is a perfect
fit here. There is an urgent need to justify the role it
can play in brand building. PR professionals are in the
business of storytelling and content creation. Custodians
are fast learning that what they have been trying to
achieve through the pay mode can well be achieved
through the unpaid mode.”
This effectively means that the Indian PR Industry is on
the cusp of a dramatic change. It’s time for PR agencies
to substitute or supplement their standard offerings to
include branded content.
While the entertainment/infotainment genre certainly witnesses ad avoidance impacts, even news channels face a similar
problem.
The other reason for its decline is the diminishing believability of this tool. Rarely do we see marketers communicate the
‘reputation’ aspect of their product and/or the corporate brand.
TOP 10 AD PRODUCT CATEGORIES TOP 10 AD PRODUCT CATEGORIES
ON TV (JAN 2012- OCT 2012) IN PRINT (JAN 2012- OCT 2012)
Rank Category % Share Rank Category % Share
1 Social advertisements 4 1 Social advertisements 7
2 Toilet soaps 3 2 Property/real estates 5
3 Cellphone service 2 3 Auto-cars/jeeps 4
4 Cellphones-smartphones 2 4 Independent retailers 4
5 Toothpaste 2 5 Hospitals/clinics 3
6 Shampoo 2 6 Multiple course centres 3
7 Auto: Cars/jeeps 2 7 Coaching centres/computer exams 2
8 Biscuits 2 8 B2C/online shopping 2
9 Fairness cream 2 9 Specialised educational institutes 2
10 Jewellery 2 10 Auto: Two-wheelers 2
Source: ADEX INDIA, a division of TAM Media Research

8
Online and offline PR
The PR agency is not merely a custodian of brand
visibility. It is in charge of the qualitative and
quintessential task of generating a range of positive
emotions that build a brand’s reputation. Both, in
business-as-usual and business-not-as-usual scenarios,
every stakeholder’s emotions have to be gauged and
managed. Managing emotions well consistently will
translate into the desired brand perception.
In India, offline mediums – print, TV, radio, experiential or
on-ground activation – are still key. Online activities are
yet to become an essential part of the 360-degree brand
campaign matrix, though that is changing fast.
Mukherjee pointed out: “Reputations are built or
destroyed at every single manifestation or touchpoint
of the organisation. The office reception, the products
showcase at outlets, employee behaviour, financial
results, CEO speeches, advertising, and others
collectively impact reputation. All this can be addressed,
managed and controlled by systematic offline and online
reputation management.”
The below chart underscores the need for a company
to regularly expose itself to all stakeholders to build a
healthy reputation. There needs to be a steady stream
of messages in the market tailored for specific target
groups. While current and prospective employees
are keen to know about the organisation’s leadership,
products/services, workplace and citizenship, the
investment community wants to know about business
performance, innovation and governance.
The reality, though, is strikingly different.
Source: Eikona PR Measurement
Leadership Performance Products/Services Innovation Workplace Governance Citizenship
Employees
Policy/Regulators
Opinion Elites
Key Influencers
Business Customers
Investments Community
Corporate
Reputation
Pulse

9
As seen in the chart above, most PR communication is concentrated around products, which creates a myopic business-
to-consumer conversation path.
Mukherjee said: “For an organisation to put in place a robust reputation management machinery, aligning to a singular
reputation building agenda internally is paramount. This would mean that all the spokespersons are clear about the
distinct messaging charter each has to follow.”
Here, too, the picture is quite different.
Products and
Services
Marketing
Interactive
Corporate image
Human Resource
Trend of Topics
Spokesperson Topic Focus
Period of Study: Jan - Sept 2012
Medium: Print & TV
Unit of Measurement: No of Articles
Jan-12 May-12Feb-12 Jun-12Mar-12 Jul-12Apr-12 Aug-12 Sep-12
70
60
50
40
30
20
10
0
The above chart is an average representation of the messages several company spokespersons focus on, in terms of news
visibility. Most organisations across industry categories fail to stick to a defined charter that each spokesperson should
talk about.
Spokesperson Spread by Topics
CEO/MD/Chairman
CMO/Mktng Head
CIO/CFO
Business/Vertical Heads
HR Head
100%80%60%40%20%0%
16
13 10
11 7 28 12 25 1
4
53 47
7
5 95
89
Business News
Finance
Government
Thought Leadership
CSR
Products & Miting
HR
77

10
Implications for the organisation
Every external stakeholder of a business expects a
certain standard of operation within the ecosystem.
Sadly, few go beyond numbers and targets.
Out of every 100 units of communication being published
or telecast, more than 80 are about product and
service offerings, marketing and distribution initiatives.
Most corporate communications desks are linked to
and accountable to the marketing desk. There’s little
messaging on other key aspects of an organisation like
human resources, financial stability, corporate social
responsibility or thought leadership.
The answer to why a company engages in PR is most
often unsatisfactory. For instance, out of every 100 units
of product- and service-led communications being
published or telecast, more than 85 are about new
launches. A focus on old product sustenance, after-sales
service or sales support is rare. This is a reflection of
what corporations focus on and how they leverage their
PR agencies’ services. The pressures of toplines and
bottomlines dictate this impatience, thereby creating
the shortest product launch communications cycle and
moving on to the next even before the first is completed.
A communications campaign gets purpose when it has a
clear objective. However, most internal stakeholders have
no clear idea about why they are engaging in PR. Most
believe that it is a necessity because:
a) Competition is doing it
b) Feels good to see the company mentioned in the media
c) To establish advertising equivalents

11
Impact on PR
For the longest time, PR in India has struggled
to establish its role in meeting the organisation’s
communications goals. In most cases, it is treated as a
poor cousin of advertising, its role restricted to media
coverage. The industry is still plagued by the following
issues:
• The industry has still not been able to weed out the
issue of equivalent advertisement values (EAVs) as
a measure of performance. This is one of the main
reasons why bigger budgets have eluded the industry.
• There is no scientific measurement of the value
that PR brings to the table. Audits, measurements,
monitoring, accountability, research and insights are
missing from the PR lexicon.
• Agencies have failed to move beyond readerships
and circulations to transform themselves into
consultancies that offer 360-degree communications
solutions.
• In order to play the central role in reputation
management, PR consultants must initiate a
constructive education campaign within the client
organisation and show it the path to long-term organic
and symbiotic growth.
New-age PR and
reputation management
Business organisations are beginning to revisit
communications plans. Besides aiming to synchronise
paid and unpaid communications, they are also
evaluating if media activation could lead to reputation
building and not be limited to media coverage. Shergill,
stressing the need for an integrated communications
approach, said: “Both, corporations and PR agencies,
need to work on a partnership that is mutually beneficial.
If reputation management is to make a genuine impact,
the client and agency have to establish a sustained
partnership where media coverage is incidental and the
primary focus is on achieving business goals.”
Some important changes within organisations are:
• While marketing communication is driven by the
marketing team, corporate communications is
increasing its share in the communications grid.
Corporate communications desks are spending more
time with organisation heads such as CEOs and MDs,
who should ideally be considered as chief corporate
communicators.
• Communication plans are being aligned with
business calendars and discussed against a set of
business objectives. Media relations are being used
to ensure traction and long-term loyalty from various
stakeholders.
• Top management and spokespersons are being put
under the key result areas and key performance
indicators scanner in order to constructively use
communications to meet business objectives.
• Stringent yardsticks are being put in place to gauge
the effectiveness of the communication used
by various function heads. For instance, in some
organisations where recruitment advertising budgets
have been slashed, the function heads are being
asked to use cost-effective PR for talent traction and
sustenance.
• Communications teams are being synergised with the
central organisational research desk. This means that
for the first time PR is being acknowledged as a brand
building tool on par with other tools.
• What the PR industry needs to do away with is the
stress on EAVs and focus instead on reputation
management. In the new scheme of things, it is
reputation management that will act as a catalyst for
growth – intellectually and financially.

12
MSLGROUP is India’s No.1 strategic communications
and engagement company. We are trusted advisors and
storytellers for the conversation age to our 220+ clients,
offering integrated communications services, through four
distinct brands: MSLGROUP, 20:20 MSL, MSLGROUP
SOCIAL HIVE and MSLGROUP CREATIVE+. MSLGROUP
in India, combined, includes 12 offices in 8 key cities,
550+ professionals and an activation network reaching an
additional 125 Indian cities. Our extensive network, backed
by our expertise, covers 8 speciality practice areas. Our
thorough understanding of these areas, has translated into a
proven track record of helping our clients engage with their
audiences, 24x7.
MSLGROUP India
For 24 years, MSLGROUP’s Asia team has counseled
global, regional and local clients, helping them establish,
protect and expand their businesses and brands across this
fast-growing region. Today, MSLGROUP has the largest
PR, social media and events teams in Greater China (16
offices and 1,000 colleagues) and India (16 offices and 550
colleagues) and is actively working to lead the development
of the industry with the regular publication of whitepapers/
reports and innovative Learning & People Development
programs to nurture talent. The MSLGROUP Asia team
includes 38 owned offices and 1,675 colleagues in Beijing,
Shanghai, Guangzhou, Chengdu, Hong Kong, Macau, Taipei,
Tokyo, Seoul, Singapore, Kuala Lumpur, Mumbai, Delhi,
Ahmedabad, Pune, Bangalore, Chennai, Hyderabad and
Kolkata. An activation network of colleagues reaches an
additional 125 Indian and 100 Chinese cities and a strong
affiliate partner network adds another 23 Asian cities to
our reach. MSLGROUP Asia’s teams have been recognized
as leaders by multiple industry groups, including most
recently MSL India (‘PR Agency of the Year 2011’ by
PRCAI), Luminous (‘Local Hero/Agency of the Year 2010’ by
Marketing Events Asia), Genedigi Group China (‘Innovative
China SMEs’ by Forbes China), ICL MSL Taiwan (‘Agency of
the Year 2011’ by Taiwan Advertiser Associate), and has won
more than 50 awards in the last two years. Learn more about
us at: asia.mslgroup.com + Twitter + Facebook
MSLGROUP Asia
MSLGROUP is Publicis Groupe’s strategic communications
and engagement group, advisors in all aspects of
communication strategy: from consumer PR to financial
communications, from public affairs to reputation
management and from crisis communications to
experiential marketing and events. With more than 3,500
people across close to 100 offices worldwide, MSLGROUP is
also the largest PR network in fast-growing China and India.
The group offers strategic planning and counsel, insight-
guided thinking and big, compelling ideas – followed
by thorough execution. Learn more about us at: www.
mslgroup.com + http://blog.mslgroup.com + Twitter+
YouTube.
MSLGROUP
Publicis Groupe [Euronext Paris FR0000130577, part of the
CAC 40 index] is the third largest communications group in
the world, offering a full range of services and skills: digital
and traditional advertising, public affairs and events, media
buying and specialized communication. Its major networks
are Leo Burnett, MSLGROUP, PHCG (Publicis Healthcare
Communications Group), Publicis Worldwide, Rosetta and
Saatchi & Saatchi. VivaKi, the Groupe’s media and digital
accelerator, includes Digitas, Razorfish, Starcom MediaVest
Group and ZenithOptimedia. Present in 104 countries, the
Groupe employs 53,000 professionals. www.publicisgroupe.
com | Twitter:@PublicisGroupe | Facebook: www.facebook.
com/publicisgroupe
Publicis Groupe
Eikona PR Measurement, a division set up in 2004 by
TAM Media Research (a JV between Nielsen (India) Pvt
Ltd and Kantar Media Research), specialises in reputation
measurement and regular audits of PR communication
initiatives undertaken by organisations with respect to
their competition. Eikona offers standalone, neutral and
holistic multi-media PR measurement and audit services
across newspapers, magazines, TV news channels, web-
sites/portals and social media. With the largest infra-
structure, specialised talent pool, in-depth and state-of-
the-art analytical online tools and a strong parentage, it
is recognised as the leading provider of PR audit reports
in India. One key area of specialisation that Eikona has set
up is in the area of reputation management. Eikona offers
expertise to help clients manage their reputation with the
right measurement and audit data combinations.
Eikona PR Measurement
For more information on
what MSLGROUP INDIA PAR has
to offer to your company,
please contact our Asia Practice Leader
Jaideep Shergill
jaideep.shergill@mslgroup.com
DesignedbyMSLGROUPCREATIVE+

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