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Brand, Identity and Reputation: Exploring, Creating New Realities ...

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A Framework for Public Sector <strong>Br<strong>and</strong></strong>ing<br />

Ramesh Venkat, Saint Mary‘s University, Canada<br />

Introduction<br />

Governments at all levels worldwide are faced with the challenge of improving effectiveness, having to deliver more<br />

services under resource constraints <strong>and</strong> satisfying citizens have greater expectations based on their experience in the<br />

private sector (Jordon, 2005; Martin 2010; Zampetakis & Moustakis, 2007). Greater responsiveness to citizen needs <strong>and</strong><br />

accountability are at the heart of many public sector <strong>and</strong> governmental reforms (Aucoin & Davis, 2005; Pollit &<br />

Bouckaert, 2000; Thomas, 2007; Thompson, 1993).<br />

As public sector organisations look to improve their performance <strong>and</strong> effectiveness they have turned to the marketing<br />

concept (Kotler & Lee, 2007; Whalen et al., 2010). We see evidence of marketing orientation in public sector<br />

organisations that have a trading or business orientation such as postal services, state or provincial liquor commissions<br />

<strong>and</strong> national airlines (e.g., Graham, 1995; Daniels, 2007). Yet, most public sector organizations lack formal marketing<br />

planning processes as well as a focus on client needs when developing or delivering services (CEPM, 2006). The<br />

American Customer Satisfaction Index rating for public sector in 2009 was about 68.7, whereas across all sectors the<br />

national index stood at approximately 76 (see www.theacsi.org), which suggests that public sector organisations have a<br />

long way to go in their pursuit of customer <strong>and</strong> market orientation.<br />

Based on a review of relevant literature <strong>and</strong> a case study, this paper proposes a general framework for public sector<br />

br<strong>and</strong>ing. It is hoped this will assist public sector organisations as well as trigger scholarly interest in this topic.<br />

Significance of <strong>Br<strong>and</strong></strong> Building<br />

The Context<br />

The public sector context is quite different from the private sector, as outlined in Table 1. Given their monopoly,<br />

establishing the need for customer orientation or br<strong>and</strong> building can be a hard sell. Traditional definitions of br<strong>and</strong><br />

(such as the AMA definition, which focuses on visual elements <strong>and</strong> differentiation from competition) make little sense<br />

to public sector executives. It is, therefore, proposed that the br<strong>and</strong> be defined as the consumer‘s or citizen‘s perception<br />

of the overall reputation of the organization. Everything that the organization does – how well it meets the needs of its<br />

customers, how well it treats its clients <strong>and</strong> the overall experience it provides – will determine this perception.<br />

The view of br<strong>and</strong> as salience has been instrumental in establishing many of today‘s leading consumer br<strong>and</strong>s,<br />

especially low-involvement br<strong>and</strong>s (Miller & Berry, 1998; Romaniuk & Sharp, 2004). ―<strong>Br<strong>and</strong></strong> as image‖ perspective<br />

holds that consumers gravitate to br<strong>and</strong>s that match their current or aspirational self-image (Aaker, 1996; Miller &<br />

Berry, 1998; Kuksov, 2007). This works for higher involvement products. A third perspective is that br<strong>and</strong> is nothing<br />

but reputation of the product or the firm (e.g., Chong, 2007; Milewicz & Herbig, 1994).<br />

―<strong>Br<strong>and</strong></strong> as a reputation‖ will require every part of the organization working together to deliver customer experience that<br />

is consistent with the br<strong>and</strong> promise. This will require an organization-wide effort, unlike the salience view which is<br />

largely communications driven. Salience <strong>and</strong> image building as the basis for br<strong>and</strong> building makes little sense in public<br />

sector, where competition <strong>and</strong> the need to differentiate do not exist. The three perspectives on br<strong>and</strong> are compared in<br />

Table 2.<br />

Role of <strong>Br<strong>and</strong></strong> in Public Sector<br />

If differentiation or influencing choice is not the reason for building a br<strong>and</strong>, why should public sector organisations<br />

engage in br<strong>and</strong> building?<br />

Criticism Regarding Accountability. Public sector organizations in many countries are undergoing changes to become<br />

more accountable (e.g., Aucoin & Davis, 2005; Jordon, 2005; OECD, 2002). They are also attempting to become more<br />

customer or citizen-centric (Chen, Yu & Chang, 2005; Whalen et al., 2010). The criticism faced by governmental<br />

agencies for being uncaring <strong>and</strong> wasteful is now leading them to be concerned with reputation management. A focus on<br />

br<strong>and</strong> can provide these organisations a process for managing reputation with key stakeholders.<br />

Threat of Privatization. Many public sector organisations in domains such as utilities, telecommunications, postal<br />

services, health care, among others, have been privatized or face the threat of privatization. Organisations that lack<br />

customer orientation <strong>and</strong> a coherent br<strong>and</strong> strategy will be ill-prepared for such a scenario. Forward looking public<br />

sector organisations can use potential privatization as a motivation for bringing a strong br<strong>and</strong> orientation (cf. L<strong>and</strong>or<br />

1999).<br />

Building Customer or Citizen Relationships. For customers served by public sector organisations, the superior<br />

reputation of an organization can lead to greater trust. Trust in public sector may not be declining (Van de Walle, Van<br />

Roosbroek, & Bouckaert, 2008), but it remains low in industrialized countries (Edelman Trust Barometer 2010). Trust<br />

is a vital component of a long-term relationship between a service provider <strong>and</strong> the customer (e.g., Morgan & Hunt,<br />

187

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