Business reputation is the level of trust of employees, clients and partners in the company. The indicator is formed from the difference between the value of the organization and its equity.
In economic terms, it is an intangible asset associated with the concepts: trademark, copyright, license. Competent management of the brand image and its reputation creates the right impression, increases recognition and eliminates the negative aspects about the company. The assessment starts from the day the business is opened and is equally applicable to individuals and legal entities.
Different indicators are used for evaluation. A qualitative indicator is calculated with the help of ratings made by experts or sociological questionnaires. Quantitative – using the method of excess profits or the volume of products sold.
The complex image is formed from different parameters. The indicator “business reputation” can be divided into two types:
Positive. Trustworthy attitude towards the brand. The company has clear competitive advantages associated with profits, capital, skills of employees, position in the market.
Negative. The organization is not economically stable. There is no loyal audience, the quality of goods does not meet the expectations of consumers.
To improve the result, it is recommended to engage in PR, reputation management on the Internet, media. Business with a positive image allows you to attract customers, increase the effectiveness of marketing campaigns, and increase the overall value of goods or services.
Why should the parameter be evaluated?
A positive image about a company is gathered based on the following factors:
- loyal customers;
- The quality of goods or services;
- competent marketing strategy;
- presence of partners;
- experience of the manager.
Business reputation determines the degree of responsibility of the company. The metric must be continuously worked on, improved and protected so that the business can withstand economic difficulties.
The characteristic depends on the actions of the entity or individual, as well as external events and circumstances. Creating a “good name” is an important value of a competent manager. By working on more than just financial performance, the organization builds a positive image, generates third-party trust, and occupies one of the TOP positions in the marketplace.