“A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.”
A business' identity relates primarily to internal factors that show how the business is run, how it's organised, its ethics, its "look" and how it integrates into the business world, all these things comprise its identity, according to creativelatiititude.com. The identity offers the observer distinguishing charactistics that separate it from other, similar businesses. the quality and focus of the product, in addition to its uniqueness all contribute to its corporate identity. Identity is often represented by a logo or picture.
For example, McDonald's uses its golden arches. Target uses a big red bulls-eye. These symbols instantly identify corporate identity.
Corporate branding relates to how people feel about the company. Does the consumer trust the company? Is the consumer confident that the company will provide a quality product or service? These emotions apply to external factors that the corporate identity attempts to influence.
A company may try to improve its image by changing its identity with the hope of altering its perceived branding by consumers. Marketing professsional Paul Temporal recomends evaluating how consumers view the corporate brand before making changes to identity elements like logo. If your logo and brand have gained the consumers trust and confidence, changing the logo may affect the brand's perception.
How they work together
Changing the corporate identity logo isnt always enought to effectuate a positive branding change. To really influence customer attitudes about your business, you'll need to earn a reputation for providing a quality product or service at a fair price.
Making a widespread change to your corporate identity and its logo may affect consumer perception if the changes are backed up by a quality product or service. Only through improving the customer's emotional reaction to your business will branding improve.
When it Doesn't work
Remember New Coke? If not, thats probably because its not around anymore. When Coca-Cola attempted to shake up its identity by introducing a supposedly new and improved product, customers hated the change.
Why fix what isn't broken? The short-lived change hurt Cokes image, its branding and the company opted to return to its trusted identity by returning to the "classic" version of its bestselling soft drink. Keep this in mind when establishing a new corporate identitiy. Coke recovered; your business may not.