Communicating with Key Stakeholders Corporate Communication Chapter 8 Dr. Inas A.Hamid

The key stakeholder groups: Customers The Public The organization Employees government investors

Internal communications Some modern organizations have created specialized departments responsible for communicating with these groups: Customers Investors Regulators , legislators Employees NGOs& Activists Investor Relations Marcom Government R. PR Internal communications

Why we should communicate with these groups? Conveying information about the corporate. Have their support in developing as well as carrying out marketing campaigns.

It is important to use specialists when communicating with these groups. These specialist should : Understand the corporate reputation. Know the history of the company and how they adapted to the interest of their target group.

1- Customer Relations Companies use effective Marketing communications to develop good relations with their customers.

Globalization and the spread of the Internet introduce new pressure on corporations to balance between behaving “responsibly” and promoting their products. promoting Responsible

In many companies, consumers relations began strictly as a way to handle complaints, and this was an alert to management. More recently, companies have broadened the consumer relations function to encompass such activities as; developing guidelines to evaluate services and products for management, developing consumer programs that meet consumer needs and increase sales. Developing field-training programs for employees. Evaluating company effectiveness in demonstrating concern for customers.

Consumer Relations Objectives: Building sales is the primary consumer relations objectives. Keeping old customers satisfied and respond to their concerns. Attracting new customers; specially if the prices and quality of competing products are similar. In choosing among brands, customers may base decisions on how they have been treated. Marketing new items or services. Handling complaints. Reducing costs. Many firms have adopted programs to educate customers about use of their products, because when products are returned the company will lose money and time.

For decades, publicity to consumers about products and services revolved around the traditional media( Advertising – Sales promotion – PR – Personal selling – website - …………………….).

The internet, far more than any other medium, has given consumers a voice and a forum where their collective voices can be heard, shared, and researched. The Internet leads to “online consumer word-of-mouth”, and this can be achieved by” Blogs Message boards and forums Public discussions Online opinion sites Online feedback and complaints sites.

New trends in CRs Experience marketing. In recent years there is a growing interest in “experience marketing” , which is based on getting potential customer to experience the product or the service / and the whole organization which will: increase the credibility of the company's communications. Increase the sales. create a bond between customers and organization. Increase loyalty and repeat purchases. Create an emotional involvement by potential customers.

People want some products because they want the experience. What people are really desire are not products, but satisfying experiences. You pay more for a cup of Starbucks or Costa coffee, not only for the quality of the coffee, but for the entire environment, special language…... People want some products because they want the experience.

Facility tours. Regular tours have been used recently by some companies to present what the company stands for and the way of producing its products. Sometimes the costumers can customize the products they will buy, and by this way sales may increase.

There should be an integration and consistency between MarCom and Corporate Communication. This can be achieved by: 1- Depending on the reputation platform in developing marketing communication and organizational communication. LEGO “a Toy Company” builds its communications around a reputation platform of “creativity”. LEGO,s slogan “ The Power to Create”. Creativity has been used in the way the company presents itself; in toys stores, parks, DVD games and on the internet.

Many research has studied point to the deficiencies of marketing communication in building effective customer relations; Lack of credibility in marketing communications. Contradiction between MarCom and organizational communication. This contradictory can be solved by developing reputation platform and the communication should created from that platform. For example; LEGO company created its communications around a reputation platform of ‘creativity’.

McDonald's created its communications around a reputation platform of ‘the fastest delivery’.

Assignment Marketing communication activities suffer from a lack of credibility. Why?