1 LECTURE 5 Corporate Communications: A Dimension of Corporate Meaning

2 Objectives Appreciating the complexity of corporate communications Understanding Common Starting Points (CSPs) and the Sustainable Corporate Story (SCS) MODEL(S) OF THE MOMENT: THE NEW CORPORATE COMMUNICATIONS WHEEL AND THE T W O CORPORATE COMMUNICATIONS MIXES

3 Marketing and Corporate Communications: What are the differences ? MARKETING CORPORATE customer multiple stakeholders defined set of channels multiple channels controlled communication variety of communication types positions a product or service positions an entire organisation more room for creativity less room for creativity needs to be consistent with product/brand attributes corporate identity/corporate brand attributes

4 …… model of the moment O THE NEW CORPORATE COMMUNICATIONS WHEEL The New Corporate Communications Wheel: Balmer and Greyser. Adapted from D. Bernstein (1984) [42] The New Corporate Communications Wheel: Balmer and Greyser. Adapted from D. Bernstein (1984) Influential Groups The Trade Government(s) The Media Financial Customers General Public Internal Prospective Employees Local Business Partners Advertising Products/ Services Direct Marketing and Correspondence Corporate & Marketing PR Personal Presentation Impersonal Presentation Literature Point of Sale Permanent Media New Media Sponsorship THE CORPORATION Brand Business Partnerships Alliances O R I V N E N M E N T O R I V N E N M E N T The New Corporate Communications Wheel: Balmer and Greyser. Adapted from D. Bernstein (1984) [42] and The Industry Corporate Country of Origin

5 Model of the Moment: ii (A process for using the Balmer and Greyser’s New Corporate Communications Wheel * * adapted from Bernstein ) 1 DEFINE ALL STAKEHOLDER GROUPS 2 IDENTIFY COMMUNICATION CHANNELS 3 PRIORITISE STAKEHOLDERS 4 IDENTIFY APPROPRIATE CHANNELS FOR EACH GROUP

6 5 TAKE ACCOUNT OF THE IMAGE OF: COUNTRY OF ORIGIN and of THE INDUSTRY 6 additional elements identified by Balmer and Greyser TAKE ACCOUNT OF THE CORPORATE BRANDING COVENANT (where appropriate) PARTNERSHIP(s) and the effect of ENVIRONMENTAL FORCES Model of the Moment: iii

7 ……model of the moment: iv Provides a foundation by which a significant part of a corporate communications strategy can be established. Illustrates the VAST SCOPE of the TASK (comparing corporate communications to marketing communications) For instance, 11 stakeholder groups and 11 channels results in 121 considerations alone!

8 Common Starting Points (CSPs): what are they ? An early example of an integrated approach to corporate communications (developed by Van Riel) Rationale: to achieve CONSISTENCY in corporate communications activities by establishing COMMON STARTING POINTS that underpin ALL FORMAL corporate communications

9 Common Starting Points continued... CSP is an integrated and interdisciplinary approach taking account of STRATEGY, IDENTITY and IMAGE. CSP process: representatives from the corporation’s various communications departments establish commonalties (based on the above) which form the basis of all formal corporate communications.

10 The Sustainable Corporate Story (SCS) What is it? A realistic and relevant description of key aspects of the organization (origins, vision and mission) How is it distinct? It is derived from an organization’s distinctive characteristics (its’ identity)

11 The Sustainable Corporate Story…………....continued Perceived Benefits? Via communications distinctiveness of message and consistency of message is achieved.

12 The Sustainable Corporate Story….. continued Van Riel suggest that the following should underpin sustainable corporate stories in that they should be: REALISTIC (based on the identity) RELEVANT (offer added value elements for stakeholders) RESPONSIVE (allows for two way symmetrical communication) SUSTAINABLE (needs to meet the sundry demands of various stakeholder groups)

13 What are the parameters of corporate communications ? Just as there is a marketing mix, services marketing mix, promotional mix (communication mix) a number of authors have attempted to articulate a CORPORATE COMMUNICATIONS MIX

14 TWO CORPORATE COMMUNICATIONS MIXES (a) THE CORPORATE COMMUNICATIONS MIX OF VAN RIEL and (b) THE TOTAL CORPORATE COMMUNICATIONS MIX OF BALMER AND GRAY

15 Van Riel’s Corporate Communication Mix Comprises: Management Communication: managers need to establish a shared vision and trust WITHIN the organization Marketing Communication: the traditional marketing communications mix Organizational Communication: communicating to the various external groups (encompassing a plethora of corporate-level communications functions )

16 Balmer and Gray’s Total Corporate Communications Mix Encompasses: Primary Communications: the communications effects of products, services, management, staff and corporate behavior. Secondary Communications: controlled forms of communications such as advertising and pr Tertiary Communications: word of mouth/spin

17 Finally……………... If the importance of corporate communications are not understood/managed this can lead to communications that are diffuse, confusing, contradictory and sometimes prolix.

18 One More Time: why are corporate communications important? Bernstein (1984) argues that: many business failures are caused by poor corporate communications. many businesses lack a clear, overarching, corporate communications platform managers NEED to communicate to internal and external groups fragmentation across communication disciplines (pr, advertising, print, investor relations) causes many difficulties.

19 Summary: i Corporate Communications is broader, and more complicated than marketing communications. It is complicated because of the existence of multiple channels of communication in addition to multiple stakeholder groups. Moreover, individuals invariably belong to multiple stakeholder groups. Common Starting Points/the Sustainable Corporate Story are two routes by which organizations may achieve consistency in their communications.

20 Summary: ii Van Riel’s Corporate Communication Mix and Balmer and Gray’s Total Corporate Communications Mix afford two contrasting perspectives on the area. The New Corporate Communications Wheel (Balmer and Greyser) affords a framework for prioritising stakeholder groups and channels and takes account of other important factors such as corporate brand, country of origin, and industry image.

21 Seek first to understand, then to be understood. Stephen Covey