Corpor%te Communic%tion- 210
Unit I: [Underst%nding Corpor%te Environment]
1. Contempor,ry Corpor,te Environment: ,n overview
The contempor%ry business environment is extremely competitive %nd
hence coping with such pressures c%lls for modern m%rketing which c%n go
beyond developing % good product, pricing it %ttr%ctively %nd m%king it
%ccessible. Communic%ting with the present %nd potenti%l st%keholders
%nd the gener%l public is no longer % m%tter of luxury but competitive
necessity.
M%rketing gurus like Kotler %nd Keller (2006) believe th%t every comp%ny is
inevit%bly c%st into % role of % communic%tor %nd promoter. However, the
m%in concern in the %ge of technology is not how to communic%te but
r%ther wh%t to s%y, to whom %nd how often. This is where m%rketing
communic%tions str%tegy comes into picture. it is essenti%l to h%ve %
underst%nding of the modes of communic%tion which %re gener%lly
included in the communic%tion mix to form % communic%tion str%tegy.
Most of the experts ent%il five m%jor modes of communic%tion vis-N-vis
Advertising, S%les promotion, Public rel%tions %nd publicity, person%l
selling, Direct %nd inter%ctive m%rketing.
● Advertising: Advertising c%n be defined %s %ny p%id form of non-
person%l present%tion %nd promotion of ide%s, goods %nd services by
%n identified sponsor
● S%les Promotion: Activities included under s%les promotion c%n be
described %s % v%riety of short-term incentives to encour%ge tri%l or
purch%se of % product or service.
● Public Rel%tions %nd Publicity: These %re % set of communic%tion
progr%ms designed to promote %nd protect the comp%nyʼs im%ge or its
●
individu%l product.
● Person%l selling: These include %ll f%ce-to-f%ce inter%ctions with one or
more prospective purch%ses with %n %im of m%king present%tions,
%nswering questions %nd procuring orders.
● Direct %nd inter%ctive m%rketing: This is % product of the technology
revolution %nd includes the use of e-m%il, post, telephone, f%x or
internet to communic%te directly with or solicit response or di%logue
from specific customers %nd prospect.
2. Forms of Corpor,te Constituencies
Constituencies in terms of Org%niz%tion (Soci%l) Responsibilities,
Org%niz%tion Benefits %nd Potenti%l Ch%llenges %nd Tensions:-
U. Employees
-Support of individu%l development %nd growth
-Incre%sed %ffili%tion & contribution
-Sust%in%ble employment with % ch%nging economy, equit%ble
compens%tion
V. Senior le%ders
-Est%blishment of %ppropri%te govern%nce pr%ctices
-Growth %nd st%bility
-Integr%ting the needs of different constituencies
W. Investors
-Fin%nci%l return
-Resources for growth
-B%l%ncing long- %nd short-term needs
X. Community members
-Services, products, employment, %nd investment returns; respect for the
environment
-Infr%structure %nd community resources
-Equit%ble distribution of resources, environment%l issues
5. Suppliers
-Communic%ting needs, honoring commitments
-Needed products %nd services
-Qu%lity %nd consistency of incoming m%teri%ls/services
a. Customers
-Supplying evolving needs while meeting commitments
-P%yment %nd le%rning
-Fin%nci%l pressures
7.P%rtners
-Honoring %greements
-Support
-Divergent objectives
3. Br,nd Identity, Br,nd Im,ge ,nd Br,nd Reput,tion
Br,nd Identity
Identity comprises those ch%r%cteristics of %n org%niz%tion th%t its
members believe %re centr%l, distinctive %nd enduring. Identity will h%ve to
be built %round the core v%lues of the comp%ny. Corpor%te identity merges
str%tegy, culture, %nd communic%tions to present % memor%ble person%lity
to customers. The term is closely linked to corpor%te philosophy, the
comp%nyʼs business mission %nd v%lues, %s well %s corpor%te person%lity.
The corpor%te identity is the first impression %ny customer will h%ve on the
comp%ny.
Corpor%te identity is often viewed %s being composed of three p%rts:
%) Corpor%te design (logos, uniforms, corpor%te colours etc.)
b) Corpor%te communic%tion (%dvertising, public rel%tions, inform%tion,
etc.)
c) Corpor%te beh%vior (intern%l v%lues, norms, etc.)
Corpor%te identity h%s become % univers%l technique for promoting
comp%nies %nd
improving corpor%te culture. Corpor%te visu%l identity pl%ys % signific%nt
role in the w%y %n org%niz%tion presents itself to both intern%l %nd extern%l
st%keholders. In gener%l terms, % corpor%te visu%l identity expresses the
v%lues %nd %mbitions of %n org%niz%tion, its business, %nd its
ch%r%cteristics.
Br,nd Im,ge
A corpor%te im%ge refers to how % corpor%tion is perceived. It is % gener%lly
%ccepted im%ge of wh%t % comp%ny st%nds for. M%rketing experts who use
public rel%tions %nd other forms of promotion project % ment%l picture to
the public. Typic%lly, % corpor%te im%ge is designed to be %ppe%ling to the
public, so th%t the comp%ny c%n sp%rk %n interest %mong consumers,
cre%te sh%re of mind, gener%te br%nd equity, %nd thus f%cilit%te product
s%les.
Br,nd Reput,tion
Reput%tion is %n over%ll %ssessment of %n org%niz%tion by its st%keholders.
Rese%rch univers%lly shows th%t % good reput%tion demonstr%bly incre%ses
corpor%te worth %nd provides sust%ined competitive %dv%nt%ge.
Steps to build reput%tion
These six steps c%n strengthen corpor%te reput%tion through % st%keholder
rel%tions progr%mmes:
%) Conduct rese%rch to know key st%keholders better.
b) Assess st%keholder strengths %nd we%knesses, %nd focus on the g%p
between intern%l re%lities %nd st%keholder perceptions.
c) Rese%rch the m%in f%ctors comprising the reput%tion of %n org%niz%tion
%nd %lign them with policies, systems %nd progr%mmes in %ll function%l
%re%s.
d) Set pl%ns to exceed st%keholder expect%tions.
e) Involve the Chief Executive Officer (CEO) %s the gre%test %lly or
ch%mpion of % reput%tion progr%mme.
f) Me%sure regul%rly %g%inst t%rgets %nd %ct to improve the results.
4. Corpor,te Phil,nthropy ,nd Soci,l Responsibility
When your sm%ll business decides to don%te % portion of your profits to %
ch%rity, this %ction qu%lifies %s phil%nthropy. You m%ke either % one-time or
ongoing commitment to give money to % nonprofit org%niz%tion, %nd th%t
org%niz%tion uses the money to further its mission. Soci%l responsibility
involves %dopting responsible beh%viors for your business. Corpor%te
soci%l responsibility encomp%sses %ny pr%ctice th%t improves the lives of
your work force, community %nd the environment.
U. Corpor,te Phil,nthropy ,nd Employees
When your business don%tes money to ch%rity, your employees m%y not be
directly %ffected, %nd they m%y not be %w%re of the comp%nyʼs ch%rit%ble
%ctions. Phil%nthropy decisions come from owners %nd chief executive
officers. While employees m%y be m%de %w%re of the ch%rit%ble
contribution, they %re seldom consulted %bout which ch%rity the comp%ny
chooses to contribute to.
V. Soci,l Responsibility ,nd Employees
When you mount % c%mp%ign to m%ke your comp%ny more soci%lly
responsible, employees c%n p%rticip%te %ctively to m%ke it % success. In
f%ct, employees c%n he%d efforts to cle%n up the community, p%int %nd
rep%ir schools, st%rt recycling progr%ms, collect don%tions for the
underprivileged, conduct blood drives or reduce comp%ny w%ste.
W. Corpor,te Phil,nthropy ,nd Comp,ny G,in
When you eng%ge in phil%nthropy, your peers %nd the public do not expect
you to g%in from it, %ccording to the GulfNews website. Publicizing your
phil%nthropic efforts %s % w%y to improve your comp%ny reput%tion c%n
b%ckfire. If you le%ve publicity up to the ch%rity, you m%y benefit without
%ppe%ring to be self-serving.
X. Corpor,te Soci,l Responsibility ,nd Comp,ny G,in
Your business c%n publicize your efforts to be soci%lly responsible. The
public tends to %ccept this %nd m%y respect your comp%ny for boldly
st%ting th%t soci%l responsibility is % corpor%te duty. If you c%n eng%ge the
community %nd your customers in helping your efforts to eng%ge in soci%lly
responsible business, you c%n cre%te goodwill. This goodwill c%n tr%nsl%te
into loy%l customers %nd positive br%nd recognition.
Doing Both
Corpor%te phil%nthropy %nd soci%l responsibility %re different but not
mutu%lly exclusive. You c%n eng%ge in both. Since phil%nthropy %nd soci%l
responsibility come with costs, you should ev%lu%te the extent of your
fin%nci%l commitments before you m%ke them. In p%rticul%r, %void
overcommitting %nd then h%ving to b%ck out due to fin%nci%l stresses. The
neg%tive publicity from such %ction c%n hurt your comp%ny. Eng%ging in
phil%nthropy %nd soci%l responsibility simult%neously c%n help others while
est%blishing your comp%ny %s % good neighbor %nd generous giver.
