All Organizations are likely to face crisis at any time. They need to handle the situation effectively in order to survive. A crisis is an unstable situation of extreme danger or difficulty. It is usually caused by an event or threat that is related to range of circumstances such as product recalls, equipment failure or accidents. Crises typically have a strong human aspect to them which means they can become the focus of intensive media scrutiny. Having plans in place to manage the information that is given to the public and the media - appointed spokespeople, contingency plans, and key messages - is called ‘crisis management’.
Crisis affects a large number of people. The occurrence is unpredictable. The different types of crises range from a customer relations or product problem through to a prolonged strike or disruptions to business caused by a bushfire. Some of the possible crises are:
· Natural disasters – flood, storm, earthquake, bushfire, etc.
· Customer Relations – Product failure, product recall, service complaints, etc.
· Management Issues – plant closure, layoffs and class action.
Characteristics of Crisis:
· Element of surprise – Pepsi learning reports of syringe found in Pepsi can.
· Insufficient Information – Perrier sparkling water taking a week to figure out what was
going on after reports of benzene in the water.
· Quick pace of events
· Intense scrutiny.
Planning for and developing techniques to handle crises is now becoming a normal operational consideration for many organizations. It can mean the difference between a company emerging from a crisis with reputation and customer loyalty largely intact, and fighting for survivaA public relations consultancy can identify issues or potential crises, develop strategies to deal with them, and help manage them as they occur. Too often management hopes that the issues will simply not develop - or that they will go away. It is not uncommon to leave them for the competitors to handle.
Principles to positive Corporate response to a crisis:
1. Preparation is key.
Think of a Crisis Communication Plan as an insurance policy for your corporate reputation. With such a plan in place, if a crisis hits, you can spend crucial time implementing the plan rather than trying to figure out where to start. Preparedness can include developing a crisis plan, creating media materials, media training for key executives and forming a crisis team.
2. Make sure you have all the facts.
Gather information about the situation as quickly as possible. Talk with your legal counsel and PR adviser to see what information can be released.
3. Take immediate action to minimise danger to human life.
If people are at risk, be sure to immediately address those concerns. Negligence with human life is unforgivable.
4. Tell the truth.
Sounds obvious but amazingly, it is not unheard of for some people to tell half-truths or even out-an-out lies in a crisis. Be sure that any information you release to the media or the public is utterly truthful. If something you say is false, your credibility will be irreparably damaged.
5. Show you care.
Do your best to understand what the public's concerns will be and address those concerns directly. Put yourself in the shoes of people who are adversely affected. You may not be the only ones suffering.
Preparation for Crisis:
· Assess the risk for your organization.
· Plan for crises
· Determine effect on constituencies
· Set communication objectives for potential crises
· Analyze Channel choice
· Assign a different team to each crisis
· Plan for centralization
· What to include in the formal plan?
· List of whom to notify in an emergency
· An approach to media relations
· A strategy for notifying employees
· A location to serve as crisis headquarters
· A description of the plan
Communicating during a crisis:
· Get control of the situation
· Gather as much information as possible
· Set up a centralized crisis management center
· Communicate early and possible
· Understand the media’s mission during a crisis
· Communicate directly with affected constituents.
· Remember that the business must continue
· Make plans to avoid another crisis immediately.
Let’s have a look at the example of Telstra. Telstra made a marketing mistake in August when it sent a message to its 3.4 million mobile phone customers by the most obvious means - voice mail message.
The only problem was that the marketing people appeared to overlook the fact that this transmission would be free to Telstra whereas each recipient would be charged. (Or did they simply ignore the consequences?).
From the sidelines it looks like a problem that PR people often face in the marketing arena - staff with a sales-only focus can occasionally get a little too clever or overlook the public consequences.
Or, as seems to be increasingly the case, the ‘silos’ that marketing staff often work in today means that there can be a lack of adequate senior marketing management supervision to pick up these ‘indiscretions’.
Whatever the cause, the PR people are then called in to redress the resulting situation - internal staff if they exist or, if not, the organisation’s PR agency.
Within hours there was a public outcry. It was a great media story.
In this situation, Telstra’s PR response was ‘textbook’. Within a few hours of the media running it as another ‘bash Telstra’ story they admitted the mistake, essentially said they had been stupid and began crediting customers.
It left the media with nowhere to go. Within a day the story had vanished. Publicly Telstra had escaped as best they could expect with only minimal, short-term damage to their corporate reputation (what went on inside Telstra can only be imagined).
For an organization that gets more than its fair share of brickbats, credit should be given to Telstra for its handling of a short-term marketing crisis.
Reference:
Corporate Communication, Paul. A. Argenti, Fourth Edition.
Links:
http://www.prinfluences.com.au/index.php?theParent=10&pagMan=1
http://www.prinfluences.com.au/index.php?theParent=10&pagMan=1
Monday, July 9, 2007
Sunday, July 8, 2007
INTERNAL COMMUNICATIONS
The employees are the key to the functioning of an organization. The organizations’ management has to maintain good relations with them. For this they must communicate effectively with them. An effective internal communication structure has to be developed
by the organization.
The internal communication must also be assessed properly. The management must conduct proper communication audit. Based on the audit results, communications professionals can design the right program for the organization. E.g. Starbucks Coffee Co. and Kinko’s Inc. hired outside consultant to conduct internal communication audit to identify strengths and weaknesses. Effective internal communications must reinforce the belief in the employees that they are important to the organization.
€ommon Causes of Problems in Internal Communications
If I know it, then everyone must know it.
Perhaps the most common communications problem is managements' (leaders' and managers') assumption that because they are aware of some piece of information, than everyone else is, too. Usually staff aren't aware unless management makes a deliberate attempt to carefully convey information.
We hate bureaucracy -- we're "lean and mean."
When organizations are just getting started, their leaders can often prize themselves on not being burdened with what seems as bureaucratic overhead, that is, as extensive written policies and procedures. Writing something down can be seen as a sign of bureaucracy and to be avoided. As the organization grows, it needs more communications and feedback to remain healthy, but this communication isn't valued. As a result, increasing confusion ensues -- unless management matures and realizes the need for increased, reliable communications.
I told everyone, or some people, or ...?
Another frequent problem is managements' not really valuing communications or assuming that it just happens. So they're not aware of what they told to whom -- even when they intended for everyone to know the information.
Did you hear what I meant for you to hear?
With today's increasingly diverse workforce, it's easy to believe you've conveyed information to someone, but you aren't aware that they interpreted you differently than you intended. Unfortunately, you won't be aware of this problem until a major problem or issue arises out of the confusion.5. Our problems are too big to have to listen to each other!
Particularly when personnel are tired or under stress, it's easy to do what's urgent rather than what's important. So people misunderstand others' points or understand their intentions. This problem usually gets discovered too late, too.
So what's to talk about?
Lastly, communications problems can arise when inexperienced management interprets its job to be solving problems and if they're aren't any problems/crises, then there's nothing that needs to be communicated.
There's data and there's information.
As organizations grow, their management tends to focus on matters of efficiency. They often generate systems that produce substantial amount of data -- raw information that doesn't seem to really be important.
If I need your opinion, I'll tell it to you.
Lastly, communications problems can arise when management simply sees no value whatsoever in communicating with subordinates, believing subordinates should shut up and do their jobs.
According to Towers Perrin’s survey, effective communication must include the following elements:
· Open and honest exchanges of information.
· Clear and easy to understand materials.
· Timely distributions
· Trusted Sources
· Two-way feedback systems
· Clear demonstrations of senior leadership’s interest in employees.
· Continual improvements in communication.
· Consistent messaging across sources.
Effective Internal Communication Program
In order to ensure effective internal communication, the firm must
· Time for face-to-face meetings.
· Communicate Online
· Create Employee-oriented publications.
· Communicate visually
· Focus on internal branding
· Consider the company grape-vine.
Whether planning your internal or external communications efforts, it helps a great deal to develop a communications plan, either informally or formally. For example, consider:
1. What key messages do you want to convey?
2. To what key stakeholders do you want to convey the key messages (e.g., consider clients, funders, community leaders, service providers, etc.)?
3. What's the best approach to reach each key stakeholder, including who/how should the message be conveyed?
4. How will you know if you're reaching these stakeholders or not?
Reference:
Corporate Communication, Paul. A. Argenti, Fourth Edition
Links:
http://www.managementhelp.org/mrktng/org_cmm.htm
by the organization.
The internal communication must also be assessed properly. The management must conduct proper communication audit. Based on the audit results, communications professionals can design the right program for the organization. E.g. Starbucks Coffee Co. and Kinko’s Inc. hired outside consultant to conduct internal communication audit to identify strengths and weaknesses. Effective internal communications must reinforce the belief in the employees that they are important to the organization.
€ommon Causes of Problems in Internal Communications
If I know it, then everyone must know it.
Perhaps the most common communications problem is managements' (leaders' and managers') assumption that because they are aware of some piece of information, than everyone else is, too. Usually staff aren't aware unless management makes a deliberate attempt to carefully convey information.
We hate bureaucracy -- we're "lean and mean."
When organizations are just getting started, their leaders can often prize themselves on not being burdened with what seems as bureaucratic overhead, that is, as extensive written policies and procedures. Writing something down can be seen as a sign of bureaucracy and to be avoided. As the organization grows, it needs more communications and feedback to remain healthy, but this communication isn't valued. As a result, increasing confusion ensues -- unless management matures and realizes the need for increased, reliable communications.
I told everyone, or some people, or ...?
Another frequent problem is managements' not really valuing communications or assuming that it just happens. So they're not aware of what they told to whom -- even when they intended for everyone to know the information.
Did you hear what I meant for you to hear?
With today's increasingly diverse workforce, it's easy to believe you've conveyed information to someone, but you aren't aware that they interpreted you differently than you intended. Unfortunately, you won't be aware of this problem until a major problem or issue arises out of the confusion.5. Our problems are too big to have to listen to each other!
Particularly when personnel are tired or under stress, it's easy to do what's urgent rather than what's important. So people misunderstand others' points or understand their intentions. This problem usually gets discovered too late, too.
So what's to talk about?
Lastly, communications problems can arise when inexperienced management interprets its job to be solving problems and if they're aren't any problems/crises, then there's nothing that needs to be communicated.
There's data and there's information.
As organizations grow, their management tends to focus on matters of efficiency. They often generate systems that produce substantial amount of data -- raw information that doesn't seem to really be important.
If I need your opinion, I'll tell it to you.
Lastly, communications problems can arise when management simply sees no value whatsoever in communicating with subordinates, believing subordinates should shut up and do their jobs.
According to Towers Perrin’s survey, effective communication must include the following elements:
· Open and honest exchanges of information.
· Clear and easy to understand materials.
· Timely distributions
· Trusted Sources
· Two-way feedback systems
· Clear demonstrations of senior leadership’s interest in employees.
· Continual improvements in communication.
· Consistent messaging across sources.
Effective Internal Communication Program
In order to ensure effective internal communication, the firm must
· Time for face-to-face meetings.
· Communicate Online
· Create Employee-oriented publications.
· Communicate visually
· Focus on internal branding
· Consider the company grape-vine.
Whether planning your internal or external communications efforts, it helps a great deal to develop a communications plan, either informally or formally. For example, consider:
1. What key messages do you want to convey?
2. To what key stakeholders do you want to convey the key messages (e.g., consider clients, funders, community leaders, service providers, etc.)?
3. What's the best approach to reach each key stakeholder, including who/how should the message be conveyed?
4. How will you know if you're reaching these stakeholders or not?
Reference:
Corporate Communication, Paul. A. Argenti, Fourth Edition
Links:
http://www.managementhelp.org/mrktng/org_cmm.htm
21st Century Communication Trends
There are 5 different communication trends identified in the 21st century – Globalization, Diversity, Flexibility, Flat and Networking. All these trends are inter-connected. Lets discuss these trends briefly:
Globalization:
Human societies across the globe have established progressively closer contacts over many centuries, but recently the pace has dramatically increased. Jet airplanes, cheap telephone service, email, computers, huge ocean going vessels, instant capital flows, all these have made the world more interdependent than ever. Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, technology and raw materials move ever more swiftly across national borders. Along with products and finances, ideas and cultures circulate more freely. As a result, laws, economies, and social movements are forming at the international level. Many politicians, academics, and journalists treat these trends as both inevitable and (on the whole) welcome. But for billions of the world’s people, business-driven globalization means uprooting old ways of life and threatening livelihoods and cultures. The global social justice movement, itself a product of globalization, proposes an alternative path, more responsive to public needs. Intense political disputes will continue over globalization’s meaning and its future direction.
http://www.globalpolicy.org/globaliz/define/index.htm
Diversity:
It has become a common thing to see people belonging to different cultures, religions and countries working in one corporation. The business are recruiting and retaining a diverse workforce, structuring internal processes, and serving clients. Multiculturalism cultivates a new climate in which individuals from dominant and non-dominant cultures coexist and thrive. Wal Mart is known for having diverse culture. On the other hand, this trend has also given birth to conflicts. Wal Mart has recently been facing critics for mistreating people belonging to different cultures. Diversity in most cases leads to discrimination.
Flexibility:
Flexibility is the ability of firms to respond to changes in their environment.Flexibility is very important for a firm as it enables it to achieve efficiency. We compare rigid and flexible organizations when side contracting among agents is possible. Within a rigid organization, each agent can produce only one component of the final product, whereas within a flexible organization, the agents can reallocate their tasks during the production period. In our model, the principal can only observe the joint output produced by the agents. Our analysis reveals that within a flexible organization, side transfers are exchanged between the agents in equilibrium, and not only an efficient agent but also an inefficient agent may acquire a rent. Yet, the principal's payoff is higher when the organization is flexible, as the agents' rent-seeking behavior generates a more efficient production technology. In the case of life-time employment and life-time employability, life-time employability requires lot more flexibility on the part of a person. Japan requires a lot more flexibility since they adopt life-time employability.
http://ideas.repec.org/a/mhr/jinste/urnsici0932-4569(200512)1614_621ofacta_2.0.tx_2-5.html
Networking:
Networks are necessary to deal with customers, competitors, the media and suppliers, as well as shareholders and all stakeholders included. Networks can be an important part in a company's gained success. It means a group of inter connected individuals who share available resources, skills and abilities. Networks require coordinated action on the part of the members.
Flat:
Flat is the opposite of Pyramidal organization. This implies open offices, with no secretaries to managers where there is flow of information, ideas, and resources. It is easy for lower level management to get access to the top level. Flat means reducing the layers of the organization in hopes of achieving Organizational effectiveness and efficiency. The chain of command is short, Span of control is wide and there is effective communication between managers and workers. E.g. General Electric, Wal Mart, Accenture, they all adapt flat management structure.
All these trends are visible in modern organizations. These play a very important role in their growth and development.
Globalization:
Human societies across the globe have established progressively closer contacts over many centuries, but recently the pace has dramatically increased. Jet airplanes, cheap telephone service, email, computers, huge ocean going vessels, instant capital flows, all these have made the world more interdependent than ever. Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, technology and raw materials move ever more swiftly across national borders. Along with products and finances, ideas and cultures circulate more freely. As a result, laws, economies, and social movements are forming at the international level. Many politicians, academics, and journalists treat these trends as both inevitable and (on the whole) welcome. But for billions of the world’s people, business-driven globalization means uprooting old ways of life and threatening livelihoods and cultures. The global social justice movement, itself a product of globalization, proposes an alternative path, more responsive to public needs. Intense political disputes will continue over globalization’s meaning and its future direction.
http://www.globalpolicy.org/globaliz/define/index.htm
Diversity:
It has become a common thing to see people belonging to different cultures, religions and countries working in one corporation. The business are recruiting and retaining a diverse workforce, structuring internal processes, and serving clients. Multiculturalism cultivates a new climate in which individuals from dominant and non-dominant cultures coexist and thrive. Wal Mart is known for having diverse culture. On the other hand, this trend has also given birth to conflicts. Wal Mart has recently been facing critics for mistreating people belonging to different cultures. Diversity in most cases leads to discrimination.
Flexibility:
Flexibility is the ability of firms to respond to changes in their environment.Flexibility is very important for a firm as it enables it to achieve efficiency. We compare rigid and flexible organizations when side contracting among agents is possible. Within a rigid organization, each agent can produce only one component of the final product, whereas within a flexible organization, the agents can reallocate their tasks during the production period. In our model, the principal can only observe the joint output produced by the agents. Our analysis reveals that within a flexible organization, side transfers are exchanged between the agents in equilibrium, and not only an efficient agent but also an inefficient agent may acquire a rent. Yet, the principal's payoff is higher when the organization is flexible, as the agents' rent-seeking behavior generates a more efficient production technology. In the case of life-time employment and life-time employability, life-time employability requires lot more flexibility on the part of a person. Japan requires a lot more flexibility since they adopt life-time employability.
http://ideas.repec.org/a/mhr/jinste/urnsici0932-4569(200512)1614_621ofacta_2.0.tx_2-5.html
Networking:
Networks are necessary to deal with customers, competitors, the media and suppliers, as well as shareholders and all stakeholders included. Networks can be an important part in a company's gained success. It means a group of inter connected individuals who share available resources, skills and abilities. Networks require coordinated action on the part of the members.
Flat:
Flat is the opposite of Pyramidal organization. This implies open offices, with no secretaries to managers where there is flow of information, ideas, and resources. It is easy for lower level management to get access to the top level. Flat means reducing the layers of the organization in hopes of achieving Organizational effectiveness and efficiency. The chain of command is short, Span of control is wide and there is effective communication between managers and workers. E.g. General Electric, Wal Mart, Accenture, they all adapt flat management structure.
All these trends are visible in modern organizations. These play a very important role in their growth and development.
MEDIA RELATIONS
The media relations are central to corporate communication effort. This is an important function from the perspective of the company’s communication staff. The person in charge of communications department must be capable of dealing with the media as a spokesperson for the firm. There is a debate about whether media relations should come under the purview of corporate communication.
Corporations need to build and maintain good relationship with the media. In the olden days, press releases were sent to a mass audience. But, the emergence of computers and other technologies has enabled firms to target specific audiences.
Building and maintaining media relationship
Let’s take a look at how a company builds media relations.
· Conducting research for targeting media. First, determine communication objective and decide the time and place to pitch story. Suppose Coca-Cola is launching a new flavor of drink, the company’s objective is to inform the public about the launch.
· Handling the media calls effectively and ensuring proper response.
· Preparing for the interview by analyzing the interviewer.
· Creating good relationship with media.
· Maintaining ongoing relationship and building goodwill and credibility.
The firm can also build an effective media relations program. For this, the firm must have a media relations personnel involved in the decision making process. The firm must develop an in-house media relations staff. Side by side, even outside help could be seeked.
Media Training
Media training must be provided by the organization to the media personnel in order to maximize the effectiveness of interview opportunities. Once provided with Media training, the executives will be technically equipped to handle the media. There will be an overall appreciation of the media by senior executives and why the relationship has to be professionally managed. It provides a greater understanding and appreciation of what PR delivers to the organization.
Link: http://www.prinfluences.com.au/index.php?theParent=4&pagMan=1
The firm can also develop an online media strategy where certain news must be displayed online. This can be displayed on the company’s website. The firm can also extend media relations strategy using blogs. Websites have the potential to be a great tool for both media and organizations.
For media, they can provide a means of accessing a wealth of information and getting answers to most questions at a time of their choosing - anonymously.
For organizations, they are the opportunity to provide a resource that makes media want to come to their site for information rather than to their competitors.
Corporations need to build and maintain good relationship with the media. In the olden days, press releases were sent to a mass audience. But, the emergence of computers and other technologies has enabled firms to target specific audiences.
Building and maintaining media relationship
Let’s take a look at how a company builds media relations.
· Conducting research for targeting media. First, determine communication objective and decide the time and place to pitch story. Suppose Coca-Cola is launching a new flavor of drink, the company’s objective is to inform the public about the launch.
· Handling the media calls effectively and ensuring proper response.
· Preparing for the interview by analyzing the interviewer.
· Creating good relationship with media.
· Maintaining ongoing relationship and building goodwill and credibility.
The firm can also build an effective media relations program. For this, the firm must have a media relations personnel involved in the decision making process. The firm must develop an in-house media relations staff. Side by side, even outside help could be seeked.
Media Training
Media training must be provided by the organization to the media personnel in order to maximize the effectiveness of interview opportunities. Once provided with Media training, the executives will be technically equipped to handle the media. There will be an overall appreciation of the media by senior executives and why the relationship has to be professionally managed. It provides a greater understanding and appreciation of what PR delivers to the organization.
Link: http://www.prinfluences.com.au/index.php?theParent=4&pagMan=1
The firm can also develop an online media strategy where certain news must be displayed online. This can be displayed on the company’s website. The firm can also extend media relations strategy using blogs. Websites have the potential to be a great tool for both media and organizations.
For media, they can provide a means of accessing a wealth of information and getting answers to most questions at a time of their choosing - anonymously.
For organizations, they are the opportunity to provide a resource that makes media want to come to their site for information rather than to their competitors.
Or so you would think. Many journalists will tell you they generally find websites a poor resource, too ‘corporate’ in focus and not a significant help to them. Meanwhile, many organizations will say that media are simply not interested in websites and that, while they have a section for media or a ‘newsroom’, it's basically done because they feel they have to.
And judging from a survey ‘PR Influences’ has done, we would have to agree - with both points of view. The firm must also learn to handle negative news effectively.
And judging from a survey ‘PR Influences’ has done, we would have to agree - with both points of view. The firm must also learn to handle negative news effectively.
Companies are under great scrutiny at the hands of all its constituencies. All require instant information about the latest developments in the organization which is possible through the media. Remember, the media is both a constituency and a conduit.
Saturday, July 7, 2007
CORPORATE vs PRODUCT ADVERTISING
Advertising as you know is any paid form of non-personal communication promoting a product or service by an identified sponsor. What this definition doesn’t state is that advertising also involves the promotion of a Corporation.
Corporate advertising includes building the image of a responsible corporate entity, attracting good talent and reinforcing the corporate mission. In corporate advertising, companies never promote the product directly. They promote the product along with giving something to society. Corporate Advertisements are used by the organizations to inform the constituencies about the latest developments and happenings in an organization.
Corporate advertising should present a clear identity for the organization based on a careful assessment of its’ overall communication strategy, it generally falls into three broad categories: image advertisings, financial advertising and issues advocacy.
Image advertising has the aim to reinforce a company's identity and to enhance its reputation. Especially when structural changes occur within companies, they frequently use corporate advertising to strengthen their identities.
Companies arrange financial advertising campaigns to make themselves attractive as investment by enhancing their image in the financial community. Financial-relations advertising tries to stimulate interest of potential investors in a company's stock. E.g. The advertisements in the newspapers regarding company’s previous year performance in order to attract more investment.
Issue or advocacy advertising is used by companies to respond to threads exposed by the government or special interest groups. In this case, companies try to communicate directly with consumers, competing with journalists who also try to influence readers with their stories about the companies. Companies dealing with environmental issues use advocacy advertising very often.
Product Advertising involves paid form of non-personal communication involving the promotion of any product or a service. E.g. The advertisement for a new Toyota car. The main purpose of a product advertisement is to induce the consumers to buy the product thus increase the sales.
PRODUCT vs CORPORATE
It is risky to only give importance to promotion of products and to do nothing to improve the image and enhance the reputation of the organization. Brand marketers, who have traditionally argued that all marketing and communication should support the brand or product, are beginning to put resources into supporting the corporation - even if it is only in some instances as a defensive strategy.
In a marketplace where there is often little differentiation between brands, the organization, its people, its policies and its attitude can often be the point of difference. Product advertisements have short term implications. They are effective only till the products are sold. But, the corporate advertisements will have huge significance for the life-time of the corporation.
I would like to conclude that Good reputation is vital to support marketing. In good times it provides that extra bonus. In bad times it can minimize problems. And it can help recruit better people and attract the best business partners.
Links:
· www.wikipedia.org
· http://www.prinfluences.com.au/index.php?artId=112
Reference:
Corporate Communication, Paul. A. Argenti, Fourth Edition.
Corporate advertising includes building the image of a responsible corporate entity, attracting good talent and reinforcing the corporate mission. In corporate advertising, companies never promote the product directly. They promote the product along with giving something to society. Corporate Advertisements are used by the organizations to inform the constituencies about the latest developments and happenings in an organization.
Corporate advertising should present a clear identity for the organization based on a careful assessment of its’ overall communication strategy, it generally falls into three broad categories: image advertisings, financial advertising and issues advocacy.
Image advertising has the aim to reinforce a company's identity and to enhance its reputation. Especially when structural changes occur within companies, they frequently use corporate advertising to strengthen their identities.
Companies arrange financial advertising campaigns to make themselves attractive as investment by enhancing their image in the financial community. Financial-relations advertising tries to stimulate interest of potential investors in a company's stock. E.g. The advertisements in the newspapers regarding company’s previous year performance in order to attract more investment.
Issue or advocacy advertising is used by companies to respond to threads exposed by the government or special interest groups. In this case, companies try to communicate directly with consumers, competing with journalists who also try to influence readers with their stories about the companies. Companies dealing with environmental issues use advocacy advertising very often.
Product Advertising involves paid form of non-personal communication involving the promotion of any product or a service. E.g. The advertisement for a new Toyota car. The main purpose of a product advertisement is to induce the consumers to buy the product thus increase the sales.
PRODUCT vs CORPORATE
It is risky to only give importance to promotion of products and to do nothing to improve the image and enhance the reputation of the organization. Brand marketers, who have traditionally argued that all marketing and communication should support the brand or product, are beginning to put resources into supporting the corporation - even if it is only in some instances as a defensive strategy.
In a marketplace where there is often little differentiation between brands, the organization, its people, its policies and its attitude can often be the point of difference. Product advertisements have short term implications. They are effective only till the products are sold. But, the corporate advertisements will have huge significance for the life-time of the corporation.
I would like to conclude that Good reputation is vital to support marketing. In good times it provides that extra bonus. In bad times it can minimize problems. And it can help recruit better people and attract the best business partners.
Links:
· www.wikipedia.org
· http://www.prinfluences.com.au/index.php?artId=112
Reference:
Corporate Communication, Paul. A. Argenti, Fourth Edition.
CORPORATE COMMUNICATION RELEVANCE
Having a look at the posts before this, one can clearly understand how relevant Communication is to a corporation. Whether it is communicating with colleagues or your boss and especially with members of other organizations, Corporate Communication is really important. In a corporate environment, there is flow of information, both internally (to various departments, employees, and management), as well as externally (to clients, prospects, suppliers, investors, and government).
When a group of industrial engineers were asked in a 1990 study how to improve productivity, communication concerns drew the strongest response to any question on the survey. More than 88 percent of the engineers strongly agreed that the lack of communication and cooperation among different components of a business leads to reduced productivity.
CEOs have also recognized the importance of communication. In a study by A. Foster Higgins and Company, an employee-benefit consulting firm found that 97 percent of the CEOs surveyed believe that communicating with employees positively affects job satisfaction. Furthermore, the survey found that 79 percent think that communication benefits the bottom line; surprisingly, only 22 percent communicate with employees weekly or more.
Link:http://findarticles.com/p/articles/mi_m1038/is_n5_v36/ai_14723295
Clear communication is essential when managing activities. Let’s take the example of Amway. Amway needs to communicate regularly with its 35,000 distributors in order to help them prepare for their increasingly challenging role. Amway uses a range of communication methods and processes to help individual distributors develop their own business opportunities. There are many possible objectives and benefits from a close and well developed communication system as shown below:
Communication is only successful when the intended result is achieved. This effectiveness is dependent on the choice of recipient, the clarity of the message and the choice of communication medium.
It would be inefficient and wasteful to send a message to every distributor regarding every single issue, particularly if some issues only concerned a few individuals. Similarly, members of an organization should not be overburdened with communications. If there are too many messages, distributors may simply stop reading them. This could mean that they may miss the most important messages.
Effective communication at Amway, therefore, involves making prior decisions about who needs to receive the message.
Sometimes it is necessary to repeat a message. For example, in the classroom, a lecturer will attempt to explain a task in clear and simple terms, but if students are unsure about the message, he will rephrase it until the students understand. Repeating messages through a different communication channel can also aid the target market's understanding.
Messages to Amway's distributors should, therefore, be as clear and direct as possible, limiting areas in which misinterpretation could arise. A good understanding of the audience using terms and language they are familiar with is vital.
Link: http://www.thetimes100.co.uk/case_study.php?cID=11&csID=87&pID=3
Compared to a decade ago, I believe that corporate communication has a huge amount of relevance in day to day business activities as they are involving more and more people right now.
When a group of industrial engineers were asked in a 1990 study how to improve productivity, communication concerns drew the strongest response to any question on the survey. More than 88 percent of the engineers strongly agreed that the lack of communication and cooperation among different components of a business leads to reduced productivity.
CEOs have also recognized the importance of communication. In a study by A. Foster Higgins and Company, an employee-benefit consulting firm found that 97 percent of the CEOs surveyed believe that communicating with employees positively affects job satisfaction. Furthermore, the survey found that 79 percent think that communication benefits the bottom line; surprisingly, only 22 percent communicate with employees weekly or more.
Link:http://findarticles.com/p/articles/mi_m1038/is_n5_v36/ai_14723295
Clear communication is essential when managing activities. Let’s take the example of Amway. Amway needs to communicate regularly with its 35,000 distributors in order to help them prepare for their increasingly challenging role. Amway uses a range of communication methods and processes to help individual distributors develop their own business opportunities. There are many possible objectives and benefits from a close and well developed communication system as shown below:
Communication is only successful when the intended result is achieved. This effectiveness is dependent on the choice of recipient, the clarity of the message and the choice of communication medium.
It would be inefficient and wasteful to send a message to every distributor regarding every single issue, particularly if some issues only concerned a few individuals. Similarly, members of an organization should not be overburdened with communications. If there are too many messages, distributors may simply stop reading them. This could mean that they may miss the most important messages.
Effective communication at Amway, therefore, involves making prior decisions about who needs to receive the message.
Sometimes it is necessary to repeat a message. For example, in the classroom, a lecturer will attempt to explain a task in clear and simple terms, but if students are unsure about the message, he will rephrase it until the students understand. Repeating messages through a different communication channel can also aid the target market's understanding.
Messages to Amway's distributors should, therefore, be as clear and direct as possible, limiting areas in which misinterpretation could arise. A good understanding of the audience using terms and language they are familiar with is vital.
Link: http://www.thetimes100.co.uk/case_study.php?cID=11&csID=87&pID=3
Compared to a decade ago, I believe that corporate communication has a huge amount of relevance in day to day business activities as they are involving more and more people right now.
IDENTITY IMAGE & REPUTATION
A corporation’s identity, image and reputation is a tag attached to the corporation which determines its values. The identity and image of a business states how people perceive the Organization. The identity and image of the firm generates a strong reputation for it. The preference of people is based on this identity and image.
Identity is the visual manifestation of the Company’s reality as conveyed through the Organization’s name, logo, motto, products, services, buildings and all other tangible evidences created by the organization and communicated to the various constituencies. The image of the product is a reflection of an organization’s identity. This identity and image is used by the firms to differentiate it’s products from that offered by the competitors. Let’s take the example of Pepsi and Coca-Cola. These two firms provide the same product, which is a Cola drink. But, their identity and image is what really helps them to differentiate their products from that of the competitors. At one time, Coca-Cola promoted their drink, Thumbs up in India as an “Adult’s” drink and indirectly imaged their competitor, Pepsi, as a “Kid’s” drink in order to have a competitive edge.
Some of the important things that contribute positively to corporate identity are:-
· Corporate Vision: The vision encompasses Core values, Philosophies, standards and goals.
· Corporate Branding: It implies the firm’s name and logos. The company value can be influenced significantly by this.
· Consistent Self-presentation: The vision of the Organization should be consistent across all its image, logos and mottos of employee behavior.
In order to manage identity effectively, a firm has to follow a procedure:
1. The firm must conduct an Identity Audit of the Company.
2. The firm has to set its identity objectives.
3. The firm has to develop its name and designs.
4. The firm has to develop prototypes.
5. Now the firm has to launch and communicate its identity.
6. After launch, the plan has to be implemented.
The Alignment of image and identity creates a reputation for the firm. The managers of the company builds, sustains and defends the reputation by shaping a unique identity and projecting a coherent and consistent set of images to the public.
On one end, reputation is a competitive advantage but on the other hand, it can also help companies to weather crisis more effectively. E.g. In 2004, there were contamination claims on Coca-Cola, where people believed that Coke had some pesticide content in them. These claims had come and gone without having any long-term damage on the firm. This was because of the reputation the firm had.
Organizations are indeed abstract systems, but they also represent the social environment of those who work within them. The cultures and identities, both group and individual, formed on the basis of this social environment, must be regarded as the products of construction processes which can only be understood in their full historical, political, social and economic context. Furthermore, it is more realistic to regard the organization as 'an endless process of identifications and divisions’ than as a system with a single organizational identity.
Links:
http://findarticles.com/p/articles/mi_m4339/is_2_23/ai_88252993
http://www.wikipedia.org
References
Corporate Communication, Paul .A. Argenti, Fourth edition.
COMMUNICATION TECHNOLOGIES
Ask any Businessman How important Communication is to their business? He would say it’s as important as money is. Communication enables interaction between Human beings. It enables interaction between different Businesses. All the deals, transactions and Mergers and Acquisitions are possible because of communication between these firms. So this shows how important Communication is today but one should never forget the technology involved in communication these days. Communication has become quick and effective now because of the assistance of modern day technology.
Today we use different types of communication technology ranging from telephones to Cell phones. Even in cell phones we are finding new features almost every two months which makes communication even better. We got the latest technology to supplement or replace the face-to-face communication.
Let’s have a look at some of the technology developed over the last two decades.
Today we use different types of communication technology ranging from telephones to Cell phones. Even in cell phones we are finding new features almost every two months which makes communication even better. We got the latest technology to supplement or replace the face-to-face communication.
Let’s have a look at some of the technology developed over the last two decades.
Telephones: Telephones have made communication really easy. Person at one end of the city can interact with another person with ease. Telephones also have got facility of calling people living overseas i.e., ISD facility which allows an American Broker to speak to his client staying in London. These days the call charges have drastically reduced that calls are easily affordable. We have portable cordless telephones these days.
Fax: Fax is a telecommunications technology used to transfer copies of documents, especially using affordable devices operating over the telephone network. A "fax machine" usually consists of an image scanner, a modem and an inkjet, thermal or laser printer combined into a single pack. The scanner converts the content printed on a physical document into a digital image, the modem sends the image data over a phone line to another device, and the printer at the far end produces a copy of the transmitted document.
Cell Phones: A mobile telephone or cellular telephone is a long-range, portable electronic device used for mobile communication. In addition to the standard voice function of a telephone, current mobile phones can support many additional services such as SMS for text messaging, email, packet switching for access to the internet, and MMS for sending and receiving photos and video. These days mobiles even have got Blue Tooth facilities for easy wireless transfer of files.
Computers: Desktop PC’s are used for sending emails and for instant messaging using the Internet. Internet is also used for communicating through Blogs. In computer we can also type documents using Microsoft Word software, give presentations using Powerpoint. There are different types of computers now. Gone are the days when people relied on Desktops. Now we have a wide range of portable computers available at affordable prices i.e., laptops. These have got Bluetooth devices for easy wireless transfer of files and also WI-FI connectivity, a way of connecting to the internet without wired connection. An advanced version of the computer is PDA (Personal Digital Assistance), which is sort of a palm top computer, easy to handle. PDA also allows the user to make calls and send sms using it, thus combining the features of a cell phone and a computer.
The role of technology in customer-company interactions and the number of technology-based products and services have been growing rapidly. There is the emergence of new technologies which is either more direct, more immediate and more like face-to-face communication. E-mail or Cell phones, there has indeed been a great revolution in communication from which Businesses have benefited.
LINKS:
1. www.wikipedia.org
Friday, July 6, 2007
COMMUNICATION THEORIES
Communication:
Communication consists of transmitting information from one person to another.
Communication is information-related behavior, and, by extension, the study of human behavior regarding how information exchanges take place between them. Communication is a necessary life process through which animal and human systems acquire information about their environment that is necessary to carry out their life activities.
History of Communication:
Aristotle first addressed the problem of communication and attempted to work out a theory of it in his book “The Rhetoric”. He was primarily focused on the art of persuasion.
Humanistic and rhetorical viewpoints and theories dominated the discipline prior to the twentieth century, when more scientific methodologies and insights from psychology, sociology, linguistics and advertising began to influence communication thought and practice.
Communication Settings:
Communication, as seen above, is a necessary life process. It takes three common settings, inter-personal, Machine-assisted and mass communication.
Interpersonal (face to face) – In the contextual view, Interpersonal Communication is that which involves few participants where the interactants are in close proximity to each other. But, this view does not take into account the relationship between the interactants. E.g. A passenger asking for a rail ticket at the ticket office to the person at the counter. In this case there is communication between two or more persons but their relationship is not clearly determined. In the developmental view, interpersonal communication is defined as communication that occurs between people who have known each other for sometime. E.g. A father asking his son to clean his car. In this case there is a relationship between both the parties involved.
Machine assisted – Machine assisted communication as the name states is the use of any equipment in the interaction between two or more people. These machines include telephones, Fax, Computers (instant messaging), Cell phones and other electronic and non-electronic equipments.
Mass: Mass communication refers to the process by which a complex organization with the aid of one or more machines produces and transmits public messages that are directed at large, heterogeneous, and scattered audiences. E.g. A press conference conducted by an organization to explain its new company policies to all the constituencies.
Communication Theories
Let’s have a look at the various communication theories developed by theorists like Harold Lasswell, Claude Shannon, Wilbur Schramm and many others over the years.
Lasswell’s Model
Harold Lasswell was a leading American Political Scientist and communication theorist.
He was a member of the Chicago School of Sociology and was a student of Yale University in Political Science. He developed his model of communication in 1948.
Lasswell provided a general view of communication that extended well beyond the boundaries of political science. He said that the communication process could best be explained by the simple statement: "Who says what to whom in what channel with what effect."
His theory mainly focused on verbal communication. Similar to Aristotle’s view, it also emphasized the elements of speaker, message, and audience. He viewed communication as a one way process in which one influenced the others through messages. The inclusion of effects was an important break with past models which served mainly descriptive purposes. The study of effects initiated a new field: the communication approach to human behavioral change. Lasswell's approach also provided a more generalized view of the goal or effect of communication than did the Aristotelian perspective. Lasswell's work suggested that there could be a variety of outcomes or effects of communication such as to inform, to entertain, to aggrevate, and to persuade.
Shannon and Weaver’s Model:
Claude Shannon, An American Electrical engineer and mathematician along with Warren Weaver, an American Scientist and mathematician developed
this model, where communication will be used in a very broad sense to include all the procedures by which one mind may affect another. This, of course, involves not only written and oral speech, but also music, the pictorial arts, the theatre, the ballet, and in fact all human behavior.
The information source selects a desired message out of a set of possible messages . . . The selected message may consist of written or spoken words, or of pictures, music, etc.
The transmitter changes the message into the signal which is actually sent over the communication channel from the transmitter to the receiver.
Shannon and Weaver introduced the term noise, and a compensating correction channel. Noise was used as a label for any distortion that interfered with the transmission of a signal from the source to the destination, such as static on a radio, a blinding fog, or blurred, rain-soaked pages of a newspaper. They also advanced the notion of a "correction channel," which they regarded as a means of overcoming problems created by noise. The correction channel was operated by an observer who compared the initial signal that was sent with that received; when the two didn't match, additional signals would be transmitted to correct the error.
Schramm’s Model
In 1954, Wilbur Schramm provided several additional models.
First Model
Schramm saw communication as a purposeful effort to establish commonness between a source and receiver. What happens when the source tries to build up this commonness with his intended receiver? First, the source encodes his message. That is, he takes the information or feeling he wants to share and puts it into a form that can be transmitted. the pictures in our heads can't be transmitted until they are coded. Once coded and sent, a message is quite free of its sender. And there is good reason for the sender to wonder whether his receiver will really be in tune with him, whether the message will be interpreted without distortion, whether the picture in the head of the receiver will bear any resemblance to that in the head of the sender.
Second Model
Schramm's second model of communication is, in my opinion, far more aware of the subtleties involved. Without a common background and culture, there is little chance for a message to be interpreted correctly. He introduced the concept of a field of experience, which he thought to be essential in determining whether or not a message would be received at its destination in the manner intended by the source. He contended that without common fields of experience -- a common language, common backgrounds, a common culture, and so forth -- there was little chance for a message to be interpreted correctly.
To overcome the problem of noise, he suggested the importance of feedback. "An experienced communicator is attentive to feedback and constantly modifying his messages in light of what he observes in or hears from his audience." Hence the roles of sender and recipient are taken on by both parties, and communication becomes circular, and create a relational model of communication and a beginning of a convergence or network approach.
Schramm re-emphasized the elements of source, message, and destination. He suggested the importance of the coding and decoding process and the role of field experience.
Communication consists of transmitting information from one person to another.
Communication is information-related behavior, and, by extension, the study of human behavior regarding how information exchanges take place between them. Communication is a necessary life process through which animal and human systems acquire information about their environment that is necessary to carry out their life activities.
History of Communication:
Aristotle first addressed the problem of communication and attempted to work out a theory of it in his book “The Rhetoric”. He was primarily focused on the art of persuasion.
Humanistic and rhetorical viewpoints and theories dominated the discipline prior to the twentieth century, when more scientific methodologies and insights from psychology, sociology, linguistics and advertising began to influence communication thought and practice.
Communication Settings:
Communication, as seen above, is a necessary life process. It takes three common settings, inter-personal, Machine-assisted and mass communication.
Interpersonal (face to face) – In the contextual view, Interpersonal Communication is that which involves few participants where the interactants are in close proximity to each other. But, this view does not take into account the relationship between the interactants. E.g. A passenger asking for a rail ticket at the ticket office to the person at the counter. In this case there is communication between two or more persons but their relationship is not clearly determined. In the developmental view, interpersonal communication is defined as communication that occurs between people who have known each other for sometime. E.g. A father asking his son to clean his car. In this case there is a relationship between both the parties involved.
Machine assisted – Machine assisted communication as the name states is the use of any equipment in the interaction between two or more people. These machines include telephones, Fax, Computers (instant messaging), Cell phones and other electronic and non-electronic equipments.
Mass: Mass communication refers to the process by which a complex organization with the aid of one or more machines produces and transmits public messages that are directed at large, heterogeneous, and scattered audiences. E.g. A press conference conducted by an organization to explain its new company policies to all the constituencies.
Communication Theories
Let’s have a look at the various communication theories developed by theorists like Harold Lasswell, Claude Shannon, Wilbur Schramm and many others over the years.
Lasswell’s Model
Harold Lasswell was a leading American Political Scientist and communication theorist.
He was a member of the Chicago School of Sociology and was a student of Yale University in Political Science. He developed his model of communication in 1948.Lasswell provided a general view of communication that extended well beyond the boundaries of political science. He said that the communication process could best be explained by the simple statement: "Who says what to whom in what channel with what effect."
His theory mainly focused on verbal communication. Similar to Aristotle’s view, it also emphasized the elements of speaker, message, and audience. He viewed communication as a one way process in which one influenced the others through messages. The inclusion of effects was an important break with past models which served mainly descriptive purposes. The study of effects initiated a new field: the communication approach to human behavioral change. Lasswell's approach also provided a more generalized view of the goal or effect of communication than did the Aristotelian perspective. Lasswell's work suggested that there could be a variety of outcomes or effects of communication such as to inform, to entertain, to aggrevate, and to persuade.
Shannon and Weaver’s Model:
Claude Shannon, An American Electrical engineer and mathematician along with Warren Weaver, an American Scientist and mathematician developed
this model, where communication will be used in a very broad sense to include all the procedures by which one mind may affect another. This, of course, involves not only written and oral speech, but also music, the pictorial arts, the theatre, the ballet, and in fact all human behavior.The information source selects a desired message out of a set of possible messages . . . The selected message may consist of written or spoken words, or of pictures, music, etc.
The transmitter changes the message into the signal which is actually sent over the communication channel from the transmitter to the receiver.
Shannon and Weaver introduced the term noise, and a compensating correction channel. Noise was used as a label for any distortion that interfered with the transmission of a signal from the source to the destination, such as static on a radio, a blinding fog, or blurred, rain-soaked pages of a newspaper. They also advanced the notion of a "correction channel," which they regarded as a means of overcoming problems created by noise. The correction channel was operated by an observer who compared the initial signal that was sent with that received; when the two didn't match, additional signals would be transmitted to correct the error.
Schramm’s Model
In 1954, Wilbur Schramm provided several additional models.
First Model
Schramm saw communication as a purposeful effort to establish commonness between a source and receiver. What happens when the source tries to build up this commonness with his intended receiver? First, the source encodes his message. That is, he takes the information or feeling he wants to share and puts it into a form that can be transmitted. the pictures in our heads can't be transmitted until they are coded. Once coded and sent, a message is quite free of its sender. And there is good reason for the sender to wonder whether his receiver will really be in tune with him, whether the message will be interpreted without distortion, whether the picture in the head of the receiver will bear any resemblance to that in the head of the sender.
Second Model
Schramm's second model of communication is, in my opinion, far more aware of the subtleties involved. Without a common background and culture, there is little chance for a message to be interpreted correctly. He introduced the concept of a field of experience, which he thought to be essential in determining whether or not a message would be received at its destination in the manner intended by the source. He contended that without common fields of experience -- a common language, common backgrounds, a common culture, and so forth -- there was little chance for a message to be interpreted correctly.
Third Model
To overcome the problem of noise, he suggested the importance of feedback. "An experienced communicator is attentive to feedback and constantly modifying his messages in light of what he observes in or hears from his audience." Hence the roles of sender and recipient are taken on by both parties, and communication becomes circular, and create a relational model of communication and a beginning of a convergence or network approach.
Schramm re-emphasized the elements of source, message, and destination. He suggested the importance of the coding and decoding process and the role of field experience.
Westley and Maclean Model:
Bruce Westley and Malcolm MacLean, Jr. suggested that communication does not begin with a source, but, rather, with a series of signals or potential messages. They suggest that in a given situation some of the many signals in one's environment at any point in time were selected by an advocate and combined to form a new message -- a news story, advertisement, or speech, etc. If the audience had some first hand knowledge, they might question the advocate, and their questioning would be classified as feedback.
Events occur. Advocates (politicians) may choose to comment upon those events. What the advocates say may be picked up on by the channels (press, tv). The channels then move that information on to the audience. Channels may also choose to report directly on events. This model accounted for mass communication and interpersonal communication, as well as the relationship between the two. Also, it broadened and elaborated on the feedback concept.
Events occur. Advocates (politicians) may choose to comment upon those events. What the advocates say may be picked up on by the channels (press, tv). The channels then move that information on to the audience. Channels may also choose to report directly on events. This model accounted for mass communication and interpersonal communication, as well as the relationship between the two. Also, it broadened and elaborated on the feedback concept.
Kincaid’s Convergence Model:
Information and mutual understanding are the dominant components of the convergence model of communication. Information shared by two or more participants in the communication process may lead to collective action, mutual agreements, and mutual understanding.
The unity of information and action is indicated by three bold lines information-action-believing; information-collection action; and information-action-believing. All information is a consequence (or physical trace) of action, and through the various stages of human information-processing, action may become the consequence of information. A similar unity underlies the relationships among all the basic components of the convergence model. The communication process has no beginning and no end, only the mutually defining relationship among the parts which give meaning to the whole.
The unity of information and action is indicated by three bold lines information-action-believing; information-collection action; and information-action-believing. All information is a consequence (or physical trace) of action, and through the various stages of human information-processing, action may become the consequence of information. A similar unity underlies the relationships among all the basic components of the convergence model. The communication process has no beginning and no end, only the mutually defining relationship among the parts which give meaning to the whole.
The convergence model represents human communication as a dynamic, cyclical process over time, characterized by mutual causation, rather than one-way mechanistic causation; and emphasizing the interdependent relationship of the participants, rather than a bias toward either the "source" or the "receiver" of a message.
Although acknowledging the role of interpretive processes that occur within individuals, Lawrence Kincaid emphasized the information exchanges and networks between them. Their perspectives also carried forth the view of communication as a process rather than a single event, a point of view emphasized in nearly all communication models in recent years.
We had a look at the various Communication models above. These offer a convenient way to think. They offer a chance to adapt to mass communication methods.
LINKS…
· www.cas.usf.edu/lis/lis6260/lectures/shannon.htm
· http://www.wikipedia.org/
· http://www.abacon.com/commstudies/interpersonal/indefinition.html
· www.cas.usf.edu/lis/lis6260/lectures/shannon.htm
· http://www.wikipedia.org/
· http://www.abacon.com/commstudies/interpersonal/indefinition.html
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