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LECTURE 5 Corporate Communications: A Dimension of Corporate Meaning

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

«« model of the moment The Trade THE CORPORATION Country of Origin The New Corporate Communications Wheel: Balmer and Greyser. Adapted 4 from D. Bernstein (1984) .

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 5 .

Model of the Moment: iii ‡ 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 6 .

‡ 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! 7 .««model of the moment: iv ‡ Provides a foundation by which a significant part of a corporate communications strategy can be established.

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 8 .

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.. 9 .

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) 10 .

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

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 12 .The Sustainable Corporate Story«..

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

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

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 15 .

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

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

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

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

and industry image. ‡ 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.Summary: ii ‡ Van Riel¶s Corporate Communication Mix and Balmer and Gray¶s Total Corporate Communications Mix afford two contrasting perspectives on the area. 20 .

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