Godson: Relationship Marketing

Chapter 7: External Relationships

Stakeholder

Anyone who can affect, or be affected by the actions of the organization

Normative Groups
Power of authority can withhold resources and back actions Governments Regulatory bodies Professional associations Shareholders and financiers

Diffuse Groups
Concerned about protecting the rights of themselves or others Environmentalists Community and special interest groups Public opinion leaders Campaigning journalists

The Real Customer is not Always Found in the Market

Legislation Control Influence

Supplier

Customer

Lobbying
A form of public relations Requires the right connections to people in high places Can involve forming partnerships with competitors or others in the same industry Larger organizations may have a Regulatory Affairs department

Relationships with Lenders and Financial Bodies

Managed through financial or corporate PR Loyal shareholders are an asset Financial analysts can have a huge impact on the business

Relationships with Pressure Groups and Publics

Consumer groups Environmentalists Human and animal rights activists Politically or ideologically motivated groups or individuals Local communities Public opinion leaders

Examples of Other Influencers

Tescopoly Friends of the Earth 'Meat is Murder' Campaign for Real Ale Jamie Oliver etc

Corporate Social Responsibility an organizations wider responsibilities to society in general Is this compatible with profitably satisfying consumers?

Managing Media Relationships

Know your media
News reporters and editors

Investigative journalists
Professional sector journalists

Examples of Charismatic Business Leaders

Sir Richard Branson - Virgin Dame Anita Roddick - Body Shop

Sir Alan Sugar - Amstrad

Gerald Ratner - Ratners Jewellers

Types of Collaboration
Internal External

Informal

Tacit agreements

Business networks

Formal

Trade associations and alliances

Joint ventures agreements and alliances

Organizational Alliances
Formal partnership
Joint Ventures Consortia Licensing agreements Co-marketing or branding Management contracts

Problems with Alliances

Short-termism to reach quick results

Values of different corporate cultures

Management issues as no one person is in overall control