LECTURE 5 Corporate Communications: A Dimension of Corporate Meaning

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 CORPORATE
customer stakeholders defined set of channels controlled communication communication types positions a product or service multiple multiple channels variety of positions an entire organisation less room for needs to be
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more room for creativity creativity needs to be consistent with

THE NEW CORPORATE COMMUNICATIONS WHEEL

Bus N in N t Par ess tne ec rs p s e e n New ro iv oy mane P a Media Sp l r pPe Medi on m est E hi sors p

i er nt Trade ue t( nm fl al s in Produ s) e In p dvertis n Ser cts/ uA vic o g es Gr Ind e ustr Th y

r Co

O N R model

of the
M
E

moment Gov The

P M gCo R er in g PPr es sona a et Me rketin en l rk c t a ti Ma d en on ct an ond re sp Di re

T N Fi nanc ial e Cu Th ia st ed rporate & o rs m e

te ra po or C

Bra d n

Local

Country of Origin

Int ern al

The New Corporate Communications Wheel: 4 Balmer and Greyser. Adapted

al Literature on rs tio pe nta Im ese n Pr

an Partnershi d ps

Allia nce s

THE CORPORATIO N

e sin Bu ss

l era Gen lic Pub

P oi n S t al of e

Model of the Moment: ii

(A process for using the Balmer and Greysers 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
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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
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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

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 8 communications

Common Starting Points continued...

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

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 organizations distinctive characteristics (its identity)
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The Sustainable Corporate Story....continued Perceived Benefits? Via communications distinctiveness of message and consistency of message is achieved.
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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)
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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
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TWO CORPORATE COMMUNICATIONS MIXES

(a) THE CORPORATE
COMMUNICATIONS MIX OF VAN RIEL and (b) THE TOTAL CORPORATE COMMUNICATIONS MIX OF BALMER AND GRAY
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Van Riels 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 15

Balmer and Grays 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

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

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 19 communications.

Summary: ii
Van Riels Corporate Communication Mix and Balmer and Grays 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.
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Seek first to understand, then to be understood.

Stephen Covey

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