the powerful role of pr in brand development
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THE POWERFUL ROLE OF PR IN BRAND DEVELOPMENTCase Study, Concepts, and Debatable Ideas
Kenny OngCNI Holdings Berhad
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Problems from the start
1. No money2. Split Objectives: Sales? Share Price? Image?3. Difficult to hire4. Independent entity5. Charity center6. MLM image nightmare7. Multi-cultural & Multi-lingual8. Close Regulatory scrutiny (food act, health act,
Jakim, KPDN)9. Public Listed
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About: CNI
1. 19 years old2. Core Business: MLM3. Others: Contract Manufacturing,
Export/Trading, eCommerce4. Malaysia, Singapore, Brunei, Indonesia, India,
China, Hong Kong, Philippines, Italy, Taiwan5. Staff force: ± 5006. Distributors: 200,0007. Products: Consumer Goods and Services
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Branding
And what this means to Public and Media Relations
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Components of Branding
Positioning
Execution
Communication
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Positioning
“Hope is not a strategy”John Maxwell
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Positioning
• For who? – Segmentation, Targeting• Your Offer? • Key Differentiator?
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Two Typical Types of Segmentation for Branding
1. Demographic segmentation2. Income segmentation
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Demographic Segmentation - General
Veterans (Pre-Boomers)1934-1945
Boomers1945-1960
Gen X (Cusper, Buster)1960 - 1980
Gen Y (Millennials, Netster)
1980+
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Demographic Segmentation - others
1. Women, Working Mothers2. Youtube generation3. Working retired4. Social Activists5. Work/Life balancers6. Industry (ICT, Advertising, Engineer,
Accounting, Lawyer, etc.)
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Income Groups
Urban, Affluent
Middle Class
Poor,Rural
Expensive, cutting edge, private funds
Government priority, high subsidy, rural locations, cheap
No money for high-end, no access to low-end
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Basics & Differentiators
Segments
Targets
Targets
Basics
Differentiators
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What needs work?
Current Brand
Impo
rtanc
e to
Ta
rget
Seg
men
t
High
Low
Weak Strong
Global Name
Friendly
Leading Edge
After-sales support
Convenience
Personalization
Reliability
Pricing
Image
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The real goal of Marketing and Branding
Understanding PR’s role in tne whole scheme of things
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What is the purpose of Marketing & Branding?
Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.”
Sergio Zyman
“Retention and Loyalty are useless if No Conversion is happening.”
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What is the purpose of Marketing & Branding?
“Retention and Loyalty are useless if No Conversion is happening.”
“Comm (PR) is useless if No Conversion is happening.”
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Problem…
“In business after business, 60% to 80% of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.”
HBR March/April 1996
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What is the Objective?
Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.”
Sergio Zyman
“Retention and Loyalty useless if No Conversion is happening.”
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What is the Objective?
Loyalty is Useless…
• Virtual Consumption vs. Real Consumption
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What is the Objective?
Loyalty is misleading…
• Heavy Consumption ≠ Loyalty• Loyalty ≠ Heavy Consumption
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What is the Objective?
1.Comm = Relationship (something like Dating)
2.Comm ≠ Media glitz 3.Comm ≠ ATL/BTL/BwTL/ArTL/FTL4.Comm ≠ CSR5.Comm = Get more people, to buy
more, more frequently, at higher prices
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PR and Branding
Why Public and Media Relations matter in Brand building
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Is PR important to Branding?
1. Funds 2. Sales3. Intelligence4. Customer-shareholders
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Importance: Funds
This is the most obvious.
The objective is to keep the paymasters happy so that they will either maintain or increase their funding.
Crisis Management is one small area that falls into this objective
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Importance: Sales
Public Relations is a key component of corporate Branding due to its direct influence on:
• Multiple parties (inc. Investors)• These parties are either our Branding targets
or has influence on our branding targets
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Internal/External Communications
Communications
Internal External
Mgmt Distributors
Suppliers
MediaGovernmentPublicAuthorities
AssociationsUniversitiesNGOs
Investors
Proactive Reactive Proactive Reactive
COMM Tools COMM Toolswww.myCNI.com.my www.OOBEY.com
Employees
Types of Investors (1/2)
Institutional
Fund Managers
Corporations
Sovereign Funds
VCs
NGOs
Non-Profit Org
Financial (Loans)
JV Partners
M&A
Social VCs
Holding Co.
HQ (MNC)
Gov. VCs
Supply Chain
Gov. Partnership
PFI
Competitors
Franchiseeswww.myCNI.com.my www.OOBEY.com
Types of Investors (2/2)
Retail
Investor-Shareholders
Employee-Shareholders
Management-Shareholders
Customer-Shareholders
Distributor-Shareholders*
Distributor-Entrepreneurs*
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Importance: Intelligence
Two types:
P.R. Customers
CRM Intelligence
Deal with…
P.R. Management
Public Intelligence
Deal with…
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Intelligence: Types of Investors (1/2)
Institutional
Fund Managers
Corporations
Sovereign Funds
VCs
NGOs
Non-Profit Org
Financial (Loans)
JV Partners
M&A
Social VCs
Holding Co.
HQ (MNC)
Gov. VCs
Supply Chain
Gov. Partnership
PFI
Competitors
Franchiseeswww.myCNI.com.my www.OOBEY.com
Intelligence: Types of Investors (2/2)
Retail
Investor-Shareholders
Employee-Shareholders
Management-Shareholders
Customer-Shareholders
Distributor-Shareholders*
Distributor-Entrepreneurs*
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Intelligence: How do External Parties get their ‘INFO’? (1/2)
Institutional
Gov./PoliticsCustomer
s
Suppliers
EconomicsAGM
Market Research
Internet*
Annual Report
Media
Analysts
Fund Managers
Due Diligence
NGOs
NewsletterSpokespersons
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Intelligence: How do External Parties get their ‘INFO’? (2/2)
Retail
Gov./ Politics
Customers Public
Events
EconomicsAGMAds
Internet*
Annual Report
Media
Analysts
Fund Managers
Relatives
Friends
Pasar Malam
Employees
Employee Bloggers
Mgmt Action
s
Newsletter
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Intelligence: How to Communicate?
Self Reliant Need Help
Seek Change
Seek Stability
Searchers Collaborators
Streamliners Delegators
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Public Intelligence: What?
Examples…1. Record feedback and questions2. Competitors’ PR communications3. Top 10 Analysts’ views on Company4. Top 10 Analysts’ views on Industry
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Public Intelligence: Why?
1. Broad view of market2. Less optimistic/review own assumptions3. Upgrade IR function to be strategic4. Feed Management discussions5. Better and more relevant IR
communications6. Support (buy-in)
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Revenue Growth
Base Retention
Share Gain Positioning Adjacent Market
New Business
Operational Excellence
Product Leadership
Customer Intimacy
Competencies Information Systems
Motivation, empowerment,
alignment
Financial
Learning & Growth
Internal Process
Customers
Investment Strategy
Productivity Market Value
Public Intelligence: Why?
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Dangers of Intelligence…
Also known as ‘Beware of Benchmarking’:1. Big vs. Small company2. Selective success stories3. Correlation vs. Causal4. Survey problems5. Actionable vs. For-fun
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Intelligence: Survey Problems…
“In business after business, 60% to 80% of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.”
HBR March/April 1996
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PR and Customer-Shareholders
Retail
Investor-Shareholders
Employee-Shareholders
Management-Shareholders
Customer-Shareholders
Distributor-Shareholders
Distributor-Entrepreneurs
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Affect Sales
Revisit – PR’s Key Roles
1. Funds 2. Sales3. Intelligence4. Customer-
shareholders
Communication to bring in the Funds
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Revisit – PR’s Key Roles
1. Funds 2. Sales3. Intelligence4. Customer-
shareholders
Communication to bring in the Sales
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The Four Roles of PR in Branding
Why we are important to the branding process
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The Four Roles of PR in Branding
1. Integrate Communications (Consistency)2. Feed you, Feed me3. External Communications4. Bad News
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Role 1: Consistency Integration
The Four Roles of PR in Branding and why we are important to the branding
process
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What to Integrate?
1. Aligning OrganizationTo the Culture
2. Integrating External
& Internal actions
3. Alignment and Consistency to the Strategy
4. Long-term Relationship
Building efforts
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Communications Integration and Consistency
Communications
Internal External
Mgmt Distributors
Suppliers
MediaGovernmentPublicAuthorities
AssociationsUniversitiesNGOs
Investors
Proactive Reactive Proactive Reactive
COMM Tools COMM Toolswww.myCNI.com.my www.OOBEY.com
Employees
Alignment & Consistency
• Mamak stall
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Alignment & Consistency
"They are the most innovative""Constantly renewing and creative""Always on the leading edge"
"A great deal!"Excellent/attractive priceMinimal acquisition cost and hassleLowest overall cost of ownership
"A no-hassles firm"Convenience and speedReliable product and service
"Exactly what I need"Customized productsPersonalized communications
"They're very responsive"Preferential service and flexibilityRecommends what I need
"I'm very loyal to them"Helps us to be a success
Product Leadership
OperationalExcellence
CustomerIntimacy
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Alignment & Consistency: Market Disciplines
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The McPlaybook*
Make it easy to eat• 50% drive-thru• Meals held in one
hand
Make it easy to prepare• High Turnover• Tasks simple to learn
& repeat
Make it quick• “Fast Food”• Tests new products
for Cooking Times
Make what customers want• Prowls market for new
products• Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007
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Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Alignment & Consistency: Disciplines, Priorities, and KPIs
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• Operational Excellence• Move know-how from top performing
units to others• Benchmark against best in class• Ensure operations training for all
employees• Use disciplines like TQM for continuous
learning to reduce costs and improve quality
Alignment & Consistency: Market Disciplines
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Alignment & Consistency: Market Disciplines
• Customer Intimacy• Capture knowledge about customers• Understand customer needs• Empower front line employees• Ensure that everyone knows the
customer• Make company knowledge available to
customers
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• Product Leadership• Reduce time to market• Commercialize new products fast• Ensure that ideas flow• Reuse what other parts of the company
have already learned• Ensure there are multiple sources of
funding
Alignment & Consistency: Market Disciplines
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Alignment & Consistency: Market Disciplines
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Alignment & Consistency: Market Disciplines
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The 6 Sins of Greenwashing
1. Sin of the Hidden Trade-Off2. Sin of No Proof3. Sin of Vagueness4. Sin of Irrelevance5. Sin of Fibbing6. Sin of Lesser of Two Evils
Study by: TerraChoice, December 2007
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Role 2: Feed you, Feed me
The Four Roles of PR in Branding and why we are important to the branding
process
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Integrating Internal/External
Internal External
Feed
Feed
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Integrating Internal/External
Internal• Halal Committee• Social Education
(e.g. SCK)• Umrah trip• China Trip• RBOS• CFA/HFA• Coffee Van
External• Sponsorship• Donations• News clippings• Newspaper Ads• MHI• Awards• Corporate Profile• AGM• Gov. Celebrity• Analyst research
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Integrating Internal/External
Internal• Entrepreneur Dev.• Health products• Health education• “Made in Malaysia”• Events• Media Celebrity
External• Website• DSAM• Yayasan• Publish Book• Social Education• Crisis Comm• Children Education• National interest• Analyst BD
connections
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Role 3: External Communication
The Four Roles of PR in Branding and why we are important to the branding
process
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Communications Integration
Communications
Internal External
Mgmt Distributors
Suppliers
MediaGovernmentPublicAuthorities
AssociationsUniversitiesNGOs
Investors
Proactive Reactive Proactive Reactive
COMM Tools COMM Toolswww.myCNI.com.my www.OOBEY.com
Employees
Types of Investors (1/2)
Institutional
Fund Managers
Corporations
Sovereign Funds
VCs
NGOs
Non-Profit Org
Financial (Loans)
JV Partners
M&A
Social VCs
Holding Co.
HQ (MNC)
Gov. VCs
Supply Chain
Gov. Partnership
PFI
Competitors
Franchiseeswww.myCNI.com.my www.OOBEY.com
Types of Investors (2/2)
Retail
Investor-Shareholders
Employee-Shareholders
Management-Shareholders
Customer-Shareholders
Distributor-Shareholders*
Distributor-Entrepreneurs*
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How do External Parties get their ‘INFO’? (1/2)
Institutional
Gov./PoliticsCustomer
s
Suppliers
EconomicsAGM
Market Research
Internet*
Annual Report
Media
Analysts
Fund Managers
Due Diligence
NGOs
NewsletterSpokespersons
www.myCNI.com.my www.OOBEY.com
How do External Parties get their ‘INFO’? (1/2)
Institutional
Gov./PoliticsCustomer
s
Suppliers
EconomicsAGM
Market Research
Internet
Annual Report
Media
Analysts
Fund Managers
Due Diligence
NGOs
NewsletterSpokespersons
www.myCNI.com.my www.OOBEY.com
How do External Parties get their ‘INFO’? (2/2)
Retail
Gov./ Politics
Customers Public
Events
EconomicsAGMAds
Internet*
Annual Report
Media
Analysts
Fund Managers
Relatives
Friends
Pasar Malam
Employees
Employee Bloggers
Mgmt Action
s
Newsletter
www.myCNI.com.my www.OOBEY.com
How do External Parties get their ‘INFO’? (2/2)
Retail
Gov./ Politics
Customers Public
Events
EconomicsAGMAds
Internet
Annual Report
Media
Analysts
Fund Managers
Relatives
Friends
Pasar Malam
Employees
Employee Bloggers
Mgmt Actions
Newsletter
www.myCNI.com.my www.OOBEY.com
How not to talk to Retail External Parties
“The holder [of a CAB certificate] may continue to serve regularly any point named herein through the airport last regularly used by the holder to serve such point prior to the effective date of the certificate. Upon compliance with such procedures relating thereto as may be prescribed by the Board, the holder may, in addition to the services hereinabove expressly prescribed, regularly serve a point named herein through any airport convenient thereto.”
Civil Aeronautics Board, 1977
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How not to talk to Retail External Parties
“It has been determined not to be in the public interest that United Airlines continue to provide air transportation services between San Diego and San Antonio”
“I forbid United Airlines to fly between San Diego and San Antonio”
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What topics interest External Parties?
Acquisition target
Layoffs
CostCutting
New Mgmt
Treatment of ProfitsConsistency
Ecology
Economics
Politics
Strategy Alignment
CSR-related
Crisis
Topics?
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What topics interest External Parties?
Acquisition target
Layoffs
CostCutting
New Mgmt
Treatment of ProfitsConsistency
Ecology
Economics
Politics
Strategy Alignment
CSR-related
Crisis
Topics?
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What Events impact External Parties?
Politics
Financial Announcements
Shareholdingchanges
Structure
AccidentsEconomic
Crisis
CompetitorMoves
M&A
New Plans
Share-drop
Events?
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What Events impact External Parties?
Politics
Financial Announcements
Shareholdingchanges
Structure
AccidentsEconomic
Crisis
CompetitorMoves
M&A
New Plans
Share-drop
Events?
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E.g. Long-term relationship building activities
• Durian Party• Wisma Tour• Hampers• Umrah• China Factory Visit• Large Events• Donations to Media• Jakim visit
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Role 4: Bad News
The Four Roles of PR in Branding and why we are important to the branding
process
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Challenges of Public Relations
1. Stake- vs. Share-holder*2. Public Opinions3. Global operations –
difficult to explain4. Increasing focus on
ecological, social, ethical issues
5. Diverged expectations for same issue
6. What to do with Excessive Cash?
7. Superficial changes vs. Fundamental Changes
8. Investors depend on ‘hearsay’ vs. ‘facts’
9. Share Price ≠ Market10.R&D/M.S./HR vs.
Investor Expectations11.Opposing ‘Expert’ views
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PR Challenges
“Good news for stockholders can be bad news for other
stakeholders.” Gregory Miller, Assoc. Prof., Harvard Business School.
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Good News vs. Controllability
Can Control Cannot Control
Internal Attribution
External Attribution
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?
Bad News vs. Controllability
Can Control Cannot Control
Internal Attribution
External Attribution
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Media Options for Brand Building
Old media, New media and everything in between
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COMMUNICATION ARCHITECTURE
BRAND POSITIONING
“Tagline”
KEY SUPPORTING
MESSAGES
KEY MESSAGES SPECIFIC TO
INTERNAL/EXTERNAL SEGMENTS
EMPLOYEES
Image Development
KEY SEGMENTS
TARGET GROUPS
SPECIFIC SEGMENT
KEY MESSAGES
Who am I?
What do I offer?
Support?
End benefit(s)
Tagline:
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Touch Points
Candidates/ Employees
Gov./ Politics
Customers Public
Events
EconomicsAGMAds
Internet*
Annual Report
Media
Analysts
Ex-employees
Relatives
Friends
Pasar Malam
Employees
Employee Bloggers
Mgmt Action
s
Newsletter
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Touch Pointsl
Candidates/ Employees
Gov./ Politics
Customers Public
Events
EconomicsAGMAds
Internet
Annual Report
Media
Analysts
Ex-employees
Relatives
Friends
Pasar Malam
Employees
Employee Bloggers
Mgmt Actions
Newsletter
www.myCNI.com.my www.OOBEY.com
The Right Tools for the Job
Reach of Communication
Qua
lity/
Inte
nsity
of
Com
mun
icat
ion
Personal (exp)
Personal (info)
Impersonal (info)
Individual Mass
Mass Traditional, In-home, Out-Of-Home
Mass Unconventional
Mass Online
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The Right Tools for the Job
Reach of Communication
Qua
lity/
Inte
nsity
of
Com
mun
icat
ion
Personal (exp)
Personal (info)
Impersonal (info)
Individual Mass
Mass Targeted Conventional
Mass Targeted Online
E.g. Annual Reports, Analyst Briefings, IR Roadshows, IR Website
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The Right Tools for the Job
Reach of Communication
Qua
lity/
Inte
nsity
of
Com
mun
icat
ion
Personal (exp)
Personal (info)
Impersonal (info)
Individual Mass
Individual Targeted Conventional
Individual Targeted Online
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Contests
One-on-One
“…in the past 18 months, we have heard that profit is more important than revenue,
quality is more important that profit, people are more important than profit,
customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our
performance is inconsistent"CEO, Anonymous
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Don’t forget…
“The business of business is Business, not Public
Relations”
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What is the purpose of Marketing & Branding?
Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.”
Sergio Zyman
“Retention and Loyalty are useless if No Conversion is happening.”
www.myCNI.com.my www.OOBEY.com
Thank You.
soft copy of slides: http://totallyunrelatedrandomanddebatable.
blogspot.com/
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