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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 ANDTHE T W O CORPORATE COMMUNICATIONS MIXES

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Marketing and Corporate Communications: What are

the differences ?

MARKETING CORPORATE• customer multiple stakeholders• defined set of channels multiple channels• controlled communication variety of communication

types• positions a product or service positions an entire organisation• more room for creativity less room for creativity• needs to be consistent with needs to be consistent with• product/brand attributes corporate identity/corporate brand attributes

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…… model of themoment

THE NEW CORPORATE COMMUNICATIONS

WHEEL

The New Corporate Communications Wheel:

Balmer and Greyser. Adapted from D. Bernstein (1984)

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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

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• 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

Model of the Moment: iii

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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 considerations alone!

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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

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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.

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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)

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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 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)

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Balmer and Gray’s 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, advertising, print, investor relations) causes many difficulties.

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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 communications.

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Summary: ii

• Van Riel’s Corporate Communication Mix and Balmer and Gray’s 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