Sunday, January 30, 2011

Planning Corporate Communication

In a decentralized, customer driven company, a good leader spends more time communicating than doing anything else. He must communicate with the employees to keep them all working towards the same goals and he must communicate with his customers to keep them abreast of the company’s new activities and services. - Jan Carlzon

The organizational communication breaks into two parts.

1. Internal Communication
2. External Communication (Corporate Communication)

Both communications are however critical but as far as sale or market expansion is concerned; we need to take external communication seriously.

Olms identified distinct images of corporate world.

Corporate Personality
Corporate Identity
Corporate Image

Corporate personality is soul, spirit and culture of the organization. This is an intangible form. Corporate Identity is tangible form of corporate personality. Microsoft’s Office or OS makes Microsoft’s Identity. That is because of success of product, project or service.
Corporate Inage is what people actually perceive of corporate personality or identity.

External communication or corporate communication techniques include:

1. Public Relations (PR)
2. Advertising
3. Personal Selling
4. Sales Promotion

PR

PR is the communication of a product, brand or business by placing information about it in the media without paying for the time or media space directly. To improve on corporate identity, good organization pays attention to their PR activities.

"PR is the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and public" says Institute of Public Relations.

PR includes relations with community, employees, customers, suppliers, stakeholders, distributors and other interested parties.

PR improves identity through exhibitions, events, publicity, media relations, sponsorships and marketing agencies.

Public Relations Often seen as more "credible" - since the message seems to be coming from a third party (e.g. magazine, newspaper). This is cheap way of reaching many customers - if the publicity is achieved through the right media.

The big hitch in adopting this practice is the risk of losing control in this medium. You cannot always control what other people write or say about your product.

Advertising

One Ad is worth more to a paper than forty editorials. – Will Rogers

Any paid form of non-personal communication of ideas or products in the "prime media": i.e. television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended to persuade and to inform. Advertising is something that brings customer to shop to buy your item. Corporate advertising builds awareness into public. It makes company friendlier to all public.

During advertising practice, just be clear about target audience, media, agency, message and cost effectiveness approach.

I agree that advertising is good in creating brand awareness. This is an effective medium to reach a wide audience. In advertising, you have power over the who, what, where, when, and how of your message. You can employ the power of a carefully crafted message, strategically placed at a particular time of your choosing in one or more carefully selected media to maximize the impact of what you have to say. With repetition of brand and product positioning through advertising helps you to build customer trust.

The hitch to advertising is the audience’s potential for mistrust of anything that smacks of "advertising". For many, "advertising" can be tantamount with "misleading".
Further advertising is impersonal medium. You cannot answer all a customer's questions at a time. This can take customer to shop but not make them buy. It is not good at getting customers to make a final purchasing decision.

Personal Selling

"If there is no wind, row!"

Personal Selling is an Oral communication with potential buyers of a product with the intention of making a sale. Door to door selling or personal selling makes area or region aware of your identity. They might have just seen advertisement and get delighted when get to see your product personally.

The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale".

Personal selling somehow affects to rational consumer behavior and decision making process. If positively approached to people, personal selling can creative strong positive image in mind of consumers.

Personal selling requires you to determine buyer behavior, sales force size – structure and support, sales staff training and motivation, remuneration, evaluation and control of sales staff activities.

Personal Selling is highly interactive. A lots of communication between the buyer and seller occurs in this medium than any other practice. This is quite practical and suggested while communicating complex / detailed product information and features is needed. This will definitely build relationships.

Cost is one of the hitches while adopting Personal selling. Employing a sales force has many hidden costs in addition to wages including great training cost. In large audience or big market, this is not suitable.

Sales Promotion

"If you want milk, don't sit in the middle of the pasture and wait for the cow to back up to you."

This is a pull technique. This type of communication makes people to know you.

Effective schemes, low prices, heavy discounts, sale, free gift items, bumper prizes and everything of promotion make easy for you to reach to your customers.

SP is good short-term strategic tool. You can stimulate quick increases in sales by targeting promotional incentives on particular products.

Sales promotion again requires your attention to creative approach, target audience, selection of media and agency and cost effectiveness. Sometimes too much promotion may damage the brand image. So be careful!

According to Thomas Edison there are three great essentials to achieving anything worthwhile.

1. Hard work,
2. Stick-to-it-iveness, and
3. Common sense!

Well this applies to your promotions too!

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