the powerful role of pr in branding
DESCRIPTION
ABF Conference on Media Relations July 2009 *Yesterday’s and today’s Public Relations *What role does PR play in promoting your brand *Determining the best PR strategies for greater brand impact *Best practices for integrating PR with traditional marketing *Case studiesTRANSCRIPT
THE POWERFUL ROLE OF PR IN BRANDING AND MARKETINGCase Study, Concepts, and Debatable Ideas
Kenny OngCNI Holdings Berhad
www.myCNI.com.my www.OOBEY.com
Intro: CNI
1. 20 years old2. Core Business: MLM3. Others: Contract Manufacturing, F&B Retail,
Export/Trading, eCommerce, Shared Services4. Malaysia, Singapore, Brunei, Indonesia, India,
China, Hong Kong, Philippines, Italy, Taiwan, Oman, United States, Vietnam
5. Staff force: ± 5006. Distributors: 200,0007. Products: Consumer Goods and Services
Way back in 2004…
• Thomas Cup, Indonesia
Now in 2007…
CNI ‘Beemax’ Factory Visit, China
1. Top Leaders
2. Product Development
3. Media
Evolution of Public Relations
Have we really changed that much?
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PR back then…
18th century: press relations, lobbying and, celebrity campaigning
World War I: U.S. publicity
1920’s: Tobacco Industry
Source: Wikipedia.com
And now…
13th April 2009
•Two Domino’s employees
•YouTube
•Apology from Domino’s after 48 hours
•1 million hits
•Twitter: questions on silence
•LinkedIn: suggestions by users in forum
BusinessWeek, May 4, 2009
Role Of PR in the OLD DAYS?
1. helping find or create great stories,
2. translating stories into the language that the right audience can understand,
3. using the best tools to reach those audiences,
4. listening the to feedback and echoes the stories create,
5. engaging in the appropriate way, and
6. Gatekeeper (unfortunately)
Changed?
• CSR
• IR
• Web 2.0
• Crisis Comm
• Branding
• Corporate Reputation
• Marketing
• Media Relations
• Stories
• Translation
• Reach
• Listening
• Engaging
• Gatekeeper
NOT changed?
• CSR
• IR
• Web 2.0
• Crisis Comm
• Branding
• Corporate Reputation
• Marketing
• Media Relations
• Stories
• Translation
• Reach
• Listening
• Engaging
• Gatekeeper
The ROLE
Changed?
People
Tools
Story
Audience
Change
What has been the Biggest change expectation?
• The role of PR as
“Value Creator”
But how do we do it?
Branding
And what this means to Public and Media Relations
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Why is PR important to Value?
1. Funds
2. Brand
3. Intelligence
4. Business
Why is PR important to Value?
1. Funds
2. Brand
3. Intelligence
4. Business
Communication to bring in the Funds
Why is PR important to Value?
1. Funds
2. Brand
3. Intelligence
4. Business
Communication to bring in the Sales
Why is PR important to Value?
1. Funds
2. Brand
3. Intelligence
4. Business
Communication to bring in the Sales
Importance: Brand
PR is a key component of corporate Branding due to its direct influence on:
1. Multiple parties (Investors)
• These parties are either our Branding targets or has influence on our branding targets
2. Brand Story
The real goal of Marketing and Branding
Understanding PR’s role in the 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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Components of Branding
Positioning
Execution
Communication
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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 me
3. External Communications
4. 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
Media
Government
Public
Authorities
Associations
Universities
NGOs
Investors
Proactive Reactive Proactive Reactive
COMM Tools COMM Tools
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Employees
Alignment & Consistency
USP
Market Discipline
Profit Model
•Air Asia
•Tata Nano
Alignment & Consistency
"They are the most innovative"
"Constantly renewing and creative"
"Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and hassle
Lowest overall cost of ownership
"A no-hassles firm"
Convenience and speed
Reliable product and service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and flexibility
Recommends 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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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
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
Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
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
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
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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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(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
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
HP well-balanced portfolio, mass customization
Acer super lean cost structure, aggressive pricing
Apple powerful products, premium
pricing, limited range
Still Doing well in 2009
Alignment & Consistency: Business Model
USP
Market Discipline
Profit Model
Alignment & Consistency: The 6 Sins of Greenwashing
1. Sin of the Hidden Trade-Off
2. Sin of No Proof
3. Sin of Vagueness
4. Sin of Irrelevance
5. Sin of Fibbing
6. 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
Media
Government
Public
Authorities
Associations
Universities
NGOs
Investors
Proactive Reactive Proactive Reactive
COMM Tools COMM Tools
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Employees
Audiences
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
Government
PFI
Competitors
Franchisees
Audiences
Individuals
Investors
Employees
Shareholders
Customers
Distributors*
Management
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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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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How do External Parties get their ‘INFO’? (2/2)
Individuals
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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How do External Parties get their ‘INFO’? (2/2)
Individuals
Gov./ Politics
Customers Public
Events
EconomicsAGMAds
Internet
Annual Report
Media
Analysts
Fund Managers
Relatives
Friends
Pasar Malam
Employees
Employee Bloggers
Mgmt Actions
Newsletter
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How not to talk to Individuals
“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 Individuals
“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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Role 4: Corporate Reputation
Good News, Bad News. Who cares?
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Challenges of Public Relations
1. Stake- vs. Share-holder*2. Public Opinions3. Indirect Stakeholders –
NGOs, Community Activists, Online Networks
4. Increasing focus on ecological, social, ethical issues
5. Diverged expectations for same issue
6. Web 2.0
7. What to do with Excessive Cash?
8. Superficial changes vs. Fundamental Changes
9. Investors depend on ‘hearsay’ vs. ‘facts’
10.Share Price ≠ Market11.R&D/M.S./HR vs.
Investor Expectations12.Opposing ‘Expert’ views13.Operational Risk ->
Reputational Risks
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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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Audiences – Good News? Bad News?
• money saved by tough bargaining with a union
• announcing a dividend: to employees
• announcing a dividend: to environmentalists
• setting up Diversified business
Refer Attachment 1 - Building Trust with One Group Can Destroy Trust with Another
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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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Stakeholders vs. Reputation Communications
Consumers, Partners
Media Shareholders,
Investors, Analysts
Regulators Civil Society, NGOs
Key Issues
Key Questions
asked
Actions
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Media-specific Reputation Communications
Media
Key Issues •Big business as negative•Lack in-depth reporting for balanced view
Key Questions asked
•Limited, usually telecons with IR/CC
Actions •Websites•Press Release•Management Press•Sells-side Analyst calls and reports•Industry Reports
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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
Corporate Brand
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
Corporate Brand
Gov./ Politics
Customers Public
Events
EconomicsAGMAds
Internet
Annual Report
Media
Analysts
Ex-employees
Relatives
Friends
Pasar Malam
Employees
Employee Bloggers
Mgmt Actions
Newsletter
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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 Traditional, In-home, Out-Of-Home
Mass Unconventional
Mass Online
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Refer Attachment 2
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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Refer Attachment 2
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
Refer Attachment 2
New Mediums – additional info
Refer:• Attachment 3 - How to use Twitter to mitigate a
crisis• Attachment 4 - Template For Social Media Press
Release• Attachment 5 - Three Types of Social Media
“…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.”
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Thank You.
soft copy of slides: http://totallyunrelatedrandomanddebatable.
blogspot.com/