CORPORATE REPUTATION MANAGEMENT

CHAPTER 16

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Corporate Reputation• Attitude people have towards the organization.• Good reputation:

– Attracts customers.– Acts as a buffer in a crisis.– Raises share price.– Attracts better employees.

2Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

• Direct experience of dealing with the organization.

• Hearsay evidence from friends, colleagues and acquaintances.

• Third-party public sources such as newspapers and TV.

• Organization-generated information such as brochures, annual reports and advertising.

Sources That Influence Reputation

3Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

Hierarchy of Information Sources

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Fig. 16.1 Hierarchy of information sources

Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

Creating a Reputation

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Fig. 16.2 Creating a reputation

Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

Types of Image

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Corporate Image & Added Value

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Fig. 16.3 Comparison between adding value and maximizing profits

Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

Publicity, PR and Press Relations

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Fig. 16.4 Publicity, PR, and press relations

Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

• Organizing press conferences.• Staff training workshops.• Social events.• Handling incoming complaints

or criticisms.• Grooming senior managers for

TV or press interviews.• Moulding the internal culture

of the organization.• Managing social media.

PR Managers’ Tasks

9Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

• Customers.• Suppliers.• Staff.• Local and national governments.• Neighbours.• Local residents.• The general public.• Pressure groups.• Other industry members.

The “Publics”

10Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

Tools of PR

11Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

Criteria for Successful Press Releases

12Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

• Call media events and press conferences only for important announcements.

• Eliminate negative connotations in your announcements.

• Have both PR people and some of your company’s senior executives to talk to press.

• Invite journalists you have a good working relationship with.

• Avoid being lavish with refreshments.• Public speaking training is essential.• Give enough time for reporters to file their

stories.

Basic Rules for Media

13Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

Hierarchy of Organizational Needs

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• Magazines.• Newspapers.• Newsletter.• Wall newspaper.• Electronic newsletter.• Websites.• Internal briefings and open meetings.

Internal Communications Methods

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Issues in Designing a House Journal

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Fig. 16.5 Issues in designing a house journal

Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

Reasons for Sponsorship

17Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

• Must be cost-effective.• Be consistent with the brand image and

marketing communication plans.• Should offer a strong possibility of reaching the

desired target audience.• Care should be taken if the event was sponsored

before.

Sponsorship Criteria

18Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

Risk Management

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Fig. 16.6 Elements of good crisis management

Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

• Ensure a good relationship with media beforehand.

• Be prepared.• Avoid careless statements.• Have good crisis teams.• Know the crisis policy.

Dealing with Media During A Crisis

20Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

• A firm is too small to have a specialist PR department.

• Not enough expertise.• The external agency can provide an unbiased

view.• External agencies carry greater credibility.• The external agency is cheaper.• One-off events or campaigns are more efficiently

run by outsiders.

Reasons for Outside Relations Agencies

21Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

Basic activities/services:• Establishing channels of communication.• Management communications. • Marketing and sales promotion related activity.• Advice or services on political, governmental, or

public affairs.• Financial public relations.• Personnel and industrial relations.• Recruitment, training, and higher and technical

education.

The Public Relations Consultants’ Association

22Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

• Exhibitions.• Sponsorship.• Production of house journals.• Corporate or financial PR.• Government liaison.• Organizing one-off events.• Overseas PR.

Outside Agency Activities

23Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

In-House vs. Agency Staff

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Fig. 16.7 Example of task division between in-house staff and agency staff

Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013

• Specific.• Measurable.• Achievable.• Relevant.• Targeted accurately.• Timed.

SMARTT Formula

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Evaluating PR

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Summary

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• Corporate reputations are not built through spin-doctoring.

• Good corporate reputation has many values.• Public relations has an internal role.• Crises will happen: having a crisis team in place is

prudent.• Outside agencies are often cheaper and more

effective than in-house PR.• Between two and three times the cost of

sponsorship should be devoted to supporting communications.

Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5Published by Routledge 2013