Speaker 7: Daniel Joerg of Burson Marsteller Switzerland

New Corporate Communication Thinking: Why Corporations should stop talking to target groups and start creating dialogues with stakeholder groups

A PR Professional 1985

A PR Professional 2008

Things have changed

Who is in control? “ The power is with the consumer. Consumers are beginning, in a very real sense, to own our brands and participate in their creation. We need to begin to learn to let it go…” - A.G. Lafley, CEO, P&G Company “ The power is with the consumer. Consumers are beginning, in a very real sense, to own our brands and participate in their creation. We need to begin to learn to let it go…” - A.G. Lafley, CEO, P&G Company

Key thoughts Uncontrolled messages are trusted more than controlled Focus group of thousands Companies must create trust between their brands and stakeholders Allows you to be more influential in controlled media Real time Reputation Mgt Invest in RELATIONSHIPS Not Transactions Risk is in NOT Participating Push messages may drive a one-time action, whereas dialogue can build advocacy Invest in building relationships to generate self-propagating conversations and brand loyalty Conversations are happening with or without you Companies who do not participate risk being seen as irrelevant and out of touch Audiences do not want or respond to marketing messages, but they are open to conversations Unstructured nature of digital media creates new participation opportunities Identify what messages you want to amplify or minimize versus where you can influence versus control INFLUENCE Instead of Control

How digital is playing out

Flickr user Bennet sees Target Ad on Times Square

Puts photo with critical comment and tags on Flickr

Weblog Shapingyouth.org writes a critical article and contacts Target‘s communication team to get a statement

How digital is playing out “ The power is with the consumer. Consumers are beginning, in a very real sense, to own our brands and participate in their creation. We need to begin to learn to let it go…” - A.G. Lafley, CEO, P&G Company “ Unfortunately we are unable to respond to your inquiry because Target does not participate with nontraditional media outlets … This practice is in place to allow us to focus on publications that reach our core guest.” Target’s media team

How digital is playing out

Now, news really flies:

More Bloggers jump on the story (approx 7‘000 blog posts on topic)

Traditional mass media press picks up the story

Pressure on target leads to media policy shift

How digital is playing out Weblog Weblog Weblog Weblog

The return to more intimate customer interactions Intimacy of the Interaction Pre 1930’s Merchant to Customer Present Dialogue Age 1930’s - Present Mass Marketing We are here

Changing Paradigms Individual Way Back Yesterday Today Media Individual Media Media Individual Social Media

Multi-Stakeholder Dimensions “ There is a much greater level of scrutiny of the purpose, vision and values aspects of a company now than 5 years ago” Strongly agree 58% Somewhat agree 34% Somewhat disagree 7% Strongly Disagree 2% Q: Thinking about businesses generally, do you agree there is greater scrutiny on vision and values?

Corporate Communications in 2008

Arthur W. Page Society (www.awpagesociety.com):

White paper „The authentic company“

What does all this mean for a company CCO:

Leadership in defining and instilling company values

Leadership in building and managing multi-stakeholder relationships

Leadership in enabling the enterprise with „new media“ skills and tools

Leadership in building and managing trust in all dimensions

What are CEOs or Communications Officers doing about it?

10 ways to sell Social Media to your CEO 10

Your customers build their opinions increasingly online and through SM 1

Percentage who would be swayed to purchase when reading a positive review from a consumer or private individual on the internet TEAM Your customers build their opinions increasingly online and through SM

You cannot manage crisis in a todays 7/24/365 world only through traditional media any more 2

Social media tools are more (cost) effective in reaching the millions online 3

Social Media can act as a way to reduce customer service or product development investments 4

SM helps you to differentiate and establish a thought leadership platform 5

You learn more about the needs or concerns of your stakeholders if you listen or participate in a dialogue 6

Traditional Media is losing ground

Traditional media is still important, but user-generated media is rapidly growing

New relationship between classic and digital Media

Journalists get their stories online, they check information online

Online news and online content creates its own influential dynamic

The digital space serves as the memory of humanity

Citizen journalism – Bloggers -> E-Fluentials

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Important stakeholders such as NGOs run campaigns that can create great awareness at low cost 8

Many of your stakeholders have developed new expectancies regarding „tonality“ from Corporations Openness, directness, speed and authenticity 9

PERSPECTIVE Degree of Influence Website Discussion forums Email marketing Social network Company blog Search optimisation Third party blog Product wikis Online video Wikipedia Search marketing Display advertising Website dialogue Low High Degree of Control You can learn step by step (monitoring, listening, from internal to external, selective participation) 10 High

The new playing field Low High Depth of Engagement Degree of Control Collaboration Communication Information Conversation Team High

The Times they are a-changin ‘ Come gather 'round people Wherever you roam And admit that the waters Around you have grown And accept it that soon You'll be drenched to the bone. If your time to you Is worth savin' Then you better start swimmin' Or you'll sink like a stone For the times they are a-changin'.

It all starts with listening