The Powerful Role Of PR In Brand Development
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*The secrets of engaging messages and a story that will effectively position your business and products ...

*The secrets of engaging messages and a story that will effectively position your business and products
*Selecting the right media to effectively drive your brand forward
*Determining the best PR strategies for greater brand impact
*Involving your PR and media in the branding process from the development stage to launching date
*Integrating new media platforms with traditional methods for your branding exercise

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The Powerful Role Of PR In Brand Development Presentation Transcript

  • 1. THE POWERFUL ROLE OF PR IN BRAND DEVELOPMENT Case Study, Concepts, and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com
  • 2. Problems from the start
    • No money
    • Split Objectives: Sales? Share Price? Image?
    • Difficult to hire
    • Independent entity
    • Charity center
    • MLM image nightmare
    • Multi-cultural & Multi-lingual
    • Close Regulatory scrutiny (food act, health act, Jakim, KPDN)
    • Public Listed
    www.myCNI.com.my www.OOBEY.com
  • 3. About: CNI
    • 19 years old
    • Core Business: MLM
    • Others: Contract Manufacturing, Export/Trading, eCommerce
    • Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan
    • Staff force: ± 500
    • Distributors: 200,000
    • Products: Consumer Goods and Services
    www.myCNI.com.my www.OOBEY.com
  • 4. Branding And what this means to Public and Media Relations www.myCNI.com.my www.OOBEY.com
  • 5. Components of Branding Positioning Execution Communication www.myCNI.com.my www.OOBEY.com
  • 6. Positioning
    • “ Hope is not a strategy”
    • John Maxwell
    www.myCNI.com.my www.OOBEY.com
  • 7. Positioning
    • For who? – Segmentation, Targeting
    • Your Offer?
    • Key Differentiator?
    www.myCNI.com.my www.OOBEY.com
  • 8. Two Typical Types of Segmentation for Branding
    • Demographic segmentation
    • Income segmentation
    www.myCNI.com.my www.OOBEY.com
  • 9. Demographic Segmentation - General www.myCNI.com.my www.OOBEY.com Veterans (Pre-Boomers) 1934-1945 Boomers 1945-1960 Gen X (Cusper, Buster) 1960 - 1980 Gen Y (Millennials, Netster) 1980+
  • 10. Demographic Segmentation - others
    • Women, Working Mothers
    • Youtube generation
    • Working retired
    • Social Activists
    • Work/Life balancers
    • Industry (ICT, Advertising, Engineer, Accounting, Lawyer, etc.)
    www.myCNI.com.my www.OOBEY.com
  • 11. Income Groups Expensive, cutting edge, private funds Government priority, high subsidy, rural locations, cheap No money for high-end, no access to low-end www.myCNI.com.my www.OOBEY.com Urban, Affluent Middle Class Poor, Rural
  • 12. Basics & Differentiators Segments Targets Targets Basics Differentiators www.myCNI.com.my www.OOBEY.com
  • 13. What needs work? Current Brand Importance to Target Segment High Low Weak Strong www.myCNI.com.my www.OOBEY.com Global Name Friendly Leading Edge After-sales support Convenience Personalization Reliability Pricing Image
  • 14. The real goal of Marketing and Branding Understanding PR’s role in tne whole scheme of things www.myCNI.com.my www.OOBEY.com
  • 15. 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.” www.myCNI.com.my www.OOBEY.com
  • 16. 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.” www.myCNI.com.my www.OOBEY.com
  • 17. 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 www.myCNI.com.my www.OOBEY.com
  • 18. 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.” www.myCNI.com.my www.OOBEY.com
  • 19. What is the Objective?
    • Loyalty is Useless…
    • Virtual Consumption vs. Real Consumption
    www.myCNI.com.my www.OOBEY.com
  • 20. What is the Objective?
    • Loyalty is misleading…
    • Heavy Consumption ≠ Loyalty
    • Loyalty ≠ Heavy Consumption
    www.myCNI.com.my www.OOBEY.com
  • 21. What is the Objective?
    • Comm = Relationship (something like Dating)
    • Comm ≠ Media glitz
    • Comm ≠ ATL/BTL/BwTL/ArTL/FTL
    • Comm ≠ CSR
    • Comm = Get more people, to buy more, more frequently, at higher prices
    www.myCNI.com.my www.OOBEY.com
  • 22. PR and Branding Why Public and Media Relations matter in Brand building www.myCNI.com.my www.OOBEY.com
  • 23. Is PR important to Branding?
    • Funds
    • Sales
    • Intelligence
    • Customer-shareholders
    www.myCNI.com.my www.OOBEY.com
  • 24. Importance: Funds
    • This is the most obvious.
    • The objective is to keep the paymasters happy so that they will either maintain or increase their funding.
    • Crisis Management is one small area that falls into this objective
    www.myCNI.com.my www.OOBEY.com
  • 25. Importance: Sales
    • Public Relations is a key component of corporate Branding due to its direct influence on:
    • Multiple parties (inc. Investors)
      • These parties are either our Branding targets or has influence on our branding targets
    www.myCNI.com.my www.OOBEY.com
  • 26. Internal/External Communications Communications Internal External Mgmt Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools www.myCNI.com.my www.OOBEY.com Employees Associations Universities NGOs Investors Media Government Public Authorities
  • 27. Types of Investors (1/2)
    • 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 Gov. Partnership PFI Competitors Franchisees www.myCNI.com.my www.OOBEY.com
  • 28. Types of Investors (2/2)
    • Retail
    Investor-Shareholders Employee-Shareholders Management-Shareholders Customer-Shareholders Distributor-Shareholders* Distributor-Entrepreneurs* www.myCNI.com.my www.OOBEY.com
  • 29. Importance: Intelligence
    • Two types:
    www.myCNI.com.my www.OOBEY.com P.R. Customers CRM Intelligence Deal with… P.R. Management Public Intelligence Deal with…
  • 30. Intelligence: Types of Investors (1/2)
    • 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 Gov. Partnership PFI Competitors Franchisees www.myCNI.com.my www.OOBEY.com
  • 31. Intelligence: Types of Investors (2/2)
    • Retail
    Investor-Shareholders Employee-Shareholders Management-Shareholders Customer-Shareholders Distributor-Shareholders* Distributor-Entrepreneurs* www.myCNI.com.my www.OOBEY.com
  • 32. Intelligence: How do External Parties get their ‘INFO’? (1/2) Institutional Gov./Politics Customers Suppliers Economics AGM Market Research Internet* Annual Report Media Analysts Fund Managers Due Diligence NGOs Newsletter Spokespersons www.myCNI.com.my www.OOBEY.com
  • 33. Intelligence: How do External Parties get their ‘INFO’? (2/2) Retail Gov./ Politics Customers Public Events Economics AGM Ads Internet* Annual Report Media Analysts Fund Managers Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com
  • 34. Intelligence: How to Communicate? Self Reliant Need Help Seek Change Seek Stability Searchers Collaborators Streamliners Delegators www.myCNI.com.my www.OOBEY.com
  • 35. Public Intelligence: What?
    • Examples…
    • Record feedback and questions
    • Competitors’ PR communications
    • Top 10 Analysts’ views on Company
    • Top 10 Analysts’ views on Industry
    www.myCNI.com.my www.OOBEY.com
  • 36. Public Intelligence: Why?
    • Broad view of market
    • Less optimistic/review own assumptions
    • Upgrade IR function to be strategic
    • Feed Management discussions
    • Better and more relevant IR communications
    • Support (buy-in)
    www.myCNI.com.my www.OOBEY.com
  • 37. Public Intelligence: Why? Revenue Growth Base Retention Share Gain Positioning Adjacent Market New Business Operational Excellence Product Leadership Customer Intimacy Competencies Information Systems Motivation, empowerment, alignment Financial Learning & Growth Internal Process Customers Investment Strategy Productivity Market Value www.myCNI.com.my www.OOBEY.com
  • 38. Dangers of Intelligence…
    • Also known as ‘Beware of Benchmarking’:
    • Big vs. Small company
    • Selective success stories
    • Correlation vs. Causal
    • Survey problems
    • Actionable vs. For-fun
    www.myCNI.com.my www.OOBEY.com
  • 39. Intelligence: Survey Problems…
    • “ 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 www.myCNI.com.my www.OOBEY.com
  • 40. PR and Customer-Shareholders
    • Retail
    Investor-Shareholders Employee-Shareholders Management-Shareholders Customer-Shareholders Distributor-Shareholders Distributor-Entrepreneurs www.myCNI.com.my www.OOBEY.com Affect Sales
  • 41. Revisit – PR’s Key Roles
    • Funds
    • Sales
    • Intelligence
    • Customer-shareholders
    Communication to bring in the Funds www.myCNI.com.my www.OOBEY.com
  • 42. Revisit – PR’s Key Roles
    • Funds
    • Sales
    • Intelligence
    • Customer-shareholders
    Communication to bring in the Sales www.myCNI.com.my www.OOBEY.com
  • 43. The Four Roles of PR in Branding Why we are important to the branding process www.myCNI.com.my www.OOBEY.com
  • 44. The Four Roles of PR in Branding
    • Integrate Communications (Consistency)
    • Feed you, Feed me
    • External Communications
    • Bad News
    www.myCNI.com.my www.OOBEY.com
  • 45. Role 1: Consistency Integration The Four Roles of PR in Branding and why we are important to the branding process www.myCNI.com.my www.OOBEY.com
  • 46. What to Integrate? www.myCNI.com.my www.OOBEY.com 1. Aligning Organization To the Culture 2. Integrating External & Internal actions 3. Alignment and Consistency to the Strategy 4. Long-term Relationship Building efforts
  • 47. Communications Integration and Consistency Communications Internal External Mgmt Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools www.myCNI.com.my www.OOBEY.com Employees Associations Universities NGOs Investors Media Government Public Authorities
  • 48. Alignment & Consistency
    • Mamak stall
    www.myCNI.com.my www.OOBEY.com
  • 49. Alignment & Consistency
    • "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
    "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 Product Leadership Operational Excellence Customer Intimacy www.myCNI.com.my www.OOBEY.com
  • 50. 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) www.myCNI.com.my www.OOBEY.com
  • 51. 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 5 th 2007 www.myCNI.com.my www.OOBEY.com
  • 52.
    • 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
    • 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
    www.myCNI.com.my www.OOBEY.com
  • 53.
    • Operational Excellence
        • Move know-how from top performing units to others
        • Benchmark against best in class
        • Ensure operations training for all employees
        • Use disciplines like TQM for continuous learning to reduce costs and improve quality
    Alignment & Consistency: Market Disciplines www.myCNI.com.my www.OOBEY.com
  • 54. Alignment & Consistency: Market Disciplines
    • Customer Intimacy
        • Capture knowledge about customers
        • Understand customer needs
        • Empower front line employees
        • Ensure that everyone knows the customer
        • Make company knowledge available to customers
    www.myCNI.com.my www.OOBEY.com
  • 55.
    • Product Leadership
        • Reduce time to market
        • Commercialize new products fast
        • Ensure that ideas flow
        • Reuse what other parts of the company have already learned
        • Ensure there are multiple sources of funding
    Alignment & Consistency: Market Disciplines www.myCNI.com.my www.OOBEY.com
  • 56. 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) www.myCNI.com.my www.OOBEY.com
  • 57. 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) www.myCNI.com.my www.OOBEY.com
  • 58. The 6 Sins of Greenwashing
    • Sin of the Hidden Trade-Off
    • Sin of No Proof
    • Sin of Vagueness
    • Sin of Irrelevance
    • Sin of Fibbing
    • Sin of Lesser of Two Evils
    Study by: TerraChoice, December 2007 www.myCNI.com.my www.OOBEY.com
  • 59. Role 2: Feed you, Feed me The Four Roles of PR in Branding and why we are important to the branding process www.myCNI.com.my www.OOBEY.com
  • 60. Integrating Internal/External Internal External Feed Feed www.myCNI.com.my www.OOBEY.com
  • 61. 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
    www.myCNI.com.my www.OOBEY.com
  • 62. 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
    www.myCNI.com.my www.OOBEY.com
  • 63. Role 3: External Communication The Four Roles of PR in Branding and why we are important to the branding process www.myCNI.com.my www.OOBEY.com
  • 64. Communications Integration Communications Internal External Mgmt Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools www.myCNI.com.my www.OOBEY.com Employees Associations Universities NGOs Investors Media Government Public Authorities
  • 65. Types of Investors (1/2)
    • 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 Gov. Partnership PFI Competitors Franchisees www.myCNI.com.my www.OOBEY.com
  • 66. Types of Investors (2/2)
    • Retail
    Investor-Shareholders Employee-Shareholders Management-Shareholders Customer-Shareholders Distributor-Shareholders* Distributor-Entrepreneurs* www.myCNI.com.my www.OOBEY.com
  • 67. How do External Parties get their ‘INFO’? (1/2) Institutional Gov./Politics Customers Suppliers Economics AGM Market Research Internet* Annual Report Media Analysts Fund Managers Due Diligence NGOs Newsletter Spokespersons www.myCNI.com.my www.OOBEY.com
  • 68. How do External Parties get their ‘INFO’? (1/2) Institutional Gov./Politics Customers Suppliers Economics AGM Market Research Internet Annual Report Media Analysts Fund Managers Due Diligence NGOs Newsletter Spokespersons www.myCNI.com.my www.OOBEY.com
  • 69. How do External Parties get their ‘INFO’? (2/2) Retail Gov./ Politics Customers Public Events Economics AGM Ads Internet* Annual Report Media Analysts Fund Managers Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com
  • 70. How do External Parties get their ‘INFO’? (2/2) Retail Gov./ Politics Customers Public Events Economics AGM Ads Internet Annual Report Media Analysts Fund Managers Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com
  • 71. How not to talk to Retail External Parties
    • “ 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 www.myCNI.com.my www.OOBEY.com
  • 72. How not to talk to Retail External Parties
    • “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” www.myCNI.com.my www.OOBEY.com
  • 73. What topics interest External Parties? www.myCNI.com.my www.OOBEY.com Acquisition target Layoffs Cost Cutting New Mgmt Treatment of Profits Consistency Ecology Economics Politics Strategy Alignment CSR- related Crisis Topics?
  • 74. What topics interest External Parties? www.myCNI.com.my www.OOBEY.com Acquisition target Layoffs Cost Cutting New Mgmt Treatment of Profits Consistency Ecology Economics Politics Strategy Alignment CSR- related Crisis Topics?
  • 75. What Events impact External Parties? www.myCNI.com.my www.OOBEY.com Politics Financial Announcements Shareholding changes Structure Accidents Economic Crisis Competitor Moves M&A New Plans Share- drop Events?
  • 76. What Events impact External Parties? www.myCNI.com.my www.OOBEY.com Politics Financial Announcements Shareholding changes Structure Accidents Economic Crisis Competitor Moves M&A New Plans Share- drop Events?
  • 77. E.g. Long-term relationship building activities
    • Durian Party
    • Wisma Tour
    • Hampers
    • Umrah
    • China Factory Visit
    • Large Events
    • Donations to Media
    • Jakim visit
    www.myCNI.com.my www.OOBEY.com
  • 78. Role 4: Bad News The Four Roles of PR in Branding and why we are important to the branding process www.myCNI.com.my www.OOBEY.com
  • 79. Challenges of Public Relations
    • Stake- vs. Share-holder*
    • Public Opinions
    • Global operations – difficult to explain
    • Increasing focus on ecological, social, ethical issues
    • Diverged expectations for same issue
    • What to do with Excessive Cash?
    • Superficial changes vs. Fundamental Changes
    • Investors depend on ‘hearsay’ vs. ‘facts’
    • Share Price ≠ Market
    • R&D/M.S./HR vs. Investor Expectations
    • Opposing ‘Expert’ views
    www.myCNI.com.my www.OOBEY.com
  • 80. PR Challenges
    • “ Good news for stockholders can be bad news for other stakeholders.”
    • Gregory Miller, Assoc. Prof., Harvard Business School.
    www.myCNI.com.my www.OOBEY.com
  • 81. Good News vs. Controllability Can Control Cannot Control Internal Attribution External Attribution  www.myCNI.com.my www.OOBEY.com ?  
  • 82. Bad News vs. Controllability Can Control Cannot Control Internal Attribution External Attribution  www.myCNI.com.my www.OOBEY.com   
  • 83. Media Options for Brand Building Old media, New media and everything in between www.myCNI.com.my www.OOBEY.com
  • 84. COMMUNICATION ARCHITECTURE BRAND POSITIONING “ Tagline” KEY SUPPORTING MESSAGES KEY MESSAGES SPECIFIC TO INTERNAL/EXTERNAL SEGMENTS EMPLOYEES Image Development KEY SEGMENTS TARGET GROUPS SPECIFIC SEGMENT
  • 85. KEY MESSAGES
    • Who am I?
    • What do I offer?
    • Support?
    • End benefit(s)
    • Tagline:
    www.myCNI.com.my www.OOBEY.com
  • 86. Touch Points Candidates/ Employees Gov./ Politics Customers Public Events Economics AGM Ads Internet* Annual Report Media Analysts Ex-employees Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com
  • 87. Touch Pointsl Candidates/ Employees Gov./ Politics Customers Public Events Economics AGM Ads Internet Annual Report Media Analysts Ex-employees Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com
  • 88. The Right Tools for the Job Reach of Communication Quality/Intensity of Communication Personal (exp) Personal (info) Impersonal (info) Individual Mass Mass Traditional, In-home, Out-Of-Home Mass Unconventional Mass Online www.myCNI.com.my www.OOBEY.com
  • 89. The Right Tools for the Job Reach of Communication Quality/Intensity of Communication Personal (exp) Personal (info) Impersonal (info) Individual Mass Mass Targeted Conventional Mass Targeted Online E.g. Annual Reports, Analyst Briefings, IR Roadshows, IR Website www.myCNI.com.my www.OOBEY.com
  • 90. The Right Tools for the Job Reach of Communication Quality/Intensity of Communication Personal (exp) Personal (info) Impersonal (info) Individual Mass Individual Targeted Conventional Individual Targeted Online www.myCNI.com.my www.OOBEY.com Contests One-on-One
  • 91. Summary www.myCNI.com.my www.OOBEY.com
  • 92.
    • “… 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 www.myCNI.com.my www.OOBEY.com
  • 93. Don’t forget…
    • “ The business of business is Business, not Public Relations”
    www.myCNI.com.my www.OOBEY.com
  • 94. 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.” www.myCNI.com.my www.OOBEY.com
  • 95. Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/