The Powerful Role of PR in Branding
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The Powerful Role of PR in Branding

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ABF Conference on Media Relations ...

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 studies

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  • 1. THE POWERFUL ROLE OF PR IN BRANDING AND MARKETING Case Study, Concepts, and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com
  • 2. Intro: CNI
    • 20 years old
    • Core Business: MLM
    • Others: Contract Manufacturing, F&B Retail, Export/Trading, eCommerce, Shared Services
    • Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan, Oman, United States, Vietnam
    • Staff force: ± 500
    • Distributors: 200,000
    • Products: Consumer Goods and Services
  • 3. Way back in 2004…
    • Thomas Cup, Indonesia
  • 4. Now in 2007…
    • CNI ‘Beemax’ Factory Visit, China
    • Top Leaders
    • Product Development
    • Media
  • 5. Evolution of Public Relations Have we really changed that much? www.myCNI.com.my www.OOBEY.com
  • 6. PR back then… Source: Wikipedia.com 18 th century: press relations, lobbying and, celebrity campaigning World War I: U.S. publicity 1920’s: Tobacco Industry
  • 7. And now…
    • 13 th 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
  • 8. Role Of PR in the OLD DAYS?
    • helping find or create great stories ,
    • translating stories into the language that the right audience can understand,
    • using the best tools to reach those audiences,
    • listening the to feedback and echoes the stories create,
    • engaging in the appropriate way, and
    • Gatekeeper (unfortunately)
  • 9. Changed?
    • CSR
    • IR
    • Web 2.0
    • Crisis Comm
    • Branding
    • Corporate Reputation
    • Marketing
    • Media Relations
    • Stories
    • Translation
    • Reach
    • Listening
    • Engaging
    • Gatekeeper
  • 10. NOT changed?
    • CSR
    • IR
    • Web 2.0
    • Crisis Comm
    • Branding
    • Corporate Reputation
    • Marketing
    • Media Relations
    • Stories
    • Translation
    • Reach
    • Listening
    • Engaging
    • Gatekeeper
    The ROLE
  • 11. Changed? People Tools Story Audience Change
  • 12. What has been the Biggest change expectation?
    • The role of PR as “Value Creator”
    But how do we do it?
  • 13. Branding And what this means to Public and Media Relations www.myCNI.com.my www.OOBEY.com
  • 14. Why is PR important to Value?
    • Funds
    • Brand
    • Intelligence
    • Business
  • 15. Why is PR important to Value?
    • Funds
    • Brand
    • Intelligence
    • Business
    Communication to bring in the Funds
  • 16. Why is PR important to Value?
    • Funds
    • Brand
    • Intelligence
    • Business
    Communication to bring in the Sales
  • 17. Why is PR important to Value?
    • Funds
    • Brand
    • Intelligence
    • Business
    Communication to bring in the Sales
  • 18. Importance: Brand
    • PR is a key component of corporate Branding due to its direct influence on:
    • Multiple parties (Investors)
    • These parties are either our Branding targets or has influence on our branding targets
    • Brand Story
  • 19. The real goal of Marketing and Branding Understanding PR’s role in the whole scheme of things www.myCNI.com.my www.OOBEY.com
  • 20. 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
  • 21. 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
  • 22. 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
  • 23. 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
  • 24. What is the Objective?
    • Loyalty is Useless…
    • Virtual Consumption vs. Real Consumption
    www.myCNI.com.my www.OOBEY.com
  • 25. What is the Objective?
    • Loyalty is misleading…
    • Heavy Consumption ≠ Loyalty
    • Loyalty ≠ Heavy Consumption
    www.myCNI.com.my www.OOBEY.com
  • 26. 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
  • 27. Components of Branding Positioning Execution Communication www.myCNI.com.my www.OOBEY.com
  • 28. The Four Roles of PR in Branding Why we are important to the branding process www.myCNI.com.my www.OOBEY.com
  • 29. 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
  • 30. 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
  • 31. 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
  • 32. 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
  • 33. Alignment & Consistency USP Market Discipline Profit Model
    • Google
    • Air Asia
    • Tata Nano
  • 34. 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
  • 35. 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
  • 36. 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)
  • 37. 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)
  • 38.
    • 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
  • 39. 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
  • 40. 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)
  • 41. 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) 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
  • 42. Alignment & Consistency: Business Model USP Market Discipline Profit Model
  • 43. Alignment & Consistency: 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
  • 44. 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
  • 45. Integrating Internal/External Internal External Feed Feed www.myCNI.com.my www.OOBEY.com
  • 46. 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
  • 47. 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
  • 48. 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
  • 49. 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
  • 50. 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
  • 51. Audiences
    • Individuals
    Investors Employees Shareholders Customers Distributors* Management
  • 52. 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
  • 53. 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
  • 54. How do External Parties get their ‘INFO’? (2/2) Individuals 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
  • 55. How do External Parties get their ‘INFO’? (2/2) Individuals 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
  • 56. 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 www.myCNI.com.my www.OOBEY.com
  • 57. 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” www.myCNI.com.my www.OOBEY.com
  • 58. 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?
  • 59. 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?
  • 60. 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?
  • 61. 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?
  • 62. Role 4: Corporate Reputation Good News, Bad News. Who cares? www.myCNI.com.my www.OOBEY.com
  • 63. Challenges of Public Relations
    • Stake- vs. Share-holder*
    • Public Opinions
    • Indirect Stakeholders – NGOs, Community Activists, Online Networks
    • Increasing focus on ecological, social, ethical issues
    • Diverged expectations for same issue
    • Web 2.0
    • 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
    • Operational Risk -> Reputational Risks
    www.myCNI.com.my www.OOBEY.com
  • 64. 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
  • 65. 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 www.myCNI.com.my www.OOBEY.com
  • 66. Good News vs. Controllability Can Control Cannot Control Internal Attribution External Attribution  www.myCNI.com.my www.OOBEY.com ?  
  • 67. Bad News vs. Controllability Can Control Cannot Control Internal Attribution External Attribution  www.myCNI.com.my www.OOBEY.com   
  • 68. Stakeholders vs. Reputation Communications www.myCNI.com.my www.OOBEY.com Actions Key Questions asked Key Issues Civil Society, NGOs Regulators Shareholders, Investors, Analysts Media Consumers, Partners
  • 69. Media-specific Reputation Communications www.myCNI.com.my www.OOBEY.com
    • Websites
    • Press Release
    • Management Press
    • Sells-side Analyst calls and reports
    • Industry Reports
    Actions
    • Limited, usually telecons with IR/CC
    Key Questions asked
    • Big business as negative
    • Lack in-depth reporting for balanced view
    Key Issues Media
  • 70. Media Options for Brand Building Old media, New media and everything in between www.myCNI.com.my www.OOBEY.com
  • 71. COMMUNICATION ARCHITECTURE BRAND POSITIONING “ Tagline” KEY SUPPORTING MESSAGES KEY MESSAGES SPECIFIC TO INTERNAL/EXTERNAL SEGMENTS EMPLOYEES Image Development KEY SEGMENTS TARGET GROUPS SPECIFIC SEGMENT
  • 72. KEY MESSAGES
    • Who am I?
    • What do I offer?
    • Support?
    • End benefit(s)
    • Tagline:
    www.myCNI.com.my www.OOBEY.com
  • 73. Touch Points Corporate Brand 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
  • 74. Touch Pointsl Corporate Brand 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
  • 75. 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 Refer Attachment 2
  • 76. 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 Refer Attachment 2
  • 77. 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 Refer Attachment 2
  • 78. 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
  • 79. Summary www.myCNI.com.my www.OOBEY.com
  • 80.
    • “… 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
  • 81. Don’t forget…
    • “ The business of business is Business, not Public Relations”
    www.myCNI.com.my www.OOBEY.com
  • 82. 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
  • 83. Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/