4. Impact On Relationships Between Organizations And Their Publics


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4. Impact On Relationships Between Organizations And Their Publics

  5. 5. DEFINITION <ul><li>Technology: The scientific knowledge and/ or equipment that is needed for a particular industry. (New Oxford Dictionary) </li></ul><ul><li>New media: Developing usually electronic forms of media regarded as being experimental. (Dictionary.com) </li></ul>
  6. 6. IMPACT ON RELATIONSHIPS BETWEEN ORGANIZATIONS AND THEIR PUBLICS <ul><li>New media is very important especially in this globalization era. </li></ul><ul><li>Most of organization in the worldwide use new media as their communication tool. </li></ul><ul><li>Using technology as the medium, it would help maintain the relationship between the organizations and their publics . </li></ul>
  7. 7. ISSUES
  8. 8. <ul><li>Electronic forms of communication cannot transmit all the required information. (face-to-face communication is perceived as richer because the information being received reduces uncertainty) </li></ul><ul><li>Has limited capacity. </li></ul><ul><li>Unsatisfactory performance in supporting the group work, such as in collaborative research work. (collaboration between two firms requires frequent face-to-face communication among all involved parties) </li></ul>
  9. 9. <ul><li>Cultural factors between different groups and those within the same groups have also shown to play an important role in the pre-deposition and selection of electronic communications media . (US companies exploit the advantages of IT, such as electronic-mail while the Japanese firms do not.) </li></ul><ul><li>Many organizations flattened, eliminating many middle management positions. </li></ul>
  10. 10. <ul><li>New media has arise as important of change in organization indicate changing technology that enables an organization to gain a competitive advantage on a relationship between organization and their public. </li></ul><ul><li>Focusing o the issue in the aviation business, there are few as important as the airline industry for the smooth and efficient working of a modern society. </li></ul><ul><li>Air transport has come to play an irreplaceable role in service to commerce and to the travel needs of the millions of people who fly every day. It is a global, technologically advanced and dynamic growth industry ( Lazar, 2003). </li></ul>
  11. 11. <ul><li>PR practice is the discipline, which looks after reputation with the aims of earning understanding and support, and influence opinion and behavior. </li></ul><ul><li>Meaning, public relations activities is to build a reputation that earns the understanding, goodwill and support as well as influence opinion and behavior that benefits the company concerned. </li></ul><ul><li>This involves a planned and sustained effort with an integrated and dialogic communication plus an interactive approach to establish the desire effect without compromising public interest (Adnan, 2004). </li></ul>
  12. 12. <ul><li>Analyzing the case for this issue occurs when the company in focus: Malaysia Airlines (MAS), dealing with bankruptcy crisis in 2006 and had some issue with their public and media on the transparency of blueprint and information on the exact crisis that surfaced their company. </li></ul><ul><li>Often during this time, MAS’ customers were moving ahead to choose Air Asia as their option to travel instead of MAS since they were dealing with bankruptcy crisis. </li></ul>
  13. 13. <ul><li>The shrink period of MAS on 2004 stretch the big impact on its relationship with the public. </li></ul><ul><li>In fact, the relationship between MAS and its internal publics were at jeopardy when MAS had to do the retrenchment of their workers and maintains only critical and important position in the company. </li></ul><ul><li>Accordingly, MAS financial period was recorded to a lost over RM1.3 billion which is the biggest lost in the company financial history and was expectantly to hit an even bigger amount. </li></ul><ul><li>What worst is that the financial position is precarious since MAS had only a few months until April 2006 before it runs out of liquidity on its assets. </li></ul>
  14. 14. <ul><li>Based from the PR perspectives, also in understanding both the importance of BTP 1 and BTP 2 during MAS’s financial crisis in year 2005 and 2006 and how these two plans manages MAS to overturned its losses into profits. </li></ul><ul><li>Besides the BTP 1 and BTP 2, this research also studied the MH campaign that was launch under BTP 2. </li></ul><ul><li>In detail, the researchers wanted to understand the significance of the MH campaign and how this single-well-planned campaign has been MAS’s answer to maintain its profitability. </li></ul>
  15. 15. Online Advertising and MAS PR Roles in Airlines Rebranding. <ul><li>Advertising can be employed to perform at least four functions for an airline. It can be used to project the carrier’s preferred corporate image. </li></ul><ul><li>It can be used to sell specific products. It also can be used as a method of attempting to influence policymakers, and as a possible way of motivating staff (Stephen Shaw, 1985). </li></ul>
  16. 16. <ul><li>Online Advertising correlates with reposition of the brand, any corporate brand affects a wide range of audience segments, both internal and external. </li></ul><ul><li>The internal audiences, of course, include employees, directors, shareholders, vendors, and partners. </li></ul><ul><li>The external audiences include the customer markets, the media, investors, regulators, and politicians, even the people in the towns or cities where the company do business. </li></ul><ul><li>All of these people will have expectations and experiences, based on their contact with the brand. And the results of those experiences are important to the company (Gregory, 2004). </li></ul><ul><li>Dervin believes that the new communication technologies will indeed soon significantly reduce the cost of maintaining mutual interaction between sources and audiences . </li></ul>
  17. 17. <ul><li>MAS PR practice has been on the public information model which the approach can be seen clearly on the dissemination on the information to introduce their MH Campaign in order to gain and overcome consumer trust on MAS product / services as basically as telling the truth through one-way and two-way communication. </li></ul><ul><li>Hence, MAS’ representing the Malaysian Government Company as it shows the important of Government media relations as well as the largest and longest mass media user and as well use wisely the reimbursements of new media to the fullest. </li></ul>
  18. 18. <ul><li>Publishing and advertise helped them build a winning coalition not only with the government but also with other stakeholders, like the unions, the staff, and the public. </li></ul><ul><li>Being upfront about the P&L and making it all transparent were very important to bringing the coalition together. Here when the effective PR approach through new media also reveal its works where explaining to people the conflict faces and all the dilemmas and the BTP 1 gain the customers trust. </li></ul><ul><li>MAS applied 4 method using advancement of new media </li></ul><ul><li>audience awareness of campaign </li></ul><ul><li>targeting messages at specific audience segments most receptive or susceptible to those messages </li></ul><ul><li>cultivating images and impressions of people, products, or services </li></ul><ul><li>inducing desired decision making or positioning </li></ul>
  19. 19. <ul><li>All this four (4) methods is the observation that indicates to value MAS campaign on the success of MH campaign not only externally but also internally. </li></ul><ul><li>MAS motivate their staffs and cabin crews internally and the result were seen externally when people believe and trust MAS. </li></ul><ul><li>Now, MAS became strong and their reputation as it spreads its massive wings back into the sky. </li></ul><ul><li>MAS point to phenomenon such as the campaign and independently maintained presence on sites such as YouTube, and Facebook during the 2007-2008 primary on MH campaign as evidence of the social marketing possibilities inherent in unfettered interactive new communication technology. </li></ul>
  21. 21. <ul><li>In Malaysia, public relations practitioners today find themselves in new Internet world which is the new media </li></ul><ul><li>Publics develop expectations about organisations and measure an organization’s performance based upon delicate sign found within the online environment. </li></ul><ul><li>However, this relationship can be damaged when expectations are not met or when organizations behave badly online </li></ul><ul><li>The technology helps improve processes and workflow, and finally an organisation’s overall operations. </li></ul>
  22. 22. <ul><li>Imaging technology can also improve services from the organizations to customers either in businesses or citizens </li></ul><ul><li>Web sites were used to disseminate information and to post publications and news releases for pr practitioner in any organization </li></ul><ul><li>Social media are being used to disseminate marketing messages through such techniques as viral marketing in organization to publics </li></ul><ul><li>The communication facilities which are on offer have rapidly become integrated as core business tools in Malaysia </li></ul>
  23. 23. <ul><li>Organizations use it to facilitate communication between employees and offices, and to communicate with customers and suppliers. </li></ul><ul><li>Organizations also used e-mail in replacement to snail mail, due to its speed and flexibility so then the connection between organization and public become simple </li></ul><ul><li>Publics also can connect to organization regarding their demands or complain about any issue </li></ul>
  24. 24. <ul><li>New media were used by Public Relations practitioners in every organisation to publicize and to promote their products or services to the public. </li></ul><ul><li>The rapid growth of internet in Malaysia also contribute to the development of the country . </li></ul><ul><li>Government websites have been upgraded to help publics to know more about services provided . </li></ul>
  25. 25. <ul><li>Prime Minister of Malaysia, Datuk Seri Mohd Najib Bin Tun Abdul Razak also used new media as an approach to be close with the citizen . </li></ul><ul><li>Malaysian can update themselves with the new developments that have been planned from them in order to improve country’s productivity. </li></ul>
  26. 26. <ul><li>Public Relations practitioner can make use of the social networking sites such as Facebook or twitter to communicate with the public to get their feedback. </li></ul><ul><li>CEO of Air Asia, Datuk Seri Tony Fernandes used new media to get close with Air Asia users. </li></ul><ul><li>New media helps Public Relations practitioner to perform news monitoring effectively and also saves a lot of time instead of reading tons of newspapers everyday. </li></ul>
  27. 27. <ul><li>For those who are interested to buy shares , they can get all the information needed through internet and perform studies about the company they wanted to invest. </li></ul><ul><li>It helps the investor to get more accurate information and it saves a lot of time by doing internet research. </li></ul>
  28. 28. <ul><li>Other than that, the investor can monitor the market shares through internet that can be access by using computer and also smart phones. </li></ul><ul><li>When shares in Malaysia increases day by day, it contribute to the country’s socio economic that can help to enhance our company development. </li></ul>
  29. 29. <ul><li>Last August, the entire world especially Malaysian was shocked by a video downloaded in the Youtube that shown Malaysian Student in London, Muhd Asyraf that were robbed and assaulted during raid in London . </li></ul><ul><li>Due to this incident and Youtube , the world knows more about Malaysia and indirectly promotes Malaysia to the world. </li></ul>
  30. 30. <ul><li>New media can reach large scale of audience than other traditional media can do. </li></ul><ul><li>Unlimited access to the internet throughout the word helps publics to know what is happening around the world. </li></ul>
  31. 31. CASE STUDY
  33. 33. WHAT IS DIGI TELECOMMUNICATIONS? <ul><li>A mobile services company in Malaysia but also provides internet services. </li></ul><ul><li>The mobile market is led by three big players - Maxis, Celcom & Digi. </li></ul><ul><li>It is a highly competitive market and companies do not hesitate to spend money on marketing and advertising to fuel growth. </li></ul>
  34. 34. Implementation <ul><li>Diversified its marketing into social media in order to create a brand presence online that would help to build rapport and to connect directly with its customers. </li></ul><ul><li>The head of Digi's head of marketing services, Lau Sulin believes that it would help the company to compete with it's rivals. </li></ul>
  35. 35. <ul><li>Twitter </li></ul><ul><li>Company interacts with the customers on a one to one basis with most of the interaction consisting of questions pertaining to Digi Telco's products. </li></ul><ul><li>It handles troubleshooting issues and even contacts the individual on their mobile phone should the question be unanswerable in a single tweet. </li></ul>
  36. 36. <ul><li>Facebook </li></ul><ul><li>Utilizes the variety of multimedia offered by Facebook to notify fans of any upcoming or current deals. </li></ul><ul><li>Allows fans to provide their details so they can contacted about Digi Telco's internet services. </li></ul><ul><li>- Discussion boards which acts as a forum that allows also fans to create topics for discussion. </li></ul>
  37. 37. <ul><li>The persona of the Digi Telco fanpage communicates on a personal level who comments on current local festivities and events unrelated to the company. </li></ul>
  38. 38. Impact/ Results <ul><li>Digi Telco has been fairly successful in comparison to its rivals. Despite the tough economic climate, it registered -24% in growth while Celcom and Maxis suffered -40% and -22% respectively. </li></ul><ul><li>Twitter </li></ul><ul><li>- A high level of interaction with over 600+ daily tweets . </li></ul><ul><li>- Since its inception in May 2009The Twitter account has built a following 2,500 strong with over 400 of this number joining in the most recent month. </li></ul>
  39. 39. <ul><li>Facebook </li></ul><ul><li>With over 27,887 fans it's posts that occur every few hours clocks an average of 60 - 80 comments. </li></ul><ul><li>Discussion segment on the fanpage can also serve a very useful purpose of listening to what customers want and to put up topics that Digi Telco employees want customer insights on. </li></ul>
  40. 40. <ul><li>Though the use of social media, Digi Telco has managed to link themselves directly with customers and the online Malaysian community. </li></ul><ul><li>Through interaction that is both personal and helpful, it has managed to build rapport and a decent online reputation for itself amongst fellow Malaysians. </li></ul>
  41. 41. Appendices
  42. 43. What Is Air ASIA ? <ul><li>A Malaysian-based low-cost airline. Air Asia is Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. </li></ul><ul><li>  Air Asia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. Its main hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA).  </li></ul>
  43. 44. Implementation <ul><li>Social media platforms have been an important marketing tool for AirAsia. </li></ul><ul><li>AirAsia understands that social media is cost-effective and allows them to their target customers effectively. </li></ul>
  44. 45. <ul><li>Twitter </li></ul><ul><li>Invites its fans to follow the company on Twitter for latest news and deal updates. </li></ul><ul><li>Currently, AirAsia's Twitter account has more than 200,000 followers. </li></ul>
  45. 46. <ul><li>Facebook </li></ul><ul><li>AirAsia's Facebook fanpage has more than 1000 000 fans currently, and was the first airline with 1000 000 fans on Facebook. </li></ul><ul><li>The fanpage constantly updates on new promotions, discussions and notes shared by both employees and fans. </li></ul><ul><li>AirAsia also came up with a&quot;travel wish list&quot; Facebook application in 2008 build its Facebook presence by encouraging Facebook users to join and they were also given a chance to win free air tickets. </li></ul>
  46. 47. <ul><li>http://blog.airasia.com/ </li></ul><ul><li>A blog that contains travel-related stories and announcements posted by readers and employees. </li></ul><ul><li>Constructive criticisms pertaining to AirAsia's services are posted on the page although the blog is moderated. </li></ul><ul><li>This creates a platform for AirAsia to react and respond quickly to customer's displeasure, thus engaging and establishing a better relationship with its customers. </li></ul>
  47. 48. IMPACT/ RESULTS <ul><li>Able to engage and interact with more people. </li></ul><ul><li>Social media tools are definitely effective in reaching target audiences at low cost and little time. Air Asia broke world record and sold 1 million tickets in 2 days. </li></ul><ul><li>The power of social media had much to do with the record breaking sales. </li></ul><ul><li>One of the great examples of Malaysian companies who leveraged on social media successfully. </li></ul>
  48. 49. Appendices
  49. 52. Foldees and Tiger Beer Case Study
  50. 53. Foldees Case Study
  51. 54. What is Foldees.com? <ul><li>Small companies that use social media to engage it's community of artists and customers. </li></ul><ul><li>Foldees is a greeting card company for the Facebook generation. It holds regular greeting card contest to recruit designs from the best designers around the world. </li></ul><ul><li>These designs are then sold on sites as well as retail channels. The cards can be ordered, printed and sent via the website for RM7 each. Each card purchases earn a RM0.35 royalty for the designer. </li></ul>
  52. 55. <ul><li>How does it works? </li></ul><ul><li>Foldees run a contest </li></ul><ul><li>Approved cards are posted onto the website and the public votes for their favorite design </li></ul><ul><li>Anyone can order, customize or download the cards </li></ul><ul><li>Once purchased, a royalty is paid to the designer </li></ul>
  53. 56. <ul><li>How do they use Social Media? </li></ul><ul><li>According to Lau Chak Onn who is the CEO of Foldees, the following are the takeaways when using Social Media: </li></ul><ul><ul><li>It's an economy - incentivize everything </li></ul></ul><ul><ul><li>Momentum matters - don't lose it </li></ul></ul><ul><ul><li>Casual beats formal </li></ul></ul><ul><ul><li>Transparency is important </li></ul></ul><ul><ul><li>Think long term </li></ul></ul>
  54. 57. <ul><ul><li>It's an economy - incentivize everything </li></ul></ul><ul><ul><li>In the case of Foldees, designers get royalties and RM2500 in cash if they win the contest. Voters on the other hand are rewarded with a free card and commenter's get their comments featured so they get to be on the front page of the website. </li></ul></ul><ul><ul><li>b. Momentum matters - don't lose it </li></ul></ul><ul><ul><li>There was a point of time when Foldees held the second contest about 3 months after the first one. The return rate as a result was horrible because very few returned. However after realizing their mistake, Foldees began shortening the time between contests and consequently, the return rate improved greatly. </li></ul></ul>
  55. 58. <ul><li>Casual beats formal </li></ul><ul><li>Transparency is important </li></ul><ul><li>Think long term </li></ul><ul><li>Some marketers adopt a campaign model through their social media programs. This ultimately leads to wasted engagement and shallow relationships </li></ul>
  56. 59. <ul><li>Results </li></ul><ul><li>More than 400 designs were collected </li></ul><ul><li>Approximately 2500 registered users </li></ul><ul><li>109 designers from more than 40 countries </li></ul><ul><li>42,000 page views a month </li></ul>
  57. 60. Appendices
  58. 61. Tiger Beer Case Study
  59. 62. Introduction <ul><ul><li>Tiger Beer is an example of how the blogosphere can build a brand. They not only used consumer insight to repackage its product but also generate excitement among influential endorsers in the online space. </li></ul></ul><ul><ul><li>The Malaysia beer market is crowded, with an array of seemingly generic brands jostling for attention and share. Tiger needed to remain relevant among its young target audience of 21- to 30-year-olds, strengthen brand positioning and increase loyalty, and ultimately increase share of the market. </li></ul></ul><ul><ul><li>Tiger set out to position itself as a unique, cool and contemporary beer that young people would want to associate with. </li></ul></ul>
  60. 63. <ul><li>The target audience wanted to be associated with cool and trendy brands and products that offered them a ‘differentiator’ image. Focus groups showed that opinion leaders and social influencers demonstrating these traits served to reinforce the credibility of a brand. </li></ul><ul><li>Tiger needed to excite target consumers by injecting an element of surprise through its packaging and presentation. </li></ul><ul><li>Three different designer bottle sleeves were developed, based on music and artistic themes. The shrink-wrapped bottles featured Tiger’s branding in a stylized manner and stood out from the competition. </li></ul>
  61. 64. <ul><li>The initiative focused on the online social space, with endorsements from key opinion leaders and social influencers, alongside above-the-line advertising and PR. It was executed in four phases. </li></ul><ul><li>Online endorsements by key influencers served to promote Tiger to its critical audience. To generate interest around its brand and the repackaged product, Tiger made use of Malaysia’s top blog aggregator, with 55,000 blogs including work by the country’s best-known bloggers, and organized a ‘Stand out’ blogger party. The party was Malaysia’s first by an alcohol brand for bloggers. </li></ul>
  62. 65. <ul><li>Post-campaign publicity was amplified with content distributed across a range of social media platforms. Directly after the party, the media covered the event in the national dailies and ‘Stand out’ bloggers flooded the web with footage of the party on their blogs, Facebook profiles and Twitter accounts. Thousands of party pictures were posted on Flickr and Twitter, while videos were uploaded on YouTube. </li></ul>
  63. 66. Impact/ Results <ul><li>According to Synovate (Malaysia Custom Market Research), perception of Tiger as ‘a beer for good times and fun' increased by 14 per cent; an additional 12 per cent of consumers described the beer as one 'my friends approved of'; and consumption among young adults increased by six per cent. </li></ul>
  64. 67. Appendices
  65. 68. CONCLUSION
  66. 69. <ul><li>In conclusion, in pertaining organization’s good reputation has its own root which is to maintain good relationship with your publics. This is very crucial for any organization as the publics will determine their marketplace. As we have involved in this mass globalization, this developing technology growth will take us to a higher level in expending our organizations credibility in many ways. </li></ul><ul><li>As in more brief, the relationship between your organizations and your publics can be managed by getting involved in this latest technology advancement especially in the born of new media technology. It involves of internet, websites, blogs, social networking such Facebook, Twitter, Tumblr and so many more to be named. </li></ul>
  67. 70. <ul><li>By using these new media technologies, any organizations can reach their publics easier as the process is more credible, faster, reliable and useful to the publics. These new media strategies will always be helping the organizations in many ways such as company’s information, company’s product and many more without involved any communication such as one-to-one or face to face or two ways communications. The publics can always use the internet to get the information via websites, Facebook and many more. Through these strategies also help any organizations in obtaining the positive publicity to get attention or to enhance the reputations. </li></ul><ul><li>However, challenges might occur in this process because sometimes, in this digital world, privacy is the main threat to the information. It can be easily copied, changed, and tracked by the publics or competitors. This is when the some private and confidential information of the company is violated or the security level is very low. </li></ul>
  68. 71. <ul><li>These technology advancements will always benefit the organizations that make use in the right ways. To be known, to be well-published and to have great reputations are every organizations dream and by practicing the technologies, it can be achieved as the digital world is more to be explored as it grows every second and every bit. </li></ul><ul><li>Thank You For Listening…  </li></ul>