Business Strategy - Communications = Failure
Most companies that have a strategic business plan in place fail to realize that without an integrated communications procedure, the business strategy will likely fail. There is an increasingly urgent need for executives to ensure that their communications practices contribute directly to corporate strategy implementation (Argenti, Howell, & Beck, 2005, p.83).
Short term approach
Many companies take a short term, reactive approach to communicating with key constituencies.
Communication tactics are only implemented once the crisis has presented itself. “Corporate crisis, both internal and external, also can drive companies to reconsider how they communicate” (Argenti et al., 2005, p. 86). A prime example is the Exxon Valdez fiasco. This approach to communications is not only ineffective, but might actually inhibit corporate strategy.
As Argenti, Howell and Beck suggest in their article, “The Strategic Communication Imperative”, these outdated practices must change, for a number of reasons.
Six "Musts" of Corporate Communications
Corporations must take a more proactive, long- term approach to communications. Strategic plans should be implemented to prepare for, or even prevent the disaster.
- “Executives in large companies are among the lowest rated in terms of credibility, ranking below even lawyers and government officials” (Argenti et al., 2005, p. 86). Communications strategies must be employed to provide transparency and truth.
- Business communications must be two-way. “Communications are an essential part of what you have to offer to customers and shareholders” (Argenti et al., 2005, p. 85).
- Businesses have multiple publics and their communications must be responsive to them all. Each public must be targeted with unique customized messaging. Business units can no longer function as independent, disparate parts. They have to participate in a consistent, streamlined communications flow.
- Senior managers must understand the importance of communication and become the voice of the company. They should possess a deep understanding of the business and manage with integrity and strong leadership skills.
- Most importantly, “communications must be integrated and aligned with corporate strategy” (Argenti et al., 2005, p. 87). They are both vital functions which are interconnected and dependent on one another for success.
Marketing, Advertising and Social Media
Of course this concept of integrating communications with overall business strategies applies to marketing, advertising and social media tactics as well. Efforts should be planned, proactive, and harmonious across all fronts. Managers must address each public with customized communications and then listen and learn from their feedback.
Social media’s role in an organization’s overall strategy
Social media at its heart is about communicating. Communications and organizational strategy go hand-in-hand. Therefore, social media is logically an integral part of business strategy. The growing popularity of social media makes it an increasingly relevant aspect of corporate tactics. "As the time we spend on social media websites increases, the time we spend reading newspapers, listening to the radio and watching television decreases" ("Top Ten Reasons", 2013).
Align each of IMC’s elements to enhance strategic positioning
All of the IMC elements and social media channels must align to reflect business objectives. Messaging should be consistent, transparent and informative across all platforms. Communications should be customized and targeted to specific publics, encouraging the two-way flow of information. Communications managers must keep their ears to the ground and listen to valuable feedback from all constituents.Additional Information:
"Top Ten Reasons Why Social Media Needs to be Part of Your Marketing Strategy"
References:
Argenti, P., Howell, R., & Beck, K. (2005). The strategic communication imperative. MIT Sloan Management Review, 46(3), 83-89. Retrieved from https://www.dartmouth.edu/~opa/communicators/fall08/reading/Sloan_MIT_Strat_Comm_Imp.pdf
Top 10 reasons why social media needs to be part of your marketing strategy. (n.d.). Retrieved 2013, from http://www.localorganicrankings.com/top-10-reasons-why-social-media-needs-to-be-part-of-your-2013-marketing-strategy/
I think you make some great points about why social media needs to be a part of a company’s marketing strategy. Social media is the “new way” of communicating with key stakeholders and should parallel strategy and tone of voice with all other marketing efforts.
ReplyDeleteI think you make an interesting example of Exxon. The catastrophe that spilled 11 million gallons of crude oil was an early example of the need for an immediate crisis communication plan. Years later, the BP Deepwater Horizon claimed 11 lives and devastated countless marine animals, yet they had still not learned the lesson that communication is key. These examples have taught global corporations that strategic communication plans are necessary to the integrity and health of any brand. In these crisis communications, it’s not only important to communicate effectively to your consumers, but to all key constituents including employees, shareholders, suppliers, competitors and the local community. It is imperative for strategic communications to “ensure that their communications practices contribute directly to corporate strategy implementation” (Argenti, Howell, & Beck, 2005, p.83). Companies that control what message is communicated and how it is dispersed are those best equipped to handle crisis communications.
You also make a great point about the importance of communicate to multiple publics. While the messaging should be consistent in theme and tone, it should be customized for the audience you are communicating with. Therefore, an internal company memo should not be directly posted to the company’s facebook page. Communication must be catered to the platform from which the message is being delivered.
This can be a difficult task as it requires companies to post multiple places simultaneously. What are your suggestions for maintaining mainstream strategic communication messages simultaneously across multiple platforms?
Kristen
Hi Kristen- thank you for reading my post. In terms of maintaining strategic communications messages across multiple platforms, I envision a matrix-like grid. First you need to decide on your objectives and the specific messages you want to deliver to each of the audiences you want to reach. The following YouTube video offers a matrix example for communications strategizing: http://www.youtube.com/watch?v=9XXmT5Bms6k I think a matrix would help keep the plan focused and organized.
DeleteHey Susan, I like your quote, "As the time we spend on social media websites increases, the time we spend reading newspapers, listening to the radio and watching television decreases". There are still some companies who can't seem to get away from ONLY using traditional ways of marketing.
ReplyDeleteAs Scott mentioned in "The New Rules of Marketing & PR", "In the old days, traditional, nontargeted advertising via newspapers, magazines, radio, television, and direct mail was the only way to go. But these media make it very difficult to target specific buyers with individualized messages" (Scott 2013).
Social media is such a great outlet for niche or smaller companies that need to find a cheaper source to spread the word about their brand and engage consumers. They can host contests on social media, form more meaningful connections with consumers and gather feedback in real-time. Honestly, in today's society, who doesn't immediately turn to Google or social media when they have a question?
Source:
Scott, David Meerman (2013-06-19). The New Rules of Marketing & PR: How to Use Social Media, Online Video, Mobile Applications, Blogs, News Releases, and Viral Marketing to Reach Buyers Directly (p. 16). Wiley. Kindle Edition.
Hi Amanda-
DeleteThanks for the response to my post. In the social media vs. traditional marketing debate, John Souza (2012) suggests applying the 80/20 rule (80% social media, 20% traditional marketing). See his post at http://socialmediatoday.com/johnsouza/559299/pros-cons-traditional-vs-social-media-marketing. He lists pros and cons of each medium. It's worth taking a look.
Reference:
Souza, J. (2012, February 12). Pros & cons of traditional vs. social media marketing [Web log post]. Retrieved from http://socialmediatoday.com/johnsouza/559299/pros-cons-traditional-vs-social-media-marketing
Hi Susan,
DeleteI started to get flashbacks from our public relations course when you mentioned the Exon Valdez fiasco. Exon's communications tactics after the incident were reevaluated and improved upon as a result of handling the corporate crisis. Great incorporation of the reading and public relations there.
I also think you stated it best when you mentioned, "Businesses have multiple publics and their communications must be responsive to them all. Each public must be targeted with unique customized messaging. Business units can no longer function as independent, disparate parts.They have to participate in a consistent, streamlined communications flow." This can definitely be directed towards the use of social networking. Businesses have to think about reaching their consumers on all channels, ie. Facebook, Twitter, Pinterest, Youtube, etc.
The video you posted also has some interesting facts that I was unaware of. I would have never pinned the "fasted growing segment on Facebook as 55-65 year old females". Do you think this is the case for Twitter and other social media accounts as well?
Top 10 reasons why social media needs to be part of your marketing strategy. (n.d.). Retrieved 2013, from http://www.localorganicrankings.com/top-10-reasons-why-social-media-needs-to-be-part-of-your-2013-marketing-strategy/
The Exxon Valdez "mishap" reminded me of our PR class as well! As far as Facebook goes, I am not surprise about Facebook's fastest growning segment being 55 - 65 year old females. I think the younger crowd is always looking for the latest trend, and I also think they are trying to get away from their parents stalking them on Facebook. I think Facebook is more appealing to the family crowd. Even my 87-year-old mother is on!
DeleteHey Susan, thank you for sharing that article. I liked Souza's mention that for traditional marketing, "People don’t share a community with the brand, and as a result, they don’t care about its promotions. Advertisers spend millions trying to reach people that just don’t care enough to act" (Souza 2012).
DeleteI completely agree with this statement. When you are watching a television show or reading a magazine, you're focusing on the content or the television program. Your mind probably isn't thinking about purchasing something.
On the other hand, people go online to search for details and research companies. They are directly coming to you, so if you don't have a website or social media community, online users are more likely to switch to a competitor that has that information online about their company.
Source:
Souza, J. (2012, February 12). Pros & cons of traditional vs. social media marketing [Web log post]. Retrieved from http://socialmediatoday.com/johnsouza/559299/pros-cons-traditional-vs-social-media-marketing
Hi Susan,
DeleteI found an interesting article discussion the statistics of Facebook vs Twitter that I thought you might be interested in reading. I posted this to another student's blog as well. It talks about the revenue difference between the two and how Facebook still largely surpasses Twitter with users.
https://www.mediabistro.com/alltwitter/facebook-vs-twitter-data-stats_b51335
Nicole
Amanda thats a great point you made about google and social media. Many people hear about news first through social media. This automatically made me think of TMZ which was once considered an online source of celebrity gossip, but after having numerous breaking stories such as Michael Jacksons death, some consider them to be a credible source. If the news isn't on social media, some people don't know about about it. And as for google, I google everything! One of the best things ever created.
ReplyDeleteSusan, interesting post about 80% social media, 20% traditional media. Do you agree with this? I'm not sure I would have social media so high, maybe around 60-65%, but then again it would depend on who the target audience is.
Well, Andrea, in terms of the appropriate mix of social media and traditional marketing, I think it is important to know your customer and what channels they prefer. I don't think there is one general rule of thumb that will apply across all businesses and industries. Most importantly, no matter what the marketing method, I think it is important to test and analyze the statistics when forming opinions on where to invest marketing dollars.
DeleteHey Susan,
ReplyDeleteFirst off I want to say that the video you found was fantastic. I really like the statistics in it and I was really intrigued with what it had to say. They astronomical percentages of people using Facebook and how percentages are changing so rapidly is really interesting to see.
Another part of your post that I like were the six musts of communication. I think that the first one you mention about dealing with disasters is super important. The first company I think of when I think of lacking communication during a disaster is BP. Some information about the spill can be found in this article: http://www.dosomething.org/tipsandtools/11-facts-about-bp-oil-spill. After the spill, representatives from BP gave very non-reassuring advice. At first they stated it was their fault then they said it wasn't. They did not want to take responsibility. This shows major lack in communication and strategy. They need to get themselves together.
Can you think of any other companies that had a major lack of communication during a disaster?
-Michele
Hi Michele- the Taco Bell incident with the video of the employee licking a long line of taco shells would rank up there in the poor communications management lineup. See this website for details on what they did wrong...http://agnesday.com/taco-bells-social-media-crisis-communications-fail/ . They essential responded via their website, but ignored all social media outlets. Not only did they ignore them, but they disabled the comments section of their Facebook page!
DeleteWow Susan believe it or not I had never even heard about this crisis! Thanks for the article. I think ignoring social media at this point is not a good plan. Social media doesn't seem optional anymore for companies, I think they need to use them. This crisis was a prime example as to why they should.
DeleteHi Nicole, I wouldn't have thought that the fastest growing segment on Facebook are females between the ages of 55-65 years-old. But now that I think about it, it makes sense because I can see them signing up to connect with family members and old friends. Therefore, I don't see it being the same for Twitter or other social media platform but Pinterest. And I only say pinterest because it's based off of interests and pictures. It's simple to use and doesn't require the typing of numerous messages.
ReplyDeleteWhat do you think?
Hi Susan,
ReplyDeleteI really like the way you incorporated images, videos, and different color texts within your blog. They made it stand out to me as I was surfing throughout the class' blogs.
Just as some of our other classmates mentioned, the importance of communications within business strategy as it pertains to crisis management is extremely important. In our Public Relations Management class, our text by Breakenridge, Social Media and Public Relations dealt with the "Pre-Crisis Doctor" role for the management of such happenings as the Exxon and BP spills.
With so many negative social media topics surrounding the Sochi Olympics, I would have to believe that the Russian Government must have a 'crisis response plan' in place. However, I have not heard of any specific rebuttals to some of the topics, such as the stray dog shootings, or the bad conditions of the hotels, etc.
I know China is monitored extensively by their Government with regard to their social media use, and have the ability to 'wipe away' anything they do not want the people of China to see. Do you feel less Democratic countries worry less about the negative topics, because they have the ability to keep the information from their own country's people?
Great post!
Hi Dawn-
DeleteThanks for your response. I thought the video was a fun as well as informative addition as well. YouTube has so many to offer. You bring up a good point about the Olympics. I have only heard comments from friends. I will have to pay more attention online and see if they are doing any work to mitigate the damages.
I think you are right about China. If they control the voice of the people, they never have to worry about the rest of the world's response. It is sad how a country can control the awareness of its people.
Hi Susan,
DeleteYes, I have seen the China situation first hand. I went there for a 2-week vacation, and while I was there I became good friends with our tour guide. Her and I email each other, and send videos to each other via email and phone. However, I know there must be things that are being censored, because the conversations have huge gaps in them. It can make it difficult to keep a conversation going, because you know you are 'missing something'. We do the best we can, and hopefully one day, China will not be so censor-happy!
I will keep an eye, ear, and anything else social media capable for the Russian response to the negative comments as well.
Hi Dawn, you brought up a good question. I can't even imagine being censored like that in the United States. Not being able to share certain information over email, social networks and traditional forms of media is mind boggling.
DeleteA few weeks ago, there was a disruption in China's internet. Some blamed hackers and others blamed the Great Firewall which is used to restrict what regular Chinese citizens can see online. Websites ending in .com, .net, and .org were unaccessible.
Can you imagine this happening here? People would get upset when Twitter used to go down for a few minutes, I can't even imagine an Internet shut down.
Qin, A. (2014, January 22). Chinese web outage blamed on censorship glitch. Retrieved from http://sinosphere.blogs.nytimes.com/2014/01/22/chinese-web-outage-blamed-on-censorship-glitch/?_php=true&_type=blogs&ref=internetcensorship&_r=0
DeleteHi Andrea,
DeleteI go crazy when Google's server is tied up, and I have to keep trying in order to check my email!
I definitely cherish the freedoms we have her in the US! After seeing such a beautiful country, and knowing how they are censored as citizens of their own country, makes me look at things very differently since returning home to the US!
Although I often compare my iPad to another country, because it only lets me view videos based on what it will be compatible with. Lol! No Flash allowed in the country of Apple!
Thanks for the feedback!
Susan,
ReplyDeleteI agree with your analysis that corporations must take a more proactive, long- term approach to communications. Strategic plans should be implemented to prepare for the disaster. The problem is that most companies do not think that it will ever happen to them and do not have an adequate communications plan prepared when it does happen to them.
There have been so many recent examples of this in the news lately. The one that has been analyzed and studied at great length is the BP oil spill in the Gulf of Mexico. Classic communications strategy suggests anointing a single spokesperson. As social media continues to grow, and hundreds of people speak for the brand, the go-to models of crisis control are challenged (Capstick, 2010). We have to rethink the strategy.
According to media consultant Ian Capstick, the clearest way forward is to ask your online team members to follow basic guidelines about when and how to respond (2010). The three main goals for the formal and informal social media teams are: Thank people, correct facts, and share updated information. The responses should be short, accurate and polite. The responses should also contain a link where information about the crisis can be found (Capstick, 20120).
Trying to win a PR battle after a crisis occurs is an uphill climb and could result in the organization losing the overall communications war. Because of this, corporations must have plans in place long before a disaster takes place. In this specific case, BP most likely lost before the oil spilled even occurred.
References
Capstick, I. (2010, July 12). 5 Digital PR Lessons from BP’s Oil Spill Response. Mediashift. Retrieved from http://www.pbs.org/mediashift/2010/07/5-digital-pr-lessons-from-bps-oil-spill-response193/
Hi Travis, Thanks for visiting my teammates blog. I enjoyed the quote you chose about the formal and informal social media teams. A good example of this is when Southwest landed nose first at a NYC airport. Southwest first reported it on their twitter account and promised to keep people updated, which they did.
DeleteFisher, S. (2013, August 2). 3 great examples of crisis management on social media. [Web log comment]. Retrieved from http://blog.spinweb.net/3-great-examples-of-crisis-management-on-social-media
Hi Travis- It's funny that you should chose me to respond to today. I think we were in classes together but never had much interaction because we never ended up in the same group. I posted on your blog as well this morning.
ReplyDeleteOn your blog I mentioned a Toyota and Goldman Sachs as additional examples of poor crisis management.
I think you are right. Nobody thinks it is going to happen again. You would think however that large companies that run the risk of destroying the environment (BP), compromising people's safety (Toyota) and financial security (Goldman) would have strategic communications plans in place. It's not as if these mishaps are so unusual in their industries.
Hey Susan,
ReplyDeleteGreat post. I found it interesting that Facebook usage among women 55-65 is growing. I wonder why this particular group is growing so quickly? The importance of a social media strategy seems imperative if an organization plans to have a meaningful relationship with their consumer base and the public. I was not surprised to see the decline in viewership for television or with the yellow pages. Search engine optimization is the yellow pages 'glorified." Traditional media has not done a very good job trying to combat the social media revolution. I found this article that may explain why Facebbok is growing among women 55 plus. According to this article this growing demo is known as the "silver surfers."Many of these women use facebook as a means to keep up with their families; especially their grandchildren through photos and posts(Bentley, 2010). Most of these users logged onto Facebook for the first time at the age of 55(Bentley.2010).
Bentley, P. (2010). The rise of the silver surfer: How half of women over 55 log on to facebook read more. Retrieved from http://citationmachine.net/index2.php?reqstyleid=2&mode=form&rsid=8&reqsrcid=APAMagazineArticle&more=yes&nameCnt=1
Hi Kenya - I think the 55 -65 age group is probably slower to adapt to new technologies. I also think the younger age group is probably abandoning FB for the latest and greatest. I think a lot of youngsters are leaving Facebook to avoid their parents stalking them.
DeleteSusan, I definitely agree that youngsters are slowly leaving Facebook, because of so many parents, family members and teachers using it. I think they are more into; Twitter, Vine and Instagram now of days. Do you think Facebook has the ability to gain back the youngsters?
DeleteHi Susan, week 3 is coming to a close. I'll be posting a final post in iLearn forum tonight.
ReplyDelete