Tuesday, February 4, 2014

The Importance of Strategic Communications



A strong communications strategy is critical
for organization success.
Image via Creative Commons.
Strategic Communications

The team of Argenti, Beck, and Howell (2005) assert that, for organizations today, “developing an integrated, strategic approach to communications” is critical to success (p. 83). I absolutely agree with this characterization of communications as a key part of any company’s strategy. In our increasingly social world, we’ve seen a significant increase in the demand for corporate transparency; we’ve also seen several blunders from brands that have not prioritized the development of a communication strategy, especially in times of crisis. Aligning communications with corporate strategy, as Argenti, Beck, and Howell (2005) suggest, ensures that various constituents understand a brand’s purpose, vision and function – and encourages audiences (both internally and externally) to “move behind it” (p. 83-84). 

Integrating the Message

This concept of strategic communication is the driving force behind the practice of integrated marketing communication (IMC): that messages emanating from every channel related to a brand are clear, consistent and in line with corporate strategy. Each communication-related function (media relations, employee communications, investor relations, etc.) serves a specific role within an organization, but these often-separate departments must work in harmony to ensure a brand’s message is effective across all channels by all audiences. 

In order for strategic communications and IMC to be effective, an organization must understand the kinds of messages to deliver to each audience, and how to deliver messages. This chart explains the various communication functions within an organization, the objectives of each function, its constituencies and channels (Argenti et. al, p. 87). 

Social Media and Transparency


Social media offers yet another way for organizations to engage with constituencies, and gives organizations an opportunity to implement communication strategy in real time. Argenti, Beck, and Howell (2005) noted that “effective strategic communication is based on truth” (p. 87). According to Gleeson (2012), utilizing social media “ensures a certain level of accountability” from an organization (para. 8), thus building trust and loyalty from audiences.

Alignment

Created by Kait Smith
Qualman (2013) said, “As a result of our ability to have constant connectivity, people believe that immediate, simple, and constant communication matters” (p. 149, para. 1). This belief effectively summarizes the need for strategic communications and how social media can enhance brand communication. In order to build trust among constituents and to keep a brand on the forefront of audiences’ minds, everyone within an organization must be on the page. Having a communications plan in place – and using the right channels to deliver messages – keeps an organization relevant, builds trust, and positions it for future success.

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References:

Argenti, Howell, & Beck (2005). The strategic communication imperative. MIT Sloan Management Review. Retrieved from https://www.dartmouth.edu/~opa/communicators/fall08/reading/Sloan_MIT_Strat_Comm_Imp.pdf

Gleesen, B. (2012, Oct. 31). 6 ways brands build trust through social media. Forbes. Retrieved from: http://www.forbes.com/sites/brentgleeson/2012/10/31/6-ways-brands-build-trust-through-social-media/ 

Qualman, E. (2013). Socialnomics: How social media transforms the way we live and do business. Hoboken, NJ: Wiley.

16 comments:

  1. Hey Kait, I agree that strategic communications is very important for any company’s strategy. You mentioned, "we've seen several blunders from brands that have not prioritized the development of a communication strategy, especially in times of crisis." Are there any specific "blunders' that stand out to you?

    I liked that Scott touched upon the example with Penn State and the Sandusky scandal. He mentioned, "The right approach is to be honest and forthright. Communicate the facts quickly and don't hide. Assign a visible spokesperson. Silence and “no comment” are the enemy" (Scott 2013).

    I completely agree with this statement. The only way out of a crisis is to admit your fault and figure out a solution. If you stay silent, it's almost like you don't care and consumers will assume you are doing nothing to resolve the issue.

    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. 273). Wiley. Kindle Edition.

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    1. Amanda,

      In specific regard to crisis communication, one of the biggest blunders I can think of is BP's initial response to the Gulf Coast Oil spill in 2010. Initially, they didn't accept responsibility, and the messages coming from BP's direction - primarily from CEO Tony Hayward - communicated "a lack of transparency, a lack of straight talking and a lack of sensitivity to the victims" (Bergin, 2010). We learned in this week's reading that truth, authenticity, transparency and respect for audiences are critical aspects of strategic communications.

      Another point worth mentioning in regard to BP - because they weren't active on social media before the crisis, a parody account under an official name (@BPGlobalPR) emerged, wreaking even more havoc on the organization's reputation.

      Kait

      Reference:

      Bergin, T. (2010, June 29). Analysis: BP PR blunders carry high political cost. Reuters. Retrieved from: http://www.reuters.com/article/2010/06/29/us-oil-spill-bp-pr-idUSTRE65S3JL20100629

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    3. I think I agree with you on most of your points, and BP bungled the communications badly in the early going. The communication protocol they followed certainly didn't promote their ability to generate the credibility that is so important for companies in time of crisis (Argenti, Howell & Beck, 2005).

      Have you been involved in creating an emergency response communications plan? If so, what was the trickiest part?

      It's also interesting that you bring up the faux accounts that were created. Seems the oil and gas industry can be a target for that. Look at the article here about <a href="http://www.forbes.com/sites/kashmirhill/2012/07/18/shell-oils-social-media-nightmare-continues-thanks-to-skilled-pranksters/>Shell being hoaxed by Greenpeace.</a>

      Any suggestions on how to fend off, or at least deal with, this "identity theft" when it occurs?

      Mike

      References:

      Argenti, Howell, & Beck (2005). The strategic communication imperative. MIT Sloan Management Review. Retrieved from https://www.dartmouth.edu/~opa/communicators/fall08/reading/Sloan_MIT_Strat_Comm_Imp.pdf

      Hill, K. (Jul 18 2012). Shell Oil's social media nightmare continues, thanks to skilled pranksters behind @ShellisPrepared. Forbes. Retrieved from http://www.forbes.com/sites/kashmirhill/2012/07/18/shell-oils-social-media-nightmare-continues-thanks-to-skilled-pranksters/

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    4. Yes, the BP crisis was a great example. Another example is the Home Depot "racist" post featured here: http://www.huffingtonpost.com/2013/11/08/home-depot-racist-photo_n_4241039.html

      Even after the post was submitted, their process to fix the solution was horrible. They directly tweeted people to apologize - except they tweeted people who never even commented on the original post (Bhasin 2013).

      That's why it's so important for PR & Marketing to have a crisis plan in place before the issue escalates out of control.

      This article from Huffington Post outlines 4 steps to help companies prepare for and resolve a social media crisis: http://www.huffingtonpost.com/yaniv-masjedi/social-media-crisis-advice_b_3624588.html

      If Home Depot used a tool like Hootsuite, they could have accurately responded to tweets people sent rather than send automated tweets to those that never even tweeted.

      References:

      Bhasin, K. (2013, November 8). Home Depot Tweets Racist Photo, Scrambles To Apologize. Retrieved February 8, 2014, from http://www.huffingtonpost.com/2013/11/08/home-depot-racist-photo_n_4241039.html
      Masjedi, Y. (2013, July 19). Step-by-Step Guide to Handling a Crisis on Social Media. Retrieved February 8, 2014, from http://www.huffingtonpost.com/yaniv-masjedi/social-media-crisis-advice_b_3624588.html

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    5. Good points, and the Home Depot tweet is another example of bad social media.

      I like hootsuite as a tool, and use it at work when managing my department's social media accounts. It would have been a good tool for Home Depot to use during their crisis. I also am wary of hootsuite for the scheduling feature; though it comes in handy, it's easy to forget about what you've scheduled and how it may be impacted by current events. For example, during my first year on the job (and while I was still building my office's social following) I pre-scheduled tweets alerting students of events on campus. Following an off-campus tragedy, one game was cancelled - but the tweet still went out. Fortunately it was caught quickly enough (and our audience was small enough) that the blunder didn't cause an uproar, but it was a good lesson for me as an aspiring social media manager!

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    6. Hi Amanda,

      Good contribution with the Home Depot example, and "horrible" is a pretty good way to describe how they responded.

      Do you folks think that companies tend to forget that social media is just that -- "social"? Ordinary business-speak doesn't work as well as one-to-one interaction. I know that in times of crisis, which also tend to lead to time of litigiousness, companies become more conservative, but sometimes using a more human tone can alleviate tension.

      Mike

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  2. Amanda -- what a great idea -- horror stories!

    Everyone learns from someone's else's challenges. Are there specific "blunders" either of you can cite where brands either got off message, or provided mixed messages, and then suffered for it either in perception or lost revenue?

    Also, Kait, about your last point. Yes, everyone believes communication will grow more and more constant, particularly since its getting easier and easier to access information. Is there a point in your view where we reach saturation? Or, does the evolving world of targeting to more and more granular levels compensate? Could you see a point where everything is too granular?

    Mike

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    1. Mike,

      I think the BP example I discuss in response to Amanda's question is a true horror story in how poor communication can wreck a brand's reputation. Amanda's Scott quote ties in well to the lesson that BP can teach us.

      I absolutely think a point of communication saturation can be reached, which is why strategy is critical. Rather than using every which medium available for communication, brands should determine which touch points have the maximum effect for their desired audiences. This Forbes article gives some nice advice for brands looking to maximize their social impact. One big takeaway: do proper research to know where your customers are spending their time online (DeMers, 2014).

      Kait

      Reference:

      DeMers, J. (2014, Feb. 4). The confluence of content and social media: Insights for success in 2014. Forbes. Retrieved from: http://www.forbes.com/sites/jaysondemers/2014/02/04/the-confluence-of-content-and-social-media-insights-for-success-in-2014/

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    2. Yes, the Domino's video prank of 2009 definitely hurt the companies reputation. Essentially, two co-workers uploaded a video on YouTube of them doing some disgusting things that definitely went against health codes while working.

      There video causes a lot of negative impact for the company. Not only did it ruin their reputation, but they lost a lot of money as a result of people second-guessing themselves about going back their to eat.

      Also, "the franchisee brought in the local health department, which advised him to discard all open containers of food, which cost hundreds of dollars" (Clifford 2009).

      Source:
      Clifford, S. (2009, April 15). Video Prank at Domino?s Taints Brand. Retrieved February 13, 2014, from http://www.nytimes.com/2009/04/16/business/media/16dominos.html?_r=0

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  3. Kait,

    I agree with your last paragraph, strategy is critical and choosing how to address specific targets is important in implementing the right communication medium. I agree more with the fact that organizations should be aware of how the public is conversing about their brands so that they can better align their communication strategy. With regards to the crisis mode example of BP, the public perceived their silence as ignorance when something as simple as acknowledgment would have made the difference. It seems that prior to social media being a hub for discussions like this, it was tolerated when organizations commented that they "had no comment at this time", but because social media engagement is instant, our expectation for a call to action is equally as instant.

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  4. Kait,

    I thought it would be interesting to get your thoughts on some news that was reported this week. Forbes Magazine reports that LGBT activists are highjacking Coca Cola and McDonald's social media accounts in protest over the companies' sponsorship of the Olympics in Russia (Dan, 2014).

    How would you be handling this is they came to you for help? Would you have done anything differently on the front end to avoid, or at least adjust, to this action?

    Mike

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    1. Mike,

      This is a really interesting question. As an undergrad I took a class called "Olympics and the Media" during the previous winter Olympics in Vancouver. We talked a lot about sponsorship of the games, and the official IOC Olympic Partner Program.McDonalds and Coca Cola are two of the official sponsors of the games, so they are in a unique position. But that doesn't excuse their lack of preparation for the LGBT rights backlash!

      I think these companies need to send out a message that they support human rights. Though not an official sponsor of the games, Google has done an effective job of showing support by way of their human rights Google Doodle.

      I believe that the buzz about human rights issues and anti-gay laws in Russia began long before the games did, so some preparation and additional research may have benefit McDonalds and Coca Cola. What they need now is to show that they are supporting the games and the athletes - not the archaic laws of the current host country.

      Great question!

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    2. The amazing thing about this is that they seem to have been caught almost totally off guard. It's not like this issue just cropped up, it's been brewing for months.

      To me, they lost an opportunity to really pound the point that they were, in fact, being supportive of people from all walks of life because the Olympics brings those people together.

      They seemed to be absent from the conversation on their own platforms initially and then, once the momentum had swung, just sought to get out. Better interaction on the front end might have helped mitigate the impact while also showing them willing to be transparent about what for them is a sticky issue.

      Mike

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  5. It amazes me how the various departments within an organization can operate so independently without communicating with one another. I agree that where the company’s image and brand message are concerned, all departments must work in harmony.

    I really like the chart you reference on p. 87 of Argenti, Howell & Beck (2005). It allows the communications professional the ability to clearly define the communications functions, objectives, constituencies and channels. I, personally, have difficulty conceptualizing a multifunctional process in my mind. A chart, diagramed in black and white such as this, would help me organize my strategy and feel more confident and coordinated in my approach.

    The transparency that social media best practices encourage is such a great benefit to society on a whole. It is just another example of the tremendous positive impact that social has had on our world. McDonald’s took great strides to be more transparent with its “Our Food. Your Questions.” campaign. In one segment, viewers were taken behind the scenes at a Big Mac photo shoot to answer this consumer question: “Why does your food look different in the advertising than what is in the store?” It is a really interesting video and worth a peak: http://www.youtube.com/watch?feature=player_embedded&v=oSd0keSj2W8

    Argenti, Howell, & Beck (2005). The strategic communication imperative. MIT Sloan Management Review. Retrieved from https://www.dartmouth.edu/~opa/communicators/fall08/reading/Sloan_MIT_Strat_Comm_Imp.pdf

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  6. Susan,

    Thanks for sharing the McDonald's example. That brand has come up a lot during discussion this week; Mike referenced it in a comment above and I just spoke about it on our classmate Adrienne's blog. It seems this our food, your questions campaign was primarily in Canada. I wonder how it would go over here in the US?

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