Stakeholder Management Semester 2 By: Michelle Ratnasothy

What is stakeholder management? “Any group or individual who can affect or is affected by the achievement of the organisation's objectives”

Key concerns… Strategic stakeholders: can affect an organisation and must be managed so objectives can be achieved Moral stakeholders: are affected by the organisation so need to be aligned with the organisation Stakeholders can be a member of more than one group Each group needs to be communicated with in different ways so consistent messaging is vital

Elements of stakeholder management There are two major elements to Stakeholder Management: Stakeholder Analysis is the technique used to identify the key people who have to be “won over” You then use Stakeholder Planning to build the support that helps you succeed.

Stakeholder Power Positional e.g. authority Resource e.g. control, obtain and create thereby influencing System e.g. network power via connections Expert e.g. through expertise and reputation Personal e.g. charisma and personality

Mendelow Matrix Level of Interest Power LowHigh Low A Minimal effort B Keep informed High C Keep satisfied D Key players

Exercise… Apply the Matrix for your organization

Pressure Groups A pressure group is an organized collection of people who seek to influence political decisions and policy. There are 3 main types: – Business Groups e.g. Confederation of British Industry, FSB – Professional Bodies – Groups e.g. Greenpeace, Amnesty, NSPCA

How to manage Pressure Groups? Isolate & discredit Ignore Cultivate and educate Engage in dialogue

Who is your reference group? Celebrity? Endorsement ? Opinion leader? Word of mouth Industry Body?

The benefits to the firm: the relationship marketing ladder Emphasis on winning customers (Customer catching) Emphasis on developing and enhancing relationships (Customer keeping) PARTNER SUPPORTER CLIENT CUSTOMER PROSPECT ADVOCATE

Characteristics of relationship marketing Long-term orientation or horizon Commitment and fulfillment of promises Customer share, not market share Customer lifetime value Two-way dialogue Customization

Relationship Life Cycle Model Awareness Knowledge Consideration Selection – trial Satisfaction Loyalty Advocacy

Q&A