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2. MPR and the Organization It Serves
Chapter 3
MPR and the Organization It Serves
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3. Chapter Objectives
1. Explain how MPR serves an organization in marketing, employee relations, and investor relations capacities. 2. Discuss how changes in technology and consumer attitudes have contributed to changes in firms’ management philosophies over time. 3. Illustrate how MPR supports an organization’s strategic plan and implementation. 4. Describe MPR’s role in creating brand authors. 5. Explain the importance of MPR in building and supporting a brand value. 6. List and explain the five elements of S.M.A.R.T. goal setting.
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4. Human Resources
The division of a company that is focused on activities relating to employees. These activities normally include recruiting and hiring of new employees, orientation and training of current employees, employee benefits, and retention.
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5. Employee Relations
A public relations function that deals with managing communication with existing and prospective employees
Through…
company newsletters (both paper and electronic)
informative s
message board postings (again, both paper and electronic)
meetings, seminars, or other types of group sessions.
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6. Investor Relations
A public relations function that manages the communication between a publicly held corporation, its shareholders, and the media and analysts who report on the corporation’s financial situation
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7. Investor Relations and MPR
By demonstrating good corporate governance and greater transparency, investor relations can help achieve overall business objectives.
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8. Other business functions and MPR
Employee contact with customers, vendors and general public
Employees share opinions about the company and its product with others outside of the company
Consistent and positive message is key
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9. Corporate Governance
A generic term that describes the ways in which rights and responsibilities are shared between the various corporate participants, especially the management and the shareholders
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10. Publicly Traded Companies
Companies that have issued securities through an offering and that are now traded on the open market
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11. Stock
An instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporation’s assets and profits
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12. Transparency
Essential condition for a free and open exchange whereby the rules and reasons behind regulatory measures are fair and clear to all participants
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13. Vendors
Companies that supply parts or services to another company; also called supplier
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14. Mission A firm’s core purpose and focus
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15. Vision
An organization’s aspirations in the mid- term or long-term future. It is intended to serve as a clear guide for choosing current and future courses of action.
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16. Southwest Airlines
Southwest uses MPR-rooted tools to facilitate “employee branding” that simultaneously increases employee satisfaction and reduces employee turnover while increasing customer satisfaction and loyalty.
SW Makes sure that all messages emanating from the organization align with its mission and vision
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17. Evolution from Production Concept to Interaction Concept
Selling
Marketing
Societal Marketing
Interaction
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18. Production Concept
A business philosophy that assumes that consumers will favor the most widely available and attractively priced products
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19. Product Concept
A business philosophy that assumes that consumers will favor products with a higher degree of quality, performance, and available features
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20. Selling Concept
A business philosophy in which companies focus on large-scale promotional and selling efforts in order to gain market share
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21. Marketing Concept
The business philosophy of centering an organization’s goal on satisfying the needs of the customer
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22. Societal Marketing Concept
A business philosophy that goes beyond concentrating on the consumer and considers the long-term interests of society at large
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23. The Interaction Concept
A business philosophy that assumes that a firm’s two-way interaction with customers is essential to long-term profitability
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24. The Business Strategy Diamond
Arena
Staging & Pacing
Vehicles
Economic Logic
Differentiator
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25. MPR and the Strategic Plan
Economic Logic: The means by which an organization realizes a return on its investment
How will returns be obtained?
Lowest costs through scale advantages?
Lowest costs through scope and replication advantages?
Premium prices due to unmatchable service?
Premium prices due to proprietary product features?
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26. MPR and the Strategic Plan
Arena: The combination of products a firm offers and the distribution channels it uses to get the products to the consumer
Where will we be active (and with how much emphasis)?
Which product categories?
Which channels?
Which market segments?
Which geographic areas?
Which core technologies?
Which value-creation strategies?
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27. MPR and the Strategic Plan
Vehicles: The mechanisms for a firm to enter or conduct business within a given arena and to achieve its goals
How will we get there?
Internal development?
Joint ventures?
Licensing/franchising?
Alliances?
Acquisitions?
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28. MPR and the Strategic Plan
Differentiators: The attributes of a company or product that create its competitive advantage in the marketplace.
How will we win?
Image?
Customization?
Price?
Styling?
Product reliability?
Speed to market?
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29. MPR and the Strategic Plan
Staging & pacing: The speed and sequence of implementing a strategic plan
What will be our speed and sequence of moves?
Speed of expansion?
Sequence of initiatives?
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30. Brand authors
The companies, customers, and influencers, along with popular culture, who create the stories, images, and associations between brands and consumers
Authors can take one of four forms:
1. Companies
2. Popular culture
3. Customers
4. Influencers
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31. Shared taken-for-granted brand stories, images and associations
Brand Culture
The firm
Popular Culture
Bra
Brand Stories
Brand Culture
Shared taken-for-granted brand stories, images and associations
Brand Stories
Brand Stories
Brand Stories
Influencers
Customers
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32. Companies
Use MPR to create stories, images and associations for its products within popular culture, with customers, and among connectors
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33. Popular Culture Films Television Print Internet Host events
Create contests
Position product as expert of some larger issue
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34. Customers Create stories they share through WOM
MPR helps customers share consumption stories
Facebook and other web-based technologies help customers share their stories
Fiskars® connects with its customers by encouraging them to share their experiences at the “Fiskateers” Web site.
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35. Consumption Stories
Stories created by consumers about how they use or consume products, which they then share with their friends and which become the fuel for word-of- mouth
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36. Influencers
Media, groups, or individuals who act as channels for a marketing message resulting in media mentions or the creation of word-of-mouth;
Synonymous with connectors
Including media, product mavens, experts
e.g., Oprah’s “Favorite Things List”
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37. Building and Supporting Brand Value
1. Reputation value
2. Relationship value
3. Experiential value
4. Symbolic value
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38. S.M.A.R.T Goal-Setting
1. Specific
2. Measureable
3. Attainable
4. Realistic
5. Tangible
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39. Concept Case 3.1: Falcon’s Lair
Strategy 1. How would using a low-cost, average-quality strategy as their economic logic impact the other elements of the Business Strategy Diamond? 2. Describe some specific things the owners of The Falcon’s Lair can do to increase the interaction with customers that reflects their positioning statement. Be sure to consider initiatives conducted in the store, on the Web, at an event, or any combination of the three. 3. Explain how staging will come into play as the owners of The Falcon’s Lair plan their strategy.
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40. Concept Case 3.2: Falcon’s Lair
Brand Authors 1. Describe how popular culture influences your perception of a particular retailer, brand, or product. 2. Discuss one way that The Falcon’s Lair can encourage customers to share their consumption stories. 3. What might interest the local and national media covering The Falcon’s Lair? How would local and national interests differ? 4. How might The Falcon’s Lair partner with its vendors to create brand authors?
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41. Concept Case 3.3: Falcon’s Lair
Brand Value 1. Describe another opportunity for creating brand value at The Falcon’s Lair. 2. Explain which brand authors will be instrumental in communicating brand value to customers and why.
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42. Concept Case 3.4: Falcon’s Lair
Goals 1. What are the strengths and weaknesses of these goals? 2. How could you improve them? 3. Are there any goals you would add?
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43. Reflection Questions
1. How is MPR different from employee relations and investor relations? 2. How do MPR, employee relations, and investor relations affect each other? 3. Explain the changes in business orientation over the course of the last century. Start with the production concept and end with the marketing concept. 4. What is the interaction concept and why might it replace the marketing concept as the dominant business orientation? 5. Define each of the five elements of the Business Strategy Diamond and discuss how MPR contributes to each element.
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44. Reflection Questions (continued)
6. Discuss MPR’s role in branding. 7. What are the various types of brand story, image, and association authors? 8. Define the concept of brand value and discuss its different forms. 9. Discuss the difference between goals and objectives. 10. What are the five elements of S.M.A.R.T. goal setting?
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45. Practice Portfolio
Explain how the MPR function fits into the overall strategy of your practice company. (Hint: Think about MPR’s role in each of the five elements of the Business Strategy Diamond.)
Develop a list of goals for establishing and maintaining your brand that can be facilitated by MPR. (Remember that goals are long-term and strategy-focused. You will set specific objectives as you progress through the text.)
Describe how your company will use MPR to engage external authors in developing its brand stories, images, and associations.
Describe your company’s brand value and categorize the different elements of value by the four brand value components discussed in the chapter. (Remember: Not every company has brand value in each of the four components, and a given company may have multiple brands that offer different value sets.)
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