Professional Communication: project an image, don't be creepy

How to create an image? How to communicate professionalism? Are there standards which can help us enhance the communication strategy?

Study Case

The answers to those questions are correlated and almost impossible to find separately. However, there are quite a lot of companies out there trying to cut down the communication costs while making efforts to score high on image rankings. I have in mind a recent experience from a big international corporation operating in the office space renting business. The experience included both online company research and visiting the local office. The research phase showed non-existing CSR policy, non-existing employee benefits, accusations of careless behavior in connection to the terrorist attack against the World Trade Center a few years back, and company-produced marketing videos. The visit at the local office revealed a high rate of employee turnover, very unusual hiring policy (hiring only for lowest hierarchy positions with no requirements for education and experience, on minimal wage), and deceiving job descriptions.

When walking through the door you are greeted way too eagerly by the staff which makes you almost uncomfortable. What they pride themselves for is great flexibility in services and high level of professional customer service. The only customer feedback is available through the corporate marketing videos though.

Communicational no go

What was observed at that company is an absolute communicational no go. The non existing CSR policy and the lack of personnel benefits in a country as Denmark where CSR is becoming more than a standard and employees are treated with special care as assets is a sign of unprofessional management. The smile of the receptionist is not enough to make up for corporate mismanagement or irresponsible behavior. It also needs to be in line with services, surroundings, corporate culture and needs to be rooted in a thorough policy. Otherwise it comes across as insincere and creepy. Smiling while doing your job needs to be just as professionally distanced as your work style. Are you flirting with the customer or servicing them? Make it clear.

Image: communication standards and guidelines

Image management, even though there is such a discipline, sounds very wrong as image management is nothing but the tip of the iceberg. Hiring a professional to work on your image does not make a lot of sense if you have not clarified what the company stays for and how it wants to be regarded by your stakeholders. Stakeholders are all individuals and groups that are or can be affected by the operating of your business and/or have an interest in your business.

You need therefore to start from identifying your business’ core characteristics and analyzing the strategic stars for your brand. After clarifying what is desired and what is possible you need to get very practical and analyze in what ways your vision and mission can be embedded in your culture and business operations.

While you make considerations about communication practices, image building and communicating your values outside of and inside the company you need to get acquainted with the professional communication standards which will be your guarantee that your communication strategy is not going to backfire by earning you critics or even lawsuits in connection to unethical behavior.

 

After you manage to create a thorough and working communication strategy completely aligned with your business operations you might want to go one step further and consider CSR. There are countless studies showing that a CSR policy is considered a plus and sometimes a definitive criterion for choosing your company as a partner, provider or employer. For the policy to work though, you once again need to be consequent. Just as you need to make sure that you have implemented a communication policy that fits your business profile you also need to do the same when engaging in CSR. If you are not careful about this you might end up being accused of using CSR as a promotional tool instead of as a sincere expression of your concern for your stakeholders and the environment. You might for example decide to fund poor children in Africa but you have to explain why it is the poor children in Africa getting your support and not the local caner organization, for example.

After completing your communication strategy you need to make sure that it covers as a minimum mission, vision, development strategy, internal communication and employee management, HR policy and benefits, corporate culture, online and traditional marketing activities, branding, crisis communication, media relations, external stakeholder management, customer relations specifically, community care and involvement, and CSR.

When you are ready you will find yourself under a stack of thick guidebooks addressing the separate topics. You will have to always make sure that they are aligned with strategy and updated regularly. Among those guidebooks you will find the one describing how you need to treat customers in order to communicate the desired corporate image.

Do you now understand why smiling a lot is not professional but creepy?

 

DIDI

Pricing: Marketing rules you cannot ignore

 Pricing: The necessity of following basic market rules in order to be successful

 

Study Case

In the last few months a lot of consumers in Denmark experienced a shock when the market leader in milk products Arla increased the prices of fresh milk, both ecological and regular, by correspondingly 14 % and 25 %.

 

Otherwise no mystery there, prices do go up more or less on a regular basis. However, the reasoning behind the decision becomes quite unclear when one looks at market rapports quoted by the Danish press showing that demand is falling and the reason seems to be the high price of milk.

Even more mystically, the price of regular milk jumped with 25 % as reported and reached almost the price level for ecological milk. All this despite the fact that other producers still keep prices of regular milk on a price level 33 % lower than the Arla’s prices even after the recent increase of their own prices.

 

The net result for the company is yet to be measured, however the trend is for grocery chains to periodically put Arla milk on offer in an attempt to sell it or bail on it completely (observed at Kvickly, Rema 1000 and Netto, Denmark, September and October 2013). As for the consumers there is little doubt that they will choose the lowest price of the same product class and thus ditch the pricy Arla milk which does not offer anything beyond what other brands are able to provide on a much lower price (see an article on the topic, in Danish!).

 

Pricing

Pricing is usually decided on by conducting marketing research, evaluating demand, and benchmarking with competitors. A company could employ different pricing strategies depending on market position, brand value, product value, availability of alternative products, demand and supply. A market leader can often put pressure on the market by increasing its prices if there is an indication that either competitors will follow or consumers will stay loyal to the brand. The other way around, which also seems to be the case more commonly, the market leader can win the battle with competitors by lowering its prices to levels unreachable for smaller companies.

However, either move has its risks and limitations. While the risks seem to be easier to identify, the limitations are hidden within the corporate policy and corporate marketing strategy. Lowering or increasing prices is not always an option, as for example, a low cost brand cannot out of the blue come up with pricy products marketed as top quality. Similarly, an expensive brand can seriously damage its image by lowering inexplicably its prices only to win customers over.

This is the reason why low cost brands committed to changing business profile to quality need to go a long way. And this is the reason why many regular or expensive brands employ countless discount tricks in order to sell or to attract new customers.

The marketing policy aside, prices need to be compatible with business logic. Increase in prices should mean increase in quality, higher costs along the supply chain, new taxes, or market monopoly. Most importantly, that logic needs to be translated to consumers. They need to understand why they are supposed to buy your brand and pay more for it now than before.

If you skip that simple step you risk losing your otherwise loyal customers. An example can once again be the Danish dairy queen Arla. When they increased their prices in a country still in crisis and with price conscious consumers the result just a month later is almost constant discounts and special offers putting the milk price below the level from before the increase. Would Arla do that if they were not losing too many customers?

The problem with the increase was that it did not make any sense. No higher quality, yet much higher than the average price of competitors and just few Euro cent under the price of ecological milk which traditionally is sold on much higher prices. Why buy it?

To be successful you need to remember that no matter which pricing policy you choose, it is essential to communicate and explain your policy to consumers so that it does make sense to them. Another bonus of communicating openly with your customer stakeholder group is getting important and timely feedback on planned business moves and thus protecting your business and your image from damage.

In two words: to be successful you need to follow clear business polices, to avoid the thrill of a quick win and to establish open communication with your stakeholders.

DIDI

Influencers and how to become one yourself

Influencers: The Stakeholders who own you and the Stakeholders you can lead

 

When living our lives no matter whether as individuals or as a part of organizations and the business we often make choices or have opinions which do not represent who we truly are. Sometimes we “catch” ourselves making those unnatural steps but most of the time we become unknowingly who our choices make us. The reason is that we are not born free. We are limited in so many ways by laws, culture, education, religion, etc. that we have grown up used to the idea that we must obey the rules.

Rules are indeed very important, if not the very core of society in all its forms. However, growing so obedient we have become slaves to many more rules than it is necessary in reality. Examples can be fashion, music, group rituals, diets, exercise, lifestyle in general, etc.

You will probably ask why we buy certain clothes or go to a certain club? You will not be the only one. Every business no matter how big or small wants to know that.

We do so because we are “told” so. Among us who obey there are also the so called influencers. Those are individuals who are a part of the groups to which we belong and who do not always stay ahead and behave as leaders. Those are simple people who speak the language of the crowd and understand its mechanisms. Of course, influencers are also often also public figures who beforehand have groups of followers.

Influencers are important for business from two points of view – as possible promoters/anti-brand activists and as trend creators. In the first case we talk about marketing efforts or restoring brand communication. Needless to say, this may mean the success or the failure of a brand. In the second case we talk about researching and detecting future trends predicted by behavior of influencers. Using this method can help channel the business efforts in the right direction.

This is also the reason why companies try to attract influencers as their employees or as their loyal consumers. But they fail to understand that being an influencer by “buying” an influencer’s voice is not the best practice. The reason is both that public figures are overused as corporate faces and “private” influencers are often individuals who succeed as such thanks to their strong, honest voice rooted in SOME principles. That is to say that there are no universal influencers. Somebody who is known as knowledgeable in nutrition will without a doubt be as useless to McDonald’s as they would be to Siemens if they start promoting hamburgers after swearing off all fast food throughout all their lives.

There are of course many “sneaky” ways to include an influencer’s voice in the corporate marketing but one should always beware that if an influencer is used in an attempt to manipulate the public and this information is leaked out of the organization great damage might be expected brand-wise.

The truth is that the times of manipulation are over. The only winning strategy for a company is to answer the demand, be honest and responsible. Getting the attention of influencers depends on a company’s ability to predict trends and act on them, cooperate with the public and always be a step ahead of competition.

This is the only way a company can become an influencer itself. However, besides being a market leader one way or another, the company should understand what makes one an influencer – a strong honest voice, rooted in clear principles. Companies need to understand that if they have a stand there will be somebody who will want to listen. And follow.

Global or local marketing strategy?

 

Today globalization means much more than travelling or drinking Cola all around the world. For companies it means a series of urgent questions and strategic decisions which are always due yesterday. A firm has generally few options – to operate locally while competing with local and global competitors, to operate globally while competing with global and local competitors, and to operate globally with localized strategies, thus to compete with global and local competitors as a local entity with the advantage of being a global company.

Each of these strategies makes sense in a certain context. Operating locally is mostly possible when we talk about small companies as with a company’s expansion its market necessarily also expands. However, there are several pluses which small companies should take advantage of. Firstly, it is fairly easy to network, create and manage strong relations with your local community. This way one can ensure loyalty and support for the business. Secondly, engaging in CSR is easy and effective. It is also incredibly visible within the community. Last but not least, one could profit from developing unique partnerships with local suppliers and other companies creating a desirable or protective business climate in the area. It is important to remember that investing in a community gives you some negotiated rights but it also gives you possibilities to control and develop your business environment.

Usually it is advised that strong and established global brands follow a global strategy. That means that a unified marketing strategy with minimal adjustments as language or other small details important at local level is implemented. Examples here are brands as Coca Cola, Harley Davidson, etc. Normally those brands have already been heavily marketed on both established and new markets so their arrival is anticipated and all values attributed to them are incorporated in consumer minds.

As great as that sounds it does have its downsides. Cultural differences, rivalry between countries or religious differences can trigger a market failure for a product marketed in such a way. On top of that one should always be on the watch for anti-globalists as their voice can be pretty loud and their arguments loaded with tragic emotion do affect many consumers and communities. Once again we could take Coca Cola as an example suffering in Asia from its way-too-American branding. The anti-American movement in many of those countries turned a few years ago into a campaign against all American products. Brands like Coca Cola were the main target.

Furthermore, global brands are attributed descriptions as impersonal, money-machines, mass production garbage, killers of culture and local business, invaders, etc.

So one could ask oneself – why market globally?

Just as mentioned above the globalization of a brand makes sense in certain cases. Marketers calculate expected profits and losses in connection to different strategies and if it turns out that losses are not expected to be major or are predicted to present a lesser cost than localizing the global strategy, it is a rational choice to go for global.

However, such a choice is quite more complicated. It also depends on what type of a product or service we offer and what are the standards in the countries where it will be marketed. Some products as toothpaste are generally expected to have similar qualities all around the world and can therefore be marketed globally with almost no necessary modifications. However, marketing something like cigarettes or alcohol which is a subject of a number or local regulations or something like lingerie the commercial of which might simply be banned in some countries as a result of moral censure presents us with a challenge. It requires consideration of a long list of factors highlighted by a thorough research of different prospect markets. That is what is called localized strategy.

In such a case a brand is built around a tight unbendable value core around which the product/service is shaped to meet market needs and requirements. Corporate policy though focuses not only on selling its product but on being accepted by local communities. That is necessary especially in controversial markets but is always advisable.

Allowing your branches to work semi-independently strategy-wise allows for local adjustments and for true involvement with the local community. Such a strategy which incorporates CSR elements benefitting local communities and developing a dialogue with them helps counteract the negative perceptions in connection to being a global brand and creates an environment of trust and mutual support. Needless to say, that will greatly affect sales.

However, there are also some cases where such a global – or multi-branch – company does not have a choice but to allow for independency and local policy for their branches. Such a case I have seen. Factors there were completely different core competences of employees, completely different customer base, different levels of popularity of company name in the two locations, different practices, different expectations and requirements of market based on some cultural differences, and so on. Incredibly enough, the goal was maximal unification – instead of maximum profit or efficiency. The result, not so incredibly, was a struggling local branch.

That is why making a decision concerning your global strategy should be based on thorough research and several major considerations:

1. What are the pluses and minuses of marketing globally?

2. What are the pluses and minuses of marketing locally?

3. What are the expectations of our main consumer base?

4. What are the needs and expectations of our prospect consumers?

5. Is our product/service replicable or it will be modified when entering the new markets?

6. What characterizes the new markets?

7. Who are our competitors? Is it at all worth it to enter certain market?

8. Are there strong local communities? Should we approach them? How?

9. Does our advertising need modification?

10. Are there some religious, cultural or other rules we should respect?

11. How will entering the new market affect our established market and our brand?

Those are just some general concerns which will likely have to be modified in accordance with your specific business, product, and of course market. The main point is that in marketing there are no simple decisions as the right decisions are based on facts, data, and prognoses. 

That is why no matter the size of your company or the budget you have, do yourself a favor and spend as much as needed on strategy. Otherwise you risk spending more on failed strategy.

DIDI