Stakeholder Marketing Session 1

Stakeholder Marketing : Stakeholder Marketing Session 1

What are Stakeholders? : What are Stakeholders? Individuals or groups who have a legitimate interest or stake in an given organisation.

Process versus Outcome stakeholders : Process versus Outcome stakeholders Process stakeholders have an interest in the process by which an outcome is reached Outcome stakeholders have an interest in the outcome of a strategy, project or decision.

Categories of Stakeholders : Categories of Stakeholders Internal stakeholders Connected or primary stakeholders: they have an economic or contractual relationship with organisation External or secondary stakeholders: who are directly connected but have an interest in its activities or impacted by them.

Provide examples of each of the stakeholders : Provide examples of each of the stakeholders

For an organisation of your choice identify the relevant stakeholders and categories then as internal, connected and external stakeholders. : For an organisation of your choice identify the relevant stakeholders and categories then as internal, connected and external stakeholders.

The nature of the stake : The nature of the stake Market or contractual Participation or contribution Influence Interests

Types of interests : Types of interests Multiple interests Conflicting interests Dovetailing interests

Sources of Stakeholder Influence : Sources of Stakeholder Influence Legitimate power Expert power Resource power Referent power Coercive power

Stakeholder view of the firm : Stakeholder view of the firm Organisations are rarely controlled by shareholders Organisations benefits from contributions of various stakeholders Business activities impact on stakeholders

Arguments against stakeholder view : Arguments against stakeholder view You cannot be accountable to everyone or you risk being accountable to no-one People may have interests but it does not give them rights The legitimate purpose of business is to create shareholder wealth Not all shareholder demands can be legitimately balanced.

Stakeholder Impact on Marketing : Stakeholder Impact on Marketing They can influence marketing decisions They can be markets in their own rights They may contribute to marketing activity They can undermine marketing activity They sustain marketing activity

Key stakeholder groups : Key stakeholder groups Internal stakeholders Managers Employees Connected stakeholders Shareholders Customers Financial lenders Suppliers Intermediaries External stakeholders ????????????

Stakeholder Analysis : Stakeholder Analysis Stakeholder audit A systematic process of identifying stakeholders and assessing the effectiveness of current organisational strategies to them.

The Stakeholder Audit : The Stakeholder Audit Identify the main stakeholders. Identify the needs/interests of each stakeholder. Determine their power/influence and potential impact on the organisation. Determine the current organisational strategies for each stakeholder group. Identify any problems or issues arising from the handling of stakeholders or particular stakeholder group.

Stakeholder Marketing : Stakeholder Marketing Goal analysis Desired outcomes Stakeholder marketing: communications, messages, who influences them etc Issue management: identifying differing goals etc Danger signals: behaviours that indicate that there is a problem.

Stakeholder mapping (Mendelow 1985) : Stakeholder mapping (Mendelow 1985) Minimal effort Keep informed Keep satisfied Key players (participation) High Low Low High Power Interest

Participant Stakeholder Framework : Participant Stakeholder Framework Partners…..little interaction Allies………encouragement Fellow travellers……intense rapport Bedfellows Fence sitters……assess their position Loose cannons…. Opponents…..convert Adversaries….marginalise or discredit The voiceless….give attention

Ethics : Ethics A set of moral principles or values about what constitutes right and wrong behaviour. Marketing ethics are the moral principles and values that guide behaviour within the field of marketing. Product safety Truthfulness in marketing communications Honesty in relationships, Pricing issues and impact of marketing decisions on environment and society.

Corporate Social Responsibility (CSR) : Corporate Social Responsibility (CSR) A wide range of obligations that an organisation may feel towards its secondary or external stakeholders including the society in which it operates.

Layers of CSR (Carrol and Buchholtz, 2007) : Layers of CSR (Carrol and Buchholtz, 2007) Economic Legal Ethical Philanthropic Some key areas CSR policy include; Environmental responsibility Ethical trading Human rights Equal opportunities Sustainability

Benefits of CSR : Benefits of CSR

Pressures for CSR : Pressures for CSR Consumerism Environmentalism Ethical consumption

Role of Marketing in CSR : Role of Marketing in CSR Physical environment…..sustainable marketing Social…….societal marketing and cause related marketing Consumer………societal marketing Supply chain….fair trade marketing Employee relations …..internal marketing

Societal marketing concept : Societal marketing concept The key task of an organisation is to satisfy the needs and wants of its target markets more effectively and efficiently than its competitors and in such a way that it preserves or enhances the consumers’ and society’s well being.

Cause Related Marketing : Cause Related Marketing Refers to marketing activities in which a business forms a partnership or association with a charity or cause, in order to jointly promote a product, brand or issue for mutual benefit.

Fair Trade Marketing : Fair Trade Marketing The development, promotion and selling of fair trade brands and the positioning of organisations on the basis of a fair trade ethos (Jobber,2007)

Internal Marketing : Internal Marketing Programmes for developing, motivating, informing and involving employees in such a way as to enhance their ability to provide customer service, satisfaction and value.

Issues Management : Issues Management Is a proactive process of monitoring potential controversies or public relations problems in relation to the business, and initiating communication programmes to manage public perceptions about them. A management activity intended to bring some control to the impact caused by the discontinuity of the environment.

Crisis Communications : Crisis Communications Is the issuing of emergency communications to minimise or counter the negative PR effects of the crisis. What might be called a crisis for an organisation?

Pressure Groups : Pressure Groups A pressure group is a group of people who have got together to promote a particular cause or issue (causal pressure group) or to promote the interests of a particular constituency (sectional pressure group).

Methods used by pressure groups : Methods used by pressure groups Influencing government policy Raising public awareness Using legitimate power to influence organisations Offering information and advice Offering opportunity to gain CSR, ethical or environmental credentials.

Impact of PG on organisations : Impact of PG on organisations Change corporate strategy Develop new products Change business processes

Managing PG’s : Managing PG’s Planned communications. Developing relationships Developing marketing approaches e.g cause related marketing Develop specific products and service messages Issues and crisis management.