Godson: Relationship Marketing

Chapter 7: External Relationships

Stakeholder

Anyone who can affect, or be affected by the actions of

the organization

Normative Groups

Power of authority – can withhold resources and back actions

• Governments• Regulatory bodies• Professional associations• Shareholders and financiers

Diffuse Groups

Concerned about protecting the rights of themselves or others

• Environmentalists• Community and special interest groups• Public opinion leaders• Campaigning journalists

The Real Customer is not Always Found in the Market

Supplier Customer

LegislationControl

Influence

Lobbying

• A form of public relations• Requires the right connections to people in high

places• Can involve forming partnerships with competitors or

others in the same industry• Larger organizations may have a Regulatory Affairs

department

Relationships with Lenders and Financial Bodies

• Managed through financial or corporate PR

• Loyal shareholders are an asset

• Financial analysts can have a huge impact on the business

Relationships with Pressure Groups and Publics

• Consumer groups• Environmentalists• Human and animal rights activists• Politically or ideologically motivated groups or

individuals• Local communities• Public opinion leaders

Examples of Other Influencers

• Tescopoly• Friends of the Earth• 'Meat is Murder'• Campaign for Real Ale• Jamie Oliver

etc…

Corporate Social Responsibility

“an organization’s wider responsibilities to society in general”

Is this compatible with profitably satisfying consumers?

Managing Media Relationships

Know your media…

• News reporters and editors

• Investigative journalists

• Professional sector journalists

Examples of Charismatic Business Leaders

• Sir Richard Branson - Virgin

• Dame Anita Roddick - Body Shop

• Sir Alan Sugar - Amstrad

• Gerald Ratner - Ratners Jewellers

Types of Collaboration

Tacit agreements

Business networks

Trade associations and alliances

Joint ventures agreements and

alliances

Internal External

Informal

Formal

Organizational Alliances

• Formal partnership• Joint Ventures

• Consortia

• Licensing agreements

• Co-marketing or branding

• Management contracts

Problems with Alliances

• Short-termism to reach quick results

• Values of different corporate cultures

• Management issues as no one person is in overall control