GLOBAL CONTEXT & STRATEGIC MARKETING COMMUNICATION

1. GLOBAL CONTEXT& STRATEGIC MARKETING COMMUNICATION 17 August 2017

2. Key Themes – Advanced TIPED Programme (Module I)

3. Agenda • Context: strategic marketing communication • Investor and public relations and the impact of markets and macro-economic factors on sectors and organisations • Nature and channels of communication that are available to be used

4. Agenda • Perceptions of stakeholders, employees and customers, in receiving and sending messages • Emotional intelligence and sensitivities in dealing with communication effectively. • Group and individual communication methods and processes • Authenticity and credibility of communication sources • Market intelligence, research and data analytics

5. VUCA World: Marketing Communication Challenges Crises in 2016/2017: Natural Disasters: • Severe drought in Africa and Southern Africa (El Niño); implications for agriculture and food prices; consumer price inflation Rand Currency Fluctuations: • Rand recently appreciating against US Dollar and foreign currencies, after depreciating by more than 20% over the past three years. Energy Prices: • Oil has fluctuated from highs of $147 a barrel to below $33 a barrel recently, with its impact on economies globally (e.g. Nigeria and Opec countries such as UAE) Global Migration: • Particularly the wars in North Africa and instability in the Middle East, leading to millions of migrants moving to Europe and other safer countries Leadership Issues: • Elections and political crises; Government instability; lack of statesmanship and global leadership International Terrorism • ISIS, Boko Haram and other groupings, regular reports of bombings and civilian deaths, driven by various ideologies

6. 2050: World Population Growth Source: World Health Organisation

7. 2030: What the World Wants (Changing Global Consumption Patterns) Source: Goldman Sachs (2014)

8. What? Why? How? Leadership and Marketing Communication Strategy Key Questions Context (Why?) Content (What?) Process (How?) Gap Analysis Where are we now? Where do we want to be? How do we get there?

9. Contribution of Effective Marketing to Organisation Performance A Steep Contribution Curve Pursuing Excellence in Communication to OptimiseOrganisation Performance Leadership Renewal Transformation Common Purpose Making the Future a Reality for all Stakeholders Organisation Value Building a Culture to Underpin and Deliver Vision Differentiation Values Driven Competencies Successful Execution Key Performance Areas and Objectives Driving Performance Relevance to Stakeholders Vision Mission Strategy Leadership and Management 2017 2018 2019

10. Effective communication is the lifeblood of an organisation. It is the medium through which an organisation’s vision and goals are interpreted and understood by both its internal and external stakeholders

11. International Benchmarking (Case – Public Transport) BOGOTA, COLUMBIA CASE STUDY Inner City Renewal to Provide Pedestrians with Equal Rights to Access and Transport Pathways ABU DHABI TMM CASE STUDY Inner City Renewal to Provide Pedestrians with Equal Rights to Access and Transport Pathways Source: Transport for London Business Plan December 2016

12. WHO Principles of Strategic Communication

13. Investor and Public Relations • Disaster Risk Management • Crisis management • No dress rehearsal • Perceptions and reality • British Petroleum (BP) Mexican Gulf Crisis • Global impact • Society and the common good • Authenticity • Ethical • Financial and reputation risk • (See: INSEAD Case Study)

14. Marketing Communication Strategy - Approaches and Models • Strategy – plan to achieve objectives • - Vision, Mission and Culture underpin strategy • Identifies clear and measurable communications objectives with evaluation • - Relevant audiences and available channels • - Plan of activities and a timetable • - Addresses communication risks and mitigation • - Confirms resources – financial and people

15. Communication Strategy - Approaches and Models • Leadership Models and Styles • Sender, message, channels, noise, receiver (Shannon and Weaver) • Social context and relationships influence the message sent/received (Wilbur Schramm) • Barriers to effective communication (Walter Lippmann) • ‘Hawthorne effect’ – experiment/change employees through actions: ‘we care’ • Public opinion shaped by ‘belief, attitude, values’ – can change and lead to social action (Grunig) • Diffusion theory (categories): Innovators, Early • adopters, Early majority, Majority, Non- • adopters (laggards) – influence of customs and • culture or people, organisations and society • Diffusion theory (stages): Awareness, Interest, • Evaluation, Trial, Adoption

16. Marketing Communication Dilemmas X X Reality Degree of Authority Perception Degree of Participation X X Short Term Objective Individual Communication Group/Team Communication Long Term Vision Source: Trompenaars and Voerman, 2009

17. Communication Channels Informal Communcation (Grapevine) Channel Effectiveness X Organisation Structure Source: Allyn and Bacon, 2008

18. Market Intelligence, Research, Data Analytics • Game Changers: • Landscape (Broad Context • - Quantum computing • Open Intellectual Property (IP - Open Source) • User control and orientation • MOOCs and education/knowledge access • Disruptive technologies • Technology (Platforms) • - Universal memory • - Multi-core availability 24/7 (always on) • - ‘Internet of things’ • - Silicon photonics (big data transfer/networks) • - Cloud computing (data storage) • Software Applications (How messages delivered) • - Appropriate access • - Natural user interfaces (connectivity) • - Artificial intelligence (users/technology) Source: Government Communication Service, HM Government, July 2015

19. Market Intelligence, Research, Data Analytics Source: Government Communication Service, HM Government, July 2015

20. Organisational Capital and Alignment (Example)

21. Road Map (and Mirror) – Marketing Communicating for Impact People Capability Source Finance Change Mgmt Resources Incentives Infrastructure Leadership Common Good Strategic Plan Value and ROI Performance Strategic Priorities Focus Vision, Mission, Culture, Values, Ethics Stakeholders Timeline Core Business Capability Communication