Public Relations in the International Business Arena
Introduction
The support and loyalty of the consumers are considered to be valuable assets of business companies as these will facilitate continuous progress and development. Effective public relation programs are then necessary in order to achieve these valuable assets. Through these programs, the relationship between the companies and the consumers are strengthened. However, distributing products or services to foreign markets is a different matter. Specifically, companies that intend to offer their goods internationally will encounter major obstacles including a new government, different business practices and diverse consumer behavior. For this reason, businesses should then be aware of these factors and how to overcome them. One way of addressing this business hurdle is through international public relations. In this essay, how this concept can resolve cultural issues in global business will be discussed. In particular, elements that support the international public relations framework will be identified. The effective application of this business strategy will also be stressed through case examples.
International Public Relations
Public relations in general have three main functions in business (1992). One of which is to represent the company within its home market, which would involve dealings with local constituents and the government in line with the relevant issues to its international enterprise. Secondly, public relations serve as a communication channel between the company top management and the foreign management; this function aims to remove the communication gap between both parties. Finally, public relations are utilized to conduct PR activities within the host countries. These functions had then been used by companies not only to promote their products to the public but also to ensure that continuous consumer support will be obtained.
Public relations programs are also done in order to enhance the image of the company to the consumers. Creating and projecting the right corporate image helps the organization to be distinct among its many competitors. This, aside from benefiting the company in terms of sales and market, is an important element that will provide the company a significant source of competitive advantage ( 2001). It is then important that the symbols and messages that are used by the company should illustrate the general idea of the company with brevity, immediacy and impact in its public relations effort (1989). These images are all perceived by the public. The visual identity and communications are particularly significant in determining how the customers or the public see the company. This is primarily due to the ability of the corporate image to shape and form the expectation of the people to the company is almost all aspects. Thus, public relation is correlated to the image of the company.
Through the creation of strong relations or bonds between the company and the customer, public relation programs will be able to effectively position themselves as efficient communication and marketing channels of the company. At this point, public relation programs can help carry out the push, pull and pass strategies that will help the company’s strategic activities. Eventually, businesses have grown interested in widening their market scope and started venturing to international business deals. This trend was further supported when globalization was introduced.
This is the reason why some define international public relations as a concept related to globalization ( 1991). In addition, as global companies are the ones participating in the open trade business, the concept of international public relations had been interrelated considering that this is the main strategy used to penetrate markets abroad. Based from the definition of (1989), international public relations refers to the organized and planned company, institutional or government effort to develop mutual and beneficial relation with the public of foreign nations.
A more recent definition of international public relations has been given by (1995) where the concept has been defined as the formal communication between the company and the public. The aim of this exchange is to develop and maintain community interest towards the organization involved. In this process, the variations or differences of the public are considered for better PR outcomes. Other authors stress the direct relation of international public relations with multicultural public relations ( 1992). This definition is based on the fact that conducting public relations for a foreign public is considered international and intercultural.
There are many ways on how the international public relations strategy can be carried out. One of which is through environmental scanning. Aside from seeking the help of consumer experts of the targeted foreign country, this mean also involved the clear identification of the company’s target groups and their distinct characteristics. Along with the results of the environmental scanning, the company can employ various public relation tools available. Some of the most common tools for public relation programs include written material, organization identity media, audiovisual material, interviews, news, events and public service announcements ( 2003). Although there are numerous PR tools to choose from it is essential that the companies know how these can be used effectively. Nonetheless, the diversity of the PR tools available can still be considered as an advantage as this will allow companies to select the PR instrument that suit their resources.
Another common way how companies deliver their message to the public is through the use of celebrities as spokespersons, usually movie actors or athletes. There are many reasons why celebrities are used as effective spokespersons for public relation programs. One reason is that celebrities are generally public figures. Their life experiences, personality and features are virtually familiar to the audience; hence, consumers can easily relate them to the products they are endorsing. An example of this was the Elizabeth Arden advertisement with as the celebrity endorser. The actress is typically viewed as beautiful, appealing and sensual; thus, this image becomes an effective brand image for the product. Moreover, in a culture where physical beauty is valued, using an appealing celebrity as a spokesperson heightens the PR effect.
According to (2002), using celebrities for public relations is deeply rooted to their high degree of recall and attention. As the audience sees these celebrities as entertaining; this feeling somehow is transferred to the messages they deliver on PR activities. This in turn greatly influences the consumers’ affiliation to the brand and willingness to buy the product. Hence, using , an English soccer superstar, as a spokesperson for automobiles, sports fashion and electronic gadgets has been an effective PR strategy for the European Union consumers. Similarly, using Tiger Woods to deliver a message for companies in need of marketing various golf products result to the same impact ( 2003).
While this may be an effective mean for delivering the messages of the companies to the public, there are certain downsides that businesses must note. Several authors (2000; 1992) have stated that the effectiveness of using celebrities for endorsements is not always guaranteed due to a number of factors. One of these factors is the concept of the match up hypothesis. This hypothesis implies that a celebrity spokesperson must fit into the product brand ( 1998). Another factor that affects the effectiveness of celebrity endorsement is the assumption of some organizations that the popularity of the spokesperson automatically results to PR success ( 2002). This misconception has led to failed PR efforts; examples of which are the use of superstars Whitney Houston and Bruce Willis where the celebrity features do not match the product being advertised. In general, while there may be several ways on how companies can deliver their messages to the foreign public, certain factors must still be considered so as to ensure success. Among these factors include the significant elements of international public relations.
Elements of International Public Relations
There are two main elements of international public relations. These include culture and media relations. According to (1999), culture can be described as patterns of language, values and behavior which determine the relations within a community. It then pertains to a system of learned behavioral patterns that characterized the members of a particular society and not brought about by biological inheritance. Culture is considered an important element of international public relations as the identification of the distinct cultural features of a country allows PR practitioners to develop the right message, use the appropriate communication channel and select the most effective spokesperson to deliver the organization’s message.
Understanding the cultural background of the intended foreign market is important so as to ensure that the right message is delivered. Insufficient comprehension of this PR element often leads to embarrassing communication mistakes. One example was the unsuccessful launching of Chevrolet’s Chevy Nova among Latin Americans. In Spanish, the word nova actually means “it does not go”. Thus, offering a product whose brand name does not support the company’s message caused public relations inefficacy. The failure to understand the country’s culture can then result to linguistic problems and ambiguity. stressed this factor by citing the Northern and European cultures as examples. Such cultures use communication in a more direct and explicit manner. On the other hand, African, Arab and Asian countries fall under high context cultures the setting, environment and individuals bestow impart meaning to the message (2000).
Aside from culture, it is also essential for businesses to consider their relations with the media so as to conduct successful PR activities. At present, there are numerous available gadgets and communication technologies that make message delivery faster and easier. However, in international public relations, the efficacy of international and intercultural communication is significantly dependent on media relations ( 2001). The importance of developing effective media relations in international PR has been exemplified by the global oil company, Shell.
In 1995, Shell’s operations had been criticized with environmental degradation claims. Both the international media and Nigeria had denounced the operations of the company; though, Shell eventually responded to such criticisms, the response came in too late and did not lead to any positive effect (1999). This sample case clearly emphasized the need for companies to develop good relations with the media before it is needed; this will then prevent conflicts or gaps between the foreign company and the local media. This example also stresses the need for companies to comprehend issues that are important to the public; by doing so, loyalty and respect from the foreign market can be obtained.
International PR and Unilever, China
The value of the international PR points raised in this discussion can be elaborated further through actual company examples and cases. One example is Perkins Foods PLC, a European food company, who made use of the public relations strategy in order to strengthen its business position in the European and UK frozen food markets. The public relations campaign of Perkins did not really involve any special activities. These include personnel appointment press releases, investment on quality assurance, product launch press releases and trade press reviews. These then fostered the formation of good media relations. The PR strategy of the company also involved the cultural element. Specifically, Perkins used its skills and expertise in order to provide customized food services to its five different and new markets. For example, the company developed a specialist division to serve major food service consumers in UK while a French-based division was assigned to launch a specialized service for the international in-flight catering sector ( 2002). Aside from developing its PR strategies based on the foreign markets’ cultural preferences, Perkins also attuned itself to the requirements of European retail markets by hiring trust food business experts.
If this example will be analyzed, one of the strong points of Perkins’ PR strategy was that it was able stay true to its messages to the public. Moreover, the company showed sincere and effective efforts in order to gain the public’s support and loyalty. The European-based company also showed that the efficient integration of public relations and marketing activities can bring about significant benefits to the commercial goals of a business. This case example also showed that public relations do have an important role in promoting greater understanding of a business, especially within culturally different markets. Perkins Foods operates in five European countries; however, its PR tactic allowed it to achieve corporate success while being sensitive to the cultural differences of its diverse markets. Clearly, this example showed the value of integrating and valuing the cultural element so as to achieve public relations success.
Unlike Perkins, Unilever is already a strong global company operating in the healthcare and food industry. However, despite the strength of the business, it also needs to ensure the efficacy of its PR techniques and activities, especially in entering foreign markets. One of its successful markets was China. Similar to the cited PR strategies used by Perkins, Unilever made full use of communication and media relations so as to deliver its message to the Chinese consumers. The PR strategy of the company is actually made up of four procedures. These include the purchase of various Chinese product brands, adjustment of the organizational structure and movement of the company headquarters to Shanghai, the establishment of several holding companies and the recruitment of locals for the staff. In order to support its PR efforts, the company also hired a China Global, a PR agency. The main role of the agency was to conduct an environmental scanning procedure by interviewing scholars and experts in the Chinese business industry.
Unilever used these PR tools mainly to develop good relations not only with the public but with the local government as well. Considering that the Chinese government has a strong influence to the country’s business sector, the global company ensures that its relationship with the administration is strengthened. To gain the respect and support of both parties, Unilever organized dinner meetings and gatherings with several significant government officials; the media on the other hand was used to support the formation of a good company image to the public. By coordinating with the Chinese government and the local media, the company was able to develop a strong attachment to the public. Moreover, the promise of the company to support its purchased local brands and the employees fostered trust and commitment, resulting to global business success for Unilever in China.
In this case example, Unilever realized the strong influence of the government and the media over the Chinese consumers; prioritizing these factors is then a method of the company to integrate the cultural element to its PR strategy. Moreover, the Chinese has a strong affiliation to its local brands and workforce; thus, giving them due value has been an important factor for Unilever’s PR success.
Conclusion
Using public relations at a global level is a difficult and risky strategy considering the number of factors the company would have to take into account. However, employing international public relations in business has proven to be an effective technique, especially in acquiring new foreign markets. While the use of this strategy may have paved the way for wider market scope, higher profit and more business opportunities, this technique has also taught companies to become sensitive and respectful towards cultural differences. Moreover, this also encouraged businesses to customize their communication strategies and business practices in accordance to needs and preferences of the foreign markets. In conclusion, international public relations are essential not only in improving chances for business growth but also promoting opportunities for better company-consumer relationships.
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