ANZ Bank Public Relations - Assignment Example

Heading: ANZ Bank Your name: Course name: Professors’ name: Date Executive summary Public Relations (PR) is a very crucial marketing strategy that organizations employ in attempt to promote their sales, and their public image and reputation. Firms find PR a more convenient and cost-effective of maintaining their performances; meeting target audiences; communicating messages on their products and services; and increasing their sales, as compared to the traditional methods like new releases and advertising. ANZ Bank is one of the best performing financial institutions in Australia. Nevertheless, its reputation was recently ruined due to a savings account scandal. The issue adversely influenced its stakeholders’ reputation on the company, and this in turn affected the bank’s overall reputation. Therefore, the report seeks to explore public relations roles in organizations, especially in the banking sector; the issue in ANZ Bank; the banks stakeholders, publics, as well as their significance in the firm. Table of contents List of figures and tables 1. Appendix A 2. Appendix B Introduction With the increasingly competitive corporate world, organizations strive to maintain their reputations and images so as to broaden their market shares. Public relations (PR) strategy is one of the ways in which the companies uphold their productivity. This approach is crucial in firms, as they are promote sales volume, restores corporate damaged reputation; meets the marketing goals and audience targets that conventional strategies like advertisement cannot, and creating credibility trust, relevance, and long-term associations. In terms of the banking industry, PR enhances acquisition and retention new talents; capital access; industry visibility; higher valuation; and channel visibility; shareholder visibility. ANZ bank strives to adopt PR in order to restore the lost image created by savings account scandal that affected all its stakeholders. Public relations Public Relations (PR) is one way in which organizations, companies, or people improve their business reputations. On behalf of their clients, public relations firms or public relations professionals perform the task. PR entails firms communicating with media and by media to bring out clients in the best possible way. Besides, Etang (2008, pp. 1-40) notes that PR entails joint efforts with other firms and people in the creation of good will in the community and boosts the client’s status. The corporate can be excessively competitive; hence organizations usually need to develop competitive advantage by differentiating their operations, services, of products from those of their competitors. This implies that they ought to have their products outstanding to attract more clients compared to those of their business rivals. A positive reputation makes a company increase its sales, whereas a bad one damages an organization’s image, and thus, reduces its sales volume (Weiwei, 2007, pp. 57-62). PR may offer customers and the media an enhanced understand of how a firm works. Within an organization, a public relations department may also be termed as a public information section, or a customer relations section. These departments are instrumental in helping clients whenever they have concerns with the firm (Toth, 2009, pp. 129-150). They normally attempt to present the firm at its best. Besides, the departments carry out studies on better ways of satisfying clients. In conducting its roles, PR employs various methods and tools to boost a company’s reputation. The conventional tools that the departments used include announcements and new releases, which are sent to media, newsletters sent to clients, and appearances at public occasions, like conventions and trade fairs (Lines, 2004, pp. 233-245). With technological advancements, PR sections currently apply techniques like social media sites, such as, Facebook and Twitter, and blogs to achieve their goals (Dilenschneider, 2010, pp. 1-20). To many people, PR is a mechanism of spinning information and news that implies portraying information or news in the most appropriate way for the organization (Larissa, 2000, pp. 40-60). For instance, if a firm announces layoffs, it is public relations can claim that the firm is reducing its costs to make itself more effective, so it will efficiently serve its consumers and provide lower prices. Provided that the claims are true, the PR is effectively conducting its role of safeguarding the firm’s image and reputation (PRSA, 2003, p.1). Nevertheless, the PR should cautiously do this so as to avoid exaggerations that can damage the firm’s performance. In the restoration of a company’s public reputation, Knapp & Siegel (2009, pp. 24-30) assert that PR department can apply certain strategies including use of fairness and integrity as a principle for entire business rulings; upholding a focus on services’ or products’ quality; honestly distribution straight information with entire publics; actively looking for publics’ inputs and being reactive to their issues; forming forums to boost discussion with constituencies (Marken, 2002, pp. 21-33). Generally, as Komiak, Wang and Benabasat (2004, pp. 49-63) note, it is imperative that companies to prioritize the value of the publics’ needs, and to create favorable associations with them. The foundation of a favorable relationship is trust, which whose basis is on honest and open communication. A successful PR informs a firm about an honest, accurate, and easy to comprehend; thus, helping to create an image for trustworthiness. Keser (2003, pp. 498-506) notes that favorable association needs a readiness to listen, and honest PR is a two-way activity. PR professionals realize that successful management of relationships requires understanding and respect for public viewpoints and concerns. They should also act as public activists in a company (Henry, 2000, pp. 34-50). In effect, business PR professionals regularly act as outsiders. Through questioning rulings and effects on customers, the employees, community, and others, these professionals create a public viewpoint to a company; hence, promoting its capability to be receptive to public issues (Stacks, 2011, pp. 1-20). In general, Smith (2009, pp. 3-20) asserts that corporate reputation, or the way its publics views it, is the top contributing factor to success. As a result, damaged image of the business globe is never a small issue. The restoration of trust and help govern to companies to obtain a positive reputation integrity central on many leaderships. Role of public relations PR is influential in marketing a customer brand. First, PR helps in meeting a communication’s goal that is hard for traditional advertising to handle; to establish a communication attraction, whilst complementing customer attraction to the brand (Stephenson & Thurman, 2007, pp. 179-190). PR is distinctively able to develop links, whether political, social, demographic, or geographic, through occasions, causes, sampling, sponsorships, and in-king support among others. Second, as Austin (2006, pp. 5-15) reports, PR helps in communicating messages that the traditional advertising does not usually address. As Aronson (2007, pp. 290-300) says, this could be business desirable news, new commitment levels to service, or new services, company’s engagement in community work, company’s business custom, how appropriate the company measures up to its competitive set. These forms of messages are influential in the creation of constructive selling environment for the company’s advertising (Choi, 2007, pp. 1-20). Third, McLennan and Howell (2010, pp. 11-15) maintain that PR enables a company reach out to audience categories that are beyond its central media targets. This is because there are numerous consumers targeted with the brands. In fact, adults between ages of 18 and 54 years are hard to be reached economically (Kent, 2008, pp. 32-40). Therefore, demographic lifestyle and psychographic targeting is vital in the present marketing than in the past. PR works well for a company that targets a mainstream public. Fourth, Parsons (2008, pp. 110-150) asserts that PR builds a momentum in to the introduction of a new advertisement promotion. This offers publicity between media flights and raises occurrence of brand publicities during the advertisement duration. Fifth, Capezzi and Cuthbertson (2004, 199-212) say that PR reinforces, in the customer’s mind, the times when a firm wants to establish the latest market; to make a new acquisition; to get in to a new partnership; relevant differentiation; a release of a product; or a new leadership bearing a fresh vision. Further, Caywood (2011, pp. 13-30) maintains that PR can be employed in the restoration of corporate trust that was probably lost because of a dubious ethics, and other business activities. It also helps in the raising sales volume to support promotional goals. Freitang and Stokes (2009, pp. 250-270) argue that PR is also better than advertising as customers focus on advertisement up to three times quicker than when there is no publicity. It also has an advantage of delivery in-depth information that customers need, which is hard to provide in a 30-second television feature (Yudelson, 2008, pp. 37-40). Therefore, PR is influential in creating credibility trust, relevance, and long-term relationships. In order to reach fast segmented targets, marketing PR is among the most economical strategies to sales effectiveness (Pride, 2009, pp. 1-30). The public relations context In this report, the public relations context being addressed is in the banking industry, specifically in ANZ Bank. ANZ Bank has since 1995, offered critical financial services to many Australians. Role of public relations in banking industry PR is one of the most effective approaches of boosting a firm’s performance, especially in the industry. To start with, the use of public relations marketing is influential in creating higher valuation in the banks like ANZ Bank. Since PR enables such organizations to gain visibility, it makes them credible to the public. The credibility brings about a favorable will for the company’s brand. As a result, the brand value is shown in the higher valuation in both public and private markets with shareholders for both institutional and private investors (Bucaro, 2007). Secondly, use of PR in banks like ANZ Bank is vital in facilitating access to capital. Commonly, many firms look for investment opportunities in banking organizations. Therefore, if a bank decided to employ PR marketing strategy in its promotional campaign, it is likely to attain more interest from prospective clients; hence, access to its capital (Swann, 2010, pp. 1-30). In addition to access to capital, PR helps companies, specifically banks, to enhance shareholder visibility. Several companies encounter valleys and peaks in their organizations with time, and when publicity is employed, they get attention of the past, present, and the future shareholders (Solis, 2009, pp. 1-20). Therefore, PR enables banks to obtain interest of the shareholders in the favorable and unfavorable business times. What is more, Watson (2007, pp. 3-30) notes that PR is vital in attracting new customers to banking organizations. Because of the visibility gained by the firms from publicity, there is a probability of gaining as more clients as possible. This is because visibility acquired by the business is directly related to its revenue. Besides, O'Guinn, Allen and Semenik (2012, pp. 652-665) hold that PR tools have a potential of opening many doors for increased business practices. Furthermore, PR enhances channel visibility in the banking industry (Bardhan & Weaver, 2010, pp. 50-60). As business grow their channels, credibility is vital. If a possible channel partner hears of a particular bank positively, he is probable to be attentive to the company so see whether there are available reciprocally rewarding chances. Finding effective channel partners may be as competitive as getting new customers. The channel requires to be aligned with a favorable brand to ease their sales (Van der Merwe, Pitt & Abratt 2005, pp. 49-59). Moreover, Bucaro (2007) says that banks benefit from the use of public relations in that they enable them to gain industry visibility. Getting the interest of an organization’s competition may lead to exceptional openings for partnerships (Lindsay, 2004, pp. 1-20). This is also influential in the identification of possible acquisition objectives either as sellers or buyers. Moreover, the credibility that a bank gets through industry visibility will ultimately create industry analyst exposure that, in turn, brings about more integrity in the company (Rosenbloom, 2001, pp. 450-470). Additionally, as Bucaro (2007) asserts, use of PR is vital in banks as it has staff benefits. The struggle for talent is another challenge for business in banking industry. PR is essential in the acquisition of new personnel and retention existing members. Workers need to feel proud of their workplace; hence the more they positively perceive it, they decided to be associated with such companies. Therefore, PR facilitates the acquisition and retention of great talents that will boost its performance (Berger & Reber, 2006, pp. 1-20). Furthermore, PR is valuable in banking industry as it determines the kind of media involved in its operations. This is because effective PR enables a firm to attract efficient media. As a result, such PR will facilitate enhanced performance due to appropriate publicity (Turow, 2011, pp. 20-40). ANZ Bank stakeholders The company’s stakeholders include shareholders, executives, employees, customers, creditors, suppliers, financial institutions or commercial banks, and board of directors. These stakeholders are equally vital to the company’s growth and productivity. To start with, Sriramesh and Verčič (2009, pp. 80-120) suggest that shareholders ought to be handled with respect, and their rights protected. The company should also allow suitable shareholders’ returns, and should disclose full, accurate, open, and auditable information for to them. Secondly, the board of directors also plays a crucial role in the running of the bank. They freely perform their responsibilities, and to freely express their feelings, as well as to set course for management’s enforcement of recommendations (Claessens & Ueda, 2008, pp. 1-20). Thirdly, executives contribute to the bank’s success by motivating them perform their work autonomously and without involvement, under the responsibilities and duties allocated to the directors. Fourthly, Claessens and Ueda (2008, pp. 1-20) maintains that the bank strives to create a favorable working environment to its employees, as well as meeting the clients’ needs effectively. In terms of suppliers, the firm cooperates with them by basing their contracts on integrity. Creditors in the firm must conform to the loan conditions. Commercial banks and the ANZ Bank regularly exchange information to enhance its productivity. In terms of the environment and society, the company maintains its social corporate responsibility towards local communities, environment and societies to boost sustainable advancement. ANZ Bank Issue ANZ Bank on April 3, 2012 was involved in a savings account scandal in which a client’s money was transferred from her account without her knowledge, an incident that has negative effects on the banks reputation, as it affects employees, shareholders, customers, executives, creditors, suppliers, financial institutions or commercial banks, environment, society, and board of directors. ANZ Bank publics The stakeholders affected by the described issue above include financial institutions or commercial banks, and board of directors, shareholders, executives, employees, customers, creditors, suppliers, society, and environment. These are the company’s publics and each of them has significant role to play in the organization’s performance. Shareholders are significant in the company as they understand that the firm’s liquidity and equity capital is a complete leading precedence. Customers are the ones that make the company what is by buying its services and products. Besides, Claessens and Ueda (2008, pp. 1-20) say that the employees are vital to the bank’s success in delivering services to the clients. The society is also influential in the contributing towards the bank’s prosperity. Additionally, suppliers play a big role in ensuring that the bank has the essential requirements to conduct its business, while creditors also contribute to the firm’s capital. Executives and directors help in the management and supervision of the company’s operations, making and implementing new policies towards the attainment of success. Conclusion PR is an important approach that a company can use in the promotion of its image and reputation. Some of the roles of PR in companies include restoration of reputation; attaining goals that conventional methods failed to achieve; communicating messages that the traditional advertising does not usually address; increasing sales, and creating credibility trust, relevance, and long-term relationships. In the banking industry, PR facilitates acquisition and retention new talents in employees; industry visibility; capital access; shareholder visibility; higher valuation; and channel visibility. With respect to ANZ Bank, the issue of savings account scandal is likely to adversely affect the stakeholders in certain ways. Based on the issue, the firm’s publics include employees, shareholders, customers, executives, creditors, suppliers, financial institutions or commercial banks, environment, society, and board of directors. Therefore, it is imperative for the ANZ Bank to employ PR to regain its damaged reputation as a result of the savings account scandal that was detrimental to its stakeholders and the general performance. References Aronson, M. (2007). The public relations writer's handbook: the digital age. San Francisco, CA: Jossey-Bass. Pp. 290-300. Austin, E. (2006). Strategic public relations management: planning and managing effective communication programs. 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Public Relations Quarterly, Spring 50(1), 39-49. Watson, T. (2007). Evaluating public relations: a best practice guide to public relations planning, research & evaluation. London Philadelphia: Kogan Page. Pp. 3-30. Weiwei, T. (2007). Impact of Corporate Image and Corporate Reputation on Customer Loyalty: A Review. Management Science and Engineering, 1(2), 57-62. Appendices Appendix A Code of ethics in PRSA The society advocates for advocacy; honesty; expertise; independence; loyalty; and fairness. Appendix B Differences between PR and advertising Public Relations Advertisement Free Placement Paid placement Little or no control Absolute creative control A story running once or twice Ads run as long as client is ready to pay Credibility due to third-party approval Savvy customers aware of the ad; hence skeptical No guaranteed date; time consuming A guarantee date; easy when there is money Builds credibility Builds visibility Read More