Public Relations And Consumer Relations

Public Relations and Consumer Relations - Introduction The evaluation of the role and responsibility of enterprise communication in a growing new Europe, requires primarily consideration of the respective role and responsibility of communication and the market within a society where more advanced and modern economy should be able to produce increasing profits while taking into consideration legitimate rights of millions of consumers. We are speaking of a new Europe which does not yet exist, whose boundaries are not limited to the twelve EC Countries, but which already includes not only this Community but also a larger market of many other Countries. We are not in a position to analyse numerous complex political and social aspects that face the new Europe, and the problems to be solved to become a single community of millions of inhabitants. The market could, perhaps, facilitate the solution of many relevant political, social and cultural aspects, if we consider it as an entity of enterprises and workers, products and services, consumers and users. A modern definition of the market underlines that it is an excellent system to collect and disseminate the information essential to co-ordinate the life, work and behaviour of millions of individuals. No single individual can be in possession of all the information he needs to co-ordinate his economic planning. Information disseminates independently, changes continuously and cannot be known within the same time as the decision-making process. Nobody knows what each individual, as a consumer, would like to buy as nobody knows what each producer is going to offer, although the market is collecting and transmitting information on individual preferences, different trends and availability of products. Therefore, information and the market are concepts and facts which are inter-connected. The efficiency of the market depends upon the quality of the information available as well as its rapidity of diffusion and perception. The total freedom of information is the basic condition for the proper functioning of the market which necessitates exhaustive information about enterprises, consumers and products.

Practically, there is a close relationship between the quality of enterprise communication and market development, with a very strong analogy between the quality of political and social communication and the satisfactory functioning of democracy. Today, public relations is a fundamental aspect of the enterprises planning process, in all business sectors, thanks to its capability of opening a dialogue with the market and listening to consumers to acquire appropriate knowledge. The main responsibility of public relations is certainly to open and manage systems of communication between the enterprise and all its targets, especially consumers. Sufficient ethic recognition must be accorded to the public relations sector to establish and maintain a suitable communication by means of dialogue based on mutual respect. Today, public relations is an important communication management tool for all sides of the new Europe business society. It also represents one of the basic concepts because the most important common issue at stake for public relations activities is consumerism. How do you define consumerism? It is a fundamental question to which different replies are given by different countries, depending upon various social and economic conditions. Nevertheless certain basic elements may be taken into consideration for the recognition of the consumers rights: • • • •

to feel safe to be well informed to be listened to to have a choice

If you agree, one can say that consumerism is a system combining principles of ethics and rules of corporate behaviour which directly affect the decision-making process of a company or an organisation. In this case "consumerism" is not only the fulfilment of the obligation, to respect consumer rights arising from coercive legal rules and laws, compulsory liability and directives. Consumerism suggests that a company or an organisation is required to handle proper, pro-active relations with consumers as individuals and with Consumer Associations wherever the market of that Company or Organisation exists. The implementation of the European Single Market has further increased the need of specialised consumer relations because this market now includes more than 340 million consumers. Looking towards the new Europe, it appears that in the year 2000

additional millions of consumers will demand better consumer relations. Consumer Relations and Public Relations Consumer relations is a part of the global communication policy of a company or an organisation and belongs to the corporate communication level more than heretofore as a key element in the marketing communication area. Consumer relations is only one of the different aspects of the public relations profession and should be geared to specific targets such as individual consumers and their representative organisations, Government, Parliament and local authorities, having demonstrated that they consider consumerism being one of their main responsibility. Presently, in modern economy in Europe, the value of corporate and product reputations are considered as basic values necessary to be successful. The mission and the culture of an enterprise are firmly connected with strict quality standards. The concept of quality value emerges from the standard of the products and services offered to the market but this quality is accepted and recognised in conjunction with the conduct of the enterprise. People, generally speaking, more and more frequently consider corporate behaviour as a key element to identify and qualify the enterprise, but corporate behaviour itself is first and foremost expressed by the quality of the consumer relations. The methods each company utilises to handle its communication are manifold and a proper mix is always recommended and appreciated, but the focal point for the quality emanating from enterprise behaviour is based upon the quality of its consumer relations for the sole reason that taking care of consumer expectations and needs is an essential part of the service that an enterprise should offer to a market. To sell a product or a service means having in mind consumer satisfaction as sales are positively concluded only after consumer satisfaction. Therefore, consumer relations today are no longer limited to the dissemination of information on products or services and/or the distribution of leaflets or advertising material, but must be geared towards the full satisfaction of consumer needs through a daily evaluation of own performance and, of course, a mutually acceptable solution of every problem that could arise. The basic duties of each public relations practitioner determined by the Code of Ethics and the Code of Professional Conduct must also be strictly and fully respected by the consumer relations specialist, but the evolution

of consumerism throughout Europe, suggests the analysis of further elements of consumer relations and the application of new and more specialised rules of professional conduct. Consumer Relations and Advertising PR professionals and, of course, consumer relations specialists have also to consider advertising and its vital contribution to an efficient market, which in turn maximises the benefits of improved quality, price and service to consumers. It is well known, and easy to understand, that the discussions in the European Community and in many European countries about restrictions on advertising cause great concern within various industries. Advertising is a driving force in a free market economy. The completion of the 1992 internal market increases competition and extends over national boundaries. In that respect freedom of commercial speech is essential although, for specific commodities, a certain responsibility should be observed. At this moment some regulations are already affecting advertising and marketing in general and some areas (e.g. pharmaceuticals, tobacco and toys) in particular. Although in the Treaty of Rome nothing was said about consumer policy - let alone restrictions on advertising - since the eighties these topics have been part and parcel of the European policy. In the other areas (e.g. alcoholic beverages) there exists a strong concept of self-regulation, which has been proven to be quite successful. Public policy will recognise this position, and therefore respect the principle of the freedom of commercial speech responsibly exercised. Consumer Policy in the single market To meet consumers growing information needs is a fundamental way to build and achieve consumer confidence and a primary responsibility for all Public Relations Practitioners, In-house and Consultants. Many EC directives and regulations already protect consumer interest and have already been taken into account within national legislation. Today, to better meet its responsibility and company needs, the public relations profession should consider the whole system of EC directives and regulations covering consumerism and consumer relations. The Single European Act, which constitutes the legal basis for its implementation, makes specific reference to consumer protection and stresses that the EC Commission must include a "high level of protection" in proposals concerning this.

The basic issues concern health and safety, access to legal redress, information and consumer representation. All the above must be balanced between the interest of the consumers and suppliers, between different consumer policy approaches in the twelve Members States and between the principle of the highest possible standards on the one hand and the free movement of goods and services on the other. Meantime the fragmentation of the Community market obliges manufacturers in many sectors to produce their goods in different variants to meet the requirements of other countries. This implies additional costs for research, development, marketing, storage and distribution. In a market without frontiers, European industry could transfer the benefit of cost savings to consumers in order to lower prices or improve service quality. The "Preliminary programme of EC for a consumer protection and information policy" was adopted by the Council of Ministers in 1975 and five basic rights have been established: 1. The right to protection of health and safety, because goods and services must not present a risk under normal condition of use. 2. The right to protection of economic interest, because the purchaser must be protected against abusive practice of the seller such as misleading advertising, unfair contract clauses, etc. 3. The right to redress, because consumers should be advised and helped in the case of unsatisfactory products and services and swift redress for any damages suffered. 4. The right of information and education, because consumers should be in position to make a choice based on full information. 5. The right of representation, because consumer organisations should be consulted on all proposed legislation affecting consumer interest. A Second Consumer Programme was adopted by the Council of Ministers in 1981 to cover the period until 1986, stressing the importance of the price/quality ratio to consumers and addressing the problems of the services sector. In 1983 the Council decided to hold a special Council meeting of Ministers to discuss consumer policy. The main thrust of the above programmes still applies today. Many community directives and regulations, which concern both specific product groups and general measures, have already been adopted and included into national legislation such as: Foodstuff: lists of acceptable substances and purity criteria have been drawn up for additives used in foodstuffs; composition, manufacture and trade description of many food products; qualities of additives have been also considered. Presentation and labelling: a directive stipulates rules to be indicated on

the packaging, such as composition and quality of ingredients; another one regulates dietary foods. Dangerous substances: several directives cover the classification, marketing and labelling of above. Misleading advertising: a directive prohibits misleading advertising and if a consumer feels that he or she has been misled by an advertising claim or presentation, legal action against the producer is possible. The burden of proof may be reversed and, last but not least, any communication originated from an enterprise is classified as "Advertising". Product liability: the directives state that manufacturers are liable for any damage their products may cause to the consumer even if there is no fault on their part. The burden of proof lies with the producer. Industrial products: many directives have been adopted to guarantee the safety of passengers in cars and vehicles. Medicinal products: uniform provision on testing, evaluation, authorisation, labelling and patent rights have been determined. Door steps sales: purchasers have a week cooling off period in the case of contracts negotiated away from the salesmen’s business premises; the salesman is required to inform the consumer in writing of above right of cancellation. Information system: if the authorities of a Member State ascertain that a product has caused or could cause damage to health and are therefore considering a restriction on its sale, the authorities of all the other Member States are immediately informed and can take appropriate action. Other directives cover issues such as package tours, rights of air travellers, safety of toys, consumer credit. Therefore, a uniform level of protection of consumer rights has been established and at the same time many trade barriers have been abolished through adoption of harmonised standards and regulations. All the above directives should be carefully considered by any consumer relations specialist because they represent a type of "scheme" of consumer expectations and needs, including the main relevant issues dealt with by Consumer Organisations and Groups. The "White Paper" on the internal market produced by the Commission of the European Community has introduced a new approach. National regulations are no longer harmonised in every detail by the Council of Ministers because, for instance, the task of drawing up detailed technical standards for practical application, has moved to the experts of the European Standardisa-tion Bodies.

This decision considerably accelerated the process and, to consumers all over Europe. On November 1989 the Council of in the meantime, granted a uniform minimum level of protection to consumers all over Europe. On November 1989 the Council of Ministers adopted a third Action Programme which includes specific actions to improve consumer representation (the Consumer Consultative Council has been formed). The consumer information right has been considered and, for instance, comparative testing of goods and services handled by Consumer Associations has been encouraged. Once again all consumer relations specialists should follow up the evolution of the "Action Programme" adopted because Consumer Organisations and the media are pro-active in each member State and new issues, new questions arise day by day. Consumer Relations definitions In order to describe consumer relations as "a fundamental part of the whole Public Relations operation", definitions such as the following may be considered: 1. Consumer relations is corporate or business activity aiming at: • •

matching the corporate and product image as close as possible with that expected by the consumer targets; ensuring the best quality of products and services, to achieve consumer satisfaction;

2. Consumer Relations comprises planned programmes designed to establish, handle and develop appropriate two-way communication channels with consumers of products and services, with Consumer Groups and Associations and with public Authorities and Bodies whose responsibilities involve consumer protection and information rights. 3. Consumer relations is a significant asset to a Company or business which recognises consumer protection and information rights as a fundamental principle to be respected and developed in the Company or business managerial practice. 4. Consumer relations is planned and permanent pro-active and postactive action addressed to consumers as individuals or groups, aiming at improving consumer confidence in the quality of products or services. Consumer Relations Specialist’s basic duties and profile In keeping with the above definition the most relevant contents of consumer relations and the consumer relations specialist’s basic duties may be considered as follows:

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Analysis and management of all issues which involve consumers as individuals or groups, at all levels including environmental and wherever the Company or the business is operating. Assisting management in creating self regulatory systems whenever this is needed to guarantee the responsible exercise of the freedom of commercial speech, including the supervision or monitoring of advertising. Planning and handling of appropriate interactive media to establish adequate relations with consumers, as individuals and groups. Collecting and disseminating information on Company products and services and all other aspects of a Company or a business which involve consumer interests and needs. Providing an immediate and appropriate reply to any question asked by consumers as individuals or groups, solving any possible problem to achieve the best consumer satisfaction. Handling complaints made by consumers as individuals or groups and search for appropriate solutions within the company or business functions. Monitoring of consumer expectations and needs with the Organisations internal functions and units in keeping with their own specific responsibilities. Producing periodical reports for Company or business management with a view to analyse and classify contacts with consumers in accordance with business issues and Company/business functions responsible for these relations.

The profile of a consumer relations specialist requires from the responsible person appropriate experience in the whole public relations operation and a good knowledge of all the company or business aspects, including organisation, production and marketing of products and services. A consumer relations specialist must have a good knowledge of the company/business market sector, including competitors, because many consumers may ask for information on their products or services. This person should have a suitable knowledge of consumer organisations and groups within the Country concerned and maintain adequate contacts with the media handling consumer issue. The consumer relations specialist must be strongly motivated and able to deal with person to person, verbal and written communication skills, including modern techniques. Basically, a significant negotiation capability is recommended. The consumer relations specialist is the "point of identification" or the "point of contact" of a company or a business enterprise for consumers as individuals or groups. Therefore, he or she must demonstrate a high degree of professionalism in maintaining intellectual integrity, honesty and loyalty towards both the company and the consumer.

European Charter for Consumer Relations The principles of the Code of Ethics and rules of the Code of Professional Conduct in Public Relations, adopted by CERP and by each member National Public Relations Association, must be fully respected by a consumer relations specialist since his/her professional duties are a part of the whole Public Relations operation. The following principle for a "European Charter for consumer relations" is suggested as an "official interpretation" of the above CERP Codes tailored to meet the specific requirement of consumer relations as a specialised area of the public relations profession: General Professional Conduct: 1. In handling his/her professional duties a consumer relations specialist must fully consider the basic consumer rights to information, to audience, to freedom of choice and to safety. 2. In his professional conduct the consumer relations specialist must demonstrate intellectual integrity, loyalty and honesty towards both his/her company/enterprise and consumers. He or she undertakes not to make use of information or comments which to his or her knowledge or belief are false or misleading. He/she must be careful to avoid the use, even by accident, of practices and methods incompatible with the above intellectual integrity, loyalty and honesty. (Clause 3. CERP Code of Conduct) 3. Consumer relations programmes must be carried out openly: they must be readily identifiable, bear a clear indication of their origin and must not be handled to mislead third parties. (Clause 4. CERP Code of Conduct) 4. In the practice of his/her profession, a consumer relations specialist must scrupulously respect professional confidence and in particular must not reveal any confidential information received from his/her clients or employers, past, present or potential, or make use of such information without expressed authorisation. (Clause 7. CERP Code of Conduct) Specific Responsibility to Consumers: 5. Considering that a consumer is an individual or a group offered or sold products or services for their own satisfaction, a consumer relations specialist must grant to thesame individual or group all after sales services that they may require. 6. A constant concern on the part of the consumer relations specialist with consumer rights to information and moreover the duty to provide information within the limits of professional confidence must be considered as a basic responsibility. (Clause 14. CERP Code of Conduct) 7. All information must be given clearly in keeping with the consumer’s education and cultural background and their technical knowledge on

products and services, production, marketing and so forth. 8. Consumer relations programmes must be implemented at no cost to the consumers, individuals or groups and therefore, no charge should be sustained by the consumers, in any way. 9. Information received from consumers, as individuals or groups, cannot be used for any market research, promotion or direct marketing action without the expressed authorisation of the consumer. 10. If the use of a product or a service requires proper warnings, the consumer relations specialist has the obligation to disclose it openly. 11. Any attempt to deceive consumer opinion or its representatives is forbidden. (Clause 15 CERP Code of Conduct) 12. No payment or gift shall be offered or given to any person having an interest in a Consumer group or Association for the purpose of influencing any act or decision of such group or association. Adopted as "recommendation" by the CERP General Assembly Milan, March 26, 1994 Click here to print this page