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:
- The right to protection of health and safety, because
goods and services must not present a risk under normal condition of use.
- 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.
- 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.
- The right of information and education, because consumers
should be in position to make a choice based on full information.
- 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:
- 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;
- 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.
- 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.
- Consumer relations is planned and permanent pro-active
and post-active 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:
- 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 the same 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
|
