2023: Game changer for Communications

Public Relations has lived under the marketing umbrella for quiet some time. The team-up maybe once even made sense as both functions contribute to brand, and brand has been the responsibility of marketing or still is in some highly marketing driven companies. Plus, many PR and marketing efforts are similar, often revolving around content creation or communications strategy.

But placing PR or even thinking of also placing communications under marketing leadership has shown to create massive friction. While looking similar for the uneducated eye Marketing and PR have very different value propositions. While marketing has to drive demand and generate pipeline on a short-term, scalable basis, PR is all about the long game of brand awareness and thought leadership of the company or brand. Placing those two value propositions right next to each other it become quite obvious that even if initiatives have overlap, the long term strategy and build-up of a brand in a modern company has to be driven by long-lasting communications aspects and not short-term oriented sales or discount activities.

I have presented this line of thought several times and have also spoken about it in interviews. However, I still see numerous companies falling into the "marketing trap". The reasons for this are simple: since the C-suite of a company is usually fed by people with business administration background and you encounter marketing in this study. Therefore numerous marketing managers still have a slight advantage over PR. In addition, sales today are usually considered more important by companies than sales tomorrow. Again, point for marketing. Third point: C-suite naturally looks at the big cost items first and foremost, and marketing is also part of that.

In my entire consulting career, I have only experienced very few companies that have asked themselves completely different questions: What is more profitable, marketing or PR? Do we have enough budget to use marketing effectively?

When it comes to Costs the Veil is lifted

Now as the thread of recession and cost-cutting rises again in 2023 financial considerations will be top-of-mind for executives. And with communications leadership often acting as crucial strategic counsel during times of organizational crisis or uncertainty, both the necessary cost-conscious approach will expose PR work as far more effective and sustainable than marketing as well – when restructuring is needed - the close cooperation of communication executives with the C-suite is more important than marketing by far.

In many cases, marketing managers get in their own way. The discipline has changed and developed at a rapid pace over the last few years. What is the point of an experienced ATL man who has no idea about BTL, let alone digital? Which marketing executive can say that he is good at all these areas (creative output, including design and content, plus demand gen, analytics, SEO, PR, product growth, customer success and - depending on organizational structure - even entry-level sales roles) that can be part of marketing at the same time? No one. And so the greed for leadership sovereignty very quickly leads to a situation in which critical scenes can take place.

The problem is that marketing departments often act as a catch-all fix for one-off market opportunities. Did a competitor perform well on social media using an influencer campaign? If it caught a sales executive’s eye, the marketing department may be tasked with carrying out a similar campaign. That leaves other essential initiatives, including communications support, by the wayside — especially if communications falls under the purview of a chief revenue officer (CRO). CROs, and oftentimes CMOs, are directed to prioritize demand gen and product growth over communications. And as a possible recession threatens marketing departments everywhere, the importance of demand has skyrocketed, only widening the chasm between marketing and communications initiatives.

There is nothing wrong with marketers focusing on demand, for me it is even the right move. But also the only move. In many cases, marketing should focus on demand and sales support and leave the rest well alone. Brand positioning, brand development and so on, has long since shifted towards strategic communication. Values, vision, purpose, sustainability and a place in society are far more important to future employees and customers than the next loud campaign. Accordingly, marketing clearly takes its place alongside PR and under corporate communications, which have overall responsibility for the CI, including CD and CL.

Securing Reputation & strategic Messaging

Once handled by separate roles, internal and external communications have slowly unified. Leaders now recognize the importance of strategic internal messaging, and for good reason. A recent wave of reductions in force and company exposés act as a reminder that internally distributed messages can significantly impact an organization’s public image. Announcements made in poor taste or with improper wording — regardless of how well-intended — can damage a company’s reputation.

It shouldn’t need to be said that authentic, empathetic communication is key when it comes to announcing hard decisions. Company reorganizations affect employees’ lives, and communications professionals must handle such announcements sensitively. But no organization exists in a vacuum, and all internal messages will be read by external audiences sooner or later.

Modern communications professionals have to juggle all sides of messaging. This has turned an already difficult task into a complicated, high-level process with huge stakes. Handling difficult communications tactfully has become an art form, and doing it perfectly requires strong, unified leadership and collaboration.

Communications teams need to work closely with HR to nail sensitive and accurate internal messaging. HR and communications share a goal: productive messages that contribute to happy and healthy employees. Sure, marketers probably share this goal personally, but it’s not their job to see it through. Furthermore, it may be inappropriate for marketers to access pertinent HR information ahead of an official internal statement.

Communications Guidance: Critical for C-suite

In fact, communication is much more than marketing. This is crucial in the day-to-day running of a business - marketing costs can be cut, but communication should never be cut. Before writing this, I spoke with several industry colleagues, all in communications management positions. From Allianz, BMW, Infineon to Microsoft and Telefónica, executives rely on their communications executives for strategic advice on almost everything from thought leadership and internal communications to restructuring leadership and advice on responding to social issues. Before a high-level interview, a communications professional provides guidance to managers. And before they talk to employees during a meeting, they ask for advice on what topics to cover (and what to avoid).

It should be known that creating a unique communications strategy and getting executive buy-in is no small feat. It requires experience and skill, not to mention age. And as social media accelerates the flow of news, others in the C-suite are realizing the benefits of having a single communications decision-maker who is also in charge of marketing to turn the game around for once.