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 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
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