Corporate communication - impact on bottomline and sales

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Corporate Communications - Positive Impact on Financial Performance

Some ways in which corporate communications can positively impact the financial performance of a company include improving employee productivity through trust and engagement and attracting potential investors through open and quality communication. Below are the findings for this research.

How Corporate Communications affect Financial Performance

  • Building Trust And Engagement Through Organizational Communication
    • Research suggests that open organizational communication is a significant predictive factor in building trust and engagement among a company's employees.
    • Doug Conant, the ex-CEO of the Campbell Soup Company, attributes the increase in employee productivity when he was CEO to the trust that he built within the company's workforce. This, in turn, led to one of the company's highest shareholder returns in recent years.
    • A study by Interaction Associates has also shown that high-trust companies are over 2.5 times more likely to be companies with high-performing revenues.

  • Open, Quality Communication to Attract Potential Investors
    • Corporate communication that deals with updating investors with the status of a company is called investor relations. This includes annual reports, quarterly updates, financial reporting, and even media coverage that the company has received.
    • Quality investor relations lead to a company attracting more investors which gives the company more resources for their growth. Furthermore, through investor relations, a company is able to gain investor feedback which they can utilize for managerial decisions.
    • Quality investor relations also lead to lower cost of capital which increases the company's value and improves its financial performance.

  • Building a Cohesive Brand Image with Corporate Marketing Communication
    • Communication through marketing is a type of corporate communication wherein the aim is to put the face on the company's products or services. This is a way of portraying a company's brand.
    • Marketing communication can help build a cohesive image for the company which in turn helps build a company's reputation.
    • Research suggests that brand reputation contributes about 3-7.5% of the annual revenue of a company.

  • Government Support through Effective Relations
    • Corporate communication can also come in the form of having an audience with lawmakers, lobbyists, and the government itself. Having an effective relationship with the government is important as certain laws or regulations may have an effect on a company's industry. Effective government relations mean having relationships with key lawmakers and understanding how to work with lobbyists.
    • Government regulations have varying effects on different industries in the US. For example, companies in the pharmaceutical industry have often complained that their performance is affected by the Food and Drug Administration's withholding approval of certain drugs and subsequent marketing of others.
    • Examples of how effective relations with the government can impact financial performance include how the Small Business Administration helps small businesses improve their performance in a highly competitive environment through grants, advice, training, and management counseling, and how the US Commerce Department helps with the overseas sales of small to medium-sized companies.
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Corporate Communications - Positive Impact on Reputation: Pharma Companies

Four specific ways pharma companies can use corporate communications to bolster their company's reputation include informing the public directly, maintaining an open line to the press, owning a corporate narrative, and adopting a Fast-Moving Consumer Goods (FMCG) type of approach to disease branding.


  • To have a positive impact on reputation, pharma companies can use a public relation (PR) strategy which entails informing the public directly.
  • The methods or ways pharma companies employ to speak directly with the public on health issues should share valuable information as well as healthcare tips.
  • Pharma companies should utilize social media in establishing a direct dialogue with their customers as well as other people in their target community.
  • Pharma companies can go an extra mile in an attempt to inform people on helpful resources, healthcare events, as well as opportunities where they can volunteer and get involved.
  • Pharma companies can benefit from performing survey research to gather valuable information on customers' health habits or experiences. The findings from these surveyed experiences are useful when shared with the public to get them informed.


  • Small business insights provided by Chron reveals that the use of direct dialogue/communication builds a reputation for pharma companies. Members of the community view any direct reaching out (dialoguing) pharma company as a "knowledgeable, caring institution," which values people's health as well as the quality of peoples lives.


  • Pharma companies need to be regularly communicating with the press about exciting changes or events in their pharmaceutical products.
  • Pharma companies should inform the public about upcoming renovations, new services in the pipeline, significant new products or medicines, etc. Communications should uncover anything that will make people want to revisit pharma stores.
  • Pharma companies should consider assigning or hiring pressmen to write guest articles in local publications that border on public-health issues.


  • An open line to pressmen who pose as formal representatives of a pharma company, gives the pharma company a strong presence in the press and boosts its reputation.


  • Pharma companies can boost their reputation by owning their corporate narratives as against traditionally relying on direct marketing via sales reps when promoting new drugs.
  • Recent advancements in pharma industries ensure that medicines are becoming "more targeted and personalized." There is an explosion of online-based information, data on various medical conditions as well as available therapies/treatment options. These advances necessitate that pharma companies need to deploy highly "sophisticated and layered communications strategies." With the above advancements, pharma companies can not continue to rely on sales reps to pass their communications and brand promises.
  • Corporate narrative helps in bringing the broader purpose of a pharma company to public view. Such narratives go beyond a brand and reflect the real mission of the pharma organization.
  • Corporate narratives reveal the science a pharma company is striving to advance, the medical community the pharma company aims to serve and the patients it is working to support. Corporate narratives sum all the unmet needs and challenges a pharma company focuses on overcoming.



  • Pharma companies need to adopt an FMCG-type approach when communicating their disease branding initiatives which also need to be patient-centric.
  • Pharma companies should take advantage of "patient centricity" and "beyond- the-pill marketing," which have become new buzz words for pharma communications.
  • An FCMG-like branding approach displays a firm commitment to achieving business goals by utilizing more campaign-based activities somewhat than merely dishing out press releases.
  • Innovative companies are adapting experiential PR campaigns when launching prescription products to engage both consumers and doctors.
  • Pharma companies need to borrow a leaf from FCMG by shifting their operating models from merely producing and selling drugs to one which meets the entire needs of customers on broader health issues. Meanwhile, superior-tech companies such as Apple, Samsung, Philips, etc., are "disrupting the connected health space," which may shut out pharma companies that do not adequately respond or advance. Pharma companies need to adopt experiential PR campaigns.
  • Experiential marketing signals the arrival of a new age marketing, and some pharmaceutical companies are incorporating it to give an immersive personal interactive experience.


  • Most pharma companies are making advances and getting involved in campaigns that reflect corporate social responsibility (CSR). Pharma companies that adopt a communication approach typically practiced by FMCG companies (e.g., experiential marketing communications) to brand diseases are distinguishing themselves as being more progressive.


  • The public reputation pharmaceutical of companies is dependent on their formal reputation management strategies. Surveys reports reveal a "positive correlation" between pharma companies that enjoy a good reputation and their ongoing PR measurement programs.
  •  A recent study was conducted to evaluate how pharma companies manage their corporate reputation in the United States. The study concluded that pharma companies that have a better corporate reputation are those that demonstrate a more significant commitment towards measurement.


  • The majority (about 88.89%) of pharma companies that appear on Fortune magazine‘s “World‘s Most Admired Companies” are those that actively measure the quality of their corporate reputations. The above insights suggest that measuring PR of pharma companies has a way of making measured companies conscious of where they are (their position) in the public space, which is helpful when considering necessary adjustments.
  • Having a precise and concise data-based understanding of the position of a pharma's corporate reputation is one essential prerequisite for its PR's successful management.

From Part 02
  • "Inform the Public Find ways to speak directly with the public about health issues by sharing important information and healthcare tips. Utilize social media to establish a dialogue with your customers and other people in your community. Use this dialogue to build a reputation as a knowledgeable, caring institution that values people's health and the quality of their lives. Go the extra mile to inform people about helpful resources, healthcare events and opportunities to volunteer and get involved. Consider performing survey research to gather important information about customers' health habits or experiences, then share the findings with the public in an informative way."
  • "Keep an Open Line to the Press Regularly communicate with the press about interesting changes or events in your pharmacy. Inform them about upcoming store renovations, new services, major new products or medicines and anything that might give people a reason to revisit your store. Consider assigning or hiring someone to write guest articles for local publications on public-health issues as a formal representative of the company, as a way to be more present in the press."
  • "Own your corporate narrative Pharma marketing communications have traditionally relied on direct marketing through sales reps to promote new drugs and increase the adoption of marketed brands. The recent developments in pharma with medicines becoming more targeted and personalized and the explosion of online information and data about various medical conditions and the available therapies to treat them requires that pharma companies deploy more sophisticated and layered communications strategies and cannot just rely on sales reps to communicate their brand promise."
  • "Adopt an FMCG approach to disease branding “Patient centricity” and “beyond- the-pill marketing” are the new buzz words in pharma communications. As pharma companies are increasingly becoming more involved in campaigning and CSR, adopting a comms approach usually practiced by FMCG companies currently distinguishes the more progressive ones, which display firm commitment to achieve their business goals through more campaign-based activities rather than just simply pushing out press releases."