Saturday, June 23, 2012

Works Cited


Works Cited:


Davis, Anna. "Merging Through Media: Analyzing Public Relations Framing and Ethics through the 2010 Ticketmaster-Live Nation Merger ." The Elon Journal of Undergraduate Research in Communications. 1. no. 2 (2010): 121-128.

Hansen-Horn, Tricia, and Bonita Dostal Neff. Public Relations From Theory to Practice. Boston: Pearson Education Inc., 2008.

Herskovitz, Stephen, and Malcolm Crystal. "The essential brand persona: storytelling and branding." Journal of Business Strategy. 31. no. 3 (2010): 21-28.

Mickey, Thomas. "A Postmodern View of Public Relations: Sign and Reality." Public Relations Review. 23. no. 3 (1997): 271-284.

Mickey, Thomas. “Sociodrama: An interpretive theory for the practice of public relations.” Lanham, MD: University Press of America., 1996.

Mizik, Natalie, Jonathan Knowles, and Isaac Dinner. Marketing Science Institute, "Value Implications Of Corporate Branding in Mergers." Last modified 2010. Accessed June 05, 2012. http://www.msi.org/publications/publication.cfm?pub=1815

Robins, Fred. "Learning from corporate mistakes." Corporate Communications: An International Journal. 15. no. 2 (2010): 169-180.

Van Ruler, B, and Vercic, D. “Reflective communications management: Future ways for public relations research. Mahwah, NJ: Lawrence Erlbaum Associates, Inc. (2005): 239-273.

Endnotes


Endnotes:


1 Mickey, Sociodrama: An interpretive theory for the practice of public relations, 1996.

2 Tricia Hansen-Horn, and Bonita Dostal Neff, Public Relations From Theory to 

Practice, (Boston: Pearson Education Inc., 2008), 122-163.

3 Hansen-Horn and Neff, 124.

4 Anna Davis, "Merging Through Media: Analyzing Public Relations Framing and 

Ethics through the 2010 Ticketmaster-Live Nation Merger ," The Elon Journal of 

Undergraduate Research in Communications, 1, no. 2 (2010): 121-128.

5 Davis, 126.

6 Hansen-Horn and Neff, 125.

7 van Ruler & Vercic, Reflective communication management: Future ways for 

public relations research, 264.

8 Hansen-Horn and Neff, 127.

9 Hansen-Horn and Neff, 162.

10 Thomas Mickey, "A Postmodern View of Public Relations: Sign and Reality," Public 

Relations Review, 23, no. 3 (1997): 271-284.

11 Mizik, Natalie, Jonathan Knowles, and Isaac Dinner. Marketing Science Institute, 

"Value Implications Of Corporate Branding in Mergers." Last modified 2010. 

Accessed June 05, 2012. http://www.msi.org/publications

/publication.cfm?pub=1815

12 Mizik, Knowles & Dinner, 10.

13 Stephen Herskovitz, and Malcolm Crystal, "The essential brand persona: 

storytelling and branding," Journal of Business Strategy, 31, no. 3 (2010): 21-28.

14 Hansen-Horn and Neff, 131.

15 Hansen-Horn and Neff, 126.

16 Mickey, 271.

17 Hansen-Horn and Neff, 128.

18 Herskovitz & Crystal, 21.

19 Fred Robins, "Learning from corporate mistakes," Corporate Communications: An 

International Journal, 15, no. 2 (2010): 169-180.

20 Herskovitz & Crystal, 21.

21 Hansen-Horn and Neff, 131.

PR using Sociodrama in Mergers: Multi-Genre Project


“The human world is an interpretive experience. The world does not reveal itself; we formulate it as interpretable through language and other symbols” (Mickey 1996)1.

   

“Sociodrama is a language-based approach to public relations and as much is an interactional, interpretive, and cultural perspective.” (Hansen-Horn et al. 2008)2 As public relations practitioners we want to know how to communicate with our audiences, how to engage them and how we can create a lasting relationship with them. If we want to successfully do this, we as PR professionals need to know more about our audiences and how our audience “makes meaning” is a large part of this. We, as public relations professionals, want to know how they feel about us as an organization, what they like about our brand and what they want to see and hear. Sociodrama for public relations was studied and written about by Thomas Mickey.


Looking into sociodrama you learn about how people “make meaning” with language, movements and symbols and what those words, actions and symbols mean to them. When individuals recognize a symbol or story and attach it with an organization what is to happen if that organization merges with another. What drama is best used in delivering the message of the merger? Using Mickey’s sociodrama theory, what drama would be most effectively used in announcing a merger that will gain new audiences, but still keep your previous relationships with your loyal audiences?

“Language is a way to explain and to create motives that lead to a certain kind of action.” (Hansen-Horn et al. 2008)3 When communicating a merger to audiences the ultimate goal is to retain previous audiences while gaining new audiences and shareholders.

The study of Ticketmaster and Live Nation Entertainment Inc. merger and acquisition done by Davis proved very interesting. Studying their public relations strategies, it was looked into how they released the information to their publics and to what audiences they released information to. “The company produced public relations sample included a letter to stockholders about the proposed merger, a press release about the stockholders approval of the merger, a press release about the UK competition Commission granting clearance for the merger, a press release about the U.S. Department of Justice granting clearance for the merger, and the “About Us” information from Live Nation Entertainment Inc.’s website.” (Davis 2010)4 The public relations strategies were simple, but mostly geared towards justification of the merger and towards stockholders rather than customers who purchased concert tickets regularly. In most of the language they used strong words such as, “successful”, “innovative”, “meaningful” and “multi-dimensional partnership”. The strategy was to structure the merger as the first of its kind, but it was leaving a bad taste in everyone’s mouth because they felt it was a monopoly and it wasn’t the “ingenious creation” they were trying to make it seem like. Everyone felt that by the U.S. Department of Justice giving them clearance for the merger, they were allowing a monopoly to form.
 




In response to their public relations tactics, they were met with anger by the media because of their flawed and less than dramatic press releases. The narrow-minded mistake of leaving the customers out of the merger communication was followed by very dramatic words used in response. For example, “dominate”, “juggernaut”, and “monopoly” were words used by the media to describe the magnitude of the merger and how large it was.  “But other writers went as far as to point out not only the colossal merger, but the “monopolistic” merger. This category, Monopolistic, was the largest group of media responses to the merger (32.5%). Many of the writings suggested that the Department of Justice was too easy on the music tycoons and should have taken it to court or enforces greater conces­sions. One article recalled when Pearl Jam attempted to boycott Ticketmaster, failing to do so because too many venues had long term, exclusive contracts with Ticketmaster, making it impossible to avoid using their services.” (Davis 2010)5 The merger showed poor actions, language and symbols to communicate with audiences about their merger and ignored a large majority of publics that should have been included.





“The language becomes the way to relate, not simply the mean to talk about the problem.” (Hansen-Horn et al. 2008)6  A main point in Mickey’s sociodrama theory is to use language as a means to relate to your audience and gain common understandings, which is what Ticketmaster failed to do when they were merged with Live Nation. They excluded a large public and angered not only those who bought tickets, but the artists performing to sell tickets to make Ticketmaster and Live Nation profits. They weren’t trying to relate to the audience, merely speaking of all the great benefits the merger would have for the investors, not minding the consequences of everyone else involved in the merger. “What distinguishes communication managers from other managers when they sit down at the table is that they contribute special concern for broader societal issues and approaches to problems.” (van Ruler & Vercic 2005)7 When the decision of the merger and acquisition was made along with the public relations plan on how the information would be released to the stakeholders and publics, a PR practitioner needed to be included in the decision making process and working alongside management and administration before it was a done deal. PR professional can be used as the conscience of the organization and offer more insight on the different publics and what their needs are from your organization because “If we can identify ourselves with an organization, we become a part of it.” (Hansen-Horn et al. 2008)8 Bowen thought PR should be the conscience of an organization, “Public relations professionals are often best suited to the role of ethical conscience in an organization, because other management functions (such as finance, legal and operations) often do not stop to consider how a decision will be perceived by many publics outside the organization.” (Hansen-Horn et al. 2008)9

Sociodrama is more than just language, but how we feel about ourselves, how we define ourselves and what makes us relate to others. “Since our society is one that is moved by simulacra or a sign, if an organization or a cause does not create a sign, it is not heard. This is a democratic society. Once those signs are out there, it is difficult for a counter-sign to have any influence.” (Mickey 1997)10 Mickey says it would become difficult to counteract a sign once it is already out there. With this in mind, when organizations merge, you wonder what is most beneficial for the organization on keeping or merging their “sign”.

A study using a sample of 216 larger mergers in the United States between 1997-2006 was done and they found; Firms using the more expedient and cheaper acquisition and business-as-usual branding strategies underperform firms choosing the more sophisticated and expensive fusion branding. Fusion-branded mergers do not experience negative market reaction at the time of the merger announcement, and the researchers find no systematic negative future-term adjustment in the valuation of these firms.” (Mizik et al. 2010)11 Business-as-usual branding strategies would fall under those mergers done where both “merge” but continue to do business as they had before and not changing names, “signs”/logos or anything they had done before. This eventually negatively impacts the organization according to this study. “Only the business-as-usual branded mergers experience a significant post-merger negative adjustment in valuation: for them, the initial negative reaction to the merger announcement is compounded by further negative adjustment in the subsequent years. These findings suggest that investors appreciate the clarity of the acquisition and fusion strategies and are able to accurately impound their value impact. But they initially have difficulty in properly pricing (i.e., they over-value) the business-as-usual branded mergers.” (Mizik et al. 2010)12

Symbols are also language and are an important part in society’s daily lives. We use symbols routinely to find places, communicate with one another, explain ourselves and define ourselves. We define ourselves with the way we dress; tattoos, piercings and symbolic t-shirts exist now too. We use symbols to communicate how we are feeling; a sad face, a peace sign, a tornado and so much more. Think of all of the various brands you know and love and have been around for years; Coke, Nike, Sears, and so many more. They are symbols that tell an entire story and have you relating to them instantaneously.





Coke is a prime example in how they’ve effectively used storytelling to brand themselves to their audiences and created a long-lasting relationship with their audiences that have them loyal to Coke, never to drink a Pepsi! “Persona-focused storytelling is essential to branding. When it comes to creating a powerful brand narrative, the persona- the articulated form of the brand’s character and personality- comes first, and all other elements unfold from there.” (Herskovitz and Crystal 2010)13 Coke has created a persona that is so recognizable that audiences worldwide know Coca-Cola and feel so close to the brand they are unwilling to accept any amount of change to the product or brand.

 


There was just a recent reminder of this loyalty and how symbols do affect audiences; Coke had a new can of soda released this past Christmas of 2011 that was white with polar bears to help raise awareness for the world’s polar bears. Coke was met with outcry from audiences because the can looked too similar to the Diet Coke can and it had audiences believing it made the soda taste different. Symbols are an effective means of communicating to others and when it’s changed it can have a drastic impact on audiences.



When mergers are discussed, there is little information to be found on how symbols impact mergers, but when looking into Mickey’s theory it would be hard to believe that a merger wouldn’t impact an organization’s reputation and affect the audience’s relationship with the organization if it wasn’t communicated in a relatable language.


Mickey’s sociodrama theory is broken into three levels of sociodrama; 

            1. The behind the scene: Involves the actors in an organization making a decision regarding the message to be used. The actors could be the public relations director and the writer, who choose not only the content but also the form.
            2. Onstage: Involves an audience paying attention to our message. The recipients of the message, either viewers or readers, hear or see the message and attach meaning to it.
            3. Outside the theater: Here we view the relationship of the message recipients to the larger social order. The actors interpret the message for their own needs and then interpret it for others such as family, friends, neighborhoods, the city and so on. They relate the message to themselves and to others, thus creating sociodrama.

Writers and public relations professionals interact to produce a message; readers and viewers interact with the communication form; and viewers interact with their world of friends and associates. Sociodrama proposes that communication forms human relationships on each level. Like all good drama, they portray struggles between good and bad principles of social order and we participate in that struggle.
                                                                                        (Hansen-Horn et al. 2008)14

                                                           
With Live Nation and Ticketmaster’s merger, they lacked the use of sociodrama in their public relations strategies and forgot to relate with their audience and gave them no meaning or connection to grasp. “If a relationship or group of people have no meaning for us, like a failing marriage or a company we no longer enjoy working for, it is because we do not identify ourselves as part of the social order. We talk as if that person or group no longer means anything to us, and, in that process, we become disconnected.” (Hansen-Horn et al. 2008)15 By forgetting to relate to their audience, communicate directly to their audience or give them something to relate to, they disconnected themselves from their audience. They meant for their press releases to be framed in a certain light to make the merger look beneficial and innovative and instead their press releases to the media were heavily changed into public opinion on monopolistic decisions the company was making. 



Postmodern views of public relations signs have changed because “Public relations practitioners can manipulate the image because they know the importance people place on signs and symbols in the culture.” (Mickey 1997)16 Signs, such as photos used to describe situations can be used to manipulate audiences are far different from the symbolic sign of a logo that is a brand sign or image that audiences relate to and recognize. In unethical judgments made by practitioners, signs can be used to manipulate audiences in portraying a story through a sign to gain action from their audiences, such as donated money or time. Mergers need to take this information into account before the merger is completely communicated to the publics. Although previous research discussed did state that business-as-usual mergers seemed to fair the worst because they weren’t clear of the outcome or value, it has to be looked at in a case-to-case basis because if one of the organizations merging has a loyal audience in a smaller region, not worldwide, they may be even more unlikely to bond with a new, larger company that may leave them feeling “cold”. The previous audience may feel as if they are being taken over and forced to merge with a new company that will change the way things have been. This is again circumstantial because if most of your audience is crying for change from you, you may do better with merging with an organization that does portray and embody the change your audience wishes to see.  Every person interprets communication differently, and people will always read the same message and gain a different understandings even a different interpretation from what the writer of the message intended them to get out of the message. “A handshake may provide a person with a sense of belonging. A memo, however, may provide a sense of isolation. A person interprets each form in terms of his or her relations to a particular social order.” (Hansen-Horn et al. 2008)17






When mergers are decided to be best for the organization, it’s important to examine how your audiences feel about you, what they say about you and how they identify themselves with you. From there, PR practitioners need to use sociodrama to:
1.    Create a relationship with the organization you’re merging with, this is an important function that most don’t realize the impact of, but when two organizations are merging, it is vital that they feel connected and want the other to succeed. If one feels less than or that they are the underdog, it won’t lead to successful business ventures.
2.    Once you are “together” in the merger process, in this “behind the scenes” level you will need to figure out what type of “persona” your organization will have, this will be an important piece, because once you start to brand yourself with the merger, if merging as one or if you are changing the organization name to include the others name, you will need to know the new persona or how you want to effectively change your current persona to include this merger. “These brand personas will appear human to the extent that they possess recognizably human traits such as imagination, persistence, or courage, which are tied to a clear intention or purpose.” (Herskovitz and Crystal 2010)18 You’ll figure out what strategies you’ll be employing, what persona and story you will be telling so you are prepared because you want your internal audience to hear the same story as the external audiences.
3.    Communicate the plan to your internal audiences so they don’t feel left out of the information and feel as if they are the last to know about the merger and any new organizational news. This will only create animosity in the workplace and they will speak poorly of the organization in the community, rather than having a firm, united front for the community and external audiences to see. This falls into Mickey’s sociodrama level of behind the scenes, you are preparing still and want to prepare your other actors who will be acting in a public “stage” or “arena” where audiences, publics and media will see. If you are all united together it’ll prove more beneficial to the merger than if people, especially the employees at the organization are sour about the merger and unwilling to work together.
4.    Be upfront and honest with your stakeholders and audiences. Don’t try to deny the reasons you are merging, unless there are deeper issues that can’t be discussed, but eventually truth will get out. This is an important step in making a merger successful is preparing your “dramatic show” and how you will act it out. If you act it out and lie to your audience on the reasons you merged organizations, such as Live Nation and Ticketmaster, you only fail to gain new audiences and lose past audiences. They will feel disconnected to your organization and unable to relate to the “cause”. “Be wary of murky or questionable corporate relationships and, at the very least, think through the implications and risks of full public disclosure. As ever, avoid relationships you would not like to have publicly scrutinized.” (Robins 2010)19 Each situation will be unique and need to be looked over to better process, but still it’s important to remember truth is always the best guideline, audiences will be curious and if they feel the relationship is questionable they will dig deeper to expose the truth.
5.    When you put on your show, as sociodrama refers to it, you want to engage audiences into relating to you, as the new organization you’ve become, merged as one. Connected and immediately giving them the language that will get them to identify themselves with you. “Audiences ‘know’ this brand because its persona reflects the audience’s understanding of the brand’s values and behaviors. (Herskovitz and Crystal 2010)20 When the audience feels connected to you and able to relate to the story you are telling, that is when you create a relationship. In the case of a merger, both organizations had past audiences, you hope with your “show” you will continue to relate with your previous audience, gain new audiences and make all of these relationships feel secure and loyal, even with the new organization you’re merging with. Involving your audience to participate is important too because they are engaged and feel connected emotionally with the organization and will feel as if they are going through the merger with you. This is a critical step because you want to make sure you’ve communicate your story and information in terms your audience will relate to because if it’s read wrong, it can be taken in a whole new direction that will only lead to negative feedback and broken relationships.
6.    Once you’ve communicated the information to your audience, it is now the audiences turn to communicate to their social environment through their own interpretations. If you’ve effectively communicated and acted out your drama to your audiences, their interpretations should be exactly what you were hoping for and sociodrama should occur in the way it was intended by Thomas Mickey. If audiences hear from other audiences their understandings of your organizations story, about the merger and the new organization and they are feeling connected to both, the person they are talking to will then feel a connection. This is the basic principle of word-of-mouth. Most people know the effectiveness of this principle and how easily it can be used for you or against you. Businesses love to have referrals and even offer up discounts and incentives to those who refer others back to their business. This creates a large ring of sociodrama by having them communicate to their own social world who may have not been in the business’ original audience they were communicating to and the message would have been lost, but are now connected to them by someone else.

Thomas Mickey concluded, “Communication, and public relations specifically, does not involve giving someone a message, but instead involves identification with others within a common drama.” (Hansen-Horn et al. 2008)21 As a public relations theorist, he was onto something with the sociodrama theory. Communicating is so much more than one message to one person or to one audience. That narrow-minded thinking is what gets PR practitioners fired or publicly hated with a poor reputation. You want to encompass the real meaning of communication and language to speak to your audience and engage them in a two-way conversation. This will help keep old audience members and gain new audience members in cases of mergers, if you tell your story well and your persona stays consistent. If you change your persona with the merge, it has to stay consistent with the new persona and “no looking back”. Acting it out is the crucial piece in all of your sociodrama because it has to be relatable and familiar to audiences. Communicating is more than just words, but it includes the signs we use, the words we choose and the movements we have when interacting. During a merger for an organization, these pieces need to be looked at and examined because they can affect your audience’s relationship and loyalty towards you and can also ruin your reputation. This is true in all public relations strategies, but as we’ve been discussing in terms of an organizational merger, it’s imperative to look at how changing your brand “sign” also known as a logo can affect your audiences if it’s seen as a recognizable, comfortable symbol they associate themselves with. Once you’ve decided how you want to change the organization you have to effectively communicate the changes in your “play” by being consistent in the signs, actions, movements and language you use. As the actor in the organization’s play, you also must be a constant player in the show and stay consistent in the communication you use on the organization’s behalf to encompass the realm of sociodrama.