Archive for January, 2012

How Do Consumers Know When They are Being Sold to or Persuaded?

Friday, January 20th, 2012

As often happens a national journalist asked us for our opinion on a business topic, in this case the story is about how consumers can evaluate whether they are being sold to or not when watching or hearing commercials, PSA’s or other communications. Much of our counseling for business to business or crisis communications PR is based on media psychology and even Dr. Maslow’s hierarchy of needs theories. The Media & Communications Psychology Master’s program at Touro University Worldwide (www.tuw.edu) has been invaluable as a basis for my advice to high profile clients and for media training – once again what I learned at TUW is applicable.

We tend to categorize issues into “what can hurt me and what can help me?” We are usually naturally skeptical of overt sales pitches because we figure the pitcher is trying to get something from us that might take away from what we have or even be dangerous to us.

We are more susceptible to covert sales pitches which have us subtly buying concepts which may lead to us buying services or goods.

There are many exceptions here and sometimes an overt sales pitch is warranted to blunt attacks to credibility, as in politicians wanting to get out in front of accusations that are hurtful.

So with that context, consumers should always be thoughtful about what they see or hear and understand if it is in the media, the proposition is there to sell you something. You have to follow logical lines of reasoning and intuition to figure out what is being covertly sold and decide if you NEED or WANT it.

Hence the old saw, if it seems to be too good to be true, it probably is – caveat emptor, consumer beware.

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More Good News For the PR Industry: New PR Boutiques International Survey Predicts Optimistic Forecast for Boutique PR Firms in 2012 — The Power of Social Media Cited as the Year’s Major Communication Event

Tuesday, January 17th, 2012

Respondents to a new PR Boutiques International (PRBI) survey of worldwide boutique public relations agencies predict moderate to high growth for their businesses in 2012, a reflection of the increasing recognition that these specialized firms deliver real value in a challenging economy.

“The boutique PR firm is more appealing than ever to clients because our structure and senior expertise yields results,” said PRBI president Bill Cowen, CEO of Metrospective Communications of Philadelphia, in a news release. “Today companies need insightful and accurate advice, superb execution, and flexibility to adapt to constantly changing conditions, which is exactly the value proposition that our members provide.”

“As a founding member of PRBI, Media & Communications Strategies in Washington, DC is also experiencing a kind of client epiphany regarding choosing senior counsel and the best collaborative teams coming from our PRBI concept as opposed to hiring a ‘one-size-fits-all’ traditional agency model,” agreed Scott Sobel, president of Media & Communications Strategies.

How social media helped to incite the revolutions in the Middle East was tapped by respondents as the biggest milestone in 2011 that proves the power of PR, followed by the heightened public hype and awareness around the technology world (including the death of Steve Jobs) and the use of social media to help turn Occupy Wall Street into a global phenomenon tied for second. All member agencies responding to the survey reported that their confidence level about the business environment was either medium (72 percent) or high (28 percent), while 78 percent predicted moderate growth in 2012. Two out of three reported that the perceived value of the PR boutique has increased during the economic recession, because companies see that they get more value for their investment (38 percent) and clients value the hands-on role of senior, experienced practitioners (38 percent).

The power of social media was cited by 44 percent of respondents as the major trend impacting communications in 2012, followed by the economic recession and its impact on spending (33 percent). The difficulty of telling a company story in a crowed marketplace was voted the biggest communication challenge that clients face in the coming year. Conversely the most significant opportunity facing companies today lies in telling that story through engaging, compelling media and channels, including the strategic use of social media.

Rather than predicting that social media will be the PR “magic bullet” for all clients, PRBI members instead view it as a tool that must be powered by engaging content and strategically integrated into the enterprise’s communication program.

“The cost effectiveness of PR, and the ability of senior practitioners like PRBI members to devise the best way to tell a compelling story in a crowded marketplace, is a key differentiator going forward and the reason why we are optimistic about 2012,” concluded Cowen.

PRBI, a worldwide collaborative network of firms, includes 32 agencies operating in 13 countries, spanning the globe from Argentina to South Korea. Members of PRBI represent companies ranging from international conglomerates to Fortune 500, trade associations, and fast growing firms in industries such as technology, energy, financial services, government, tourism, education, lifestyle and healthcare.

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A Blackout By Big Internet Companies Creates a PR Predicament

Tuesday, January 10th, 2012

Silicon Valley and Washington, DC are in a heated debate over the freedom of information on the Internet. Companies such as Facebook, Google, and Twitter contend that they are threatened by the Stop Online Privacy Act while Hollywood and the record industry support its objective to combat piracy. Protesting has been a popular tactic thanks to the Occupy movements around the country, but do the big Internet companies want to expose themselves to a public relations backlash if they do blackout against SOPA and leave millions of Internet users without needed service?

The Internet companies have lobbyists and trade association representatives working the halls of Capitol Hill to persuade lawmakers to bury SOPA. They also have trade groups and political action committees that can advertise their displeasure with SOPA. Why take the Internet out entirely in a blackout and leave Internet users- their customers – in the lurch?

The public relations risks for the big Internet companies involve their customer’s trust and loyalty. The Internet companies make a fortune off advertising and the access to information their customers provide. Many of these customers run small businesses that depend on those web sites to be functional. A blackout could cost them needed income in this tough economy. Given the threat of a blackout, some customers might run to competitors who have reliable service without the political risk.

Internet companies would do well to ensure the trust and loyalty of their customers through a clear message on SOPA. They can affirm they do or do not intend to protest SOPA with a blackout via blog, video blog on their websites as well as contacting top online and traditional media. The swirling news reports out about the blackout could catch customers unaware and add to an unexpected public backlash. Just like the Bank of America and Netflix PR issues last year, Internet companies would be wise to inform their customers about what they are about to do and why they are taking actions before dropping any bombs.

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Learning from La Redoute: How to Handle Damage Control

Monday, January 9th, 2012

Our firm has several international clients and is constantly involved in reputation management and mitigation constantly. We are retained by corporations, large law firms, nonprofits, etc. And a primary rule of international damage control or any kind of crisis mitigation really is to identify your audiences, know the context and culture and don’t make things worse.

Twentieth Century American Humorist Will Rogers was right when he said, “When you find yourself in a hole, stop digging,” and that advice is good for France retailer  La Redoute at this time. The company has done well to apologize, they should also make sure they are not doing anything else wrong and shouldn’t be caught making such foolish mistakes again and certainly shouldn’t encourage continuous online dialogue about the matter. French sensibilities will allow this kind of faux pas where it probably would have played out worse in the US or UK.

Nonetheless, the definition of crisis is a “tipping point” and the company will be judged on how well it handles the scandal more than the mistake itself. Remember how the mishandling of the Toyota crisis and the BP boss asking for his “life back” added fuel to the fire.  La Redoute should ask itself who has really been hurt here, and make decisions based on audiences and cultures, and then move on.

 

 

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Communicating a Business Closing in the New Year: Protecting Business and Employees

Thursday, January 5th, 2012

During these trying economic times, companies and trade associations are having to tighten their fiscal belts with budget cuts and prioritization of resources. Within this process, companies may have to downsize or reallocate employees elsewhere. Local communities, families, and businesses can suffer financial and emotional distress. How is a company’s public relations team to break the news?

This week, Boeing stated it will no longer operate a plant that employs 2,100 in Wichita, Kansas. Boeing expressed the difficulty of the decision and intends to provide employees affected options to relocate. The work to have been completed in Wichita will now move to Oklahoma, Texas, and Washington. The transparent and sympathetic approach Boeing used to convey the closing is effective in engaging the public to maintain trust in its brand and connection to Wichita and Kansas.

Despite grumblings from lawmakers and other critics, Boeing emphasized its commitments and intentions. By avoiding opaque language and indecisiveness, Boeing appears to have taken into account all audiences involved and directed an overall message that considers each one.

Companies and organizations facing tough decisions like Boeing can conduct best public relations practices with a sensitivity for timing and messaging. The plant closing could’ve been announced before Christmas, but that would have made Boeing appear The Grinch or Scrooge. The public blow back could have sagged their stock price. The gradual shutdown into 2013 gives Boeing, its employees and their families time to adjust as changes may arise.

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