Posts filed under 'Marketing Strategy'

PR and the respect factor

Sally Saville Hodge

rdPublic relations has always been like the Rodney Dangerfield of the communications field. You know: We just don’t get any respect.

Our collective inferiority complex has been self-created, to a significant extent. The tendency by many in the profession to use overstatement and hype as their stock in trade hasn’t helped the cause. And high profile ethical lapses haven’t added any to the practice’s luster. (Remember Ketchum PR’s payment of $240,000 to minority radio broadcaster Armstrong Williams to tout on air and with his peers the No Child Left Behind program?)

That’s on the public side. Generally speaking, PR is low on the totem pole among business professionals as well. Never mind some of the more unfortunate associations that play down PR’s value. The term “free publicity” is emblematic.

I’ve always thought much of it related to how much of a budget PR commands and controls, particularly vis a vis the far weightier purse carried by Marcom and advertising. After all, money equals power, and it’s not unusual to see ad budgets of the big players in the millions of dollars – hundreds of millions, even. On the other hand, a million-dollar PR campaign is considered exceedingly healthy.

The irony is that for all the disrespect, and for whatever reason, it’s PR that really has the power to build a brand. For all of traditional media’s failings (and recent flailings, for that matter), it’s the news coverage that PR helps bring about that carries credibility, not the “they’ll say anything to make you buy” advertising messaging that’s so transparent to the public. And that’s only part of the powerful overall PR package.

We’re hearing more stories these days of some recession-hit businesses cutting their marketing budgets, but diverting more funds into PR programs instead. I don’t know that I’m ready to call it a trend, unfortunately. We just haven’t managed to do the job of convincing our partners in marketing (and higher up the food chain) that we can be more than simply masters of spin.

Or have we, but marketing leadership just can’t bring itself to respond accordingly?

Michael Dunn, Chairman of Prophet (full disclosure: a client since 2001) has just authored a book called The Marketing Accountability Imperative. It’s a heavy read, but a must-read for senior management. But apropos to this conversation, here’s a pullout worth thinking about:

    “Our 2007 senior marketer survey showed that B2B companies believe that public relations is the most effective activity for long-term brand building and the third most effective at driving short-term sales (after field sales activities and outbound marketing). No form of advertising came close to PR in its perceived long- or short-term effectiveness. Despite this, B2B marketers spend only about 1 percent of their budget on public relations and over 20 percent on advertising. The effectiveness of PR is also rated higher than advertising among B2C marketers and their contradictory spending relationships are even more pronounced.
    …[M]arketers’ behaviors seem somewhat puzzling – they do not believe that the marketing activities that they are spending the most on are the most effective, yet they are unwilling or unable to take the steps necessary to quantify this performance.

Puzzling, indeed.

1 comment April 6, 2009

Why PR investments should grow in 2009

Sally Saville Hodge

I’d like to think it’s true, but the cynic in me just keeps muttering, “Yeah, right.”

Media prognosticator Jack Myers recently issued a report suggesting that the bright spot in the current advertising depression will be public relations. He projects investment in PR to grow by 3% in 2008 and by another 3% in 2009 to over $4.5 billion.

There are a lot of reasons why this should be true.

  • In hard economic times, businesses need to grow their credibility with consumers. You get that with PR, particularly with an orientation that’s geared to inform, versus hammering away with heavy-handed sales messaging.
  • They also need to grow awareness. And while an ad campaign does that, so does a PR program. The difference is that PR features the credibility component, while advertising doesn’t. Furthermore…
  • …a PR program is a LOT cheaper than advertising or the majority of marketing communications programs to design and execute. That’s not to say clients ought to believe the “free publicity” misnomer of one aspect of PR, however. There’s still time and expertise involved, and that carries a price tag. But a $100,000 budget will easily be sufficient to create a robust PR program featuring traditional and social media aspects over the course of a year (providing you stay away from the larger, high-priced agencies). That kind of money will get you bupkis in advertising and not a lot more in some of the more traditional MarCom tactics.

So why am I cynical that the growth Myers projects may actually occur? Well, for one thing, the top dog for communications matters at most businesses is still a person who has a marketing title. As a rule, these folks are still pretty tied to tradition – the tried and true of advertising, direct mail, and the like.

Too many don’t have a great grasp of depth and breadth of traditional public relations approaches, much less how PR applies to the new media world. For example, in an article tellingly headlined, “Social Networks: Millions of Users, not so Many Marketers,” e-Marketer, an online newsletter, has projected a decline in U.S. social networking advertising, but pointedly observed, “Advertising is not the only way for marketers to participate in social networks.”

We’re heading into one of the toughest years for business that I can remember – and 2008 was hardly a cakewalk. PR investment may or may not grow by the projected 3%. But those challenged to do more with less in a difficult climate would be well-served to take another look at traditional and social media PR approaches and adjust their thinking accordingly. (more…)

Add comment January 5, 2009

Coming soon to a gas pump near you

Judi Schindler

Try Googling “digital out of home media.” In doing so this morning, I got 27,500 hits. My cursory research indicates that number will increase exponentially over the next few months.

What started as a kiosk in a hotel lobby or an occasional elevator video screen has now become a $2 to $3 billion industry with projections of $10 billion for next year. Some 900,000 screens are currently in place at gas stations, health clubs, coffee bars, train platforms - even men’s urinals. (Now there’s a thought.)

The advertising industry, which has been wringing its hands over the ever-slipping numbers for traditional media, is jumping on this bandwagon with both feet.

Many of the major ad agencies have formed special divisions to manage it. The media companies are delivering “narrowcast” programming. A new trade association (the Out-of-Home Video Advertising Bureau) has been formed. And MediaPost, the online marketing publisher, held its first forum on the channel in April and launched Digital Outsider, a weekly e-letter, May 23.

And if there was any doubt about the legitimacy of the medium, the Nielsen Company, best known for its television ratings, is planning to launch a similar service for out-of-home media.

What’s all the fuss?

Proponents believe that out-of-home media is a way for advertisers to reach active, highly mobile consumers at times when they are more or less captive. They may be waiting for an airplane or train, sitting in the back of a taxi or waiting in line at a store – occasions when they have time to be attentive.

Media buys can be targeted by geography, interests, demographics. When combined with cell phones, out-of-home ads can be interactive. (Call or text for a free sample or coupon.)

Media Life Magazine says that travel, financial services and automotive are the top categories for out-of-home digital media. Local businesses like dry cleaners, real estate and healthcare providers are also said to do well with it.

While out-of-home may not be appropriate for all advertisers, others may well find it worth a test run. Success, however, will ultimately depend on targeting, messaging and integration with other forms of marketing.

Add comment May 27, 2008

Managing the viral spread of bad customer experiences

Sally Saville Hodge

You may have heard this factoid mentioned when it comes to customer service: A satisfied customer is likely to share the experience with one person, while one who’s dissatisfied will share it with ten.

Now, think about the implications of those numbers in a Web 2.0 world, when anyone and everyone has a voice and can make it heard resoundingly around the world. Whether through a blog, a Twitter, a YouTube feed, or a MySpace post. The possibilities for sharing positive, but (human nature being what it is) more often, negative experiences have exploded.

Any business that understands the value of a strong brand is going to do whatever it takes to consistently deliver a superior customer experience. Part and parcel of the deal is monitoring the conversation and seizing any opportunity to identify any disconnects – real or imagined – in the way the business is delivering. And find ways to make it right.

What’s amazing to me, though, is the number of businesses that still don’t get the power of the Web as more than just a messaging channel du jour. It’s also a great, grassroots way to keep the pulse of changing customer perceptions and to respond in real time and in authentic ways to shape them.

Or not.

Consider Brenda and Gerald Moran. These folks love cruises. They were such fans of Royal Caribbean that they booked two trips a year and even bought stock in the company. This despite a customer experience that was less than ideal for each and every trip.

Some of their complaints were laughable: Her birthday greeting was delivered to the wrong cabin. (Get over it.) Others? Not so much. On their most recent, two-week Alaska/Northwest cruise, their cabin reeked of sewage, which was blamed on other guests flushing everything from oranges to diapers. With no more rooms available at this floating inn, their balcony door remained open in 40-degree weather to offset the odor. Yet the Morans were happy with the cruise line’s offer of a 20 percent discount on their next cruise.

But here’s the deal. Brenda wrote, as she always did, a post-cruise review on Cruise Critic, which sparked an active viral dialogue. Royal Caribbean responded by offering the Morans an additional discount for their next trip…and, oh, by the way, now will you pull your review?

Brenda declined. Cruise Critic later declined to pull or modify it. And Royal Caribbean soon thereafter banned the Morans from its cruises – for life.

Even in the olden days before the Web boosted the power of word-of-mouth, such heavy-handed tactics would have been ill-advised. Royal Caribbean would have been much better served with a variety of other courses of action:

  • Apologizing in the discussion forum for the Morans’ experience and detailing steps being taken to make it right (and remember, it’s not always about money!) and create a consistently positive customer experience for all its guests.
  • Identifying the Morans’ (and others’) specific complaints about the customer experience, their relative degree of importance, and possible fixes besides discounting that would create goodwill.
  • Identifying and cultivating other satisfied customers (which the Morans really were, overall) who could serve as brand ambassadors and encouraged, among other things, to share their own positive experiences.
  • Monitoring the conversation and employing an ombudsman, perhaps (see what Comcast is doing), to run interference in real time as a means of enhancing customer satisfaction.

The Web’s current role and future potential to help make or break brands is only growing. For those that don’t like the way the conversation goes, killing the messenger isn’t the answer. Finding better ways to keep the negative word of mouth from spreading virally to hundreds or even thousands more is.

3 comments May 20, 2008

Don’t titter at Twitter – there’s a place for almost everything in this changing new media world

Sally Saville Hodge

A month or so ago, Helena Bouchez, our erstwhile, soon-to-be-former VP and resident guide to all things new- and social media-related, started telling me about the marvels of Twitter. Then she sent me some links to some of her favorite Twitterers.

I kind of knew about Twitter. Little top-of-mind messages – 140 characters max – that you can use to keep your friends and followers abreast of what you’re doing and thinking during the course of the day. A mini blog, as it were. Accessible through the Web, your cell phone, and instant messaging.

Now, Helena is a self-proclaimed early adopter, God love her. Once she gloms onto something, she does it with gusto. She now oooVoos and/or Skypes with aplomb. She has several blogs. So it’s not surprising that she’s Twittering away with great regularity.

It takes me a bit longer to embrace a lot of this stuff. It’s only been the last several years, for example, that I’ve been satisfied with the business benefits of a blog strategy, and, heck, we only just launched this one in January. (The time commitment I was worried about? I was right: It’s 1:21 p.m. Saturday and I’m writing this post instead of playing outside!)

So I went to some of Helena’s recommended Twitterers. One I liked. Gaper’s Block’s Twitters are useful little facts about stuff going on in the city. The others? Not so much. When I see a bunch of messages that read like this…

11:45 a.m.: landed at Las Vegas airport.
Left laptop in room; had to go back for it.
Was late to my meeting with students.
5:45 p.m., and I’m boarding now to go back home.

…my first reaction is: Does anyone really care?

Apparently they do, or Twitter’s ranks wouldn’t be swelling with each passing day. (*Pat on my own back: Many people have lives that seem to be as boring as yours!)

Helena hasn’t yet talked me into setting up my own Twitter feed. I am, nonetheless, keeping an eye on this utility to see how its applications expand.

The Bad Pitch Blog, for instance, just exhorted its readers to learn not to hate Twitter, and shared how some have used it for more than just mental masturbation. Like the PR person who followed one journalist’s feeds, and used the tool to not just successfully make a story pitch but to see the article through, including fact checking.

Now, that’s cool and useful. And the kind of thinking may make a believer out of me yet.

Add comment May 13, 2008

Don’t assume lazy means loyal when customers stick around

Sally Saville Hodge

I’m the kind of customer that businesses love: I never seem to be able to find the time to seek out a better deal. So I stick around. For a while, at least.

Please don’t think less of me for it. I don’t think I’m alone in this. I have a lot of stuff on my plate and the last thing I want to do is get on the phone and wrangle with customer service folks for a better deal. But I’m not the loyal customer they may think I am. I’m just a lazy one. And it’s loyal customers that ultimately make or break a brand.

All I’m hurting, I know, is my own pocketbook. But still. At its root is a deep-seated irritation with those companies that can’t see all the implications of the “your next best customer is the one you already have” credo. That means you make them happy. You study your relationship with them. And you anticipate their needs. Anticipate is, of course, the operative word.

Why do I have to go to them to beg for a better deal? Why are the bargains geared to new customers? Do they expect me to have loyalty to them when they don’t have any to me?

The whole customer relationship thing is a two-sided coin, of course. In “The Bad Table,” Seth Godin comments on its other side. As a new patron to a hot new restaurant, he and his group were given the worst seats in the house even though the place was only a third full. So, he asks, who gets your best effort? The newbie who might be converted into a loyal follower? Or customers who have already attained that status?

Marketers are challenged to master the balancing act between the dual mandates for volume (short-term growth) and quality (the kinds of loyal customers that drive sustained growth). By and large, I don’t think they do a terrific job at it.

Here’s the deal. Ultimately, as Godin puts it: “You can’t have a bad table.

Indeed.

Add comment March 28, 2008

Fed up with email? Customers are, too

Helena Bouchez

In Email Insider’s most recent blog entry, “Helping People Become Better Email Users,” Chad White describes his experience at the OMMA (Online Media, Marketing and Advertising) Expo at the Email Experience Council’s booth where he suggested a visitor subscribe to their free weekly newsletter. The visitor’s reply? “Whoa, another email newsletter? I get too much email as it is.”

It’s something to think about the next time you help plan an email campaign or launch a newsletter for a client. Assuming their target market even reads email anymore. If they’re younger than 25, chances are they don’t. They’re communicating real time via IM, Facebook or Twitter. Heck, even executives Twitter now. But I digress.

In his post, White gave several suggestions to help assuage people’s frustrations with email. They’re good. I created @Action folders for both my work and personal email accounts and emptied my Inbox. My Inbox hasn’t been 100 percent empty since 1995. It looks and feels sort of weird, but I like it. I’m fairly confident, however, that most email recipients are somewhat less process oriented and organized than he or I. Which means my client’s e-newsletters are splashing down into a sea of communications numbering in the hundreds, maybe thousands. Lost among thousands of little email voices pleading with recipients to “Read me! Pay attention! Take action!” No small wonder so much email gets deleted or ignored. Who can take the guilt?

To preserve this communications outlet among those still engaged with it, we marketers have to use it wisely. Make sure the email you send to your target audience is relevant, engaging and if at all possible, personalized. The technology exists, and there are partners out there ready to help you. It’s not cheap. But consider the cost of a poorly targeted email campaign that causes the recipient to view your brand as irrelevant or annoying. Some things are better left unsent.

Add comment March 19, 2008

And the battle twixt technocrats and luddites rages

Sally Saville Hodge

One of the never-ending discussions in both the PR/marketing blog world and in related traditional media focuses on who gets it and who doesn’t when it comes to social media strategies. By now, it’s become obvious. Only a chosen few apparently get it.

The most recent salvo, picked up by the media and bloggers alike, was issued in the form of a recent survey of senior level corporate marketers by TNS media intelligence and Cymfony, a marketing influence analytics firm. Agencies – marketing, advertising and PR – are all behind the eight-ball, was the consensus: They lack practical experience and tend to try to shoehorn traditional tactics into social media space.

To me, this study shows some flaws. For starters, only 70-some senior level corporate marketers were included in the survey, and those apparently with Fortune 500-level firms like Hewlett Packard, Hyundai and Johnson & Johnson. That’s not a huge base. Moreover, to my mind, such players have the financial flexibility and the human capital that smaller businesses don’t of being able to take the risk of experimenting.

And for all their talk, yes, big businesses are shifting more of their budgets to social media, but the lion’s share is still directed toward traditional channels. To be sure, a study last year (subscription required) by Ad Age of major advertisers’ spending showed the most growth in non-measured media (including some forms of digital communication, like paid search). But nearly 60 percent of their ad spend still goes to TV, print and some forms of Internet advertising.

Bottom line, though, is that I find this ongoing conversation both troublesome and irritating.

On one hand, the smug superiority of many of the social media specialists is irksome. (One tells ClickZ’s Mike Grehan that she believes traditional PR shops are “on their way out.”) Do they think they invented this next best thing? Do they truly think the once and future interests and needs of all audiences are met solely through this one channel? Please.

But I also understand the disdain they feel for some — too many? – of the traditional shops that don’t even try to grow some modicum of understanding of the power some of these new vehicles have to grow a brand. Call it inertia. Call it lazy. Call it incurious. Or something else.

Personally, I put it down to something else. Like the “order taker” mentality that is way too prevalent, both among agencies and professionals on the client side. If clients and employers aren’t pushing for it, why should PR and marketing professionals move themselves to advance along the learning curve? Other factors: Fear of failure. Risk aversion. Discomfort with change.

I agree with what the senior level marketers seemed to be telling TNS and Cymfony. Those of us whose clients and bosses aren’t pushing us to test these new waters should at least be trying them on our own accounts and measuring how they’re working. That way, we’re in a much better position to recommend some of these strategies that might augment what’s being done on the traditional side.

There are experts out there who are willing to share, especially when there might be an opportunity to partner on business in the future. We’ve found them and tap into them regularly, and never once has anyone with my shop been called a Luddite (even if some of us might deserve it)!

And for heaven’s sake. Anyone who doesn’t have “familiarity with social media and search” as a prerequisite for new hires needs to wake up. These folks are out there, too. Bill Sledzik, who teaches PR at Kent State writes about making his students blog – or they fail. “You won’t grasp the ‘zen’ of Web 2.0 until you become one with the medium,” he writes.

As much as some wish they would, the new communications channels are not going away. In fact some are expanding on a monthly basis. Instead of resisting and lamenting halcyon days gone by, marketers need to stop whining, hold their nose and jump into the deep end of the social media pool.

2 comments March 11, 2008

Getting the viral marketing thing

Helena Bouchez

In addition to contributing to Diabloguer, I also maintain my own personal blog, where I wax poetic about all things bass guitar and being a 40-something female in the era of Demi and Desperate Housewives.

The sole purpose of my blog is to chronicle what is floating my boat or sinking my ship that day. According to Sitemeter, I only get about 25 to 50 visits a day so advertisers are not beating a path to my doorstep, trust me. And I’m in no danger of becoming the next Wonkette. In fact, I’m pretty sure the only people who peep it regularly are my friends – and that’s perfectly fine with me.

Once in a while, however, I am surprised by who reads. For example, last night I wrote and published a post titled “Low Bandwidth Blues,” in which I lamented my slow home Internet connection and complained about Comcast.

This morning I received an e-mail notification that Mark C., a representative from Comcast’s executive offices, had commented on my post. He apologized for my inconvenience and said that if I sent him my account number he’d do his best to help rectify the problem.

Hmmm. It seems some marketers have caught on to how to leverage this blogging thing. Since January, I’ve received responses from the marketing and/or PR departments of at least three companies whose products I’ve blogged about, including natural makeup maker Mineral Fusion and video/chat provider Oovoo.com. Did it make me feel better about the brands? More engaged? Cared about?

You bet.

Of course, I published Mark’s comment. You see, I’m not opposed to saying nice things about Comcast. Comcast just had to give me something nice to talk about. More to the point, not only did I comment back on my own blog, but I’m also writing about my experience over here, essentially giving Comcast another shot of (badly needed) love. And Mineral Fusion and Oovoo.com got another well-deserved buss on the cheek as well.

So now, those who read my blog know what my experiences have been with all three brands. Similarly, readers of this blog will learn a bit more, with positive takeaways. Some of them will share with their friends. And then their friends also may pass the word on. You get the picture.

That’s the kind of power social media represents – and what marketers are buzzing about. Viral marketing: it’s a powerful way to build a brand.

4 comments March 6, 2008

How higher ed can lower marketing costs

Judi Schindler

Institutions of higher learning typically benefit from a weak economy because unemployed workers are often forced back to school to learn new skills. With the current credit crunch, that may not be true this time around. According to recent press coverage in the Chicago Tribune and on MarketWatch, students who want to take out a loan to finance advanced education are encountering high interest rates or failing to qualify. Financing also has dried up for currently enrolled students.

That means lower enrollments for universities, colleges and trade schools, which are now scrambling to cut costs. Unfortunately, one place where most of the chopping occurs appears to be the marketing budget.

We all understand the need to trim. But the paring needs to be done with a scalpel, not an axe. And those wielding the sharp instruments should scrutinize the ROI of each item. Rather than simply reducing high-cost advertising and direct marketing campaigns, they may want to consider beefing up lower cost, targeted public relations and social marketing efforts.

Some ideas:

  1. Develop career and job placement stories for monster.com, careerbuilder.com and other Web sites geared to job seekers.
  2. Place feature stories on students or recent graduates in their hometown newspapers.
  3. Develop a career blog for each educational program and encourage contributors to promote their postings on their MySpace and Facebook profiles.
  4. Gain local visibility by inviting area residents and businesses to attend school performances, exhibits and lectures.
  5. Gain industry visibility by inviting a local company to sponsor a student, academic or career-focused competition.
  6. Develop a speakers’ bureau for your faculty and actively market these speakers for industry and chamber events.
  7. Look for opportunities for faculty and administrators to write bylined articles and/or op-ed pieces.

While such ideas are comparatively low cost, they do take time and effort to execute well.

It is easy to just hack away at the budget. But when you simply reduce spending, you also reduce your returns. In the long run, a more strategic approach that calls for reallocating part of the budget to new, creative initiatives will pay off in bigger dividends.

4 comments February 26, 2008


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