Comments on: The Economy and Public Relations http://www.intersectionofonlineandoffline.com/the-economy-and-public-relations/ thoughts on communications and social media Thu, 02 Sep 2010 17:27:16 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Mark Story http://www.intersectionofonlineandoffline.com/the-economy-and-public-relations/comment-page-1/#comment-265 Mark Story Wed, 22 Oct 2008 17:36:35 +0000 http://www.intersectionofonlineandoffline.com/?p=100#comment-265 These are great comments, guys. Lots of applied learning. Mark These are great comments, guys. Lots of applied learning.

Mark

]]> By: Lindsey Brothers http://www.intersectionofonlineandoffline.com/the-economy-and-public-relations/comment-page-1/#comment-264 Lindsey Brothers Wed, 22 Oct 2008 17:05:19 +0000 http://www.intersectionofonlineandoffline.com/?p=100#comment-264 To me, cutting PR is like wiping the company's name out of the press, where is the value in that? Today’s economy is a “customer economy” which calls for customer-to-customer communications built on trust, as John Karolefski, formerly the editor-in-chief of Brand Marketing magazine, describes. PR is a major player in this relationship – similar to the person that sets two people up on a blind date (really!). Just like the two people trusting the mutual friend, people value trustworthy organizations and trustworthy outlets before agreeing to buy, vote, act, (and go on the date). If I was told that Marketing would be getting the money PR is losing, first I would try not to roll my eyes, second I would explain that marketing is not based on two way communication and that in order to maintain a relationship with the audience, one must maintain building that brand’s relationship and perception and generate word-of-mouth support (the most effective marketing vehicle). I would also give an example of an organization that invested heavily in their PR department and tracked a specific campaign based on PR efforts. That example would be of Southwest Airlines and its launch of its flights to Philadelphia. Back in 2004 the airline teamed up with SEO-PR in hopes that it could generate ticket sales from revamping how their press releases were written. They determined what words were most important to their audience who were looking for flights to Philadelphia and included key words in the title, first and second paragraphs. They imbedded a special URL and distributed the releases using wire services crawled by news search engines. Over a 15 month period, Southwest Airlines was able to track $2.5 million in ticket sales to the PR department. Take that Marketing. Back to my point, there are plenty of reasons to fight those who look to save some pennies by cutting back in a PR department. I think that this is one of the first things to get cut because the C suite doesn’t fully understand the importance of PR. It is up to the PR department to establish why they are needed; this includes showing ROI and traceable progress. To me, cutting PR is like wiping the company’s name out of the press, where is the value in that? Today’s economy is a “customer economy” which calls for customer-to-customer communications built on trust, as John Karolefski, formerly the editor-in-chief of Brand Marketing magazine, describes. PR is a major player in this relationship – similar to the person that sets two people up on a blind date (really!). Just like the two people trusting the mutual friend, people value trustworthy organizations and trustworthy outlets before agreeing to buy, vote, act, (and go on the date).

If I was told that Marketing would be getting the money PR is losing, first I would try not to roll my eyes, second I would explain that marketing is not based on two way communication and that in order to maintain a relationship with the audience, one must maintain building that brand’s relationship and perception and generate word-of-mouth support (the most effective marketing vehicle). I would also give an example of an organization that invested heavily in their PR department and tracked a specific campaign based on PR efforts. That example would be of Southwest Airlines and its launch of its flights to Philadelphia.

Back in 2004 the airline teamed up with SEO-PR in hopes that it could generate ticket sales from revamping how their press releases were written. They determined what words were most important to their audience who were looking for flights to Philadelphia and included key words in the title, first and second paragraphs. They imbedded a special URL and distributed the releases using wire services crawled by news search engines. Over a 15 month period, Southwest Airlines was able to track $2.5 million in ticket sales to the PR department. Take that Marketing.

Back to my point, there are plenty of reasons to fight those who look to save some pennies by cutting back in a PR department. I think that this is one of the first things to get cut because the C suite doesn’t fully understand the importance of PR. It is up to the PR department to establish why they are needed; this includes showing ROI and traceable progress.

]]> By: Adriana Gallegos http://www.intersectionofonlineandoffline.com/the-economy-and-public-relations/comment-page-1/#comment-263 Adriana Gallegos Wed, 22 Oct 2008 03:55:36 +0000 http://www.intersectionofonlineandoffline.com/?p=100#comment-263 Here is the link http://www.imediaconnection.com/content/media-strategies-media-planning--amp--buying-how-brands-thrived-during-the-great-depression_20821.html Here is the link http://www.imediaconnection.com/content/media-strategies-media-planning–amp–buying-how-brands-thrived-during-the-great-depression_20821.html

]]> By: Aimee Saldivar http://www.intersectionofonlineandoffline.com/the-economy-and-public-relations/comment-page-1/#comment-258 Aimee Saldivar Wed, 22 Oct 2008 02:55:25 +0000 http://www.intersectionofonlineandoffline.com/?p=100#comment-258 Since I work in a retail store I have noticed the overwhelming amount of promotions that my company is pushing each day to allow customers to afford our brand. I agree with Adriana about when times are touch economically it's a crucial time for creativity. Regarding the comment from Mark and what would I do if the client mentioned they wanted to invest in marketing instead of PR, I would have to say that I would do everything in my power to keep them but also work with them to develop a backup plan. But I would have included this information initially in my strategic plan and my ideas/plans to accomodate them even if they were making cutbacks for their company. I would definintely stress that they would need PR more than marketing since marketing can be costly. Corporations usually cut indirect costs such as marketing and training before anything even though they seem to be the most crucial with advertising the company brand as well as individual development for employees. It seems like times like these will have companies "taking from Peter to pay for Paul" (however that is said). In order for businesses to make a buck, they are willing to cut the cost for their service just to make it. Since I work in a retail store I have noticed the overwhelming amount of promotions that my company is pushing each day to allow customers to afford our brand. I agree with Adriana about when times are touch economically it’s a crucial time for creativity. Regarding the comment from Mark and what would I do if the client mentioned they wanted to invest in marketing instead of PR, I would have to say that I would do everything in my power to keep them but also work with them to develop a backup plan. But I would have included this information initially in my strategic plan and my ideas/plans to accomodate them even if they were making cutbacks for their company. I would definintely stress that they would need PR more than marketing since marketing can be costly. Corporations usually cut indirect costs such as marketing and training before anything even though they seem to be the most crucial with advertising the company brand as well as individual development for employees. It seems like times like these will have companies “taking from Peter to pay for Paul” (however that is said). In order for businesses to make a buck, they are willing to cut the cost for their service just to make it.

]]> By: Joe O http://www.intersectionofonlineandoffline.com/the-economy-and-public-relations/comment-page-1/#comment-257 Joe O Tue, 21 Oct 2008 23:17:01 +0000 http://www.intersectionofonlineandoffline.com/?p=100#comment-257 Even though, in times of crisis/dramatic change, some PR efforts get the ax; I believe the PR machines must quickly counter by operating with astute relevance. If the theme of the news cycle is economic recession, then move like Wal-Mart did when they announced last week early price drops in toys and electronic goods weeks before holiday shoppers typically see that cut - and move fast! This not only put their name in the headlines for good, but will probably raise profits. Agencies have to do this too - but as Mark just stated, it seems harder for them to justify the retainer in rough economic times such as these. It's a sad realization of the times we're experiencing. Especially knowing that the Wal-Mart move would not be nearly as effective or effectively promoted solely by "marketing" (advertisements, direct sales efforts, anything else?). Even though, in times of crisis/dramatic change, some PR efforts get the ax; I believe the PR machines must quickly counter by operating with astute relevance. If the theme of the news cycle is economic recession, then move like Wal-Mart did when they announced last week early price drops in toys and electronic goods weeks before holiday shoppers typically see that cut – and move fast! This not only put their name in the headlines for good, but will probably raise profits.

Agencies have to do this too – but as Mark just stated, it seems harder for them to justify the retainer in rough economic times such as these. It’s a sad realization of the times we’re experiencing. Especially knowing that the Wal-Mart move would not be nearly as effective or effectively promoted solely by “marketing” (advertisements, direct sales efforts, anything else?).

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