How PR has Changed the Advertising Model

If the worlds of PR and marketing are set to further converge over the next five years, we should start to see evidence that this shift has begun (see related article). The viral sensation surrounding the recent Game of Thrones Starbucks coffee cup incident is a great data point that validates this transformation.

What struck me was what an amazing PR and awareness opportunity this became from a blurred, barely visible image shown for a split second on a television show. The way brands get promoted and recognized today certainly has changed!

Continue reading How PR has Changed the Advertising Model

The Future of Public Relations

I just read a Global Communications Report published by the USC Annenberg School for Communications and Journalism. The findings were very interesting. One of the figures that really caught my attention was that 87% of PR professionals believe the term “Public Relations” will no longer accurately describe the work they will do in 2022 – nor may it even exist as a separate discipline!

As a Public Relations practitioner, these findings caught my attention enough to read the rest of the report. If this big of a change is on the horizon, then it is probably a good idea to understand the best road to take. Advance planning will help to navigate this potentially significant transformation.

Continue reading The Future of Public Relations

Why the Role of Trusted Advisor Has Become So Important

I am a firm believer that deep down inside, people want to do the right thing. Perhaps it is my Economics training – a key foundation for this field of study is that consumers will typically make a decision that improves their well-being. Of course, if that decision is good for you, but not good for society, then the theories of Economics don’t always explain how decisions are made or necessarily lead to decisions being made for the greatest common good. In these cases, we need a trusted advisor.

Continue reading Why the Role of Trusted Advisor Has Become So Important

Social Media’s Role in the News Cycle

SocialMediaNewsStats
Social media plays an important role in the news cycle   (CLICK ON IMAGE TO EXPAND)

It should come as no surprise that the way we get news today is quite different than in the last decade. Daily Newspaper circulation, which stood at 62 million in 1990, fell to 43 million in 2010, a decline of 30% (source: The State of the News Media 2011). There are many reasons behind this decline. One is a drop in advertising revenue, which has resulted in staff reductions, less content and reduced deliveries.

Continue reading Social Media’s Role in the News Cycle

Is there a Link between Customer Satisfaction and Loyalty?

customer_loyaltyFew would argue the importance of customer satisfaction. Every business owner strives for happy customers. In practice, however, what does it mean to achieve customer satisfaction? What makes a happy customer? Are they more profitable? More loyal?

Fortunately, considerable research has been performed on this subject, which will be quite helpful to address these questions. The first challenge is to understand what is actually going on versus what business owners think is going on. According to Lee Resources, 80% of companies say they deliver “superior” customer service, but only 8% of people think these same companies actually deliver this type of service. That is quite a perception gap. A big part of the reason why such a gap exists is that most unhappy customers don’t tell you – only about 4% – according to “Understanding Customers” by Ruby Newell-Legner.

Continue reading Is there a Link between Customer Satisfaction and Loyalty?

When the Price of Free is Too Much – The U2 Album Giveaway

Bono, lead singer of U2The band U2 and Apple partnered this month to do a remarkable promotion and awareness activity. Every iTunes user received a copy of U2’s latest album, Songs of Innocence. When I heard about this offer, I couldn’t believe it. I saw a television advertisement showing the band playing a song from the album. Then, at the end of the ad, it was explained that the album would be available for free to iTunes subscribers.

I am a big U2 fan, so was thrilled at this act of generosity. And, as a marketer, I couldn’t help but think about what the terms of the agreement might have been. Clearly, both Apple and U2 stood to gain from this promotion – Apple from getting new subscribers, and U2 from having Apple pay millions to promote their album.

A New Promotional Trend for Music?

Of course, this is not the first time music has been given away for free. Many artists offer promotional songs or live recordings as a way to generate interest and awareness.

But, U2 is hardly in need of any new promotional campaigns. They have sold more than 150 million records worldwide, won 22 Grammy Awards, and have been designated by Rolling Stone magazine as perhaps the “Biggest Band in the World”. No, this is not a band seeking awareness. Something more is going on.

An Act of Generosity

An interesting story has unfolded as part of this giveaway. It turns out Harriet Madeline Jobson issued a complaint to Bono (the lead singer of the band) stating, “Can you please never release an album on iTunes that automatically downloads to people’s playlists ever again? It’s really rude.” The comment came to light in a Facebook Q&A the band released on their fan page.

To Bono’s credit, he apologized, stating: “Oops, I’m sorry about that. I had this beautiful idea and we got carried away with ourselves. Artists are prone to that kind of thing: [a] drop of megalomania, touch of generosity, dash of self-promotion and deep fear that these songs that we poured our life into over the last few years mightn’t be heard. There’s a lot of noise out there. I guess we got a little noisy ourselves to get through it.”

There was no need for an apology. It was a gift. If you don’t like a gift, don’t use it. Contrary to Harriet’s claim, you had to download the songs to make them active on your iTunes library. If she didn’t want the songs, she simply could have chosen to not download or listen. What is remarkable is the level of conversations that are now going online right now.

As you might expect, folks are taking both sides. What is interesting, though, from a marketing and pricing perspective, the adage on pleasing people holds true: “You can’t please all the people, all the time.” Even at a price of free, not everyone is a “taker.” This is an important point to consider when pricing your product. And, to those economists out there, the laws of a downward sloping demand curve can only be projected so far … there comes a point when that curve flattens out. 🙂

A Final Word on Publicity

The famous PR quote is that there is no such thing as “bad” publicity. Here is another example where that saying is still true. The amount of coverage of U2s short Q&A video on their Facebook page is nothing short of phenomenal – it has gone viral. In two days the video was seen by 1.4M fans. Most marketers would be very happy that type of coverage. And, let’s not forget the comments – the 5-minute video has been shared 12k times, a hashtag of #U2NoFilter was created that is now trending, and there are nearly 4k comments on the page already.

Demonstrating his wisdom, Bono responded brilliantly, reinforcing his “cool” status and spokesperson expertise. As marketers, we can all learn how U2 played out this interesting experiment. They were bold and brave enough to try something new, realizing that some would take offense or not understand their actions. Time will tell if other bands will follow … I’ll keep my fingers crossed, as I really like a musical gift!

Here are two other pricing articles  you might find interesting:

While Content May Be King, Conversation is Queen of Market Awareness

king_and_queen_marketing_awareness2Numerous articles have been written on the importance of what we marketers refer to as “content” in order to drive market awareness, lead generation and other sales support activities. Simply stated, you need something to say to gain the attention of your prospects and customers. Google, Bing and the other search engines reinforce this concept – you simply can’t achieve good search engine placements without quality, relevant content that is frequently updated on a regular basis.

As has been mentioned in this blog and other publications, a blog is a great place to showcase your content. Blogs offer a great “home” for you to build a collection of articles and stories that share a common theme, which in aggregate support your brand and help future customers to find your business. Any business plan writer you meet with should have a strong understanding of this topic too – if not, it might be time to find another writer!

Is Good Content Enough?

Here is where you have to ask yourself “what’s next?” Now that you have invested the time and resources to write a collection of articles, how do you now build relationships with your readers, current customers and potential clients? The reward for getting engaged in these conversations is substantial and includes:

  • Enhanced likelihood these people will read and follow future announcements
  • Improved response rates to future offers
  • Increased chance of that person will ultimately become a customer

Learning by Example

One area where marketers can learn how to drive increased conversations is from the world of e-commerce. Some of the online retailers are quite good at creating a series of interactions that create a group of engaged prospects that likely will become future customers. For example, we all know that if we order a product from a website, we will get an email soon thereafter confirming our order. This is a good thing – we like to have a record of what we just bought. Further, if we receive an email the next day indicating our product has shipped, this is also a nice message to receive – my order is on its way. Then, sometimes you even get an email indicating that the order has shipped, with complete tracking information. Follow up emails might even include customer satisfaction surveys, another great opportunity to suggest or induce conversation.

The conversation, however, doesn’t stop once the order has been shipped and received. Instead, it is highly likely we will get a follow-up email from these retailers in a few weeks or months from now, suggesting a similar product for us to order. For some of us, this is an annoyance, and we will opt out. But, for others, this is seen as a nice thing, as a way to make future orders easier to manage and accommodate.

Here is where public relations and social media professionals might take note. What can we learn from the retail establishment as a way to increase our conversation “quotient”? One challenge is we don’t have the same access to the contact information that e-tailers do, such as an email address. And, with privacy laws and concerns, it is unlikely this will change. One approach is to add a call to action or value proposition that can then facilitate better access to this data. A newsletter sign up, for example, might be an angle that promises notification of new stories of interest, or of when a new blog post goes live.

If you can accomplish the right mix of content and conversation, then you are worthy of “royal” lineage. You will then have addressed both the king and queen of marketing awareness, through a marketing-based approach to public relations and brand awareness!

Promoting your Blog with Social Media

social_media_promotion_blogI recently wrote a blog post on the importance of building a blog as part of your public relations program (see article here). As I explained, in today’s digital world, a blog is a critical part of your online profile – as a source of new insights, thought leadership and brand positioning necessary to keep your opinions and perspectives top-of-mind.

Once you have come to the conclusion to invest the time and resources to have a blog, the next step is that of promotion. If you build it, no one will find it unless you provide digital “bread crumbs” to lead the way. Search Engine Optimization (SEO) will play an important role, but isn’t enough. Here is where social media comes in. In fact, from a Public Relations professional’s perspective, this might just be the most important use for social media, and the single most important factor in justifying your entire investment in social media marketing.

What Should I Tweet About?

With Twitter being one of the most predominant social media platforms, it is nearly mandatory that you, your company or even your product line has a Twitter account. It is easy to set up the account … what next?

One strategy is to share interesting news that the audience you seek to build might be interested in reading. This is generally a good idea. Providing value to an audience will, over time, generate more followers, which helps in getting a higher profile. But, wouldn’t it be better to instead drive your audience towards an article that you wrote and hosted instead? Or, better yet, what about directing traffic to a promotional partner that is perhaps hosting a future event you are sponsoring? It doesn’t take much to see that driving traffic to a page you control is better than one you don’t.

Here is where the blog strategy can pay a handsome dividend. Once a new post has been written, such as this one, the next step is to promote it through your social media channels. Further, this points to a tangible benefit that can be achieved by building an audience … each time you have a new blog post, you will theoretically attract more potential readers with a larger audience.

Some authors have mastered this technique very well. Seth Godin, author of my favorite book the Purple Cow, has attracted an audience in the millions that religiously follow his words and wisdom every day. And, as he announces to books that he has written, he has an instant “base” of avid fans that will become new buyers.

What Social Media Venues should I Pursue?

Having made the decision to invest in a blog and promote it with social media, the next question to ask is what social media properties should you focus on?

Great question, and one that will be answered in my next post.

What is Your Business Plan to Deal with a Disruptive Event?

black_swan_eventHaving worked in the technology industry for the past 20+ years, I have seen a few significant changes and technological breakthroughs. Most of the time they are unexpected – there is a reason why these are called “disruptive.” Few can truly see it before it happens.

According to Wikipedia, Nassim Nicholas Taleb coined the term “Black Swan” as a theory to explain:

  1. The disproportionate role of high-profile, hard-to-predict, and rare events that are beyond the realm of normal expectations in history, science, finance, and technology
  2. The non-computability of the probability of the consequential rare events using scientific methods (owing to the very nature of small probabilities)
  3. The psychological biases that make people individually and collectively blind to uncertainty and unaware of the massive role of the rare event in historical affairs

The bottom line is you won’t see it coming, and the announcement that brings it to light will be shocking, to say the least.

A Microscope for the Masses

One of these events just occurred last month. I read about it on Yahoo! News on March 24, 2014, where it was announced that Manu Prakash, a professor at Stanford University and his students have developed a new microscope that is literally “built” out of a flat sheet of paper, a watch battery, LED, and optical units that when folded together, much like origami, creates a functional instrument with the resolution of 800 nanometers – basically magnifying an object up to 2,000 X.

Adding further impact to this breakthrough, apparently it is unbreakable, can be transported to literally anywhere in the world, and, could retail for $.50 each.

What do you do if you work for Carl Zeiss, Leica, Nikon or Olympus, some of the leading microscope manufacturers in the world? I suspect these companies are right now doing their very own business plan evaluation to try to answer this question.

How Would you Respond?

I suspect that the day the news announcement was made, there were a few “oh sh%@” comments that made it through the halls of these manufacturers! No one likes to be surprised, and everyone usually, at least initially, thinks the worse.

To start, this is an interesting case study that will unfold before our eyes. The reason is that from a humanity perspective, this really is a good thing. Now under developed countries might have a way to scan for blood diseases, in locations that were never before deemed possible. New medical breakthroughs might even result. Lives might indeed be saved from this invention.

So, from a public relations perspective, the last thing a company should do is to attempt to discredit the competition, or in any way try to make the product sound inferior or to be avoided. In fact, words of congratulations might even be in order, almost from a peer-to-peer perspective. Here is where crisis PR avoidance tactics should be studied and adhered to.

Simply stated, what these microscope manufacturers might now have to do is to redefine the marketplace such that their product line is differentiated enough from this new competitor that there is still a need for purchasing their product. This is one of those “easier said than done” statements. The classic case is the buggy whip manufacturer story. The disruptive event of inventing the “horseless carriage” or automobile basically wiped out their industry – leaving the only defendable segment being that to provide Hollywood props for movies such as the Indiana Jones series.

According to Mindspring.com in their review of the Microscope industry, Carl Zeiss and the E. Leitz component of Leica are mostly German made. They tend to be more expensive than the Japanese made Nikon and Olympus. Their segment is the very high end, likely for researchers. Sometimes they are worth the extra money and sometimes not. In the bio-med market, Nikon and Olympus are the real powers, likely due to either features offered or a reputation they have developed within this industry.

In my next post I’ll offer some strategic tips on how one might tackle such an event, and how that strategy might be part of the foundation of what your business plan story should tell.

 

Gordon Benzie is a marketing communications professional and business plan adviser that specializes in preparing and executing upon business plans and marketing strategies. Gordon can be found on Google+.

What Story Does your Business Plan Tell?

what_is_story_of_your_business_planMost people have a pretty good idea of what a business plan is, and what should be included in it. If asked, I would suspect that many people could also tell you that a business plan should include an overview of the business, what the product or service is, the markets being pursued, the competition, as well as some sort of financial model.

In the same way, if someone asked me how an airplane worked, I could tell you that lift was involved, and that the shape of the wings creates a vacuum, which that then helps the plane to get airborne. But, I don’t think you would want me actually building an airplane …

In some ways, this analogy applies to business plans. There are subtleties involved as well as a good deal of work, which might preclude your ever getting the plan completed. In the end, if your being funded is dependent upon having a plan, it might be worth reaching out to someone who has actually written one before.

As a business plan writer who has written over 25 different plans, I understand that each one serves many needs and provides content for different audiences. For example, one of the sometimes overlooked attributes of a business plan is that it must tell a story – about you, your idea and your vision – and how new funding will make your story come true. If your reader can’t quickly get the story, it is unlikely they will agree to fund your plan.

The Vision

Business plans sell a “vision” or a “dream” of what you see that a new business could be, could operate as and could deliver value to your target audience. Your initial audience are investors, potential partners and initial employees you will need to launch your vision.

In this way, a business plan is really a marketing document that is written to pitch your idea to this group and get them excited about the prospect of “getting in” on the ground floor. This sense of urgency of what a fantastic opportunity that awaits must be communicated. You need to tell a story of how your business can provide a greater good, or how it can help address a common challenge. And, if it is done right, your business could then earn everyone a nice profit at the same time.

If this sounds like what is driving you to prepare a business plan, then you should recognize you have a story to tell. Just like a great Public Relations campaign, you have a story to get into your prospects (i.e. investor’s) head. So, it is time to think like a PR professional, at least with regards to the structure and content you decide to put into your business plan.

In my next post, I’ll offer five ways to turn your business plan into a great story.

Gordon Benzie is a marketing communications professional and business plan adviser that specializes in preparing and executing upon business plans and marketing strategies. Gordon can be found on Google+