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Recession-Proof Your Business with PR
April 29, 2008
By David Culver
Many American businesses have already weighed in on whether or not we're in a recession through their actions—one of the surest signs of such a decline is corporate America's recent mass retreat from the marketing and communications strategies that fueled growth during healthier economic times. But contrary to these marketing cutbacks, there is plenty of evidence that says continuing to engage in marketing during an economic downturn can sustain business and provide a competitive advantage.
A number of studies that analyze past recessions have consistently shown that sales and profits have dropped off at companies that reduce their marketing efforts. During these downturns, advertising was the marketing communications strategy of choice. But today, another strategy has now triumphed as the most effective—and most efficient—tool to weather the storm: public relations (PR).
Here are six reasons why PR is the ideal marketing communications strategy, especially during a recessionary period.
1. PR-based communications are credible, which is key in a recession. During a slowdown in economic activity, the critical nature of many purchase, investment and business decisions is magnified. So, customers and potential business partners look for credible communications on which they can rely. Consumers increasingly do not trust marketing messages and are using technology—such as Tivo—to tune out messages they deem irrelevant. Instead, they rely on advice from friends and other contacts in their various communications "circles" or communities to make product decisions.
2. PR programs can incorporate a myriad of effective communications techniques, providing important flexibility during a downturn. Different key audiences—such as customers, prospects, employees, suppliers, investors, the local community and regulators—have unique information needs that require different communications strategies. Likewise, a company's array of business challenges can best be addressed by selecting from a variety of communications techniques. Utilizing public relations, important corporate messages can be communicated through numerous means: face-to-face meetings; news releases; media interviews and commentaries, letters to stakeholders; facility tours and other special events; newsletters; video or audio recorded messages; Webinars; podcasts; and blogs.
3. PR enables companies to do more with less. Many marketers initially turn to PR because it is less costly than advertising. But public relations messages also are credible, flexible and target-able. Public relations not only drives strong branding messages, but advantageously positions a company and its product or service in the market, providing the information prospects need in order to make a purchase decision.
4. PR professionals become more valuable to journalists during a recession. Over the past few years, the editorial staffs of hundreds of publications have been reduced. As a result, many editors are more open than ever to intelligent, targeted story pitches from public relations professionals. And during a recession, many publications' editorial focuses change. Wanting to provide valuable information to readers on how to survive tough economic times, they frequently focus on case studies that demonstrate ROI—for example, "How company X succeeded, and how you can too." More than ever, editors need substance, not fluff. A recession simply offers PR practitioners more opportunities to provide good content.
5. Personal connections and interactivity beat one-way communications when business activity slows. Digital communications and new media have opened up new distribution channels for PR. And in a recession, when consideration trumps awareness, the effectiveness and value of these channels grows. MySpace, YouTube, Flickr, blogs, discussion groups, e-newsletters, word-of-mouth and online surveys help keep a conversation going and encourage consideration—and purchase decisions.
6. PR is measurable—a must during a recession. While many marketers have long considered public relations to be unmeasurable, it is every bit as measurable as other marketing communications disciplines. In fact, a number of evaluative strategies can be used to measure the effects of a public relations program. "Outputs" has been a traditional measure of PR effectiveness and includes press coverage in the form of "clips," advertising equivalency, key message exposure, etc. But more and more, marketers are looking to measure outcomes—such as changes in perceptions, attitudes or behavior with common metrics including changes in sales, an increase in market share, attendance at an event and "opens" or "click throughs" on a company e-newsletter.
Increasingly, marketers are discovering the value of public relations as an integral part of their day-to-day marketing activities. But, as a strategy to reach key audiences during a recession, public relations may hold the key to an organization's ability to withstand the financial and competitive challenges of a down economy, enabling it to emerge intact—perhaps even healthier—when brighter economic times return.
David Culver (dculver@btcmarketing.com) is vice president of public relations at Boyd Tamney Cross, a full-service marketing and communications company in suburban Philadelphia. Culver has provided "leadership communications" strategies for marketers in business-to-business, financial services, hospitality and other business segments for more than 25 years. The company offers national and international marketers traditional fee-based as well as "pay-for-performance" programs.
Sales & Marketing Management Magazine
This article is brought to you by Sales & Marketing Management, the leading authority for executives in the sales and marketing field.
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