|
Many
American businesses have already weighed in on whether
or not we're in a recession through their actions; a
recent article from Manage
Smarter says that 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.
|