Advertising Is Dead Long Live Pr

Writen by Harry Hoover

Although I still believe there is a place for advertising as a brand maintenance or brand affirmation tool, I am convinced that to build a brand today, you need PR. At one time advertising did build brands. But this was in a simpler America. That America, sadly, is no more.

I've been re-reading The Fall Of Advertising & The Rise Of PR, by Al and Laura Ries, and it is their book that has moved me from suspicion of advertising's demise as a brand-builder to conviction.

As the Ries' say, "Publicity is the nail, advertising is the hammer." What does this mean? It means that your PR effort helps make your message believable so that your advertising will have credibility when it hits.

Typically, companies want to hit the market hard and make a lot of noise. Advertising allows you to launch quickly, control the message, and have your message in as many media as you have the money for. However, that does not mean your message will be believed. The louder advertisers yell, the less likely I am to believe them. How about you?

PR takes time and does not necessarily work on your schedule. Planting new ideas or changing minds is a slow process. When your PR program rolls out over a longer period of time, prospects have time to adjust their attitudes. Brands that take this approach are longer lasting, too.

Chevrolet, for years the number one auto brand, was still number one in ad spending in 2001. It spent $819 million dollars – 39 percent more than Ford spent. That year, Ford outsoldevrolet by 33 percent. Since 1997, Chevrolet has outspent and undersold Ford. Chevrolet spends $314 per vehicle and Ford spends $170 per vehicle. Do you think advertising is working for Chevrolet?

Kmart, embroiled in financial difficulty for years, had revenues of $37 billion and spent $542 million on US advertising in 2001. Wal-Mart spent $498 million and garnered four times the revenue: $159 billion split between its Wal-Mart and Sam's Club stores. The average Wal-Mart store does $46 million in sales each year while its Sam's Club average store sells $56 million. Sam's Club does almost no advertising.

Those are old brands, you're saying. What about some newer brands, Harry?

OK, let's look at Pets.com. Remember the dog sock puppet that starred in their commercials? It won awards, but not sales. In six months Pets.com had $22 million in revenues and spent four times that much on advertising. Off-base advertising creativity at work.

The Body Shop was built totally by publicity. No advertising at all. Starbucks, until recently, did virtually no advertising. It has built a brand through good PR efforts. Starbucks' annual sales are around $1.3 billion, while advertising expenditures over 10 years, have totaled less than $10 million.

Finally, what advertising agency do you know that has built its brand with ads? Things that make you go "hmm."

Harry Hoover is managing principal of Hoover ink PR, http://www.hoover-ink.com. He has 26 years of experience in crafting and delivering bottom line messages that ensure success for serious businesses like Brent Dees Financial Planning, Duke Energy, Levolor, New World Mortgage, North Carolina Tourism, VELUX and Verbatim.

Killing Them Softly

Writen by Chandramouli N

The world has woken up to ethical issues in corporate governance & accounting practices. Corporate heads that were not guillotined were forced hang their heads in retrospective shame. The heads that fell were the victimizers, and the axe that fell, fell too late, and the punishment received, was way too little compared to the suffering, pain and financial losses that the organizations' stakeholders suffered. Trust of millions of investors was lost overnight.

Ethics in governance is one part of the story, the other link in this dubious chain of deceit is usually the professional services like auditing, legal and public relations which work closely with the organization. Such large scale deceit becomes possible only with the active collaboration of these so-called 'professional' services. Hardly professional, really!

The Indian investor has been victim to a lot of companies attempting to make a quick buck in the markets. While caveat emptor – let the buyer beware, is the legal term that organizations to get out of such wrangles, it is necessary to look into how these various scams are done, and to recognize the role of the professional services, especially public relations in creating and sustaining the scams.

Circa 1994. Every Indian remembers the bloody battlefield of the stock markets. While the aftereffects are well embedded in everyone's memory, few remember how it all began. Upbeat stock stories in the newspapers, stories of millions being made overnight, the oldest stock exchange of the country celebrating the index at an unprecedented high. Stock market pages kept the upward arrow next to almost every stock price quoted indicating the trends. Investors scrambled, dinner conversation revolved around the stock prices, 21 year olds were sitting in front of red-blue flashing computer screens, buying and selling tens of thousands of shares in seconds.

While some companies were actually performing well, many slipped through the back-door and slipped up their shares to unwary investors. Why is the investor so gullible? And is the investor really so gullible?

The method that was used to market the fly-by-night companies to the investors combined the well-used public relations concepts of fear, uncertainty and doubt (FUD). Successful FUD pushes to show how you would be the only person who would be left in the race if you did not buy-in into the campaigner's concept, creates uncertainty about your own analysis & gut-feel and generates doubt about the products or services currently under use. This especially works wonders in a greed-struck stock market, where more often than not, mob-psychology rather than knowledge is the deciding factor.

Usually such scams are orchestrated in connivance with some unscrupulous public relations companies. At other times, the PR companies usually have enough pointers to the possibility of such a scam about to take place. Press conferences are called, headlines blare out the superlative performances of the organization, there is talk of new acquisitions, investor meets happen and stock analysts are shown the factory, the plush office to generate confidence in the investor. The PR agency is rewarded for its great 'efforts' by way of a few millions and the investors collective gets duped for a few billions. Case studies of this century in such dubious PR in India would include the CRB scam, MS Shoes, Harshad Mehta & Home Trade fiasco. While these are the few stories which come to light, there are many scams which get away without even getting noticed.

What is the responsibility of the public relations company in such circumstances? The agency must evaluate the client and understand program and take a view that is beyond just the fees that it will generate and take a responsible decision. The PR agency can & must become the watch-dog for the companies, advising them, guiding them and if nothing prevails, then going to the extent of resigning the account for of a larger good. This kind of discussion, though popular conversation in PR cocktail circuits, is still eschewed by the PR intellectuals in more serious forums!

Unless we work as a committed community on the principles that should guide the PR business; and take stringent action against those who use these tools-of-influence to feed their greed, the respectable business of PR will go to the depths of unrecoverable ignominy very soon.

Chandramouli is the CEO of Blue Lotus Communications Consultancy, a leading knowledge based public relations agency located in Mumbai,India. He is an Engineer-MBA with over 16 years of multi-functional experience and has guided Blue Lotus to a core focus in the booming sectors of Healthcare, Finance, Education and Technology.

Public Relations For Iron Ore Mining

Writen by Lance Winslow

In the United States we have some of the most pure iron ore on the planet and yet many of our iron ore mining facilities have closed. Some of this has been due to environmental reasons and some of this has been caused to keep other nations happy because they wish to sell their iron ore to us in the form of completed steel products.

Unfortunately much of this steel that is bought from other countries is contaminated and not is pure as the iron ore is in the United States and this causes a problem when you're trying to build something that you want to be very strong. If the steel has impurities in it, then it will not be as strong and could collapse and if you are making battleships or buildings out of such steel it can become very serious.

It would seem that public relations specialist for iron ore mining would be quick to point these things out to help our own heavy industries in the mining sector survive against the competition from the rest of the world. Iron ore mining also brings lots of jobs to United States and when these industries shut down we have huge areas where people are underemployed or not employed in all for instance in the rust belt.

Public-relations specialists for iron ore mining need to work to overcome the objections of environmentalists and to show how iron ore mining can be done in a clean way and why this vital resource is so important to the strength of our nation. Please consider all this in 2006.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

Business Community Relations 101 Getting The Most Out Of Your Chamber Of Commerce Membership

Writen by Lance Winslow

Since the major part of a small business typically comes from business to business services, it is essential to maintain a positive standing with the local business community. It is of value to you to join as many business type organizations as possible in your town. You should attend meetings when possible and introduce your clients to each other.

Most towns and all cities have chambers of commerce. The chamber offers many things to small businesses especially new ones and start-ups. Chambers provide a voice for the business community, a bridge between government - small business – corporations – volunteers - religious organizations – schools – clubs - homeowners associations – corporations – general public – etc. It's a monumental job, always changing. It takes money, lots of it. It takes coordination and a knack for small town politics. It takes members who will volunteer, who care and are dedicated. Of course that's where you come in. Chambers of Commerce hold various events such as:

· Mixers

· Table Top Exhibits/Expos

· Seminars

· Luncheons

· Committee Meetings

· Installation Dinners

· Benefits

· Educational Exchanges

· Home Based Business Groups

· Networking Breakfast Meetings

· Membership Drives

If you attend some of these events, you will make new friends, contacts and customers. Anyone can join the chamber. It usual costs $100-450. But you only get out what you put in. Many small business owners may see it as a waste of money. In actuality it is relatively inexpensive depending how you chose to use your membership. It can be long lasting advertising in the form of:

· Promotion

· P.R.

· Networking

· Free Media Coverage

· And Fun

Joining Committees

If you truly want to become involved, we suggest you join various Chamber of Commerce committees. Committees need your input. You probably talk to one hundred business owners and residential customers per week. Five hundred per month. They know you, they trust you and they generally speak their mind to you. When these associates, business customers and business people talk to politicians, it's a more tactful type conversation. When they talk to Chamber of Commerce staff, they tend to also choose their words more carefully. When they talk to you, it's more point blank, to the point, blunt and the reality of the way they really feel. You'll never get a sugar coated answer to a small business dilemma from an actual owner. They'll tell you how they feel. Whether they are happy or mad as hell about an issue. You also are the eyes and ears of the community with it's residences.

When you come to these committees you bring knowledge. You will soon find your ideas, observations and personal opinion are paramount. You are the most valuable tool a chamber committee could ever hope to have. You need to ask yourself "Do you have the extra time?" If you don't, don't volunteer. There is nothing worse than a committee member who volunteers and then doesn't pull through when he or she is needed. If you have the time you be repaid in new business contacts and customers and the feeling of knowing you made the difference.

How do you join a committee? Talk to the president of the chamber. Tell them you want to volunteer. Find out which chamber committees have openings. Many times there is no limit to the number of people, so try to pick one with a large group of members. You will be able to do more networking and big groups tend to divide sub-committee work loads more evenly. Join a committee that interests you. Don't join one you don't care about. Just like in college, you always got better grades in the classes you enjoyed, didn't you? Make sure the people in the group really want to get something done and it's not just a who's who social gathering. That kind of group eventually fails to accomplish even the most basic of mission statements. You are a winner, so you should be in a winning group.

Make sure once you have gone to a couple of meetings, the turnover is low and that no one person's ego stands out in the group, especially if it's the chairman. If this happens, go to one more meeting and dismiss yourself. "Business is so good, I don't have any time left." Then volunteer to with flyer distribution by leaving information on your counter or delivering this vital information to your customers and business clients. Tell everyone you are more than happy to be of assistance. Then give everyone in the group your card. You can still help without battling personalities. Remember everyone there is volunteering and it is better to be a friend than an enemy.

Board Of Directors

Being on the board of directors of a Chamber of Commerce is extremely important. It's an easy job and very prestigious. It's also great for business. You will receive notice when board seats come up for election. Usually chambers ask their members through direct mail if anyone would like to run for a board seat. Fill out the form with a brief resume. Make sure not to go over the maximum word count. Try to shave off ten percent if possible because people tend to read the short ones more. Don't exaggerate your accomplishments. If you need help with this, call one of the current board members you know who is not re-running for the same position. Find out from the chamber what day they will be mailing the ballots and call everyone in the chamber two days before. It's important not only to win, but to win by a margin. It gives you clout with the chamber members and staff. When you win, make sure to attend as many meetings as possible. Usually meetings are only one time per month.

Grand Openings

When you are privy to information about a new business opening or a grand opening ribbon cutting event, you should visit the business:

· To sign them up as new customers

· To offer to give free products or service coupons for grand opening goers

· To help them meet potential buyers, namely all your customers

· To say hi and let them know you are all in the same boat and wish them many years of success

Internet Programs

Always try to get your company listed in the Chambers on-line directory. There may be an additional charges for this, but it is worth it.

Distribution Of Monthly Newsletters

Most Chambers of Commerce publish a monthly newsletter of what's going on around town and with various business members. The more hot little hands these newsletters get into, the better it is for the advertisers and the better for you as a member. It's also great for chamber membership, the more people who join the Chamber the more people in the club to buy from you and help all the businesses in the community. If you have a mobile type business and volunteer to deliver a chamber newsletter to every business in your area, you will surely be a chamber favorite. If you are a retail or location based business, have them on your counter for customers and associates. Your customers will also be glad to receive a copy and and your business customers will eventually join the chamber if they haven't already. You will be helping businesses everywhere in town by doing this. This will be recognized. It will also help you when the chamber does a story on you to put in the newsletter. Of course, that month we will print extra copies and direct mail them to every licensed business in your town and all of our franchisees. Try to refer fellow businesses to the chamber each month.

Membership Drives

Whenever the chamber has a membership drive, you should volunteer to help. You have fax data bases and distribution power "plus" you know personally many business owners in town. Chamber membership is the life line of their existence. The more you, we help them, the more they help you. It is okay to join many chambers or at least all the ones where you want customers.

Logo On Vehicle

Offer to put a magnetic sign on your work vehicles with the local Chamber of Commerce logo. This helps the chamber and legitimizes your business. If this is not possible, put your Chamber of Commerce member plague on your dash board. If you have a location business, be sure to display your plaque where it can be seen by all visitors

Meeting With Chamber

You should be on a first name basis with the Chamber of Commerce president. You probably already are. He or she needs your feedback. They need to know what's going on at the street level and no one knows better than you. You will be the eyes and ears for the chamber. You should set aside one hour per month to discuss concerns you've heard on the street and possible solutions you've worked out. Try to make it a regular meeting such as the first Tuesday of the month at 8:00 am. This meeting can be with the Chamber manager or even a Board Member you can relate with. If you belong to a committee bring your information and observations there.

Network With Other Groups

You should network with your service club whether it be Elks, Lions, Optimists, Kiwanis, Rotary, Soroptimists, whatever. Bring those concerns with you. Help the chamber co-sponsor events with your club and other clubs, making one big happy united family town thanks to you. You can also volunteer to help on the Boys and Girls Club, United Way or other associated non-profit, which helps people. By adding your Chamber Membership to a non-profit commitment, you will make a difference and super-charge your business.

Attending Meetings

You should attend meetings sponsored by your Chamber of Commerce. As many as you can. Enough that you don't need to wear a name tag because everyone already knows you. You still should wear a name tag. However write on it:

· A New Friend

· Customer Service

· Me

· Label

· Name Tag

· Just Me

· I love meeting new people

· Put name on upside down

Sounds funny but it's a great ice breaker. It works every time. After all, there is bound to be a new face popping up every once in a while. Many of these new members may feel intimidated and you can help them and really make a new friend and business associate creating team work, co-marketing efforts and sharing of customer lists with non-competing businesses.

Trade Shows

Table top mixers and trade shows are very important. Smaller shows – such as city fair, county fair, Chamber of Commerce Business Fair, etc. – you can do for relatively low cost. Pretty good statistics. Trade fairs and shows are good.

One of the major advantages of exhibiting in a show is the tremendous impact that you can deliver and direct to a preconditioned group of prospects. Through your exhibit, these prospects can see how they can benefit from your services and/or products. Exhibiting in various types of shows offers you both short and long range benefits.

As with any of your sales promotion programs, the success of your show participation depends largely on proper planning. Before you enter a show, analyze all the factors involved and determine if the show will attract prospects who will require your services. Your final decision should be based upon the estimate of value you will receive for the money, time and effort put forth.

To get information on the shows scheduled for your area, contact your local Chamber of Commerce. If you are considering entering an annual show, ask for a list of regular exhibitors from past years. Then check with these exhibitors for their opinions as to the value of the show.

Referrals – Word Of Mouth

No matter what you do at a Chamber of Commerce meeting, remember to bring cards. Chamber mixers draw about fifty people or more, grand openings twenty, committee meetings ten. Always say when handing out cards, "If you do not need our service/products please take this card and give it to someone who might be interested. Thanks." This will make the person happy that you are not pressuring them and they will be glad to pass it on.

Letters To The Editor

You should rifle off at least one letter a month to the local paper praising a small business, the Chamber of Commerce or how happy you are to have a business here. If you have a reason to praise more than one person, type the letter and have a co-worker sign it.

Conclusion:

Your success in your business is up to you, we live in the greatest country in the world. You are allowed to unlimited success, but with that incredible gift you are also allowed to fail. The ball is in your court, your chamber membership can be one of your greatest assets, but you only get out what you put in. Stay involved, do not ever give up and use your chamber to help you win.

Lance Winslow

Public Relations For River Walks

Writen by Lance Winslow

When a city decides to put in a River Walk like San Antonio Texas did they often must spend significant redevelopment dollars in advance and the city has to also believe this is the best for all concerned. Recently on a whirl-wind tour across America; I had stopped at several cities wishing to put in a River Walks with water features to attract people and tourists.

During this trip, I had gone to Rancho Mirage CA, Dayton NV, Columbus GA, Wichita KS, Idaho Falls and Caldwell ID to name just a few and talked with economic development folks, Chambers of Commerce and City Planners who were trying to key off what they had done in San Antonio and later in Oklahoma City.

All these Economic Development folks and one was a former advisor to the Carter Administration seem to understand that the key to the projects success was not merely a; Build it and They Will Come Strategy, but rather a full blown public relations effort to get local community buy-in. It became quite evident to me that that for these projects to succeed a much needed emphasis on public relations was indeed needed. In the end this is how San Antonio’s River Walk has become World Famous. Please Consider all this in 2006.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/