PR fares well in the recession
By Kerryn Le Cordeur
In a recession like the one experienced in the past year, business owners’ immediate reaction is to cut budgets for services such as marketing and public relations (PR). However, this isn’t necessarily the smartest decision, as it can be these very services that help the business through an economic downturn.
Jennifer Boyes, Account Manager for New Zealand PR consultancy, Intermediary Communications, suggests that rather than slim-lining PR efforts, a recession is the time to start
rbeefing them up and in order to help maintain the trust of stakeholders by regularly communicating with them and letting them know how the company is dealing with the situation. PR is also one of the most
cost efficient tools available, especially compared to traditional advertising and marketing campaigns. It can achieve great things, even on relatively small budgets.
However, with the recession slowly coming to an end, it is perhaps more apt to look at the way in which the PR industry has fared, as opposed to providing endless tips on how to survive – which, it can only be assumed, have been applied, if a recent
article in
The Economist, stating that the PR industry has been booming while the rest of the world has been suffering through the recession, is anything to go by.
The primary reason for this, according to the article, is that the old adage that ‘any publicity is good publicity’ hasn’t rung true in the financial crisis, and in times when companies have had to answer for “undeserved bonuses; plunging share prices; and government bail-outs, among other ills,” PR agencies have been called upon for their expertise in crisis and reputation management.
Ivan Moroke, Vice Chairman of the Association for Communication and Advertising (ACA)
APEX 2010 adjudication panel, notes that on a local level, the recession may have inadvertently
helped the PR industry. This is because companies have been forced to re-focus on the single most important aspect of their operations: the consumer. By implication, this has given PR the centre stage as it is the primary means in which consumer behaviour can be meaningfully influenced, which has a powerful effect on brand and business performance.
However, the statement that the PR industry hasn’t felt the effects of the recession isn’t sweeping, as not all PR agencies have survived the storm, with many having to shed jobs and reporting declining revenues. The general trend, it would seem, is that companies are more willing to put their faith in the bigger, more established agencies, when return on investment (ROI) is more important than ever and they can’t risk further negative publicity as a result of below-par PR performance. Therefore, it is not enough to just be a PR agency in the recession. Agencies need to offer innovative, competitive services and create a good reputation in order to tread water in the recession and beyond. It is also not enough to simply offer a ‘quick fix’ in times of crisis, but rather to offer long-term service that can be sustained beyond the recession.
Successful agencies are capitalising on the fact that PR is often cheaper than advertising campaigns, and that its impact in the form of favourable coverage can be more easily measured. PR campaigns are also beginning to encroach on advertising territory, giving the PR industry more clout – no longer is it just about pitching a story to the media in order to gain client mentions, it now includes
innovative ideas like orchestrating live events and web launches.
Talking about the web, the rise of the internet and social media has certainly given PR a boost. Not only are PR agencies able to leverage the viral nature of the web to aid in launching clients’ various products and brands, but they have also been called upon to oversee clients’ social media presence – tracking what is being said and responding timeously in order to maintain media and consumer relations, as well as reputation. Online public relations is also a cost-effective and useful way to communicate with stakeholders, to keep everyone up-to-date with projects and to remind them that you are ‘alive and kicking’ despite the current economic climate.
All in all, it would seem that the PR industry is the place to be in tough economic times, provided you know what you’re doing and can offer your clients the best service possible. Recessions are a natural part of the economic cycle, and it is important to position yourself in such a way that your consumers and products will still be around during and after the downturn – PR is an important aspect in ensuring this is the case.
To share your thoughts on PR in the recession, leave your comments on our
blog.
View allNavigating knowledge in an information society
By Kerryn Le Cordeur
On Thursday, 4 March, the University of Johannesburg’s Department of Information and Knowledge Management hosted Wendy Sealy, a citizen of Trinidad and Tobago and Knowledge Management Consultant, who has over 30 years of experience in the knowledge and information industry. Sealy gave a presentation on ‘Navigating your career as knowledge professionals’.
She opened by noting that the knowledge and information industry is sluggish in the developing world, largely because in an information society, knowledge is illusive, and therefore knowledge management can’t find its rightful space. At the same time, while knowing that knowledge can be equated as value, it remains intangible, and the benefits are therefore difficult to visualise.
Sealy shared some thoughts on how we can sustain ourselves in a turbulent business environment, which she described as constantly undergoing ‘tsunamis of change’, saying that creativity; proactivity; and talent are important qualities of leadership, but have yet to be fully applied. At the same time, this type of leadership is needed for knowledge-sharing and innovation. She went on to say that to remain relevant, it is all about idea destination – having a long-term vision and articulating it clearly to all stakeholders so that mutual sharing can occur. It is also essential to reinvent ourselves constantly to further maintain that relevance, and to capitalise on trends and current events in order to ride on their momentum. For example, Sealy mentioned the way in which environmental sustainability has become a trend that has fostered much discussion; knowledge-sharing; and a change in the way we view the world.
At the same time, Sealy noted that while knowledge has become an entity that is shared across borders, local knowledge must not be forgotten, as it is still necessary to learn from those around us, and she feels that what we learn from a virtual world cannot make up for what we gain from face-to-face interaction. She added that it is also important not to see knowledge-sharing as a hegemonic practice, where the developed world imparts knowledge to the developing world, but rather, we should consider that the developing world has a lot to offer, too.
Looking at the history of knowledge and knowledge management, Sealy explained that the concept of knowledge has evolved from being seen as merely a perception or belief, to playing a significant role in business, and forcing people to constantly adapt and further their training and development to stay ahead of the game. In today’s society, knowledge workers are fully recognised in organisations, and knowledge-sharing is a significant part of the organisation. This has been further leveraged by the Web 2.0 revolution.
Sealy ended off by giving some tips on how to be successful in an information society. She said that there is a premium on research; enquiry; innovation; and creativity, and that skills of literacy; collaboration; diversity; flexibility; communication; and innovation are key. She feels that it is important to understand the politics of the organisation you are part of and its vision, while being driven by your own internal beliefs and mission. In addition, she said that the ego needs to be removed from the equation, explaining that a position of power is not important – if what you have to say is important, it will be heard, especially because knowledge is fluid; relevant; and dynamic, and must be shared and kept alive in conversation. Knowledge-sharing, according to Sealy, is crucial for businesses seeking to harness the value of intellectual capital.
To conclude, Sealy stated that one needs to keep oneself relevant and sustainable in the information society, and to do this, it is essential to constantly train; retool; and network.
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