How to use Public Relations when consumers get jittery<\/p>\n
Mark Winkel
\nSenior Consultant
\nPrisma Public Relations
\nJakarta<\/p>\n
As we wind-up 2002, with its share of disasters and
\ndisappointments, we must be anxious about new potholes as the
\ndrivers of the economy -- consumers -- look ready to take their
\nfoot off the accelerator.<\/p>\n
The big question becomes: How do I keep consumers opening up
\ntheir pocketbooks in 2003? whether to buy a car, a cup of coffee,
\nor a computer.<\/p>\n
For many marketers, pumping money into an ad campaign may be
\nthe easiest solution in the quest for sales. However, these more
\njittery times call for a better approach.<\/p>\n
That approach, which works in good times and even better in
\nbad times, is to invest in building your brand with consumers.
\nJust consider the consumer's mind-set: With fewer rupiah
\nallocated for discretionary spending, consumers are looking to
\nget more for their money from products or services they know and
\ntrust. They are looking for reasons to remain loyal. By building
\nyour brand, you are giving them those reasons.<\/p>\n
These reasons -- which generally are more complex and
\nsophisticated than a discounted price, a bundled offer, or other
\nsales-oriented or promotion-oriented proposition -- are the
\nconcepts that strategic public relations excels at communicating.
\nThese concepts build value into the brand, not into the product.<\/p>\n
In a tighter economy, of course, companies also want to get as
\nmuch bang for their bucks. Unfortunately, the few that use public
\nrelations in preference to advertising often look for the wrong
\nimpact.<\/p>\n
Advertising-oriented executives look at sales as the measure
\nof public relations. However, there are just too many variables
\n-- pricing, availability\/distribution, customer relations -- in
\nthe sales proposition to try to single out the impact of public
\nrelations.<\/p>\n
As a 20-year veteran of the public relations business, I
\nbelieve clients should be linking our services with premium-
\npricing. It's not \"how many more units did PR sell for me?\" but
\n\"how much more could I charge because of public relations?\"<\/p>\n
Public relations-led brand building develops consumer goodwill
\nand a preference to pay more for one product over another. This
\nis the realm of consumer PR, where we are kings over advertising.
\nGranted, a big ad can make a big (expensive) splash (as can a
\nproperly executed event), but it's public relations that creates
\nthe enduring impression. Our ability to engage the consumer in a
\nmuch longer and therefore deeper dialog is what develops
\ngoodwill; and in the case of media coverage, the dialogue is
\nendorsed by an independent third party.<\/p>\n
Surveys bear out the importance of developing that trust in
\nconsumers. A recent study by a major credit card company found
\nthat quality, not cost, is the overriding factor when women in
\nthe Asia-Pacific region buy gifts. And a study published in
\nPRWeek Asia found that consumers make purchase decisions based on
\nhow companies manage crises, on their experience with the
\ncompany's products and services, and on the financial performance
\nof the company.<\/p>\n
In these jittery times, it is vital for companies to
\nunderstand that purchase decisions are based on a wide variety of
\nimpressions and information that must at the core differentiate
\ntheir products and services from the competition in a way that is
\nrelevant to the consumer. The sheer variety of inputs also means
\nthat messages must be managed, and attributes such as leadership
\nand quality must be defined and defended.<\/p>\n
In Indonesia and other Asian countries, many marketing
\nmanagers -- as well as more senior executives -- are at heart
\ntraders, who understand only the sales part of the consumers
\npurchase decision equation. Try to list premium brands from Asia
\n(other than the likes of Toyota and Sony of Japan, where the
\nvalue mentality\/model is different) and you will be hard pushed
\nto come up with more than a handful of names. The recent efforts
\nof LG and Samsung to brand themselves only highlight the paucity
\nof global Asian brands.<\/p>\n
The interesting twist on this whole situation is that these
\nsame marketers and traders are the ones who seem most susceptible
\nto the premium pitch from the luxury goods manufacturers. While
\nthey buy the premium products for themselves -- whether it is the
\nLouis Vuitton bag, the Mont Blanc pen, or a shiny new BMW -- they
\nstill do not spend on public relations to build their own
\nbusiness and products into brands that command a premium from
\nconsumers.<\/p>\n
In looking ahead to the new year, the challenge is for
\ncompanies to engage their customers in ways they have never
\nbefore. They have to build consumer goodwill through cohesive,
\ntargeted public relations activities. In the end, these efforts
\nare the ones that will keep consumers coming back for more in
\n2003.<\/p>",
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