The 22 Immutable Laws of Marketing:
1. It is better to be first than it is to be better.
2. If you can't be first in a category, set up a new category you can be first in.
3. It is better to be first in the mind than to be first in the marketplace.
4. Marketing is not a battle of products, it's a battle of perceptions.
5. The most powerful concept in marketing is owning a word in the prospect's mind.
6. Two companies cannot own the same word in the prospect's mind.
7. The strategy to use depends on which rung you occupy on the ladder.
8. In the long run, every market becomes a two horse race.
9. If you are shooting for second place, your strategy is determined by the leader.
10. Over time, a category will divide and become two or more categories.
11. Marketing effects take place over an extended period of time.
12. There is an irresistible pressure to extend the equity of the brand.
13. You have to give up something to get something.
14. For every attribute, there is an opposite, effective attribute.
15. When you admit a negative, the prospect will give you a positive.
16. In each situation, only one move will produce substantial results.
17. Unless you write your competitor's plans, you can't predict the future.
18. Success often leads to arrogance, and arrogance to failure.
19. Failure is to be expected and accepted.
20. The situation is often the opposite of the way it appears in the press.
21. Successful programs are not built on fads, they're built on trends.
22. Without adequate funding, an idea won't get off the ground.
Business
This is my business centered blog; I hope that this blog will provide some insight from my personal musings on a wide array of business topics. I will mostly cover Economic Development, Finance, Marketing, PR, Economics, Risk and Strategic Management.
Friday, December 20, 2013
Sunday, December 8, 2013
Productivity
Often
when we feel tired or blocked at work, our focus is internal. We assume we
simply aren’t getting enough sleep or we ate too much at lunch. While
both of those things may be true, there may also be an external reason
for our lack of focus. We may be experiencing the effects of a toxic
work environment.
If
you’re a worker, chances are there are only certain things you can
control. For business owners, however, paying attention to the research
on various workplace issues can make a big difference in the daily
output of each worker, not to mention overall morale. Whether you’re
boss or employee, here are a few major adjustments that can make a big
difference.
The Right Temperature
When
it comes to climate, employees are most productive when they’re
comfortable. Unfortunately, “comfortable” means different things to
different people. Some people are happy in an office that maintains a
steady 68 degrees while others break out the space heater until their
work area reaches 80 degrees or more.
But
when it comes to science, those who prefer sub-tropic temps win.
According to research reported in Men’s Health, workers are most
productive in temperatures ranging between 71 and 77 degrees. After
analyzing hundreds of workers, researchers found cooler temps were the
top cause of afternoon productivity lags. This confirmed a 2004 study
from Cornell University that found that temps of 68 degrees or lower in
an office increased worker errors. As the temperature increased to
between 68 and 77 degrees, typing errors dropped by 44 percent and
typing output increased 150 percent.
Lighting and Glare
Fluorescents
have long been the light bulb of choice in office décor. But telling
your boss that’s a bad idea may not be sufficient. For scientific proof,
there’s a 2012 study by Mirjam Muench that studied two separate groups
of people, one who spent multiple work days in daylight and another who
spent multiple days working in natural light. The study found more
dramatic feelings of sleepiness at the end of the day in those who
worked in artificial light. Scientists have theorized in recent years
that artificial light has disrupted our body’s circadian rhythms,
leading us to fall out of sync with the sun.
By
increasing the natural light available to workers, employers may find
those workers sleep better and show up for work more rested, leading to
increased productivity. For workers who are forced to remain in
artificial light throughout the majority of the workday, taking frequent
breaks outdoors could provide a natural rejuvenator that increases
alertness.
Noise Reduction
In
today’s “collaborative” environment, noise can be a real problem. In
fact, it might be one of the most scientifically proven workplace drains
today’s worker encounters. In a study published by Cornell University,
researchers reported finding higher levels of epinephrine in workers who
were exposed to low levels of noise, when compared to workers exposed
to no noise. This indicated workers exposed to noise were under higher
levels of stress. Studies have shown office noise can lead to negative
moods, inability to concentrate on a task, and even health issues after
prolonged exposure.
As a
worker, noise-canceling headphones are a great way to silence the noise.
But while workers may believe listening to music helps them focus,
studies have also shown music can decrease productivity when a worker is
conducting a task that requires focus. But when it’s a task a worker
performs on a regular basis, music can actually increase concentration.
Business
owners can help reduce noise-related stress by providing workers a
quiet place to go when extreme focus is needed. Whether this is
accomplished through an enclave located in the office or allowing
employees to work from home, this can be a great alternative to trying
to tune out worker gossip and ringing phones.
Worker Comfort and Safety
Ergonomics
are a real issue in today’s typing-heavy work environment. But
ergonomics are not just a safety issue. Studies have found when a worker
is comfortable and safe, that worker is more productive. When employees
sit up straight and type, they think more clearly and have a higher
work output than an employee who sits slumped over his or her keyboard.
Color Therapy
Many
experts feel that color has a definite impact on a person’s mood. The
color of an office’s walls, floors, and furniture creates an overall
office environment that influences how workers perform, experts feel.
Frank Mahnke, author of Color, Environment, & Human Response says
that when done correctly, workers will be able to get a different visual
depending on which way they are facing during the course of the day. As
you decorate your office, keep these color associations in mind.
· Yellow: stimulating, bright, cozy.
· Red: arousing, fiery, aggressive.
· White: open, neutral, sterile.
Keeping
this in mind, a worker may see why an office covered in red paint might
experience more hostility than one that utilizes more subtle tones.
However, many offices are decorated in neutral grays, which might be
more versatile but has no positive impact on productivity. Pastel yellow
might be a good choice for a conference room where workers regularly
work hold brainstorming sessions, while a more calming and soothing
color like light green might be a good idea for areas where meetings
with clients are most likely to occur.
Incidentally,
grey is a color associated with intellect and wisdom, which might be
just the look you’re going for in your office. Since this is often
decided by property owners long before a business takes occupation of a
space, even business owners may not have control over the colors in an
office. If painting isn’t possible, a few extra accent colors in
paintings and decorations may make a big difference in overall employee
mood.
Small
changes can be made in individual work areas to improve worker
productivity. By getting to know the psychology behind the way an office
environment influences the five senses, business owners may be able to
see a measurable increase in worker output, adding to their own bottom
line each year.
Thursday, November 7, 2013
Leadership
Great leaders are in short supply.
Not surprised? I’ve
been thinking, talking and writing about this for a while now. But
lately there seems to be something of a groundswell of recognition
within organizations that good leaders are a critical component of
success, and that we don’t have enough of them, especially when it comes
to the leaders of the future.
A
Right Management survey conducted in December of 2012 found that 32% of
HR executives in the US, and 25% globally, put “lack of high-potential
leaders in the organization” as their most pressing concern for 2013. Only 4% of US HR leaders said, “We have an ample leadership pipeline that will cover most of our needs.”
Why are employers feeling this need so strongly? I
suspect it’s a function of the way business is changing. Everything
runs flatter and faster: most organizations have fewer levels of
management and fewer built-in hierarchical controls; there is much more
information to make sense of on a daily basis; the rate of change in
almost every industry has increased significantly. In addition, younger
workers are less likely to stay in a company with bad leaders: they’re
looking opportunities for mastery, autonomy and purpose in their work,
and leaders who don’t even recognize those as legitimate needs, let
alone work to fulfill them, are having a hard time attracting and
keeping the best young talent.
If you
can demonstrate to your organization that you have real leadership
potential, there’s almost certainly a job with your name on it out
there. Showing others that you’re a leader is very
different. Here are some things you can start doing right now to show
the key people in your organization that you’re capable of leading:
Build influence:
Because most organizations are flatter and more matrixed than they used
to be, leaders need to accomplish more through the power of persuasion
than by relying solely on position power. For instance, if I work in
marketing and I want to create a strong social media identity and
community for one of our products, I may need to partner with someone in
digital who doesn’t report to me to get that effort off the ground. In other words, I’ll need to influence him or her to support my goals. Being able to build that kind of influence, even in an entry-level job, is a great demonstration of your leadership potential. A
few years ago, I watched as the assistant of a client of ours
influenced the staff at a resort where her boss was doing an off-site to
solve a variety of logistical problems that arose, and that were the
fault of the resort all without alienating them or having the problems
negatively impact the event. She was recently promoted to coordinator, and I suspect there are more promotions in her future.
Think outside your own job:
One of the frustrations I hear most often from senior people is that
their employees focus too narrowly on their own needs and constraints. Junior
employees will often complain about organizational decisions, for
example, without understanding the enterprise-wide factors that may have
led to those decisions. If you want to be seen as a
leader, make it your business to understand the larger organization: How
does your business work? What are the factors, in your organization,
that lead to growth, and what gets in the way? What other functions does your part of the business interact with most, and how do you support each other? Take a step back from your particular job and look at how everything fits together. Then
the conversations you have with your boss and other leaders are more
likely to demonstrate your broader understanding of the business, and
build their sense that you could succeed, and support the organization’s
success, in a broader role.
Learn from others. Great
leaders don’t operate in a vacuum. If you come to work, do your job
(even do it very well) and go home, having only minimal interactions
with your colleagues, those in power are unlikely to see you as a
potential leader. However, if you demonstrate interest in your
colleagues’ opinions and ask them to tell you about things they’re
interested in and know about, all kinds of good things will happen: 1)
your colleagues will think you’re smart and interesting (when others are
interested in us, we tend to think better of them) and will be even
more likely to share their wisdom and insight, 2) you’ll learn important
and useful stuff that will help you grow as a professional, and 3) your
boss and others will see you as hungry to learn and grow vs. just hungry to get a promotion.
Make things happen: During the recession, I watched as two middle managers in a client organization went down two very different paths. One
of them focused on how difficult things were, and used the tough
economic times as a excuse for why he was unable to do many of the
things his boss asked of him. “You don’t understand,” he’d say. ”People
are freaking out; it’s hard to get them motivated.” “We don’t have the
resources; we can barely keep things going.” Etc. etc. Meanwhile
his colleague, a woman at the same level and with roughly the same
budget and number of employees, pulled her group together and worked
with them to figure out how to overcome the obstacles. She
wasn’t able to do everything she was asked, I’m not sure anyone really
knocked it out of the park in 2009, but she was able to accomplish
most of it with the support and creativity of her team. The next year
she was promoted, and her 'I can’t do it' colleague was let go. It
was a pretty stark example: The ability to figure out how to work with
others to get things done, especially when there are obstacles, is
probably the key thing bosses and HR folks look for when deciding
whether someone has greater leadership potential.
If you
consistently show up in these ways, your boss and other decision-makers
in your organization will take notice. And the next time you ask for a
bigger job or a promotion, you’re much more likely to get the answer you
want.
Tuesday, October 22, 2013
Strategic Plan
Strategic Plan Template: What To Include In Yours
A
strategic plan is a roadmap to grow your business. This article details
the 13 sections to include in your strategic plan so you identify and
achieve your goals.
Section 1: Executive Summary
The
Executive Summary of your strategic plan should be completed last, and
this section merely summarizes each of the other sections of your plan.
The
Executive Summary is important since it will help other key
constituents, such as employees, advisors, and investors, quickly
understand and support your plan.
Section 2: Elevator Pitch
An
elevator pitch is a brief description of your business. Your elevator
pitch is included in your strategic plan since it’s key to your
business’ success, and often times should be updated annually. Here’s
why it’s important: if your employees can’t clearly and concisely
articulate your business to others, you inevitably miss out on tons of
sales and other opportunities.
Section 3: Company Mission Statement
Your
company mission statement explains what your business is trying to
achieve. While it may seem unimportant, it’s not. You see, for internal
decision-making, your mission statement guides employees to make the
right decisions; decisions that are in line with helping the company
achieve its mission. For external parties, such as investors, partners,
and customers, your mission can inspire them to take the actions you
want.
Section 4: SWOT
The
reason to include a SWOT analysis (analysis of your Strengths,
Weaknesses, Opportunities and Threats) in your Strategic Plan is to help
you determine the best opportunities to pursue to achieve your growth
goals. It also helps you identify which strengths you must develop in
the near future to improve your company.
Section 5: Goals
Setting and achieving goals is the hallmark of successful companies and is a critical element of your strategic plan.
They
key is to first identify your 5 year or long-term goals. Next, identify
your one-year goals; that is, what you must achieve in the next year
for it to be successful and to put your company on the right trajectory
to achieving your 5 year goals.
Then
work backwards two more times to determine your goals for the next
quarter and the next month. Ideally you update you strategic plan
monthly to modify this section.
Section 6: Key Performance Indicators (KPIs)
Great
businesses understand their metrics and KPIs. By tracking your KPIs,
you know exactly how your business is performing and can adjust as
needed.
For
example, a basic KPI such as Total Sales is critical for understanding
if the company is performing well. “Underlying” KPIs are equally as
important. For example, if sales are affected by 1) number of visitors
to your website, 2) number of visitors who complete a contact form, 3)
number of proposals you issue to these leads, and 4) the proposal
closing ratio, then each of these KPIs should be tracked. Then, if for
instance, the number of visitors to your website decreased, you would
know and fix this immediately, rather then waiting until sales plummet
later.
So, it’s critical to identify the KPIs you will track in your business and list them in this section of your strategic plan.
Section 7: Target Customers
In
this section of your strategic plan, you will identify the wants and
needs of each of your target customer groups. This is important in
focusing your marketing efforts and getting a higher return on
investment on your advertising expenditures. This is because the more
you can “speak” directly to your target customer wants and needs in your
marketing, the better you will attract them.
Section 8: Industry Analysis
Your
industry analysis doesn’t have to be a comprehensive report on what’s
going on in your market. However, you should conduct an analysis to
ensure the market size is growing (if not, you might want to diversify),
and to help identify new opportunities for growth.
Section 9: Competitive Analysis & Advantage
Similarly
to your industry analysis, your competitive analysis doesn’t have to be
a thorough report listing every detail about every competitor. Rather,
in addition to defining who your key competitors are, you should list
their strengths & weaknesses.
Most importantly, use this analysis to determine your current competitive advantages and ways to develop additional advantages.
Section 10: Marketing Plan
In
addition to your strategic plan, I recommend you develop a
comprehensive marketing plan describing how you will attract prospects,
convert them to paying customers and maximize your lifetime customer
value.
Include a summary of your marketing plan in your strategic plan.
Section 11: Team
The
team section of your strategic plan ensures you have the human
resources to execute on the opportunities you’ve identified and to
achieve the goals you established in section 5 of your plan.
Here
you should list your current team members and identify the types of
people you need to hire in the next year to achieve your goals.
Section 12: Operations Plan
Your
operations plan helps you transform your goals and opportunities into
reality. In this section of your plan, you will identify each of the
individual projects that comprise your larger goals and how these
projects will be completed. Finally, you’ll map out each of your
initiatives, ideally in a Gantt chart, so you know when each project
will start and who will lead them.
Section 13: Financial Projections
The
final section of your strategic plan is your financial projections.
Your financial projections help in multiple ways. First, you can use a
financial model to assess the potential results for each opportunity you
consider pursuing.
Also,
once you determine the opportunities you will pursue, your financial
projections will map out the goals. For example, you’ll know exactly how
many new customers you must attract in the next month, and at what
price point, to achieve next month’s goal.
You
should develop your complete strategic plan each year, and then update
it monthly as actual results come in and you gain more clarity and
intelligence. While you will rarely achieve the precise goals
established in your strategic plan, scores of research show that you’ll
come much closer to them versus if you didn’t plan at all. So, develop
your strategic plan today, and achieve the goals you desire.
Marketing Plan
Marketing Plan Template: Exactly What to Include
To
grow your business, you need a marketing plan. The right marketing plan
identifies everything from 1) who your target customers are to 2) how
you will reach them, to 3) how you will retain your customers so they
repeatedly buy from you.
Done
properly, your marketing plan will be the roadmap you follow to get
unlimited customers and dramatically improve the success of your
organization.
Section 1: Executive Summary
Complete
your Executive Summary last, and, as the name implies, this section
merely summarizes each of the other sections of your marketing plan.
Your
Executive Summary will be helpful in giving yourself and other
constituents (e.g., employees, advisors, etc.) an overview of your plan.
Section 2: Target Customers
This
section describes the customers you are targeting. It defines their
demographic profile (e.g., age, gender), psychographic profile (e.g.,
their interests) and their precise wants and needs as they relate to the
products and/or services you offer.
Being
able to more clearly identify your target customers will help you both
pinpoint your advertising (and get a higher return on investment) and
better “speak the language” of prospective customers.
Section 3: Unique Selling Proposition (USP)
Having a strong unique selling proposition (USP) is of critical importance as it distinguishes your company from competitors.
The
hallmark of several great companies is their USP. For example, FedEx’s
USP of “When it absolutely, positively has to be there overnight” is
well-known and resonates strongly with customers who desire reliability
and quick delivery.
Section 4: Pricing & Positioning Strategy
Your
pricing and positioning strategy must be aligned. For example, if you
want your company to be known as the premier brand in your industry,
having too low a price might dissuade customers from purchasing.
In this section of your marketing plan, detail the positioning you desire and how your pricing will support it.
Section 5: Distribution Plan
Your
distribution plan details how customers will buy from you. For example,
will customers purchase directly from you on your website? Will they
buy from distributors or other retailers? And so on.
Think
through different ways in which you might be able to reach customers
and document them in this section of your marketing plan.
Section 6: Your Offers
Offers are special deals you put together to secure more new customers and drive past customers back to you.
Offers
may include free trials, money-back guarantees, packages (e.g.,
combining different products and/or services) and discount offers. While
your business doesn’t necessarily require offers, using them will
generally cause your customer base to grow more rapidly.
Section 7: Marketing Materials
Your
marketing materials are the collateral you use to promote your business
to current and prospective customers. Among others, they include your
website, print brochures, business cards, and catalogs.
Identify which marketing materials you have completed and which you need created or re-done in this section of your plan.
Section 8: Promotions Strategy
The
promotions section is one of the most important sections of your
marketing plan and details how you will reach new customers.
There
are numerous promotional tactics, such as television ads, trade show
marketing, press releases, online advertising, and event marketing.
In
this section of your marketing plan, consider each of these
alternatives and decide which ones will most effectively allow you to
reach your target customers.
Section 9: Online Marketing Strategy
Like
it or not, most customers go online these days to find and/or review
new products and/or services to purchase. As such, having the right
online marketing strategy can help you secure new customers and gain
competitive advantage.
The four key components to your online marketing strategy are as follows:
- Keyword Strategy: identify what keywords you would like to optimize your website for.
- Search Engine Optimization Strategy: document updates you will make to your website so it shows up more prominently for your top keywords.
- Paid Online Advertising Strategy: write down the online advertising programs will you use to reach target customers.
- Social Media Strategy: document how you will use social media websites to attract customers.
Section 10: Conversion Strategy
Conversion strategies refer to the techniques you employ to turn prospective customers into paying customers.
For
example, improving your sales scripts can boost conversions. Likewise
increasing your social proof (e.g., showing testimonials of past clients
who were satisfied with your company) will nearly always boost
conversions and sales.
In this section of your plan, document which conversion-boosting strategies you will use.
Section 11: Joint Ventures & Partnerships
Joint
ventures and partnerships are agreements you forge with other
organizations to help reach new customers or better monetize existing
customers. For example, if you sold replacement guitar strings, it could
be quite lucrative to partner with a guitar manufacturer who had a list
of thousands of customers to whom it sold guitars (and who probably
need replacement strings in the future).
Think
about what customers buy before, during and/or after they buy from your
company. Many of the companies who sell these products and/or services
could be good partners. Document such companies in this section of your
marketing plan and then reach out to try to secure them.
Section 12: Referral Strategy
A
strong customer referral program could revolutionize your success. For
example, if every one of your customers referred one new customer, your
customer base would constantly grow.
However,
rarely will you get such growth unless you have a formalized referral
strategy. For example, you need to determine when you will ask customers
for referrals, what if anything you will give them as a reward, etc.
Think through the best referral strategy for your organization and
document it.
Section 13: Strategy for Increasing Transaction Prices
While
your primary goal when conversing with prospective customers is often
to secure the sale, it is also important to pay attention to the
transaction price.
The
transaction price, or amount customers pay when they buy from you, can
dictate your success. For example, if your average customer transaction
is $100 but your competitor’s average customer transaction is $150, they
will generate more revenues, and probably profits, per customer. As a
result, they will be able to outspend you on advertising, and continue
to gain market share at your expense.
In
this section of your plan, think about ways to increase your
transaction prices such as by increasing prices, creating product or
service bundles/packages, and so on.
Section 14: Retention Strategy
Too
many organizations spend too much time and energy trying to secure new
customers versus investing in getting existing customers to buy more
often.
By
using retention strategies such as a monthly newsletter or customer
loyalty program, you can increase revenues and profits by getting
customers to purchase from you more frequently over time.
Identify and document ways you can better retain customers here.
Section 15: Financial Projections
The
final part of your marketing plan is to create financial projections.
In your projections, include all the information documented in your
marketing plan.
For
example, include the promotional expenses you expect to incur and what
your expected results will be in terms of new customers, sales and
profits. Likewise include your expected results from your new retention
strategy. And so on.
While
your financial projections will never be 100% accurate, use them to
identify which promotional expenses and other strategies should give you
the highest return on investment. Also, by completing your financial
projections, you will set goals (e.g., your goals for your referral
program) for which your company should strive.
Completing
each of the 15 sections of your marketing plan is real work. But, once
your marketing plan is complete, it will be worth it, as your sales and
profits should soar.
Saturday, September 7, 2013
Public Relations
Here's a brief look at Public Relations from Robert Wynne:
Public Relations, explained last month a digital marketing expert wanted to include our firm’s public relations expertise in a new business pitch. ”How many impressions can you guarantee the client each week?” he asked. Hard to believe, but even a seasoned marketing professional doesn’t understand the basics of public relations.
Public Relations, explained last month a digital marketing expert wanted to include our firm’s public relations expertise in a new business pitch. ”How many impressions can you guarantee the client each week?” he asked. Hard to believe, but even a seasoned marketing professional doesn’t understand the basics of public relations.
For my
friend, and all the friends of the PR pros who read this column, the
family members who don’t understand what we do, and for entrepreneurs
who need to understand public relations and how it can help their
business, let’s explain Public Relations.
It’s not advertising. We don’t buy impressions. We don’t guarantee placement. But
the coverage we get, in the media, online, social media, TV and other
places, usually has much more credibility than paid endorsements. Public Relations consist of the following:
· Persuasion
· Information
· Communication
· Third-party validation
· Public opinion
· Public policy
· Promotion to drive sales, revenues or donations.
Wikipedia has a great overall definition:
“…
The practice of managing the spread of information between an
individual or an organization and the public. Public relations may
include an organization or individual gaining exposure to their
audiences using topics of public interest and news items that do not
require direct payment. The aim of public relations by a company often
is to persuade the public, investors, partners, employees, and other
stakeholders to maintain a certain point of view about it, its
leadership, products, or of political decisions. Common activities
include speaking at conferences, winning industry awards, working with
the press, and employee communication.”
The Public Relations Society of America, PRSA, notes the concepts have been modernized. “The
earliest definitions emphasized press agentry and publicity, while more
modern definitions incorporate the concepts of ‘engagement’ and
‘relationship building.’” An international effort to update the
definition led to the PRSA to note:
“PR is a strategic communication process that builds mutually beneficial relationships between organizations and their publics.” At least we hope so. As
any PR person who has pitched a reporter knows, and any reporter who
has to field calls from publicists has learned, the relationship can be
mutually beneficial, antagonistic or indifferent at any time. It
depends on many factors including the news value of the story, the
relationship between the two parties, the reputation of the subject, and
the ideology of the media outlet.
The Princeton Review presents a very direct, some would say blunt, view of the industry.
“A
public relations specialist is an image shaper. Their job is to generate
positive publicity for their client and enhance their reputation. The
client can be a company, an individual or a government. In the
government PR people are called press secretaries. They keep the public
informed about the activity of government agencies, explain policy, and
manage political campaigns. Public relations people working for a
company may handle consumer relations, or the relationship between parts
of the company such as the managers and employees, or different branch
offices. Though the job often involves the dissemination of information,
some view this cynically as “spin doctoring.” … The successful PR
person must be a good communicator-in print, in person and on the phone.
They cultivate and maintain contacts with journalists, set up speaking
engagements, write executive speeches and annual reports, respond to
inquiries and speak directly to the press on behalf of their client.
They must keep lines of communication open between the many groups
affected by a company’s product and policies: consumers, shareholders,
employees, and the managing body.”
For more information on what public relations agencies do, please see my previous column.
Like many industries, PR can be divided into specialties:
· Industry-specific: Consumer-Lifestyle, Higher Education, Legal, ...
· Crisis Communications
· Government Relations
· Internal Communication
And of
course, the internet and social media is a significant revolution. The
biggest change for Digital Public Relations is this – you don’t need the
traditional media as your megaphone, you can go directly to the
consumer or audience via Twitter, Facebook, email, text, your website,
etc. The upside is immediacy for your message without a filter. The downside is reaching that audience. It’s easier for a celebrity or a name brand than an unknown person or business.
There are many great resources to explain this phenomenon. From the website Business2Community:
“PR
has always been about creating a favorable operating climate for a
company or organization. Digital PR is no different. It’s about building
that presence online, understanding the digital landscape you operate
in and developing strong relationships with all the players in your
social graph. The techniques include SEO, content development, social
media, online newsrooms, websites, blogs and online media coverage.
Online Reputation Social media and consumer generated content can have a
rapid effect on your reputation – both positive and negative.
Understanding SEO (search engine optimization) is not just a vital skill
for PR practitioners today – it’s crucial. Should an online crisis hit
your business the event itself will be bad enough, but the aftermath of
the negative content online can extend the effect of the crisis well
into the future. Every time someone does a search for your company’s
name that pesky negative content will show up. Search engines index
content on relevance. If you don’t understand how the search algorithms
work and how to move that content down the rankings, it will linger like
a bad fish smell. Building relationships Digital PR makes use of social
media platforms, networks and tools to interact with people online and
build relationships. The social media part is the content and
conversations on Facebook, Twitter, Pinterest, LinkedIn and YouTube. The
Digital PR part is the support functions needed to make those
conversations relevant and effective – research, social audits,
identifying influencers, developing and distributing the content.”
A good
example of Digital PR includes the response of Southwest Airlines to a
plane skidding on the runway of LaGuardia Airport in July of this year
on Twitter and Facebook with screen shots of the posts thanks to the
Likeable blog. Southwest responded almost instantly with updates on the situation and reported the news directly to the public. There’s also a great source, the Digital PR Guidebook from PR News Online with many more examples and essays.
For non-crisis PR, some brands are getting creative with digital platforms. J.
Crew obtained media coverage for choosing to release its catalogue on
Pinterest and Oscar de la Renta played the PR game well for premiering
its lineup on Instagram. Whether these are marketing tactics, PR stunts
or genuine evolutionary steps, they are working. When’s the last time you heard anything about Oscar de la Renta?
No
discussion about Digital PR would be complete without a discussion of
Content Marketing, the subject of a previous Forbes Column.
The
website WhatIs defines it as “the publication of material designed to
promote a brand, usually through a more oblique and subtle approach than
that of traditional push advertising. The essence of good content
marketing is that it offers something the viewer wants, such as
information or entertainment. Content marketing can take a lot of
different forms, including YouTube videos, blog posts and articles. It
shouldn’t really seem like marketing — in some cases, in fact, it should
only be identifiable as marketing because the advertiser is identified
as the content provider.”
A contact in higher education notes research universities are leveraging their content to gain much more media coverage. The
traditional research stories or essays, which used to be hard copy tip
sheets for reporters on who to call for experts, are now ‘legitimate
content’ for a media industry that operates with fewer reporters and
resources. My source notes web portals picking up their material
verbatim in some cases. Universities can now talk directly to the reader
about faculty thought leadership in many venues, rather than rely on
reporters as the sole channel for explicating faculty’s knowledge.
This
trend applies to academic institutions, think tanks and possibly
corporate or government research labs that are reasonably neutral. This
may be much harder for consultants and companies pitching products. In
other words, “Research concludes our shampoo has 97 more tingling
action!” press releases are still not working.
Feel free to share this with your friends, colleagues and parents. And don’t forget to email a copy to the next person who asks you to guarantee something. You
can always tell them you won’t guarantee X number of impressions, but
you can be sure that when you get something placed in front of the right
people, you can guarantee they will pay more attention to it compared
to a banner ad online or coupon in the newspaper.
Also check this older article out.
Also check this older article out.
Wednesday, July 10, 2013
The Economy: A Viewpoint from Risk and Strategic Management
Here is a quick piece on my take of the current state of the economy from a risk management and strategic viewpoint. This piece includes an article summary as well as my own writings.
Please look at this article on Forbes.
“The beautiful is a phenomenon which is never apparent of itself, but is reflected in a thousand different works of the creator.”
— Johann Wolfgang von Goethe
Personal Note: I have been asked by several coworkers and friends on my own evaluation of the current state of the economy. Plain and simple I believe that the Fed is floating the economy through their Quantitative Easing Program, buying up $85 billion of assets from various entities and that businesses are waiting for the sleeping bear to wake and for things to crash before they will start unloading their cash hoard. It is my hope that instead of staying in stagnation that the Fed will allow the economy to crash to restart the business cycle so that the country can push forward. For those not familiar with business cycles, take a look at the following graphs:
As I follow Forbes, WSJ, Bloomberg, Reuters and many businesses as well as their contributors' blogs for my work, I feel comfortable in saying that a majority of business writers and bloggers feel that the current state of the stock market cycle is in Late Bull phase; I too concur. In terms of the business cycle, we have recovered but we have not yet boomed, and until the current administration fosters a pro-business environment, I would expect to see many corporations hold onto their massive cash piles sending the market into a bear one and causing the economy to contract. Fear not though, businesses will spend their cash as with time and inflation most companies choose to spend their money and invest it rather than lose it. Count on these businesses with cash piles to jump-start the real economic recovery into economic expansion, keeping the market in a natural balance.
The alternative side is that businesses will invest their cash before any downturn in the market occurs sending the economy into a boom period. I think this is highly unlikely as businesses stand to lose much more than gain as the market is currently at record highs. My hope is that businesses will invest in human capital and raise up future business men and women for their needs and provide the necessary incentives to retain their employees. Companies that are doing this already such as Chick-Fil-A are seeing vast returns on their customer service and investment in human capital.
However, Mort Zuckerman is on the same page as myself, check out his article on the jobless recovery. "The country needs a real recovery, not a phony one."
Side Note: Honestly, only time will tell if I am correct or not. If I stand corrected, I will admit my errors and move forward. My writings are not about whether I am right or wrong but looking at current events or issues and freely sharing ideas. Obviously, I wouldn't write or publish something I know to be wrong or false, so feel free to correct me when, not should, I make a mistake or be in the wrong.
Please look at this article on Forbes.
“The beautiful is a phenomenon which is never apparent of itself, but is reflected in a thousand different works of the creator.”
— Johann Wolfgang von Goethe
The following three facts are pretty unsettling:
- Mergers and acquisitions are down 14% globally since 2008 and have plummeted 35% in Europe.
- Mergers and acquisitions are down 14% globally since 2008 and have plummeted 35% in Europe.
- Massive amounts of cash are piling up on balance
sheets. This hoard instinct represents an idle $1.4 trillion in corporate cash
and cash equivalents sitting idle in the non-financial S&P 500 companies
through late last year, up 69% from 2007, that's pre-recession.
- Stock buybacks in the US so far this year are on
a pace to substantially exceed last year, adding to the $2.2 trillion in
buybacks from 2008 through 2012.
It is understandable for business leaders waiting for things to clear up. The outcome of today’s
stagnation is not only clouded, the entire ordeal is unprecedented. We’re in
the midst of the longest and most complicated recessionary period ever. No one
today has coped with anything like it. At the same time, political uncertainty
is mounting due to legislation added by the current administration. Leaders have always lived with uncertainty, but this has always been the
case. If money is not invested to spur real growth, expansion and innovation,
it’s a good bet that none of these will occur.
Doing anything is always risky. Doing nothing is a major
strategic decision, typically a bad one. Business leaders can anticipate change by understanding that a lot of what seems like
uncertainty is actually unfamiliarity. This distinction means that old ways can
be adjusted and new methods acquired in pursuit of real opportunities that
never have been seen before. In example, executives long understood that
capital was scarce and talented people abundant; neither of which is true now.
Quick Advice for Corporations: Businesses must start hoarding talent. There is a current shortage of 10 million
highly skilled workers, which could grow to as many as 95 million by the end of the
decade. The world is now flooded in
capital. A lot of it is currently on the sidelines but more will arise from developing nations. It is estimated that total global capital pool will expand 50% by the
end of the decade, which is up $300 trillion from roughly $600 trillion today to nearly a
quadrillion dollars by 2020. That’s a lot of money.
In order for businesses to continue on their path, good strategy must be considered with risk management in mind. The risk every manager faces is: What do I stand to gain? versus What do I have to lose? The question that is left on the table is: Can businesses afford to continue to sit on their hands/cash? And the answer is yes, yes they can.
Personal Note: I have been asked by several coworkers and friends on my own evaluation of the current state of the economy. Plain and simple I believe that the Fed is floating the economy through their Quantitative Easing Program, buying up $85 billion of assets from various entities and that businesses are waiting for the sleeping bear to wake and for things to crash before they will start unloading their cash hoard. It is my hope that instead of staying in stagnation that the Fed will allow the economy to crash to restart the business cycle so that the country can push forward. For those not familiar with business cycles, take a look at the following graphs:
Business Cycle with terms |
Blue - Stock Market Cycle Yellow - Economic Cycle |
The alternative side is that businesses will invest their cash before any downturn in the market occurs sending the economy into a boom period. I think this is highly unlikely as businesses stand to lose much more than gain as the market is currently at record highs. My hope is that businesses will invest in human capital and raise up future business men and women for their needs and provide the necessary incentives to retain their employees. Companies that are doing this already such as Chick-Fil-A are seeing vast returns on their customer service and investment in human capital.
However, Mort Zuckerman is on the same page as myself, check out his article on the jobless recovery. "The country needs a real recovery, not a phony one."
Side Note: Honestly, only time will tell if I am correct or not. If I stand corrected, I will admit my errors and move forward. My writings are not about whether I am right or wrong but looking at current events or issues and freely sharing ideas. Obviously, I wouldn't write or publish something I know to be wrong or false, so feel free to correct me when, not should, I make a mistake or be in the wrong.
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