Wednesday, January 18, 2012

Marketing ≠ Advertising ≠ Public Relations


Synonyms? No.
Almost the same thing? No.
Duplication of efforts? Absolutely not!

Contrary to how the words ‘marketing,’ ‘advertising,’ and ‘public relations’ are commonly used in the marketplace, they are not interchangeable. Here is the simplest definition I can give you to help you understand the relationship of these three words.

Marketing
Marketing is the big umbrella term here. I like to describe marketing using Four Ps: Product, Price, Place, Promotion. As you can see, marketing means more than promoting a product or service. It means developing and offering a product or service that people want, then putting it in the right market, at the right time, at the right location and then strategically getting the word out about it.

The P for Promotion branches into two segments: Advertising and Public Relations. These two ways of promoting an item or service (your Product) are not the same thing. Both Public Relations and Advertising are meant to evoke feelings about your product to the point that your audience will be inclined to buy your product, that’s where the similarities end. Though they have a common goal, they are completely different and work hand-in-hand for a really successful campaign.

Advertising
The easiest way to define this was how my advertising professor in college described it. “Advertising is paid persuasion.” You buy ads. You dictate where they will go, the size, the copy and the artwork. You get exactly what you paid for and if you placed the ad in an outlet that reaches your target market, then you might garner some sales. Placing just one ad won’t do it except in rare circumstances. You have to keep the ad going with some consistency to get the results you want.

Public Relations
If Advertising is an anchor, then Public Relations is a cloud. Public relations activities are those things that help you relate to your customer. The message is carried through different channels than advertising. Contests, giveaways, news articles, awards, advocacy efforts, and so on, down to the basics of how you answer your phone are all elements of public relations. As deliberate as PR activities are, the results are in the hands of others. Journalists, editors, and your target audiences decide what they will do with the information you give them as part of your PR plan.

That’s as simple as I can make it. Now you can use the words with some confidence that you know what you are talking about. 

Wednesday, August 24, 2011

Saving the World as a Marketing Technique

For poor children. For cancer research. To save the rainforest. For more sales!

Is “social responsibility” a “marketing angle”? The answer is yes, and sometimes more than that. I have used social-conscious appeals for my own clients and they have worked great. Lately, however the trend is growing and businesses are designed completely around this aim. In other words, saving the world in one way or another is the purpose of their company, enmeshed in their business plan, not just an overlay in their marketing plan.

The way to the cause
Here are three main avenues that businesses choose to save the world:
1. Nonprofits including foundations and philanthropic agencies with a specific cause;
2. For-profit businesses that launch specific campaigns for a cause (the marketing overlay); and 3. For-profit businesses that are built around a specific cause.

Lately the retail sector seems to be on fire to save the world, including for-profit businesses with an aim to make a difference. The Body Shop was one of the first I can remember that encouraged reusing their plastic bottles and making it popular to forego a bag for your merchandise. Now it’s a prevalent values statement for companies. Whether it’s a free pair of shoes going to a third world country for every pair you buy (TOMS), or a percentage of proceeds going to medical research (Happy Nappers, and many more), these philanthropic endeavors draw us to products so we too can help save the world.

Is it a gimmick?
When the purchase of a product benefits the world, the feel good appeal puts consumers in a position to reason, “If I buy this, I help the world too. How wonderful!”

Reading TOMS website, you’ll find it very convincing that selling shoes in a for-profit environment (online, Nordstrom) is a means to an end. Basically, that the mission of the company is to shod children around the globe, and selling shoes helps make that mission possible. It’s no different than a non-profit holding a dinner auction to raise money to buy books for local children. Same result, different angle. Very clever!

If you’re going to buy it anyway, okay. But let’s be clear that those companies are not philanthropic, 501 c 3 nonprofit organizations. They sell stuff and make money. They are using their generosity as a marketing angle to get you to choose their product over another—and join their team to save the world. The retail sales price of one of the “buy one and another goes overseas” products, pays for two of those products, the shipping to get the one to a third world country, the staff to oversee that endeavor as well as the production of the product, and enough money to make a profit. In other words, you are helping to save the world with your pocketbook, which is similar to a nonprofit contribution, but the company makes a profit. The company also benefits from the marketing and perhaps tax deduction of its donation. The retail price for a pair of TOMS, for instance, ranges from $38 for kids to $98 for a pair of women’s vegan boots and $100 for men’s perforated leather shoes. Not exactly on the low end and not a tax deduction for you. 


Does it Work?
As a consumer, you can instead buy the competitor’s product for half the price and give the difference to your favorite nonprofit. But, as a start-up business, this might be an angle to consider. After all, TOMS has donated more than 1,000,000 pairs of shoes.

Lately it’s very cache, even important, to have a social-responsibility factor in your marketing plan, your mission, or in your core values. It does work. People want to feel they are backing companies that recycle, use sustainable products and natural resources responsibly, and have an organic, natural feel to them.

I think this is a generational trend as much as it is part of the prevailing “rivers of thought.” The Millennial Generation is generally socially liberal and is disgusted by waste (i.e. paper bags), and tends to feel a strong obligation to take care of the earth. Composting = good; drilling for oil = bad. Companies that don’t have a social agenda are off-putting to them.

What Can You Do?
More old-school professionals are not as blatant with their community service. They volunteer to serve on boards, they chair fundraisers for non-profit organizations and they sponsor charities with cash and prize donations. Their service is personal and doesn’t necessarily involve their whole business and its personnel.

If you run a small business and a cause is not already at the center of your existence, there are still many ways to help without doubling your prices to do it. Local eatery Johnny Rebs has coin jars on the tables next to bowls of peanuts for their patrons to deposit a few coins or a dollar when they dine. Their “Shell Out for Charity” campaign raises money for charities that rotate throughout the year.

Martha Alderson, the Plot Whisperer promised to plant a tree for every Like she got on her Facebook page during a certain time period. She reports that 120 tree seedlings were planted in American forests from her campaign.

You can do something simple or you can choose to do something very ambitious like create your own fundraiser or service campaign. Large or small, it is important to give back to your local—or global—community.

Monday, August 15, 2011

What Else Is True?


How many versions of the truth are there? Some would argue that the truth is finite and therefore just one answer for any question. That’s true in math and for some sciences, but not for most of everyday life.

More than once, I have used kaleidoscopes in training presentations to represent that there are many versions of the truth. Ask three people to look through a kaleidoscope and tell you what color is in the center and you are more than likely to get three different answers—all true.

I use this demonstration to show that many people—though appearing to disagree—can in fact be telling the truth. It’s the truth as they see it, as they know it and commit to it. Some people are open to understanding that other answers may be correct and some people are insistent that their answers are the ONLY right answers. That’s where group dynamics get interesting.

I’m not suggesting to abandon all of your opinions in the name of compassion or cultural sensitivity. I want you to apply this thinking to your press releases. Most of the time, your press release will be used as a starting point for a reporter. The reporter will interview people that you mentioned and people that you didn’t. The reporter might already have an idea about your topic and take a completely different angle than what you suggested, simply because they see it differently.

Before you issue a press release, read it like a reporter taking it as an assignment, acknowledging that the reporter sees the center of the kaleidoscope differently than you do. Ask yourself these questions:

1. Does anybody care about this? Have I compelled them to care? What’s newsworthy about it?
I once had a client who was nominated for an award that she did not win. She asked me to issue a press release about it. About what? As Gertrude Stein said, “There’s no there there.” Unless there was something she had overcome to get nominated in the first place, there was no reason any newspaper would pick it up. There were no qualifications for the nomination either, anyone could nominate anyone.

2. Can a reporter take action with this story?
In other words, let the reporter know your news before it happens so they can be there and take some pictures. If you are reporting something that already happened—a decision, an event, an award—then supply pictures and quotes to the press regarding the reaction to what happened. 

3. If a reporter speaks to my competition or opponent on this topic, what will he or she say?
Anticipate your opponent’s side of the story and refute it. Right up front, just get the naysayers out of the way. If you know the other guy says the center of the kaleidoscope is yellow when you contend it is blue, then address it like this. “Though many people claim that the center is yellow, they fail to take into account that the kaleidoscope needs to be turned 45° in order to be viewed according to the manufacturer’s recommendation. When used properly, the viewer sees blue.” Hyperbole aside, you want to address the issue and get it out in the open in a way that leads the reader to agree with you. Some reporters will incorporate your statement and not call the opposing side for an opinion, while others will call your competition right away. 

4. Are my statistics and facts accurate and proved by a legitimate agency or organization? Are there statistics refuting my argument?
This is extremely important. It’s very easy to lie with truthful statistics. If I say, “Our program has a 98% success rate,” that sounds impressive. But if I left out that the success rate is only based on the 40% who stay in the program, that could pose a problem if the reporter digs that far. Perhaps 40% retention is better than your competition and you’re still okay. Think about the other side of the statistics before you publish them. If 40% stay in the program, what happens to the 60% who dropout?

Be mindful that there are more versions of the truth than what you are putting in your press release. Think them through for optimum results. 

Derek Sivers has become one of my favorite speakers to watch on YouTube with short TEDtalks. Here’s his video that demonstrates how things are different (or weird) worldwide.



Monday, July 25, 2011

Cash Caveat

Times are tough for everyone, but especially small business owners. I have noticed a few e-mails and Facebook postings offering great discounts if you pay cash. Cash is king but promoting that you want to be paid in cash and will offer a sizable discount for it, is like waving a big red flag that says, “Turn me in for tax evasion!” 

The Board of Equalization, where businesses report and pay sales tax in California, has a long list of clues that help people report possible tax fraud. If you are not guilty of tax evasion, then take some steps to make sure you are in the clear. Cash is still a legitimate currency, of course.

1. Cash vs. Credit Cards
You, as a business owner, may offer a discount for using cash instead of credit cards to avoid the business fees that banks charge for using credit cards. Some businesses even offer to “pay the sales tax for you,” meaning they back the tax out of whatever price you pay. These days, that’s a pretty decent savings in most parts of California.

2. Receipts
As a legitimate, tax-paying business owner, you need to issue a receipt for cash or any other type of payment. Not issuing receipts is another red flag to the Board of Equalization.

3. Liquid Cash
It’s common when a store is liquidating its inventory because it is closing, that the management or the liquidators running the closing sale will ask for cash. A receipt is still necessary.


As a customer, be aware of businesses offering certain programs as cash only. They might not just be evading their taxes, they might be on the brink of going out of business. Don’t spend $60 cash on the day spa program that promises five visits with several services, that each usually cost more than $60--especially if they are selling it to you in the parking lot. Something’s wrong with that picture. They might be closing tomorrow leaving their customers with no recourse for the services or to get their money back.

When businesses avoid paying their taxes it puts a greater strain on city, county and state resources and may actually cause taxes to go up. 

Be a good corporate citizen: if you offer a discount for paying cash, and want to promote it to the masses, then make sure you follow the rules and keep yourself beyond reproach.

Friday, July 15, 2011

Communication Let You Down?

Gone are the days when if you wanted to speak to someone you had to call or write a letter. There are so many ways to communicate with people these days that communication is increasingly casual and many times on the verge of being downright inappropriate. Let’s review the means of communications we have at our fingertips and their related courtesies to make sure we are portraying ourselves the best way we can.

Memorandums or Random Memos?
If you need to communicate with a client or colleague for official business, use a memorandum. A formal document that is dated and clearly lists the to and from with real names will do more for you and your image than a quickly typed e-mail with abbreviations and cutesy e-mail names. You can attach the memo to an e-mail, fax it or even mail it if you prefer. If this document has to go in a file—paper or electronic form–you’ll want to be remembered for being professional. Your inter-office culture is likely more casual and accepts e-mails as official documentation.

Communicating in the Same Language
Someone recently showed up late to a meeting with me and told me they had sent me an e-mail. I had no such e-mail on my phone and figured she sent it to the wrong person; I didn’t worry about it. Later that day I found that she had sent me a message on Facebook to let me know she was running late. We had set the lunch date via e-mail, that was the standard we were using. A Facebook message is not e-mail and unless you have established that as a means to communicate with someone professionally, don’t assume that everyone sees it the same way.

E-Mail Goes Both Ways
Undoubtedly you receive emails that you can’t respond to properly when you get them, but make it a goal to respond to every email at some point--unless the conversation is over. A quick response that tells the sender you can chat more later will suffice. If you’re like me, you get irritated when people don’t respond to e-mails. Some people don’t check their e-mail on a regular basis. I don’t know how they do that, but I know not to e-mail them with anything urgent. If you use several e-mail addresses and don’t check them all, that is your responsibility not the sender’s. Don’t blame them for sending to the “wrong” address. E-mail addresses are like phone numbers. It’s your responsibility to let people know if you change or disconnect one. If you don’t want e-mail, don’t give out your e-mail address. It’s that simple.

Social Media Sharing
Social media, largely Facebook, LinkedIn and Twitter, is a great means to broadcast to larger audiences. You can create groups on Facebook and LinkedIn, and hashtag topics (#) on Twitter to reach a particular market. Social media is not where you speak of confidential changes in your company or industry. Further, it is not where you complain about those same issues. Using social media to gripe will ruin your image.

Information Broadcast
It holds true that if you don’t want information forwarded, then don’t put it in an e-mail. If you need to have confidential communications with a individuals or a group of people via e-mail, then set that as a communications guideline with that person or group, and make sure you have established some trust prior to setting this rule.

Texting? We're not even going to go there. Keep that for quick, casual messages and nothing else. 

The best way to set communication standards is to model them. If you don’t communicate properly you lower the expectation of how people will communicate with you. You know what you want your brand to be, communicate accordingly.