Economic Stimulus PR

By Marianne Higgins, APR

Businesses operate much as we consumers do when it comes to spending:  there are basic “needs” to be filled, and there are “wants.” Think about your own spending habits. When you have less to spend, or perceive that you may have less to spend, you will focus your dollars primarily on “needs” items and, specifically, those items in which you have confidence and satisfaction.

Your employer is doing the same. The organization is focusing its spending on proven items that have the greatest return on the investment.

As public relations practitioners it is our responsibility to ensure our employers understand the impact of public relations on the bottom line. When implementing budget cuts, there are three critical elements that organizations should not cut: Brand Awareness, Brand Loyalty, and Reputation Maintenance and Enhancement. Now more than ever buyers need reassurance that investing their precious dollars in your company or products will yield high results and satisfaction. Public relations can deliver all three elements with maximum impact for considerably less budget than can direct mail, advertising and other sales support initiatives.

Recall the four step public relations process1 that organizations use to scientifically manage problem-solving and change processes:

1. Define the problem or opportunity
2. Develop the Plan and Program
3. Take Action and Communicate
4. Evaluate Results

Practitioners can use this same process to demonstrate to management why public relations should have the leading role in external communications when there is less money to spend:

1. The problem: less budget. The opportunity: communicate effectively with current/loyal customers and existing prospects for less budget than traditional marketing activities.
2. Develop a plan to show the cost variables between public relations activities and marketing activities.
3. Meet with the company’s executive team to review options for continued external communications that cost less. Be prepared to share examples of customer loyalty, brand management and reputation enhancement campaigns you could implement.
4. Review the outcome of the meeting and determine next steps based on the outcome.

When the economy rebounds – and it will – the organizations that cut their public relations budgets will have to work much harder and possibly spend more money than they saved with earlier budget cuts to regain awareness and rebuild loyalty. Organizations who continue to invest in core public relations activities when times are tight will be better positioned for the rebound because satisfied customers will still be around and prospects gained will be ready to become customers.

1Scott M. Cutlip, et al., Effective Public Relations (New Jersey: Prentice-Hall, Inc., 2000) 340.

 

Marianne Higgins has been an active member of the North Alabama Chapter of PRCA since 1986.