Showing papers in "Public Relations Journal in 1994"

Carefully Crafted Identity Can Build Brand Equity

Abstract: Brands today are under pressure. Marketers need every advantage to compete against new entries, extensions and that exploding category called private labels. One strategy that marketers frequently overlook involves the use of imagery and creative design to enhance the equity of a brand name. Brand equity occurs when the "cluster of values" or characteristics surrounding a brand build over time to create a memorable, desirable experience for consumers. Equity is the total experience that customers take away from using a product--the sum total of their good and positive feelings. This "cluster of values" differs from brand to brand. The characteristics of a brand's personality are far-ranging and include tangible and intangible elements. Take Coca-Cola's brand equity, for instance. * The name and logotype have been upgraded over decades, but perceptually the brand image is unchanged. * Its distinctive use of red and white colors in product advertising and packaging has been a constant. * The taste and flavor of original Coke has been carefully controlled for consistency. The same formula is used worldwide. * The distinctive shape of the trademarked original bottle has been maintained for its nostalgia value and positive association with a refreshing, vintage soft drink. * Coke continues to satisfy consumers with taste and quality over the years. Brand values are truly assets, and there is much that can and should be done to nurture and maintain their market presence. Conversely, if not nurtured, a brand's value and equity erode and become obsolete. As a first step in maintaining brand equity, marketers may have to change the way they think. Many marketers today actually believe that their company owns the brands they sell. In reality, the consumers of a brand are its true owners. Why? Because the image of the brand resides in the minds of consumers. Consumer loyalty is critical to maintaining a brand's equity. Al Zeien, the chairman and CEO of Gillette, understands this notion very well. As he puts it, "We don't sell products. We capture customers." The marketing challenge is to present the brand in such a way as to capture the consumer by creating strong brand awareness and brand loyalty. The bond between brand and consumer begins with identity. Identity encompasses every aspect of the brand--its flavor, texture, performance and especially its "look." Communications and design aspects of identity are the core elements--the visual and verbal components--that help consumers visualize the essence or personality of a brand. When managed properly, the core elements of identity arm the brand to compete. They are the basic components of the "equity artillery" a brand needs to hold its own in the marketplace. Brand equity develops from a carefully crafted and managed brand identity. That identity will ultimately take hold and create value in the consumer's mind. Define core elements To create a brand's profile and communicate its attributes, a marketer must first fully explore and understand the brand. What is its desired positioning? What are the product benefits? How does it stack up against competition? What differentiates it? What are the product's goals and objectives? Who are its audiences? With this knowledge, one can create and shape a brand's "look" and then apply it to a vast array of supporting media. These elements form a brand's comprehensive visual and verbal vocabulary and project a unique brand character to its customers. These are the core elements: (1) A distinctive name that immediately conjures up a mental picture of a product benefit, like Ivory for soap. (2) A logotype that is a memorable treatment of the name, such as Kellogg's big K. (3) Graphic design, typography, color, and other visual signals, such as Coca-Cola's flowing, graphic wave device on its newer brands. …

Developing an Effective Corporate Identity Program

Abstract: Corporate identity program can be a powerful and effective communications tool. When done correctly, it captures the vital essence of a company and projects it with efficiency, effectiveness and impact, resulting in meaningful change. Done poorly, it can be a frustrating waste of time and money. In some cases the founder, CEO, or owner has a powerful vision that he or she is able to communicate and impose in a thorough manner throughout the entire operation. CBS under Frank Stanton projected a corporate attitude that was reflected in every aspect of business from architecture to stationery. The process wasn't simply the design of a powerful logo and its coordinated application, but was instead a corporate philosophy reflected in every detail. A current example of effective identity is the ongoing Absolut Vodka (a trademark of Carillon Importers, Ltd.) ad series. The handling of this brand, in a category where the difference between products is almost entirely image, is a classic example of the power of the communications process. It is a testament to singular vision, focused imagery, a finely tuned sensitivity to the target market, and the relentless, persistent, imaginative, driving home of the message. When the first ad campaign started in 1980, Absolut was selling 12,000 cases of vodka. By 1990 they were up to 2.7 million cases. One of the things that stands out in the Absolut ads is that the message and the product are one. The most prominent, central image of every ad is the distinctive Absolut bottle with the name in bold sans serif type. The headline of each ad starts with a play on the product name, such as Absolut Perfection, or Absolut Warhol. You see the ad in a trendy magazine. Then, the next time you are in a liquor store you see the bold, blue, sans serif letters on the familiar bottle. The ad, the message and the product are one. Absolut, like CBS, was the result of one individual's ability to impose his vision in a singular, focused, persistent manner to produce powerful, effective communication. This situation is not the norm. Most companies are operated by a CEO who has a number of constituencies to answer to. In a number of cases, the CEO assigns a low priority to corporate identity. Often the corporate communications director, the public relations director, or an outside consultant sees the need for a corporate identity program. That individual then needs to sell the concept to management. All too often, the resulting programs are political compromises. Whatever the impetus for the launching of a corporate identity program, there are procedures to follow that will result in a minimum of stress and a successful program. The three main elements of an effective program include: 1) research, 2) strategy and 3) implementation. The order of these elements is very important. The strategy is a result of the research, and if the research and strategy are on target, then the implementation should fall into place as neatly as the last piece in a jigsaw puzzle. Involve everyone from the start First of all, everybody who will have a say in the program must be involved from the start. It is a prescription for disaster for a corporate communications director to start an identity project with only a vague go-ahead from his CEO, and then, after six months of research and strategy sessions, to walk into his/her office and present the results. The CEO who has had no part in the process cannot be expected to make an intelligent decision regarding its implementation. The first, and often the most difficult, job is to sell the program within the company. This involves skillful political maneuvering, but ifs worth the effort to avoid a program weakened by intercompany conflicts. A committee should be formed to gather information and get input from everybody who will be involved in approving the program. This is an absolutely key first step. …

Stress Diversity in Employee Communications

Abstract: Companies that do not incorporate diversity as a key part of their business plan will be at a competitive disadvantage. Indeed, everywhere in corporate America these days, managing diversity has zoomed to the top of the hit parade of management priorities. Among the companies on the cutting edge of this initiative are Apple Computer, Sun Microsystems, Wells Fargo, Levi Strauss, ATT and the training of managers in mentoring, negotiating and conflict management. "Imparting diversity goals to employees is not simply a matter of issuing a memo," said Michael Rossiter, manager of Levi Strauss' Value Diversity Program in San Francisco. Levi Strauss managers at all levels participate in an intensive four-day program which challenges them to discover the bases of their own prejudices, such as race, age or sexual preference. Through this process, the company challenges and reaffirms its own cultural values. Pacific Gas & Electric (PGE surveying employees' current perceptions of how diversity issues are handled; and training and educating management about diversity issues while monitoring results to evaluate company effectiveness. Training the trainers A key piece of PG&E, plan is its "Train-the-trainer" program, developed by former diversity programs manager Ronita Johnson with consultant Julie O'Mara. …

Safety Concerns World Travel Market, B-M Survey Shows

Abstract: Travelers in the United States and the United Kingdom are now making safety a key factor in their selection of a destination, according to new surveys from Burson-Marsteller. The surveys also revealed that concerns about safety have grown sharply over the past year. Among U.S. travelers, 56% cited crime as a major concern. Other concerns included airline safety (42%), the threat of terrorist activity (41%) and access to medical facilities (37%). U.K. travelers were similarly anxious about crime (56%) and 50% or more said they worry about airline safety and access to medical care. Terrorist activity troubled 48% of U.K. respondents. Travel agents around the world echoed tourists' concerns. Of the 300 agents surveyed, most agreed that safety plays a major role in their clients' choice of a vacation destination. Agents also agreed that safety concerns are on the rise. How do travelers decide whether a destination is safe? Among consumers surveyed, 75% said that news reports influenced their opinions. Personal experience or reports from friends or family influenced 60%. Only 40% said travel agents played an important role. Women in the United States and the United Kingdom are more worried about safety than men, the surveys showed. The data also suggest that young adults aged 18-24 in both nations are less concerned about safety than older travelers. The data were gleaned from separate telephone surveys of more than 1,000 consumers in each country. The survey was designed by Burson-Marsteller and conducted by two research companies: Bruskin/Goldring via its weekly Omnitel survey in the United States, and National Opinion Polls via its weekly Omnibus survey in the United Kingdom. Data from each survey is projectable to all adults with a margin of error of +/- 3%. In addition, 300 travel agents from four regions of the world were polled by B-M promotion specialists in 63 offices. The findings were presented at the World Travel Market in London in November 1993. Representatives of 3,100 companies in 137 countries attended the market, B-M reported. Crisis negatively impacts tourism When a natural disaster, accident, crime, political upheaval or health problem gets major media attention, tourism to that area is adversely affected, said Tony Hughes, B-M executive vice president and managing director in New York. "Two things happen: Bookings are canceled, which hurts the local economy, and the incident creates a perception of danger often far in excess of the reality," he explained. "Once the damage to an area's image is done, it takes a long time to undo it." The role of communications professionals in restoring a destination's reputation is key, according to the report. "Since media coverage of problem incidents or disasters tends to be shrill and highly graphic," said the report, "travelers' perception of danger is likely to exceed the reality. It then becomes imperative for any destination considered unsafe not only to address the problem effectively at home but also to communicate its actions to the media, consumers, and the travel industry at large to help bring perception back in line with reality." A large proportion of travelers in the United States and even more in the United Kingdom cited major cities to which they would be afraid to travel on vacation, including Miami, Los Angeles, New York and London. …

Portraits of the "Most Admired" Companies: How Public Relations Helps Build Corporate Reputations

Abstract: To be recognized as a leader by your fellow business leaders is a coveted honor. Practitioners at these exemplary corporations reveal their role in building award-winning reputations. What role does public relations play in helping a company win the admiration of its peers? More specifically, how did some of the leaders in FORTUNE magazine's recent survey of corporate reputations use public relations strategies and tactics to attain their enviable positions? PRJ asked top public relations executives at several "most admired" companies these questions. They also discussed their roles in setting and/or implementing corporate strategy. Most emphasized the importance of the CEO as the main communicator of a company's positions and policies to many target publics. FORTUNE published its rankings of "America's Most Admired Corporations" in the Feb. 7, 1994 issue. The rankings were based on responses from 10,000 senior executives, outside directors and financial analysts who evaluated the largest companies in their industries. The list of companies was drawn from the FORTUNE 500 and FORTUNE Service 500 directories. Up to 10 companies in each of 42 industry groups, a total of 404 companies, were rated on eight aspects of reputation: quality of management, financial soundness, use of corporate assets, community and environmental responsibility, quality of products or services, value as a long-term investment, innovativeness, and ability to attract, develop, and keep talented people. "First, a company needs to provide quality products or services, have good management and make a profit," observed Ken Sternad, director of public relations for United Parcel Service of America, Inc. (UPS). The Atlanta-based trucking firm ranked 10th in the survey. "But a lot of companies do that." Thus, in his opinion, those achievements are not enough to make a company stand out. "Good commercials and direct mall build awareness," Sternad continued, "but they have a limited impact on senior executives." These executives can be influenced, according to Sternad, and public relations plays a major role in the process. "Their opinion comes from what they've heard about that company, what they know about that company's ability to manage," he said. "Very clearly, in a poll like that, public relations is a critical element. Public relations builds understanding among our customer base and various publics about the company's goals, mission, the quality of its services and products, and its people." To explore the ways in which public relations can contribute to a winning reputation, PRJ interviewed top practitioners in seven of the 10 highest-ranked companies in the survey (in rank order): Rubbermaid, Inc. (1), The Home Depot, Inc. (2), Microsoft Corp. (3), 3M (5), Motorola, Inc. (6), J.P. Morgan & Co., Inc. (8), and UPS (10). (Walt Disney, tied for sixth, and Procter & Gamble, tied for eighth place, declined to participate. Coca-Cola, tied for third, was unable to respond by the deadline.) We asked the practitioners how--and how much--they contribute to their companies' reputations, whether they function as implementers or strategists, and to what extent their counsel is sought and appreciated by top management. Wide range of opinion found Even in this small universe, we found a wide range of opinion. Some practitioners are cautious about taking credit for their influence, saying that their role is--and should be--to communicate the company's messages to various publics, creating awareness and understanding. "Most public relations people play a role in assisting management to articulate strategies, policies, philosophies, and mission and value statements," said George F. Thompson, director of corporate communications for Rubbermaid, the Wooster, OH, diversified plastic goods manufacturer. "I would not look for any sort of elevation of this function to a policy-making position." Others, however, say that public relations can contribute more by actually helping to develop the message. …

Make Companies More Socially Responsible

Abstract: Perhaps "we are on the brink of the development of the humane corporation," stated John L. Paluszek, APR. A proponent of "corporate social responsibility" for nearly two decades, he is PRSA's 1994 Gold Anvil Award recipient for outstanding contributions to the advancement of the public relations profession. PRSA's highest individual tribute, the award will be presented on Nov. 14 during PRSA's 47th National Conference in Baltimore, MD. The "humane" corporation is one "that thinks in human terms with all of its audiences, starting with employees," Paluszek explained. President of Ketchum Public Affairs, Paluszek was interviewed in September at the firm's brand-new offices in the Daily News building in New York City. There will be an "integrated standard" of success for companies in the future, he said. The "new age" company will be judged not only on profitability, return to shareholders and payment of taxes to support the government, but also on its "corporate citizenship" in relation to all of its constituencies. Corporations will adopt social responsibility not out of altruism but in their own enlightened self-interest, Paluszek explained. "It's becoming clearer to top management that every constituency that has contact with a corporation can affect its bottom line. "There should be a budget for corporate responsibility as there is for research and development and manufacturing," he went on. The responsible corporation today must be active in legislative and regulatory matters and responsive to the media, he said. For this reason, there should be a public relations officer on every corporate board, Paluszek said. He predicted that this practice will be common "within a decade." However, public relations professionals "have got to earn their places at the table," he said. They've got to "stop whining" about being elbowed away by others. "Top management, far more than ever before, appreciates the importance of bidirectional communications," Paluszek said. "We come to the table with expertise on the effects audiences--investors, customers, employees--have on business. No one else does." The United States has developed as a result of "social capitalism," Paluszek went on. For instance, workers' benefits tend to be funneled through employers. Environmental protection measures are also often underwritten by businesses. Such costs are frequently passed along in the price of goods and services to customers. The public accepts these charges as a condition of living in a progressive democracy, he explained. In a global interdependent economy, the modern company must also be aware of its environmental impact, said Paluszek, who chairs, and helped to found, PRSA's Environment Section. He was president of PRSA in 1989 and chaired its 1992 national conference. Environmentalism has come full circle, Paluszek said. In the '70s, activists and consumer advocates went to war against businesses that polluted. There was very little dialogue between the two sides. Now, environmental activists are partnering with business and industry, he reported. The Environmental Defense Fund, for instance, is working with General Motors and McDonald's. "There's been a lot of remedial action on the part of industry. There's been a real movement to face up to the problem voluntarily or involuntarily," he said. Public relations has played a pivotal role in changing this situation, the expert noted. "We're moving from confrontation to consensus and compromise," Paluszek summarized. This is what happens in a U.S. society predicated on "a system of checks and balances," he said. "Today's activists are joining industry and government in compromising on such issues as pollution standards." Environmental improvements are accepted as a "cost of doing business" today, Paluszek stated. "But companies have to be socially responsible within the context of economic reality." There are currently more than $100 billion worth of federal mandates for environmental clean-ups that are unfunded, he went on. …

Building an International Team: How Leading Firms and Networks Stay on Track

Abstract: The rigors of multinational and cross-cultural business today require new skills from global firms and networks. Technology, reporting precedures, seminars and frequent meetings keep multinational teams on the same wavelength. Public relations clients in multinational organizations today need counseling firms that possess truly global capabilities. To properly serve such clients in a world of instant communication and constant change demands increased flexibility on the part of account teams. Building teams across national boundaries and international time zones is crucial for firms and networks looking to increase, or even maintain, international billings. While methods of training key account personnel vary from firm to firm, all of their educational programs have certain elements in common. For multi-office business, most firms and networks are linked by e-mail or other interactive technology systems. Sometimes clients are directly linked into a firm's e-mail network. In addition, all firms have frequent fax and phone contact on shared accounts. Many groups issue regular reports from member offices to others in the network, either via e-mail or in the form of printed materials. Burson-Marsteller has a standardized interoffice work order that formalizes the basic information on interoffice business at the outset for all parties involved. Depend on meetings Networks and firms both depend on frequent meetings of managers to keep information flowing smoothly on international matters or even inter-office business within a country. Often, practice groups within a firm, such as those specializing in health care, technology or consumer product marketing, meet separately to discuss multi-office business. In some cases, heads of practice groups regularly meet with others in the firm to share information and train junior executives. The most elaborate seminars are multi-day training "colleges," such as those sponsored by Burson-Marsteller, Hill and Knowlton and GCI Group, to name just three (see page 28). In general, intense training is conducted and organized by senior firm members and sometimes invited client speakers or outside experts. The chief targets of multinational curricula within global firms are usually account executives in their late '20s or early '30s. This generation is considered the "future of the business," said GCI's CEO Jack Bergen. In contrast, network meetings for information sharing and educational purposes are usually restricted in attendance to firm principals, noted Art Stevens, president-elect of The Pinnacle Group. A number of organizations also sponsor internships or executive exchanges between offices in different countries. Those interviewed agreed that face-to-face meetings of account people and, whenever possible, clients across borders were always productive in terms of improving communications and building comraderie. However, the presence of an interactive, working international team does not negate the necessity for local partners in any trans-national campaign, PRJ learned. Having an understanding and facility in dealing internationally cannot replace the local practitioner's knowledge of media and customs in his/her country, our sources agreed. The real key to success in a multinational venture, they said, is having the combination of global scope and strategy with superior local execution. That's precisely the model that global firms and networks strive for in training programs. Technology links offices An international UNIX-based e-mail system helped the International Public Relations Exchange (IPREX) network put a successful new business proposal together in 24 hours, reported IPREX President Tom Gable. He is president of The Gable Group, based in San Diego, CA. The case Gable mentioned involved three U.S. offices bidding on a project in Texas. IPREX involves 50 independently-owned firms in North America, Europe and the Asia/Pacific region. …

Communicating Foreign Crises; Panel Debates Best Approach

Abstract: Low budgets and lack of trained staff in foreign countries often hamper the public relations efforts of international humanitarian organizations trying to attract media attention for serious political, social and economic problems. A three-person panel recently discussed ways and means of conducting effective public relations campaigns in the international arena, not only to focus media attention on crisis situations but also to lay the groundwork for aid in combating problems such as poverty, disease, famine, war and natural disasters around the world. They spoke at a workshop during the PRSA National Conference. Television coverage of disaster or crisis situations is probably most sought-after by philanthropic organizations and others, such as government or political groups which have a vested interest in the outcomes. One way to reach major media is through video news releases (VNRs), noted panel moderator Nana L. Booker, APR, president, Booker/Hancock Public Relations, Houston. Co-chair of PRSA's International Section with Larry Pintak, president, Pintak Communications International, Washington, DC, Booker showed a VNR on Armenia prepared by Pintak in January 1993. The VNR documented Armenia slipping into the Third World because people were dying of hunger, exposure and lack of basic services, such as heat and electricity. Major networks and CNN used the VNR, Booker noted. In all, it reached 26 million viewers and achieved the sponsor Armenia's objective of ending the Turkish blockade of the country. Private voluntary organizations (PVOs) like Worldvision, which operates in 94 countries, are involved in relief and development. They have to communicate the need and credibility of their causes, especially in primary fundraising markets, such as the United States, said Jerry Levin, director of news and information services, Worldvision, based in Monrovia, CA. "We don't go after credibility in a systematic way," Levin admitted, noting that Worldvision has not used VNRs. "We do use B-roll and personal contact." During the first 90 days of a crisis, there is a "closing window" to get the story out through "station people," who work for the organization "on the ground, in various parts of the world," he explained. "Publicity can be the pump primer of general interest |in our cause~," Levin added. "But we don't have enough communicators in the field--people who are experts in media relations. We have to link the press with the need or crisis. Since we raise 48% of our revenue in the United States, we have to have people on the ground with experience with the American press." "Getting images on television doesn't necessarily mean getting people to act on information," said Barbara Burns, APR, managing director, Consultants in Public Relations, S.A., New York City. "Public relations is designed to persuade people to action. That's what the Armenia VNR did. Images can be manipulated The media changes how news is conveyed and perceived, Burns added. When Israel attempted to close its borders to TV cameras several years ago, Palestinians ended up sending out unedited videotape taken with hand-held cameras, she noted. …

Plug into a World of Information

Abstract: Technology makes delivering messages and monitoring their impact on target audiences faster, easier and better. Today's practitioners have a variety of new tools to choose from, many of which have only come on-line in the past year. Let Vice President Al Gore talk about the information superhighway all he wants. Thanks to recent technological advances, the thoroughly modern public relations professional is already riding a highway loaded with electronic means of delivering messages and monitoring their effects. For example, James L. Horton, APR, president of the communications division of New York City-based Slater Hanft Martin Inc., subscribes to four on-line databases. To monitor general news, law and federal regulations, he punches up NEXIS. For tidbits on arcane scientific topics, he turns to DIALOG. Newspapers? DataTimes provides access to 110 of them. And for electronic mail, he dials up CompuServe. "Who has time to go to the library for this stuff?" said Horton, who chairs PRSA's Communications Technology Committee. "I'm chained to my desk, servicing my clients." Horton is not alone. Buffeted by staff cutbacks, tumbling budgets and media that are being sliced into finer and finer shards, many public relations practitioners are relying on technology to pick up the slack. They're sloughing off tasks like media list maintenance and clip collection to an array of electronic gadgetry. The reason: Almost anything can be done faster, more easily, and more accurately by flicking a modem switch or pressing a fax machine button. Some even say these new tools are as cheap or cheaper than the older mailing, clipping and monitoring methods, especially if savings in staff time is factored into the equation. Broadcast fax catching on Take press release distribution. An increasingly popular alternative to sending releases through the mail is broadcast fax, in which a single document is simultaneously transmitted to hundreds of recipients. Several vendors, including PR Newswire and Media Distribution Services (MDS), both in New York City, and SNET FaxWorks in Washington, DC, now offer such services. The transmissions, with personalized cover sheets, can usually be initiated from the sender's phone using automated telephone commands. Letterhead, photos, and media lists are stored electronically, ready to be called up in an instant. For small numbers of releases, broadcast fax is only a little more expensive than mail, according to MDS President Dan Cantelmo, Jr. For example, faxing a two-page release to 100 people costs $200, he said. To mail the releases would cost $/40, which includes printing, folding, stuffing, addressing and postage but not the cost of letterhead and envelopes. When you're talking big quantities, the price gap widens, Cantelmo said. Faxing a two-page release to 1,000 people would cost $1,700. Mailing would only cost $750. People rarely fax large numbers of releases, the MDS executive said. "In general, broadcast fax is for smaller, targeted audiences of 50 to 300 recipients." His company's broadcast fax business is growing rapidly and now accounts for 20% to 25% of its overall business, Cantelmo reported. Broadcast fax isn't only for press releases. News USA, a publicity distribution service in Alexandria, VA, recently rolled out its "Blast Fax" service, in which press releases are reformatted into ready-to-use radio scripts and then faxed to news directors and producers at stations nationwide. Target stations can be sliced any number of ways, including the top 1,000, 2,000, or 3,000 markets, or any one state or region. The transmission includes a reply card on which recipients indicate whether they will use the material, which is faxed back to News USA. Within a week, the client receives a report documenting usage. Fax on demand, yet another version of the one fax/many recipients formula, is also gathering steam. Fax on demand enables callers to dial an 800 number, request information by touch-tone phone, and receive a document on their fax machine within minutes. …

Companies Ignore Shadow Constituencies at Their Peril

Abstract: A young mother buys a used car. For 15 months, she makes her loan payments faithfully, but in the 16th month she misses a payment and the lender repossesses the car. The local newspaper writes a story about the bank's hard-heartedness, but the bank stands finn, arguing that the rules on loan payments are clear. * For 30 years, a chemical corporation has complied with the law in disposing of hazardous waste. Now the laws have changed, and as the company struggles to comply with new, more stringent rules, a high-profile environmental group attacks the corporation as a long-time polluter. * A high-tech company long known for its philanthropy is forced to downsize, laying off hundreds of people and dramatically scaling back its support of education and the arts. Arts and education organizations are shocked and angry, wondering what has happened to the company's values. Welcome to the new corporate reality. The young mother, the environmental group and the arts and education groups are all representative of a new breed of corporate stakeholder called the "shadow constituency." These are individuals and groups outside traditional corporate spheres of influence whose opinions may not affect the bottom line immediately, but can affect the public's perception of a company. And since public perception often becomes reality, shadow constituencies may well affect an organization's operations and its profitability. No organizational immunity No company today is immune to pressures from shadow constituencies. Whether an organization sells soap, satellites, or investment advice, these new stakeholders have become part of its continually expanding "social responsibility." Though it's often easy to ignore shadow constituencies, it's also a mistake. Since the point person in dealing with shadow constituencies is often the organization's chief public communications officer, let's examine who these new stakeholders are, why they have appeared on the corporate scene, and what public relations professionals ought to be doing about them. First, who are these shadow constituencies? At any given moment, they might include women's organizations, minorities, gays, organizations representing safety and health interests, arts and education proponents, political groups, even home less people and gangs. Some groups are always visible; others appear and disappear from view abruptly, depending on what issues are hot. Why have such disparate groups suddenly become actors on the corporate scene? The roots of the phenomenon probably go back to the public policy debates of the 1960s and '70s, when activists like Rachel Carson and Ralph Nader raised public awareness of new social issues. This awareness in turn led to the passage of the legislation establishing agencies that have not only broadened the legal responsibilities of corporations, but also heightened the public's expectations about their accountability to society in general. Some examples are the Equal Opportunity Employment Commission, the Environmental Protection Agency, the Occupational Safety and Health Administration and the Consumer Product Safety Commission. Disenchantment with government There is yet another factor contributing to the new power of shadow constituencies: a pervasive sense in the United States today that so many things are wrong. …

Public Relations in India Growing Exponentially

Abstract: An influx of foreign investment, privatization of industry and initial public offerings (IPOs) by domestic companies are three factors contributing to a boom in public relations in India. In fact, foreign business travel into India is so heavy that hotel rooms in major cities, such as Bombay, Calcutta, Delhi and Madras must be booked at least a month in advance, according to Michael Neri, chief executive of Profile, a GCI Group affiliate based in Bombay. Domestic airlines, which were recently deregulated, are also filled to capacity with business travelers, Neri told PRJ recently on a visit to GCI New York. "There's already massive annual growth" for the handful of public relations firms with strong Western ties operating in India, he said. "The public relations market [for firms] is growing in excess of 200% per year." For instance, Profile's five-person operation, which serves as the public relations division of Trikaya Grey Advertising Ltd., has grown from zero to $60,000 in fee income in just a year and a half. Burson-Marsteller's Roger Perrera affiliate and Hill and Knowlton's IPAN affiliate are each doing about $300,000 in annual fees, Neri said. The expansion of public relations activities is fueled in part by an influx of foreign capital from Asia, the Middle East, Europe and the United States. In 1993, foreign investment in India was $1.5 billion, up from only $300 million in '92, he reported. "In 1994, the government's target is $13 billion," he added. Most of Profile's clients are domestic companies making IPOs, he said. Many of these clients have been referred by the firm's advertising agency parent. "U.S. merchant banks are pressuring companies seeking foreign capital to pay attention to their images," Neri said. "A number of Indian enterprises raising funds are facing similar public relations challenges." Media changing rapidly There's a "big scramble" among global media interests for new or joint ventures in India, Neri reported. For instance, the Financial Times' parent company in London has just bought into the prestigious Indian newspaper house which publishes The Business Standard. There's hot debate in India today about opening up print media to foreign investors, he said. India's English-language press is very sophisticated, the public relations executive noted. The Times of India, for example, is a principal forum for "academic ideas and discourse," Neri said. "Magazines cover a very wide spectrum with quality business analysis that vies with FORTUNE and Forbes." However, Indian publishers do not put as much money into production, he explained, and do not have the large editorial budgets for "depth of coverage. …

Quest for Top Management Acceptance Continues

Abstract: Acceptance of their role as strategic counselors to top management is parmount among critical issues confronting today's public relations professionals. Senior practitioners also see professional ethics and education as important factors in the future growth and prestige of the field. Recently, a distinguished group of past PRSA Gold Anvil winners responded to a series of survey questions about the future of the profession. Their remarks covered a wide range of topics, including strategic management, social service, education and technology. The following summarizes their responses. Biographical sketches of commentators appear in a box on page 42. First, the group was asked to identify the single issue they considered most important to the future of public relations. They were also asked how that "most important" issue should be addressed. Respondents recalled, in many cases, the best career advice they had received. Finally, they commented on their academic backgrounds and what they would recommend future practitioners study. "By every measure, this is an era of communications--driven by changing social contracts between institutions and their stakeholders, the restructuring of those institutions by changing social values, market forces, world competition, and technology. Such changes imply unprecedented opportunities for public relations, the art and science of human and corporate communication," said Betsy Ann Plank, APR, Fellow PRSA. "CEOs recognize that. So do others--notably marketers, lawyers and human resources people," added the Chicago-based independent public relations counselor. "Yet, with some exceptions, the public relations practitioner has failed to seize those opportunities or failed to measure up to them, letting others take the lead while we continue to play the comfortable and familiar supporting roles." To address the issue of professional opportunity, take the following actions, Plank, the former Illinois Bell public relations executive, advised: * "Redefine our role and functions strategically and in client terms; * "Command and employ research to give credibility to our counsel, practice and product; * "Learn more about the disciplines of management and human behavior; * "Do homework. Our professional Body of Knowledge is impressive, expansive and largely ignored; * "Get out in front of major issues and establish productive dialogues with others instead of ourselves." Seek equality in boardroom "We must earn equal status and rank in the executive suite with legal, accounting and other top executives," stated John W. Felton, APR, Fellow PRSA. "While some of us gain this access through individual performance, we need to add academic credibility. "Communications courses must also be taught in business schools and as part of PRSA programs," said Felton, who is vice president of corporate communications, McCormick & Co., Inc. "The idea is not to make future CEOs communications specialists but to help them understand how proper use of communications can contribute to their success. When communications is left out of the business school curriculum, sequences, as it freqently is, Felton observed, the impression is created that communications and public relations activities are not "as important as legal or accounting." "The public relations factor can help influence the outcome of important business decisions," stated Lawrence G. Foster, APR, Fellow PRSA. "Management must first recognize this and then include the public relations executive in the decision-making process from the outset." To gain management's confidence, public relations professionals must lead instead of follow, said Foster, the former Johnson & Johnson vice president of public relations. "Be ready with an analysis of the public relations problems being faced, and offer solutions," he said. "Don't wait for the roof to fall in. …

How Companies Can Rebuild Credibility and Public Trust

Abstract: Responsible environmental management and open communications are key factors Many corporate executives believe that once a company's reputation is ruined on environmental issues, it is nearly impossible to improve that negative public image. However, companies with the patience and resolve to build long-term relationships and communicate openly are often rewarded with positive media coverage and dramatically improved credibility. This approach has even worked for companies that have had to clean up hazardous waste in backyards or request a community's tolerance of an increased cancer risk. Others have won over members of the most strongly committed environmental organizations, such as Greenpeace. The following are the stories of how three companies successfully overcame difficult environmental situations and the related communications challenges. Plant contamination This 80-year old manufacturing company's worst nightmare came true. An environmental investigation revealed that contamination from the plant had spread to 130 neighboring residential properties. The company had to tell residents that their children had been playing in contaminated yards and their property values were about to plummet. The company took a responsible, proactive approach. Management announced the investigation's results and stated its commitment to assume full responsibility for the cleanup. They also invited residents to be actively involved in the cleanup program. A community advisory council was formed to review the company's plans and to ensure that community concerns were recognized and addressed. A newsletter was distributed periodically to inform the community on the cleanup progress and concerns of individual homeowners were addressed promptly and compassionately. The company offered the services of a real estate firm to assist people with their temporary or permanent relocation plans. However, after learning about the cleanup program and its benefits to the community, most people chose to stay in their homes. The company decontaminated the properties of 130 homeowners. Many gave positive testimonials afterward. Reputation as a polluter After three highly publicized lawsuits and millions of dollars in fines levied by the Environmental Protection Agency (EPA), one company launched a series of sweeping corporate changes. Unfortunately, an internal survey showed that employees did not believe the company was serious about improving its environmental performance. To end the investigations, fines and bad press, the company decided to change the corporate culture and convince internal and external audiences that it was truly committed to protecting the environment. At the heart of the reform campaign was a strategic communications plan designed to increase environmental awareness from within to encourage better media coverage from without. An internal communications and training program sensitized thousands of employees to environmental issues. By doing so, the company brought about a change in the corporate mind-set, giving every employee responsibility for meeting environmental goals. Training was geared to communicators, who took a one-day course on key environmental issues, regulations and communications implications. A more advanced risk communication session was held for the company's media relations, operations and environmental professionals. A decisive element of the communications strategy was to change the tone of responses to regulatory and media inquiries. The company adopted what it called a "contrition mode," assuming full responsibility for past misdeeds and promising future improvements. The company also began citing success stories that illustrated their positive action. Press releases and other collateral materials that described progress on waste and emissions reductions generated favorable publicity. …

Prove Public Relations Affects the Bottom Line

Abstract: If you've been daydreaming about a six-figure salary and company car, there's something you should know: how public relations affects the bottom line. Public relations experts who know the answer to this question don't have to fantasize about substantial salaries and luxury sedans. They already have both. According to Catherine Campbell, APR, writing in a previous issue of Public Relations Journal, most CEOs acknowledge the importance of public relations. However, they have difficulty measuring the impact it has on the bottom line ("Does Public Relations Affect The Bottom Line," October 1993, page 14). In fact, the article says many corporate leaders admit they have never consciously linked public relations to their net income. Ironically, the blame for management's apparent ignorance about this connection belongs to public relations specialists; members of a profession whose claim to fame is their ability to communicate effectively. While trying to convince upper management of their worth, these so-called specialists have broken their own fundamental rule: Know your audience and speak in terms they can understand. Savvy public relations professionals know that CEOs readily relate to words like, sales, productivity and profit, and they seize every opportunity to explain how their efforts can increase all three. The first step in this process is to remind CEOs that these numbers merely symbolize the behavior of people. Just as sales represent the behavior of consumers, productivity reflects the behavior of employees. Numbers symbolize behavior Even a novice executive can be persuaded to embrace the principle that ultimately, people affect a company's bottom line. They will also welcome with open arms the strategist who demonstrates an ability to affect the behavior of income-producing people like consumers, employees, investors, the media, government and the local, national and international community. These constituencies are an organization's publics. Hence the term public relations. "Public relations is defined in terms of public opinion and behavior," said Harold Burson, chairman of Burson-Marsteller, in a speech delivered before the Institute for Public Relations Research and Education in October 1990. "Public opinion is a powerful lever that can motivate an audience to a desired behavior. "Ultimately, there are only three possible approaches to any public relations exercise that intends to affect behavior. It can seek its leverage by creating an opinion where there is none, reinforcing an opinion that already exists, or by changing an existing opinion." Symptoms of corporate sickness Most public relations professionals are capable of communicating with a wide variety of publics, while others specialize in only one area, such as employee relations. A specialist of this nature can impact a company's bottom line by improving employee morale, thereby increasing productivity and decreasing absenteeism. To these specialists, symptoms like high absenteeism and low productivity are telltale signs that a company's employees are not feeling very well. Like doctors, they can prescribe remedies designed to improve employee morale. However, treatment cannot begin without the consent of the CEO, who is often shocked to learn that employees are unhappy. These executives are diagnosed with "CEO Disease," a disorder wherein a organization's top executive has a warped view of how employees are feeling because he or she only talks with middle management. "Most middle managers really do not want to rock the boat," said consultant Robert Kriegel in an interview published in Fortune magazine. …

Teaching Ecology: A New Generation Influences Environmental Policy

Abstract: Children who learn about the ecosystem and how to protect it often become committed young environmental activists. They are already having an impact on national, if not international, environmental policies. Conservation, pollution control, recycling and protection of endangered species are all issues that strike responsive chords in the new generation. In households across America, "children are taking the lead in environmental causes," said Dana Lauren West, manager, policy & program communications, World Wildlife Fund (WWF), Washington, DC. West was one of four speakers at a meeting of PRSA's Environment Section in mid-November. The speakers pointed out how teaching children about the ecosystem and how to protect it results in committed young activists. These kids favor conservation of natural resources, protection of endangered species and recycling. They are opposed to and often campaign against polluters of all kinds. Children exert a growing influence on environmental decisions made by their parents, the speakers agreed. They discussed both formal and informal educational programs, gave advice to companies using environmental themes, and talked about how to reach younger audiences. "Young people think they can have an impact on the environment," stated West. "The shortcoming of the green movement is that there has not been enough education on environmental issues." Kids writing to WWF and donating their money want to know exactly what the organization is doing, West added. "They ask for forms to prove who [sic] we're raising money for!" One little girl who send in her tooth fairy money to support "save the whale" efforts, for instance, earnestly requested: "Have the whale write me," West reported. A 13-year-old wrote to say he'd convinced his father not to go hunting any more. WWF's research on children's attitudes showed that 71% of kids are interested in the environment and 74% of those would take an hour a week outside of formal school time to learn more about the subject, according to West. WWF is one of many organizations taking steps to provide kids with the information they want, both in and out of school. The group has formed "Windows on the Wild," a partnership with Eastman Kodak Co., to help educate middle schoolers about loss of biodiversity in the world, West said. Biodiversity encompasses all forms of life, she explained. A survey of middle school teachers was conducted before the program was launched. The teachers indicated that lack of teaching materials was a serious problem. In response, WWF and Kodak developed materials, conducted pilot tests and solicited student involvement in the project. As a result, a new magazine for kids called WOW (Windows on Wildlife) is being launched this month to coincide with Earth Day celebrations. Another WWF pilot project involves having students debate and recognize the pros and cons of zoos, West said. "Our research is extremely valuable for the environmental movement," she said. "It underlines the impact kids can have on their parents and communities. You must treat children as adults; not as a vessel to be filled but as a fire to be ignited." Kids hold own Earth Summit In fact, young people who watch Nickelodeon TV voted to sponsor their own Kids Earth Summit in April 1993. On national TV, Vice President Al Gore answered often tough questions posed by kids about the Clinton administration's environmental policies. At the first Kids World Council (KWC) at Nickelodeon Studios in Orlando, FL, noted TV journalist Linda Ellerbee interviewed the vice president. Other questions were posed by a 12-year-old boy who won an essay contest to qualify to be a KWC delegate. "Our generation can turn things around," the contest winner, Chris Gennaro, told Gore. "We can jump start the campaign [to save the planet]." But "it will take several generations," he admitted. …

Talking "Green" with Hostile Publics

Abstract: The current efforts by many corporations to build coalitions with legislative and environmental bodies seem intended to portray these corporations as being a deeper shade of green. Industry, government and environmental groups seem to be working together more frequently on issues that concern all threat least on the surface. However, the movement toward cooperation among these groups does not mean an end to the possibilities for confrontation. No one can guarantee that coalition-building will somehow cause all environmentalists to stop taking activist or extremist positions. While partnerships and coalitions appear to be toning down the more extreme tactics used in the past, the astute public relations counselor should always anticipate that opposition might occur in any public forum. It's essential that before facing any audience, a spokesperson should both anticipate and prepare. In any situation, participants could oppose your position. The attitudes of audience members may range from "let's wait and see" to "let's study it some more" to "let's rattle their cages" to "let's drive them out." This depends upon many factors on the agendas of both the company and its opponents. Spectrum of protest At one end of the spectrum are those who may be passive in their protest. Some company spokespersons have found meeting halls filled with protesters whose immediate objective was simply to make a show of strength. At the other extreme are those who may be more active, to the point of interrupting, disrupting, and even becoming violent. Regardless of the motives and motivations of either group, however, it is possible to assess the climate, and the players, accurately in advance. The methods for doing this are found in the work of two leading psychologists. Martin Seligman has developed techniques for evaluating "explanatory styles" of individuals and groups, and David McCelland shows us how to assess people's primary drives - whether power, achievement or affiliation - in any situation. Short list determines impact Professional communications practitioners who are up against deadlines, need to evaluate audiences quickly. One does not have time to ask potential critics to take an extensive personality-profile test such as the Meyers-Briggs to gain enough input for an effective communications strategy. I have developed a "short list" of key questions based upon research studies by behavior communications academicians Richard M. Sorrentino and others at the University of Canada, along with studies by Kenneth G. Debono of Union College in New York state and Richard J. Harnish of Michigan State University. Their work, collectively, helps us determine who says what to whom, and with what impact. In early discussions with clients, answering these key questions provides enough input to determine what they can achieve in their communications efforts. * Based upon the message in the speech or presentation as it now stands, how might people in the audience respond? Have audience members already formed opinions on the subject? Might they feel attacked or criticized? How might these feelings be diminished by the way the approach is structured? For example, do we need an individual representing us who can be both friendly and tactful, yet carry authoritative credentials and convey points that are both factual and strong? * Will the proposed approach be effective with the intended target audience? A workable profile for structuring messages can be drawn rather quickly by asking such questions as the following: How do we determine which opponents oppose your plan? Are they active or passive? Essentially, if they are on the attack, they are avoidance-active. If they are withdrawn and reluctant to share their views, they are most likely avoidance-passive. Both avoidance types tend to be critical and perfectionists. …

A Research Roundup

Abstract: It's too expensive. We don't have time. We know this stuff already. These are just a few of the rationales for not doing public relations research. In some situations, any or all of them might be valid. But as the public relations profession climbs to new heights of sophistication and credibility, savvy practitioners are realizing that research may well be the one thing they can't afford to shortchange. There's good reason for this. According to Mark Weiner, senior vice president of Copernicus, a marketing consultancy in Westport, CT, several economic trends are bolstering the value of research: * As corporations get leaner, many practitioners are reporting to marketing executives or brand managers fluent in the language of market research. These executives expect results to be delivered in terms of bottom-line measures. * As mass-market advertising and point-of-sale promotions become less effective, marketers are looking for alternatives. * Tighter marketing budgets dictate doing more with less. Before million-dollar investments are made, research can provide practitioners with short-cuts and assurances that a program will sway its target audience. It's not just marketing communications that's feeling the economic pinch. All public relations specialties, including government relations, employee communications and others, are looking to research to fulfill a variety of needs, from formulating strategy and selecting target audiences to message testing and sizing up competition. While there are no recent industry-wide surveys of research usage in public relations, anecdotal evidence points to a greater understanding and use of research among both practitioners and clients, particularly to gauge the effectiveness of communications programs. For example, of the 80 projects completed last year by Ketchum Public Relations' research department in New York, 57% pertained specifically to public relations evaluation, up from 24% in 1988. In another survey last year of 725 practitioners, done by the newsletter pr reporter, a large majority said they used some type of research in their jobs. Among the techniques respondents said they used were focus groups (73%), opinion surveys (71%) and open-ended interview questions (65%). "The economy is helping practitioners realize what research can do for them," said Kitty Ward, APR, president of K. Ladd Ward & Company in Hingham, MA, and chair of PRSA's Research Committee. "More and more people in public relations are worried about accountability and showing results." Too expensive? Don't have time? As the pressure mounts for practitioners to prove their worth, there just may be no excuse for not doing research anymore. Leading in the right direction If you're still looking for proof that public relations pulls in profits, several practitioners think they've hit on a way: They track the number of sales leads and, ultimately, sales produced by publicity. Laurie Alire is one practitioner who has used leads to snag a bigger budget for product publicity. As manager of corporate and marketing communications at Varian Associates, Inc. in Palo Alto, CA, she deploys several marketing tools, including advertising, direct mail and publicity, to tout the company's varied product line of analytical instruments, semiconductors, and satellite communications equipment. When prospective customers call the company, operators ask, "How did you hear about us?" This information is keyed into a computer. After sales literature is sent, an outside lead management firm contacts the prospect to determine how quickly a purchase decision will be made and who will make it. If the prospect is, in fact, the decision-maker and intends to buy within the next 12 months, that lead is deemed "hot and qualified"--the type salespeople love most. Later, the lead management firm calculates cost per lead by dividing the dollars spent on an ad, direct mail campaign or publicity project by the number of leads it produced. …

Taking the Pulse of Health Care Reform

Abstract: True or false? We have a health care crisis. We can provide health care to all without raising taxes. We will still have choice with health reform. We will have major health reform legislation passed in 1994. If you answered true to all of the above, you are right. Of course, if you answered false to all of the above you might also be right. Ambiguity is not unusual when it comes to a policy issue so major and complex. Nor is uncertainty. Despite the volumes and volumes that have been written about health reform, most people don't know much about it. For every fact and opinion voiced, a contradictory fact or opinion exists. Soon, however, each of us will have to learn more. What is happening in health care is going to affect us all personally. We will need to become active, discriminating consumers of health care, not just passive users. Being a consumer means making purchasing decisions, presumably by determining value for the dollar. But for many people, that's a daunting task. Determining value in health care options is something with which most people have little experience. This heightens the role and impact public relations and marketing can have, and presents numerous opportunities for various sectors of the health care industry to influence stakeholders. New public policies, the need for public education, high stakes, universal impact and intense personal involvement--these are all conditions that give rise to special interests. Each of these special interests is turning to public relations and marketing to help persuade, convince, influence and hopefully to inform, educate and assist in making intelligent decisions. Therefore, there are many considerations for health care public relations in the months and years ahead. Whether there is a new national health plan or not, the marketplace for health and medicine in the United States has changed forever. It is a new ball game for everyone: the patient, the physician, the health care professional, the insurer, the employer and the government. Let's look at 10 of these considerations for public relations. 1. The public doesn't know much. Although surveys show that health reform is either the number one or two issue on the public agenda today (crime is the other), the same surveys indicate significantly little public knowledge about the nature of the health care problem or about proposals for reform. There is survey evidence indicating that most people think that the health care crisis is simply the often-mentioned 37 million Americans without insurance. Not surprisingly, most Americans are primarily concerned about the impact of proposed changes on them and their families, yet few have formed opinions on the various reform alternatives. While the average American thinks health care needs to be changed, he or she does not want anything to happen to his or her own health care. 2. Reasons for reform are not apparent to those outside the health field. Health reform is being driven by a high level of middle class anxiety over the security of their health coverage. Yet this is not apparent in much of the public debate that seems to center on the high costs of care and on the large number of uninsured. Nearly two-thirds of Americans are worried their health insurance will become too expensive. More than half fear their benefits will be cut or they will lose coverage of large medical bills. A third fears loss of coverage altogether. This is why President Clinton has called his proposal a Health Security Act. 3. Scores of special interests are competing. The health reform issue involves many special interests, each with considerable impact. Physicians, nurses, hospitals, insurers, consumer groups, business, labor, pharmaceutical companies and health product retailers are all in upheaval. Each wants to get a particular point of view across. Each has legitimate--and self-serving--reasons why they should be heard. …

Minority-Owned Firms Seek Mainstream Acceptance

Abstract: In an era of increasing awareness of the value of diversity and its growing importance in business practice, minority-owned public relations firms are stir often treated like second-class citizens. That was the consensus of a panel of minority firm owners who spoke at the PRSA Counselors Academy Conference in April. One of their biggest gripes is that minority firms are almost always hired as subcontractors to address the minority community or its media, panelists said. "Sometimes we are hired in response to problems with the African-American community," stated A. Bruce Crawley, APR, president, Crawley Haskins & Rodgers, a firm based in Philadelphia. "There's often an assumption on the client's part that we have a disadvantage versus majority-owned firms," Crawley said. "For example, our firm is often added to a project to do special events and African-American marketing activities." He gave an example of one such assignment that turned into a contract to serve as general media relations counsel. "Beat reporters were killing the client. The dominant impression of the client in media reports was bad," Crawley recalled. "We saw this trend and sponsored a media breakfast so that reporters could meet with the company's management and in-house public relations staff. Incredibly, the leading beat reporter in the city had never met anyone from the company before!" Minority media relations has also served as a stepping-stone for Carol Lynn Patterson, APR, who owns Correct Communications in Newark, NJ. "We are often assigned to work with the black media first and then enlisted to handle general media because the media contacts ask if the client has minority people working on the campaign," Patterson said. On the other hand, being a minority contractor is one way to a get a foot in the door with clients, noted Lynne Choy Uyeda, Lynne Choy Uyeda Advertising and Public Relations, Los Angeles. Both the public and private sectors afford women and minorities subcontracting opportunities, said Uyeda, who is Asian-American. "Government regulations specify that 15% to 20% of contracts must go to these kinds of vendors," she said. "I wonder if we would be invited to bid if there were no government regulations?" Most of the time, her firm has served as a subcontractor, Uyeda admitted. She got her start by targeting engineering firms involved in rebuilding California's highways. Recently, however, Uyeda has been looking closely at requests for proposals (RFPs) to see what their focus is and determine whether there are opportunities for even more business. "If the project is aimed at minority markets, we form an all-minority team to pitch for the general contract," Uyeda said. Addressing "the stigma of subcontracting," Crawley stated that his firm is not a subcontractor "by policy. We have been involved in joint ventures, but we will not subcontract; that is, allow our fee to be paid by a larger firm." Crawley and his associates decided years ago that they did not want to be "perceived as a little-brother firm in the marketplace," be explained. Questioning mainstream resolve Panelists debated whether mainstream (non-minority) firms and clients really look for minority practitioners. They refuted the commonly voiced complaint among mainstream firm owners that they can't find qualified minority employees. According to Crawley, 85% of minority agency employees are minorities. If minority firms can find qualified people, he asked, why can't mainstream firms? "We have to grow our own employees, especially if they must be bilingual," observed Uyeda. "We can't steal them from other firms. We are an equal opportunity employer. We hire people based on their qualifications." It's a "self-fulfilling prophecy that you can't find qualified minority candidates because you didn't hire them in the first place," stated Patterson. …

Video Releases with a Twist Make News

Abstract: In the past five years or so, video news releases (VNRs) have gained momentum as valued additional sources of TV news and programming. Now video producers are coming up with increasingly sophisticated packages to get client messages across. Interactive video conferences, often via satellite link-ups, have become standard. Organizations are also packaging program segments, promoting their own cause in a manner that is acceptable to station managers and news directors hungry for information and "news" to fill air or cable time. Just as the standard press release never went out of fashion, VNRs keep going strong, said several sources. One of the most controversial uses of sponsored videos is for educational purposes in the nation's schools. The practice of supplying sponsored visual materials to schools goes back more than 70 years, according to one supplier. Critics like Mike Wallace of 60 Minutes have recently questioned this practice, however. Educators are clearly involved in most decisions about using sponsored videos in schools, according to producers. They contend that these programs fill gaps in the curriculum and, for the most part are welcomed by educators (see sidebar, page 24). "The traditional VNR has probably peaked," noted Brenda Campbell, Washington, DC-based marketing director for Conus Video & Satellite Services. The typical scripted video news release is often supplanted by a package containing sound bites and "B-roll," unedited footage from the VNR shoot or stock footage from the sponsor's archives. International use growing Pizza Hut recently sponsored a B-roll package and live feed to eleven European cities, featuring the Brazilian soccer star Pele. Greg Glazer, Hill & Knowlton's NYC-based senior vice president and managing director of worldwide broadcast and satellite services, produced the VNR. He swears by satellite distribution as the only way to quickly reach an international audience. "If you accept the fact that more news is global, you cannot send cassettes," Glazer explained. "Between customs regulations and time zone differences, there's no guaranteed method of getting an actual videotape into a [foreign] newsroom overnight." That situation creates more pressure on everyone dispatching the messages internationally. "There are times when we have 24 hours to shoot and feed a piece," said Dan Johnson, president of DWJ Television of Ridgewood, NJ. According to Medialink, pan-European business is 40% of its European volume. The world's leading distributor of public relations videos, New York-based Medialink conducted a survey on VNR use in Europe in 1993 (see box). Growing acceptance of VNRs there is due, in part, to these trends, the survey found: * Deregulation of telecommunications at all levels of broadcasting; * New legislation enabling private media investors to fund satellite and cable transmission and programming; * Options for commercial advertising in countries where there used to be only government sponsorship; * The rise of multichannel systems and thematic channels across Europe. An accepted tool Over the past decade, video technology has changed, and so have the clients. "The original users were product marketing people," recalled H&K's Glazer. Now, we're seeing more people who have a message to get across rather than just selling a product." As examples, he cites pharmaceutical companies concerned about health care changes, and companies engaged in crisis management. According to DWJ's Johnson, the look of VNRs has also changed. Techniques now match or exceed the quality found on local news programs. "There's nobody out there who won't use a VNR when they consider it real news," he said. "The challenge is making it look like real news, rather than the commercial that some clients want." VNR clients may still have to settle for long-term gains rather than instant gratification. …

Finding a New Marketing Rx for Pharmaceuticals

Abstract: Changes in purchasing patterns and pricing practices are influencing how new drugs are marketed. Recent attacks by the Clinton administration, centered on the high cost of drugs, have put the industry on alert. Meanwhile, a boom in generic and over-the-counter medications presents marketing opportunities on a global scale. Multiple forces are causing radical shifts in pharmaceutical marketing and communications plans today. Issues of fair pricing, the distribution of experimental drugs to terminally ill patients, and how to control drug costs have been raised in recent media reports on the Clinton Health Care Plan and its possible ramifications. In fact, many of these issues concerned pharmaceutical marketers years before health reform became a national obsession. Generics are knocking the pricing platforms out from under a wide range of medications, from sophisticated and expensive antibiotics to over-the-counter (OTC) pain remedies. The mushrooming growth of OTC products that were once dispensed by prescription only has also influenced the marketplace. This trend has been sparked, in part, by the large numbers of brand-name products that are losing patent exclusivity in the '90s. Pharmaceutical manufacturers are looking to global markets for increased sales of both prescription and OTC drugs. Executives at public relations firms and their drug company clients are setting core global marketing strategies that leave local options up to professionals in the target market. Companies once identified with a single nation are developing multinational approaches. While American-based pharmaceutical makers are eying Europe and Japan, their counterparts in those countries are seeking greater penetration of U.S. markets. Target new markets Pharmaceutical manufacturers in the developed countries also view developing nations as areas for market expansion. Programs aimed at such nations often require customized educational materials aimed at a handful of health care professionals and other influentials. U.S. target audiences have changed drastically in the past few years, too. Once physician-driven, the U.S. market for prescription drugs now has many influentials. Individual patients and patient groups are an increasingly vocal force on drug price, insurance reimbursement and selection. "Managed care" specifiers, such as insurance adjusters, medical support staff, HMO or hospital administrators and government bureaucrats all have similar powers. Each of these audiences, along with more traditional physician and pharmacist groups, must be approached with specific appeals to influence their product decisions. Thus, the fundamental messages and the means of delivery are changing. Selling the "new" influentials For decades, the target audience for most prescription pharmaceutical product marketing has been physicians. Doctors needed to be educated about drugs, and doctors--in the office and in the hospital--prescribed drugs. Educational and promotional public relations programs were effective in creating awareness and communicating information about clinical efficacy, product attributes and patient management. Pharmacists in drug stores and hospitals filled prescriptions written by doctors, and patients as a rule took the drugs as prescribed. With the rise of consumerism, patients became an important target. People were informed about the signs, symptoms, consequences and treatment of diseases and were encouraged to visit their physicians. Sometimes, they have been encouraged to ask for specific medications. Today, the patient still can ask, and the physician still can prescribe any medication he or she wants to, but that decision can be countermanded--or at the very least, challenged--by: * Pharmacists in independent and chain drug stores, and in pharmacy departments of mass merchandisers, who can substitute a generic with a lower price and higher profit margin; * Hospital or managed care organization formularies, the committees of physicians, pharmacists, purchasing agents and others that determine the limited selection of products the organization's pharmacy will stock; * Mail-order pharmacies, which may substitute a cheaper alternative or generic version, and their customers, who gladly accept it; * Insurance plans (and prescription card programs), which may refuse to cover certain medications. …

Morley Safer versus Public Relations

Abstract: Morley Safer doesn't think much of the public relations industry. And, judging by the sharp words being lobbed during a recent panel discussion, practitioners don't think much of him, either. Responding to one panelist's condemnation of "gotcha" journalism, Safer bellowed, "If you think we like hanging around outside somebody's house to get him to talk, you're wrong." He said that such tactics are often necessary, however, because sources clam up even when they are offered opportunities to respond. The venerable co-editor of "60 Minutes" squared on against four top practitioners at the first Harland W. Warner Seminar on Ethics in Public Relations, presented by the Center for Communications in New York City on May 4. The seminar was sponsored by PRSA and Manning Selvage & Lee. During the free-for-all, several practitioners insisted that "no comment" is an appropriate response in many situations. William O'Neill, director of public affairs for General Motors North American Operations, said that employees should be informed about changes affecting them before the information is released to the media. In addition, organizations need not legitimize speculative or unbalanced stories by responding to reporters' queries, said Patrick Jackson, APR, Fellow PRSA, senior counsel at Jackson Jackson & Wagner. "We in public relations have to be a lot more strategic about where information falls before we get into the trap of laying it on the line," said Jackson. Safer, for his part, wasn't having any of it. "The reason organizations don't talk is not because we're going to manipulate what they say or use only the best part of it. It's because they know we're onto a damn good story," he said. One "damn good story" that received much discussion during the seminar was the rigged crash tests of General Motors pickup trucks on "Dateline NBC" in 1992. The network later admitted it had attached ignition devices to the vehicle to ensure it would catch fire if the gas tank was punctured. The network issued an on-air apology. GM's O'Neill said that the report, although proven false, did irreparable damage to the company's reputation. "It bothers me that the American public's perceptions of those pickup trucks is not colored by 11.5 million vehicles that have been in the hands of people for 20 years...but by people who lied," he said. Safer joined the other panelists in censuring NBC's action, calling the network's apology "a coup for public relations. …

Pharmaceutical Makers Step Up Educational Efforts to Win Support

Abstract: Last year at this time, it seemed things just couldn't get any worse for the pharmaceutical industry--but they did. Attacks by Congress and the Clinton administration about the industry's pricing policies intensified throughout 1993, as the industry was vilified in the media. The crisis prompted the normally conservative and reticent industry to undertake a massive public relations effort to educate the public and policymakers about drug cost-effectiveness in order to restore its good name. The question is: Is the effort working? By several measures--media appearances by industry CEOs, letter writing campaigns, print ads--the industry is nursing itself back to health. Recent efforts seem to be having a favorable impact on media coverage as the debate over health care reform continues. In fact, the "favorability rating" of the industry on a variety of key issues relating to image, such as value, pricing and marketing practices, increased from 38% in January 1993 to 65% by last fall, according to an analysis conducted by Rx Partners--a Washington, DC, consortium of five drug makers. "Based on this research, we believe we've moved the needle," noted Jack Domeischel, vice president of corporate communications for Searle Pharmaceuticals, based in Skokie, IL. "However, these were broad-based efforts; what we need to do in 1994 is focus our messages on reaching those members of Congress who will play a major role in shaping health care reform." In recent months, some of the harshest industry critics seem to have softened their stance. For example, a hearing convened last fall by the Senate Committee on Labor and Human Resources proved surprisingly sympathetic to the industry's positions. Sen. Christopher Dodd (D-Conn.), appealed to his colleagues for a more balanced approach to reform vis-a-vis the drug industry. "The pharmaceutical and biotechnology companies have contributed...a great deal to disease prevention, and we should make sure that we craft a reform package that is going to...allow these industries...to redouble their efforts," Dodd said. More providers feeling the heat Pharmaceutical makers take some solace in the fact that other providers of health care products and services are also finding reform a bitter pill to swallow. "The spotlight has broadened beyond the pharmaceutical industry to include other publics, such as providers and third-party payers," explained Charles Rouse, director of U.S. communications and global product communications for Kansas City, MO-based Marion Merrell Dow. "But we still have a tremendous amount of work to do." Public relations executives contacted for this report agreed that although the attacks may have quieted down, pharmaceutical makers can't afford to recuperate at their leisure. …

Key Strategies for Smart Marketing to African Americans

Abstract: From banks and home builders, to hospitals and organizations looking to hire, marketers are reaching out to African Americans. This marketing tactic is not only right, it's smart. African Americans account for $300 billion-plus in purchasing Power nationwide. African Americans comprise more than 12% of the U.S. population, or 30 million people, according to the 1990 census. And approximately 13 million African Americans were registered to vote in the last presidential election. These statistics indicate the increasing strength of African Americans as consumers, as voters and as concerned citizens. Companies that excel will be the ones that recognize and respect cultural differences and use their resources to attract culturally diverse individuals. Most companies and organizations that are aware of these trends want to do what is ethnically correct and economically fair, but many are not sure how. While there are no foolproof methods for marketing to any group, the following are several techniques that can help in reaching African Americans. 1) Explore the market with comprehensive research. Much of the advertising and marketing directed at African Americans appears to be based on hunches and superficial assumptions. Research is needed to understand all segments of this market. Start by learning why African Americans buy a product or service, how they use it, and where the competition stands. In-depth, comprehensive research reports that detail the buying habits of African Americans are now widely available and are frequently advertised in marketing, advertising and public relations journals. 2) Use the right media mix. Determine the right media strategy for reaching the African-American market. The media mix is highly important. General market media alone cannot be as effective as black-oriented media in reaching this market. According to a national survey, 72% of African Americans listen to radio a total of about one day per week and read black community newspapers. Not only do they read them, they find them credible. Currently, nearly 750 black media outlets exist nationwide, consisting of community newspapers, radio and television stations, magazines, localized special events, and business directories. Radio remains one of the strongest media in reaching African Americans. As a primary news and entertainment resource within black communities, radio stations enjoy a strong rapport with black consumers, which makes the stations valuable micromarketing vehicles. In addition to delivering significant listenerships, many black-oriented radio stations have impressive merchandising capabilities that marketers should not overlook. The majority of African Americans listen most regularly to a black-formatted core station. According to a study by Interep Radio Store Research, there is little listener crossover between black stations and general-market stations. 3) Know the nuances before going public. No matter how well-intentioned companies may be in their ethnic marketing efforts, they run the risk of accidentally offending the very market they are trying to woo. That's why successful marketers to African Americans have their promotional materials checked out for cultural sensitivity by people who know the nuances of the audience: other African-Americans. …

Forecast 1994: Signs of Hope amid Economic Turmoil

Abstract: A reviving economy and projected growth in international trade will bring new opportunities to U.S. business. Practitioners who adapt to deal with challenges presented by globalization, new technologies and other changing organizational needs can succeed in the tight marketplace. One year after the Clinton administration took office with its mandate for change, changes are taking place--but with unclear results. Two major international trade pacts, the North American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and Trade (GATT), are projected to lower barriers to trade, and create jobs. Yet, they come at the same time as a string of layoff announcement by major U.S. corporations. As U.S. businesses struggle to revive and adapt in a rapidly changing marketplace, there will also be winners and losers in the public relations profession. "This has been one of the most unusual economic downturns and recoveries in American economic history," said Jerry L. Bryan, APR, Fellow PRSA, 1993 PRSA board liaison to the Section Council. "You've had companies, industries and municipalities side by side, one doing well and the other not. Certain categories of the American economy are booming." In this time of economic transition, public relations practitioners are "right at the leverage point of what's happening," according to Bryan, director, corporate communications, Sverdrup Corp., Maryland Heights, MO. On the one hand,they must help their companies work through the transition with trimmed-down organizations. At the same time, they have to help their organizations move forward by working aggressively to take advantage of marketing opportunities. "The public relations professional has to do this without trying to speak out ofboth sides of the mouth," Bryan added. "It's an unusual situation." Most of the 1993 Section chairs who contributed to this Forecast think passage of NAFTA, which was a Clinton priority, will affect their specialties positively, bringing increased business opportunities. "NAFTA will create a greater need for representation in Mexico, whether by U.S. firms or Mexican professionals with knowledge of U.S. business practices," according to Nana L. Booker, APR, president, Hooker/Hancock Public Relations, Houston, and co-chair of the new International Section. Another Clinton priority--health care reform--will be a hot item in the near future for practitioners in many specialties besides the obviously concerned health care practitioners. "We see the confusion and chaos surrounding the Clinton administration's health care reform proposal as creating problems that create opportunities for public relations firms," said Counselors Academy Chair Ronald W. Watt, APR, Fellow PRSA, chairman and CEO, Watt, Roop & Co., Cleveland."Much will need to be done, interpreted and communicated. There is no end in sight to the critical role public relations can play." Mixed outlook on employment Some Section chairs see an improving economy that will help businesses and practitioners. Others see a still-sluggish economy that impacts negatively on employment prospects. The job outlook is good for practitioners in the areas of environment, food, public affairs and government, technology and travel and tourism. In professional services, the job outlook is good in consulting where client companies are addressing such issues as reengineering, customer franchise management and achieving profitable growth, and somewhat softer in the other disciplines. Despite its status as a front-page specialty, the job outlook in the health carearea is mixed. The outlook for international practitioners is also mixed. The job outlook for 1994 is about the same as it was in 1993 for practitioners serving educational and cultural organizations. For educators, the market will be tight because fewer full-time public relations faculty probably will be hiredas faculties downsize. …

CEO Serves as Chief Communicator of TQM Program

Abstract: Three CEOs explain how they communicate about total quality programs at all levels of their corporations. Total quality management (TQM) has been tried, with varying degrees of success, by many organizations since it became a management buzzword in the late 1980s. Many U.S.-based firms as well as concerns around the globe have adopted TQM strategies and tactics, such as cycle analysis, process efficiency and customer-driven systems. Employee empowerment and total organizational commitment are two, sometimes conflicting, elements of any successful TQM "deployment," according to the experts. Communication strategies play a crucial role in achieving these goals. A number of the real-world benefits and consequences of TQM were discussed in March by a panel of three CEOs from corporations with as few as 2,000 to more than 86,000 employees worldwide. They spoke to a roomful of their peers at The Conference Board's Seventh Annual Quality Conference in New York City. The speakers were: Lawrence A. Bossidy, chairman and CEO, AlliedSignal, Inc.; Paul R. Staley, chairman of the executive committee, PQ Corp.; and David. R. Whitwam, chairman and CEO, Whirlpool Corp. Jack V. Wirts, senior vice president, development, The Conference Board, New York, moderated the session. All of the speakers stressed employee relations and the communication of the TQ message at all levels of the work force as keys to success. They also mentioned the need to involve customers in a constant dialogue and to keep shareholders and members of the board of directors constantly attuned to the TQM process. Clearly, all of these functions involve communications and public relations skills. TQM is strongly grounded in person-to-person relationships, meetings of workers from all levels of the company, team-building and feedback mechanisms. Leaders need skills in presenting and communicating, as well as listening, to be successful at TQM. Stress organizational change Business leaders are "changing the way we organize our work and the way we lead our employees," said Bossidy, who was a TQM advocate at General Electric before joining AlliedSignal in 1991. "We used to manage by means of hierarchical, vertical layers. Now we are solving problems and revamping processes through horizontal, cross-functional teams of employees from many disciplines. While we still have a long way to go, TQ has been the major vehicle we've used to foster change. "Goals and objectives are the engine. TQ is about results," Bossidy continued. "AlliedSignal has 6,000 teams working on improving product quality and customer service and reducing the cycle time of our core processes. Our 1993 efforts contributed to record earnings and a 5.8% improvement in productivity." AlliedSignal's TQM efforts started in 1991, Bossidy reported. At that time there were 41 business units. Now there are 32 units acting as one company. "We continue to break down internal barriers and simplify our organization," he said. "Customers are the reason to exist. Employees tell us how we can do jobs better and faster. TQ provides powerful tools to unleash their own abilities." Cross-functional teams at AlliedSignal share the same vision, use a common vocabulary and apply common problem-solving methods, Bossidy added. When they began examining ways to make work processes quicker and more effective, these teams discovered "inherent synergies within the operating companies," he reported. Now Allied has established "centers of excellence and shared services" for financial, human resources and communications functions used by all its operating divisions. "The savings are enormous and the service improved," Bossidy said. "The only thing that matters is to get the whole process in some way narrowed down," he said, adding that TQ is not "the magic antidote." Success depends on "how well you execute your plan. If you don't have the right people behaving in the right way, it can't or won't happen. …

"Green" Issues Rise on National Agenda

Abstract: Everyone talks about the environment, but not many people understand the complex issues that arise as the environmental movement evolves. The need for clear communications on environmental issues has never been greater. Public relations practitioners face the test of building bridges of understanding between industry, regulators and the public. In the Great Lakes area, one of today's most controversial topics in environmental circles is the great chlorine debate. Originally aimed at the paper manufacturing industry, the effort to ban chlorine in the manufacturing process has expanded to include other industries and products. Chlorine products are an important part of the worldwide chemical manufacturing business. Items such as plastics, pipe and approximately 85% of our pharmaceutical products are produced to some degree with chlorine or through chlorine-related processes. During the past few months, the International Joint Commission on Great Lakes Water Quality issued a report recommending a phaseout of chlorine. The U.S. Environmental Protection Agency (EPA) has also recently proposed the development of plans for reducing or prohibiting the discharge of chlorine or chlorinated compounds into bodies of water. The social and economic implications of "virtual elimination" of chlorine throughout major industries in this country are immense, increasing the responsibilities of the environmental communicator. Order protects poor A second critical issue facing communicators is environmental equity. The environmental equity or justice movement has become the topic of heated debate, public policy and national importance. Recently, the Clinton administration issued an executive order to all federal agencies requiring that their programs not cause harm to the environments of poor people or minorities. Other developments on the environmental justice front include the formation of an Office of Environmental Equity by the U.S. EPA, an Investigation by the U.S. Commission on Civil Rights into environmental discrimination, and introduction of the Environmental Justice Act of 1993 to force federal authorities to clean up the most toxic counties in the nation. As the environmental justice movement gains momentum, communicators will need to anticipate potential political and legal consequences for the organizations they represent. A third key issue facing public relations professionals specializing in environmental issues is Congressional review of the Superfund legislation. Originally designed to address the problem of hazardous waste cleanups, the legislation has caused numerous conflicts, including the abandonment of urban industrial property for green-space in outlying suburbs to avoid costly remediation activities. Complicating this issue is the understandable hesitation of financial institutions to finance urban redevelopment. A survey by the American Bankers Association found that 62% of all banks turn down loans based on environmental reasons alone. Other ongoing challenges facing environmental public relations practitioners this year include: * Cleanup notifications that need to be developed and implemented to include key audiences, residents, businesses, government officials and environmental groups. …