PR 101

The other day I was on the receiving end of a very smart micro-marketing effort. It impressed me and I do this for a living, so not many campaigns do that. However, many small companies can learn to use micromarketing from this effort. I suspect it didn’t cost much money and I think it will increase business.

What is micro-marketing? According to Answers.com, it’s “Designing, creating, and manufacturing products, marketing, and advertising campaigns for the benefit of very specific geographic, demographic, or psychographic segments of the consumer market.”

In other words, micromarketing means selling to your neighbors.

My exposure to micromarketing began when I came home the other day to find a plastic bag on the front steps. That’s not unusual – somebody is always leaving phone books or fliers or something else on the steps. Most of the time the bag avoids the house completely on its trip to the recycling bin in the garage.

This time the bag contained a dog food sample and two dog biscuits. As Chester the Wonder Dog has a voracious appetite, I always appreciate free food. Biscuits are good, too. He is more cooperative when he knows there’s a reward when I expect him to something.

The bag came from a local pet store called Hounds Around Town. Along with the food, there were two fliers inside the bag. On one there was an eight-paragraph explanation of the food – how it was made locally without any artificial ingredients. There were also a couple of paragraphs about Hounds Around Town, including an invitation to bring my dog whenever I wanted.

Also in the packet was a sheet from a group called the 3/50 project. This really caught my attention. I went to the group’s website and found this explanation from Consumer Reports:

“The 3/50 Project is a campaign to support local merchants. The concept has spread to communities nationwide, and its premise is simple: First, choose three local independent brick-and-mortar businesses—clothing shops, food stores and restaurants, and for the home, independent appliance retailers, hardware stores, and garden centers—that you find essential and want to keep from going under during the recession. During tight times like these, independent retailers suffer since budget-minded consumers are more inclined to shop at chain stores and big-box behemoths.

Then spend $50 or more among those places each month. If enough people in a town make the pledge, the theory goes, the pooled-together funds will prop up mom-and-pop enterprises and help sustain local business districts.”

The sheet quoted the U.S. Bureau of Labor Statistics in noting that if just half the U.S. working population spent $50 each month in locally owned businesses, more than $42.6 billion in revenue would be generated. It also said that for every $100 spent in independently owned stories, $68 returns to the community through taxes, payroll and other expenditures. When a purchase is made from a national chain, $43 stays in a local community. When an online purchase is made nothing stays behind.

Powerful arguments on both counts. In fact, it affected me and that doesn’t usually happen. After all, marketing is what I do for a living. I have seen every kind of campaign that’s ever been done. Most either make me cringe or yawn.

However, this campaign made me think. I do like to shop locally as much as possible and I like products to buy that are made locally. I firmly believe that the only way we are going to dig ourselves out of this recession is to support each other. I have no faith that the politicians who spread all this rhetoric are going to do anything that will actually solve the problem.

In this case, if Chester likes the dog food the odds are good I will shop at Hounds Around Town. This a dog who likes to eat squirrels, rabbits and other small animals, so I don’t think his palate is that discerning.

It is also an instructive example of for small businesses. Many small retailers just don’t have the budget to advertise or do much marketing. Buying a newspaper ad or producing a television commercial can be expensive. Plus, those efforts are more of a shotgun approach. A microcampaign such as the one Hounds Around Town ran can be much more effective because the market is very targeted. It is a very good idea.

Do people lose their ability to think critically when they read a blog, a Tweet, or anything posted on the Internet? I have seen some of the most outlandish claims made on social media sites. That doesn’t surprise me. The people that make those claims have always been out there. They now just have a bigger megaphone.

What surprises me is how many people believe what they read. They apparently have no built-in B.S. filter. Seeing something posted on Facebook or tweeted apparently bestows some kind of seal of approval. Well, to time burst that bubble. People can and do lie on the Internet all the time. As a reader and a consumer you have to determine whether what a company is telling you, or a blogger is saying, is true.

Here are two things that spread all over the net in which everyone should have known better to ever believe. The first one is funny; the second one had serious repercussions that are still being felt around the world.

In the first case, the Weekly World News reported that Mark Zuckerberg was exhausted. So exhausted that in fact he was going to shut down Facebook. The Weekly World News is the same “newspaper” that reports that aliens regularly meet with the president of the United States and other world leaders.

“The questionable story apparently sent Facebook users into a panic,” The New York Daily News reported. “The phrase “is Facebook shutting down” was the 14th most searched for on Google Saturday (Jan. 8th) and the 10th most as of Sunday (Jan.9th) morning.

“On Facebook itself, groups like “Against shutting down Facebook on 15th of March” popped up with the slogan “No Facebook, No Party”. On Twitter, users fretted about what would happen to their pictures – not to mention social lives.”
That people believed this amazes me. I assume that it spread through the Internet pretty quickly. Didn’t anyone check the source? Didn’t anyone notice Facebook is thinking of going public?

Remember what I said in Monday’s blog about the need for speed when it comes to social media. This is a perfect example of why. Many people will believe something no matter how outlandish it might seem.

Facebook quashed the rumor Sunday evening by issuing a press release saying it had no plans to close. “We didn’t get the memo about shutting down, so we’ll keep working away,” the company said. “We aren’t going anywhere; we’re just getting started.”
The second rumor actually began about 12 years ago. While the conventional media initially spread it, social media kept it alive a lot longer than it should of. In this case, people died because of the idiocy of others.
In this case, “in 1998 English Doctor Andrew Wakefield published a study in another British medical journal, The Lancet suggesting that the measles, mumps and rubella (MMR) vaccine could cause autism,” The Washington Post reported. “The study triggered international alarm about vaccines, but quickly came under intense criticism, was discredited by follow-up research, and was eventually formally retracted by the journal.

“Nevertheless, the incidence of childhood measles rose in Great Britain and elsewhere after Wakefield’s study was published, as worried parents refused to have their children vaccinated against the potentially deadly disease. Parents have also shunned other vaccines. And even after Wakefield’s work was debunked, he continues his research in the United States and to have loyal, highly vocal supporters.”

There were four reported deaths of children in England and Ireland caused by their parents’ failure to immunize them with the MMR vaccine. Hundreds of children were unnecessarily ill because of the failure to immunize.

As a personal note, I had measles as a child. That was before the vaccine was developed. I was very, very ill. I do not recommend any parent putting their child through that.

Yet despite all of the evidence to the contrary, there are people out there who still insist that it was a vaccine that caused their child’s Autism. Google Autism and vaccines and look at the some of the results. A study released last March said one in four Americans believe there is a link between Autism and vaccinations. Despite all the scientific evidence to the contrary, people seem more willing to believe bloggers and others using social media. It just amazes me. I don’t understand it.

As my late father used to say: “people don’t seem to know how to use the brains they were born with.” To which my grandfather would add: “there’s so sense in being stupid unless you can demonstrate it.”

If used properly social media can change internal communications as fast as it is changing what’s happening in the outside world. Smart companies see this and are now adopting social media for employee communications. When done properly, social media and the tools that go along with it can help companies in their number one internal communications goal – engaging employees.

The old model emphasized individuality, the star system. Company’s now know that to enhance creativity it is important to create a culture that fosters it. Companies that create an atmosphere of support, innovate and creativity will be the ones that lead their industries. It will also lead to happier employees, something I would think every company wants.

When people in companies and teams feel engaged, the benefits are significant. Towers Watson (formerly Towers Perrin), the global professional services firm, interviewed 90,000 employees in 18 countries, and found companies with high employee engagement had a 19 percent increase in operating income and almost a 28 percent growth in earnings per share. Conversely, companies with low levels of engagement saw operating income drop more than 32 percent and earnings per share decline over 11 percent.

The old idea was that as you went up the hierarchy, somehow you got smarter. Leadership was viewed as the ability to tell people what to do, not to listen employees. In every innovative company today, that idea has gone away. Now the mantra is “all of us are smarter than one of us.”

Companies such as Zappos Shoes, Starbucks Dunkin’ Donuts, Apple, Southwest Airlines and many others have found success comes from dialog, not lectures.

While it should be obvious why internal communication is so important, I often find company leaders don’t get it. Here’s why – a Harvard Business School study found that the less information a company provides its employees, the more likely they are to start and spread rumors. It’s simple, nature abhors a vacuum. If that vacuum is not filled with real information, someone is going to fill it with male bovine excrement.

Now, I am sure all of your companies work to put out the correct information. But there are obstacles: ensuring employees just don’t just delete the email, then ensuring that they open it, and that they read the entire message. If that all happens, you still have to hope employees take the time to think and understand the messages so they are able to respond appropriately.  That’s why there has to be a face-to-face component of communications either with individuals or in a group.

However, face-to-face meeting are not as always effective as companies would like to think. When I was a reporter I covered crime in Detroit and its suburbs. I learned something  then from police officers that still applies – there is nothing so unreliable as an eyewitness. People hear and interpret the same message in different ways.

Plus, logistics can get in the way of face-to-face meetings. I work with a multinational company that has offices in the U.S., China, India and England. How can a company like that hold face-to-face meetings with its employees?

Social media can solve those problems change. Instead of sending out that mass email or posting on the company Intranet in hopes people will take the time to read it, social media provides tools help employees actively participate in creating and sharing information. It is a much better way to get people to listen and understand what you are saying.

Of course, I know social media scares a lot of senior executives. They worry it will affect productivity. They are concerned about allowing employees to create content. The IT department often has a dozen reasons why employees should not be allowed to use social media.

Another fear I often hear is that my employees are going to use the new tools to complain about the company. Yeah, they are going to do that. That’s a good thing. Who you would rather have an employee complain to – someone in the company who can fix the problem – or their friends?

As I said before, all of us are smarter than one of us. From an employee’s complaint could come a solution to a long-standing problem. What this all means is that you can be internal ambassadors and facilitators for your company. Social media gives you the ability to do that. You can hear about and solve problems before they blow up.