PR 101

So, you review your new client’s needs and decide social media is the best course. Or, you are pitching a potential client and feel using social media would be the most effective way to meet their needs. The problem is the CMO and CEO are in their ‘50s and think The Wall Street Journal is the be-all and end-all of information dissemination. They think Facebook is a place where their kids waste time in mindless pursuits and tweeting is what birds do.

This is a more common situation than one would think. It is true that more and more major corporations are turning to social media for their marketing needs. However, there are still a large group of executives who frankly don’t get it.

As an aside, I have run into public relations executives who also don’t get it. They have told me they are taking a wait and see posture on social media. I get the feeling these people’s great-grandparents were buggy whip makers in 1908 when the first Model T drove by. They told themselves this automobile thing was a passing fad.

So, how to do you leap that hurdle?

So, how do you convince the person in charge that using Twitter, Facebook and other social media tools are the most cost effective – and just plain effective – way to market? It’s not easy, but it doesn’t have to be as hard as you would think.

The first step I take is to ask the person in charge if they use LinkedIn. According to the latest numbers I have seen, approximately 80 percent of employment managers go to LinkedIn first when looking to hire. So, the odds are fair to even that the CEO and CMO are at least familiar with LinkedIn. If you are really lucky, they have their own LinkedIn profiles.

The odds are also good that they don’t realize LinkedIn is a social media application. If they have a LinkedIn profile, explain they are already using social media. I often see resistance crumble at this point. Once they realize they are already using social media, explaining the rest is easier. You are not home yet, but at least you have hit a solid double.

But, what if they don’t use any social media?

Now, if they don’t have a LinkedIn profile, I sometimes show them social media’s dark side. “United Breaks Guitars,” the Motrin moms, and the Comcast stuff will often make the people in charge sit up and take notice. What I tell them is social media can kill your company before you even know you are bleeding. For instance, I have read estimates that United Airlines lost an estimated $100 million because of “United Breaks Guitars.” Watch a CFO’s ears perk up when he hears that number.

Of course, fear is not the only motivation you should use. After scaring them, tell them of social media’s successes. Southwest Airlines had one of its most successful fare sales ever primarily by using Twitter, Paula Berg, the airline’s manager of Emerging Media said at a conference I attended last fall. PepsiCo has pulled all its Super Bowl advertising. Instead of television ads, the soda company is going to spend $20 million on a social media campaign.

“… the Pepsi Refresh Project is about getting the global community to nominate projects that need funding in local communities, you upload your video/project profile, gather as many votes as you can by spamming the social sphere and the top projects will win finding from $5k multiple times per month up to $250k a few times every month,” according to the Digital Buzz blog.

There are a lot more examples of the successful use of social media. There are thousands of companies using Twitter. Ford, Honda, Jet Blue, the Marriot Hotel chain, Wachovia, and Sun Microsystems are heavily involved in it. You will find the same results for companies using Facebook.

Remember, most CEOs – especially in this business climate – don’t want to be a pioneer. They want to know that whatever you are proposing has worked for someone else. Once they know it has worked for others, they are willing to listen.

Now, if you find their competitors are already using social media, you have broken through another wall. Remember, those C-suite people are judged on results. Their board of directors, their shareholders, their lenders, analysts and journalists are all looking over their shoulders. Those company leaders do not want to discover they are losing market share to a competitor that is using Facebook or Twitter when they are not. In this case, they already see the benefit.

There is much more to talk about when it comes to pitching social media. I will cover more of the topic in next Monday’s blog.

It is no secret that the recession is deeply affecting marketing, public relations and advertising agencies. In the last two months, at least a dozen marketing communications people I know have lost their jobs. It is nothing they have done or haven’t done. It’s just that clients are just not spending.

I can attest to the recession’s effects on my own small business. Clients have cut spending, gone away completely, or taken longer to make decisions on new marketing efforts. I don’t blame them. There is a lot of fear out there. We have not been through anything like this since the end of World War II. None of us know what to do.

So companies are doing what seems logical. They are retrenching, laying off people, and slashing their marketing budgets. The thinking seems to be that we need to hoard our resources or we won’t survive. Right now, we cannot worry marketing. Besides, the thinking goes, consumers aren’t buying right now anyway. They too are retrenching.

On the surface, that seems like the course to take. Prudence and frugality should rule until the whole thing is over. do. But it’s not the course companies should be taking. and I can prove it. Let’s first consider the cereal giant, Kellogg.

“So, when the Depression hit, no one knew what would happen to consumer demand,” James Surowiecki wrote in the April 20, 2009 issue of The New Yorker. “Post did the predictable thing: it reined in expenses and cut back on advertising. But Kellogg doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies. (Snap, Crackle, and Pop first appeared in the thirties.) By 1933, even as the economy cratered, Kellogg’s profits had risen almost thirty per cent and it had become what it remains today: the industry’s dominant player.”

Surowiecki also wrote “… a major study, by the Strategic Planning Institute, of corporate behavior during the past thirty years found that reducing ad spending during recessions did improve companies’ return on capital. It also meant, though, that they grew less quickly in the years following recessions than more free-spending competitors did.”

It is understandable that many executives are scared to gamble on introducing and marketing something new. I think they see themselves as captains of the Titanic. If they go too fast, they risk running into the iceberg. Going slow allows them to miss the obstacles. But remember this about the Titanic: it wasn’t speed that sank it; it was the failure to see the iceberg that did in the ship. Neither lookout had binoculars and didn’t see the massive piece of ice until it was too late.

Fearing that iceberg, executives don’t see the value in stoking the engines up. But, as long as there are good look-outs with the right equipment, the ice can be avoided. Some companies know that. Let’s look at some the products introduced and marketed during economic hard times:

• Kraft introduced Miracle Whip in 1933. Through both radio and newspaper ads, it became the top salad dressing in the United States.

• In 1933, Proctor & Gamble went on the radio with the first soap opera – “Ma Perkins,” sponsored by Oxydol.  P&G was so satisfied with the sales increase, they went on to introduce “Vic and Sadie” for Crisco, “O’Niells” for Ivory Soap and “Forever Young” for Camay.  By 1939 the Cincinnati-based company was sponsoring 21 radio programs. It doubled its radio-advertising budget every two years during the Depression.
• Also during the Depression, General Motors used intensive advertising to pass Ford as the number auto company. I find it interesting that Ford is now gearing up its marketing efforts, while GM sits on the sidelines.
• Apple introduced the IPod in 2001, around the bottom of the last recession. Apple is a master of viral marketing. We all know what happened to the Apple’s profits as a result. In addition, Apple has used the cache built by IPod to increase its market in areas such as laptop computers.

I could on, but the point is, cutting back the wrong thing to do. Of course, it’s a gamble.

As Surowiecki concluded: “The academics Peter Dickson and Joseph Giglierano have argued that companies have to worry about two kinds of failure: “sinking the boat” (wrecking the company by making a bad bet) or “missing the boat” (letting a great opportunity pass). Today, most companies are far more worried about sinking the boat than about missing it. That’s why the opportunity to do what Kellogg did exists. That’s also why it’s so nerve-racking to try it.”

Of course, I have an answer for that – social media. I know I am obnoxious about this, but I firmly believe that social media is going to replace traditional advertising, marketing, and public relations within the not-to-distant future. Think of social media in the same Proctor & Gamble thought of radio in the 1930s. A lot of the company’s shareholders were opposed to using the new medium, especially during The Great Depression.

Think of social media as the new radio. As radio was to P&G, social media could be to a smart company willing to take a chance. A lot of companies are starting to dabble in it, but few have made a total commitment. I think there is both fear and unfamiliarity with the new medium. A survey by the blog überceo found that the majority of CEOs whose companies are on the Fortune 100 are – the blog’s words – social media slackers. They don’t understand it or know how to use it.

That’s where someone like me enters the picture. It is my job to show executives why it is smart to market using social media. Just let any savvy marketer who understands media into the room and we will show why this recession could be the best thing that ever happened to your company.