Posts Tagged ‘Media Relations’

As the Southern Nevada business community continues to feel the strains of a down economy, executives are faced with tough decisions concerning how to cut budgets. One item that is often cut is marketing. While these cuts may appear to have little impact and improve the firm’s bottom line, the inverse is actually true. In fact, cutting marketing budgets is a short-term fix that can have long-term implications on a company’s success.

According to a study by McGraw-Hill Research, companies that consistently advertise even during recessions perform better over the long-term. The study looked at 600 companies from 1980 to 1985. It found businesses that maintained or raised their level of advertising expenditures during the 1981 and 1982 recessions had significantly higher sales after the economy recovered. More specifically, companies that advertised aggressively during the recession had 256 percent higher sales revenue than those that discontinued advertising. A recent article on Forbes.com stated that companies that did not maintain a consistent presence during a past recession actually spent four to five times the amount it saved in marketing to regain its market status.

While budget cuts are necessary and it may be hard to justify large numbers allocated to marketing, it is important to remember that keeping the company’s name in front of customers is important. Public presence can lead to new business, and if you are not appearing, you are disappearing from the market – especially in the eyes of the consumer.

Instead of cutting budgets completely, executives should consider more cost-effective ways to reach audiences. The advertising and marketing industry has changed dramatically over the last five years. Companies are now using a mixture of marketing strategies to reach audiences including online marketing, grassroots outreach, co-branding opportunities and media relations.

One of the most cost-effective solutions is online marketing. With the emergence of digital media and social networks, it’s easier than ever to reach specific audiences directly. By using HTML e-mail campaigns, social media networks, online forums and blogs, and company Web sites, companies are able to post information instantly about new developments and correspond with customers in real time through the Internet. The cost associated with this communication medium is significantly lower than its predecessors, which often included fees to print and/or place collaterals piece or ads. One of the main benefits to online marketing is the ability to track the results through numerous online channels.

The Internet also allows companies the opportunity to participate in ongoing conversations about their industries. Over the last few years, the public relations sector of marketing has expanded to include online blogs and citizen journalists in addition to traditional media outlets. In many instances, companies can secure coverage for a news release or trend story ideas more quickly and with greater control of the initial content.

While it is important to explore new outlets for communicating to your audiences, an economic downturn can provide many opportunities to get more exposure in traditional outlets for less money. Publications are increasingly willing to negotiate on rates for placement advertising than they had been in recent years. Many publications are willing to give companies special pricing on long buys and offer deeply discounted prices on open space once the publication is laid out. Publishers would much rather fill the space at a discount than run the risk of leaving it empty.

In addition to price, companies who remain in the media strengthen their voice. With so many companies cutting budgets and pulling back their marketing efforts, those who remain enjoy more exposure. This is true both in print ad placement as well as media relations activities. With fewer and fewer ads appearing in publications, companies are going from one of many to one of few. Continuing to advertise gives them the opportunity to stand out.

Ad placement is not the only way companies are currently saving money. Printers, promotional vendors, graphic designers and even agencies are adjusting pricing to compete in today’s market.

Marketing during a down economy can be a very strategic business decision for any company. The key is to use an integrated approach that combines a variety of different communications disciplines. Companies should use this time to examine the way they are reaching out to their audiences and adjust accordingly. Maintaining a consistent and effective conversation with customers, especially in times like these, will lead to long-term growth and success for any company.

Kassi Belz, APR,
Director of Client Services,
MassMedia Corporate Communications
http://www.massmediacc.com/

Author: Kassi Belz
Article Source: EzineArticles.com
Digital economy, mobile technology

Management’s first response to a tight budget is often to reduce expenditures across the organization. After all, that’s the best way to balance the budget. Every department suffers equally. Right?

Wrong! Although it may seem right (politically) to accept this decision, it’s the wrong move to make. In the long run, accepting a significant budget cut will harm your organization. When a nonprofit cuts marketing, it cuts off one of the hands that feed it.

Even worse, marketing and communications are often cut more than other areas. Our work is sometimes perceived as being expendable, rather than recognized as a critical means of generating revenue, raising awareness, etc.

That’s what you have to point out – as diplomatically as possible. Rather than taking a defensive position when faced with budget cuts, proactively respond to your leadership’s challenges with either or both of these proposals:

o Leave our budget untouched, and we will increase X by X in the next fiscal year. Even better, if you will increase our budget by X percent, we’ll increase X by an additional X percent.

o Let the marketing and communications team work with the current budget for the next two years, and we’ll deliver an X percent increase in revenues (donor and/or earned income) in that time.

Of course, these strategies require your marketing and communications team to report on concrete results, proving the value your efforts bring to the organization. Examples include:

Direct Marketing (email and mail)

o Response rate.

o Dollars earned per dollar spent (return on investment, or ROI).

Media relations:

o Development of media relationships.

o Coverage by media type (newspaper, magazine, Web, broadcast).

Public Speaking:

o Number of speaking engagements and presentations (and audience count).

Whatever you do, don’t just give in to a proposed budget cut for your department. Consider the options with as much creativity as you bring to your marketing work. Then shape your strategy and come back with a creative solution that will let you and your colleagues continue to build the bottom line.

Good luck!

Nancy E. Schwartz helps nonprofits succeed through effective marketing and communications.

Subscribe to her free e-newsletter “Getting Attention,” at www.nancyschwartz.com/getting_attention.html and read her blog at www.gettingattention.org for more insights, ideas and great tips on attracting the attention your organization deserves.

Author: Nancy E. Schwartz
Article Source: EzineArticles.com
Provided by: Beading Necklace