Contribution of Public to a Company's Marketing And Sales Efforts - Essay Example

?Introduction Businesses are considered as positive force in any given society; therefore, their reputation holds strategic importance not only for firms but for society as well. Having effective relationship with their stakeholders is one of the key areas, which can actually help organizations to remain successful. Financial crisis have damaged the reputation of most of the firms operating in the world of developed economies. Many consumers now believe that companies acted irresponsibly without actually taking into consideration the stakes of the society as a whole. The failure of large and stronger organizations suggested that organizations may be vulnerable from inside and there is a greater distrust in public regarding the way companies are operating nowadays. There are certain firms which however have been able to use better PR to improve their image in public and subsequently have been able to improve their sales and marketing activities. A natural question therefore arises as to whether firms and businesses can actually use their public relations for generating more sales and improve their marketing activities during the times of economic and financial crisis? This paper will therefore attempt to discuss as to how firms can use their public relations to improve their sales and marketing during financial crisis. Public Relations One of the key elements of public relations is the flow of communication between organizations and their public. Public Relations are primarily based on effective communication between the organization and its public. The term public relation, therefore, is often used interchangeably with terms like Organizational Communication, as well as Communication management. However, PR as a term is broader in nature because it envisages different aspects of strategic nature which directly affects an organization (Grunig, 1992). The definition of public relations is different across different countries and is mostly defined by the professional bodies of particular country dealing with PR. The very fact that the definition of PR has kept on chaging and evolving indicates that PR as a discipline has considerably changed over the period of time. It is critical to note, however, that whatever the definition of PR, it must be practiced as a sustainable and consistent strategic effort by the organizations to maintain their reputation. Overall theoretical emphasis of public relations is based upon two important and fundamental arguments. Firstly, it is suggested that public relations is a manipulation whereas some see public relations as the dissemination of information, as well as promoting understanding between public and organization. As such, PR is also the art and science of analyzing and predicting events and assessing their possible impact on the organization and other stakeholders involved in the process (Heath, 2001). It is also critical to note that communication is a relatively larger term which includes overall management of communication at the organization wide level whereas public relation is considered as a narrow and focused use of communication between organization and its public. It is therefore argued that senior managers of the organization should involve public relations managers in the overall decision making process. This is because of the fact that public relation managers have to maintain external communication of the organization in a manner which can leave a positive impact for the organization. It is also suggested that the public relations managers must also develop open lines of communication with the managers in order to inform them about the possible consequences of the actions taken by the management (Smith, 2005). Public relations have been mostly associated with communication as described above; however, communication in this regard has to be a two-way communication. It is also related with the maintenance of mutual relationships between the public and the organization. Public relation is also considered as an intelligence function because PR managers tend to evaluate the trends and analyze the possible impact of the same on the reputability of the organization. Further, PR managers also need to assist organizations to actually formulate socially acceptable goals according to the practices and norms of the society in which they operate (L'Etang, 2007). This is done in order to balance the social and commercial aspects of the organization and how one aspect can actually corroborate with other element so that organization as a whole presents a balanced look. Models of PR The above discussion set the overall theoretical underpinnings for the Public relations whereas following discussion will deal with the overall role of PR within the organization. There are four different models or views about the public relations and the overall role of PR within the organization is determined by each model differently. Publicity This aspect of PR outlines that the overall purpose of PR in any organization is to spread the propaganda in favor of organization. Spreading propaganda actually gives organizations necessary exposure in the public to gain more market acceptability. Under this model, communication is often one-way and truth actually does not matter for organizations following this model of PR. The overall function of PR is not well supported by the research and development, therefore, firms tend to rely less on research. Such type of PR is often can be witnessed when organizations conduct their product promotion or engage into any kind of theater sponsorships (Wilcox, 2003). Public Information This model of PR is based upon the notion of sharing and disseminating information by the organization to the public. The overall purpose therefore is not propaganda but dissemination of essential information so that pubic can be made aware of organization’s actions and other related information. Though the communication is one way in nature however, truth becomes important for organizations following this model of PR. It, therefore, outlines that organization need to disseminate correct and right information to the public in order to allow them to make informed decisions. Organizations following this type of PR model however use relatively little research to disseminate relevant and beneficial information. Most of the non-profit organizations, as well as government departments, use this type of PR, however, commercial businesses employ this PR model too. Two-Way Asymmetric Under this model of PR, the overall purpose of public relations within any organization is to engage into scientific persuasion in which the nature of communication is two way but is imbalanced. This means the organizations following this model of PR tend to take feedback from the public, however, give more importance to their own communication rather than the feedback received from the public. Research is one of the essential components of this type of model and most of the competitive businesses having commercial activities tend to follow this type of approach. Two Way Symmetric This is probably the most important model of PR which takes into consideration the latest changes in the way PR is being viewed within the organization. This view suggests that PR is, therefore, for developing mutual understanding and the overall direction and nature of communication is two way and balanced in nature. This approach, therefore, requires organizations to actually take a balanced view of the feedback received from the public, change and modify their strategies and actions accordingly. It is, however, critical to note that such type of PR model suits businesses which are regulated in nature and therefore can bear high cost of disseminating wrong and one-sided information. The above discussion outlines that different models of PR are limited in their scope and are followed by different types of organizations under different conditions. This also outlines that there is no consensus with regards to finding a universal model for PR which can be applicable to all the organizations, especially commercial organizations. The applicability of these models, therefore, inherently limit their ability to define how organizations should chose to respond to different critical issues and what sorts of strategies could be developed in order to deal with certain specific situations. Financial Crisis and Public Relations Developed economies are going through economic recession wherein overall consumer confidence is low because of the failure of the firms to protect the interests of the society as a whole. Many however, argue that financial crisis became a nightmare for firms because of their poor PR activities and ill planned response towards difficult economic situation which arose as a result of these financial crises (Sterne, 2008). Not only firms failed to use PR effectively but governments also seem to be unable to deal with a situation, which has created a crisis of confidence. It has been suggested that the current crisis is also the crisis of confidence as businesses failed to develop open, transparent and two-way lines of communication. Government also seems to be failing in terms of not informing public about the possible consequences of the recession and how it can actually affect the lives of ordinary consumers (Dann, 2009). In order to manage the organizations successfully and help organization to have an impact on their marketing as well as on sales, PR can be an effective tool. In the times of financial crisis, organizations can achieve better marketing exposure by utilizing following effective techniques and principles: Be Accountable One of the key principles to use PR for improving the marketing and sales efforts of the organizations during the current financial crisis is when organizations become more accountable towards the crisis. Organizations need to make sure that they share the burden of responsibility for whatever is happening currently with the economy and how they can improve upon this to present better opportunities for their consumers. Current organizations can take the example of Tylenol crisis when Johnson & Johnson took full responsibility of the crisis though it was not their fault. Organizations however, need to avoid the approach taken by the likes of Exxon wherein on sinking of its oil tank; firm blamed the Capitan of the ship rather than taking full responsibility of the event (Ashcroft, 1997). In an economic environment where saving trends are increasing because of the prevailing fears about the future of economy, consumers may not be willing to risk their money or spend them quickly. Such tendency therefore can naturally restrict the marketing and sales potential for the firms. However, if firms become more accountable for their actions and fully take responsibility and effectively communicate the same to the general public they can improve the situation. Communicate Directly with the Public During the financial crisis when the overall sentiment is against the firms, especially financial institutions, it is important that CEOs and senior management of such organizations should come out and speak directly with the public. This can be achieved either through TV and Radio interviews or engaging the public on other platforms (Jempson, 2005). Smaller Credit Unions in US has been engaged in this practice wherein they have openly and directly communicated with the public to withstand the general belief that financial institutions have become weak and doing business with them may be risky. In such situation, it is important that PR managers must pursue senior managers of their organizations to actually come out and face the public. This would also be important due to the fact that public wants to know the direct information from the people who are at the helm of the affairs of the firms. Direct communication through TV and other media therefore can really serve the purpose of organization in terms of using PR as an alternative to marketing activities. It is critical that PR managers must collaborate with the media, especially TV and print media, in order to portray good things about the organization including the direct interviews with top management of the firm. Larger organizations can even afford to have them spotlighted during prime time in order to extend their reach in their target market by appearing during the times when overall viewership is relatively greater as compared to other times. Using Social Media Social Media is the new reality for the firms and offers a very wide strategic field for the organizations to increase their overall reach in the market. Social media offers a direct opportunity to the firms to engage with their target market and therefore PR through social media can be one of the significant aspects of increasing sales and marketing. Social media tools, such as Facebook, Twitter, Stumbleupon and LinkedIn, can really offer a relatively cheaper and more effective method of coming face to face with the desired market of the firm. PR managers can even arrange for paid discoveries as well as use the social media to penetrate further into the market through spreading word of mouth. Social Media can be one of the most effective methods of spreading word of mouth and hence can be very effective (Tian, 2011). YouTube can also be one of the relatively cheaper alternatives to electronic media wherein firms can actually open their own channels to directly communicate visually with their target market. This can be relatively more effective as consumers can directly see and comment on what firm is saying and firm can take that feedback to further refine their product offerings. Social media can also serve as a cheapest way of developing two-way communications. Many firms including Oracle, CISCO, Apple and other smaller and larger firms have their YouTube channels or are using YouTube advertising as a tool to generate better PR for their firms in order to improve their sales and market visibility. Conclusion Public Relations as a discipline has evolved over the period of time as more and more variations were added to it. In its essence, Public Relations or PR is a function of organizational communication wherein a firm tends to communicate with its public. Over the period of time, the way firms approach PR has changed and the role of PR has further dramatically changed during financial crisis. Many now argue that role of PR is more of that of an intelligence and analytic role to provide strategic insights to the higher management of the firm. PR managers therefore now need to properly and regularly communicate with the managers to inform them the strategic significance of PR related issues. In times of financial crisis, firms can increase their PR efforts by directly communicating with their target market. However, given the general sentiments about the firms, it is important that firms must accept the responsibility and become accountable for the crisis which has engulfed many developed countries. The use of social media can also be one of the key strategic assets available to PR managers to actually penetrate further into their target markets and develop one to one communication with their customers. Social media can also offer an opportunity to spread word of mouth hence PR managers need to design their strategies in a manner which can give them most exposure. Higher level of exposure can result into better marketing and improved sales for the firms. References Ashcroft, L. S. (1997). Crisis management - public relations. Journal of Managerial Psychology, 12(5), 325 - 332. Dann, S. (2009). Crisis communication: Practice PR strategies for reputation management and company survival. Journal of Consumer Marketing, 26 (3), 224-225. Grunig, J. E. (1992). Excellence in public relations and communication management. London: Routeldge. Heath, R. L. (2001). Handbook of public relations. New York: Sage Publications. Jempson, M. (2005). Spinners or sinners? PR, journalists and public trust. Journal of Communication Management, 9(1), 267 - 276. L'Etang, J. (2007). Public relations: Concepts, practice and critique. New York: SAGE Publications Ltd,. Smith, R. D. (2005). Strategic planning for public relations. London: Routledge. Sterne, G. D. (2008). Business perceptions of public relations in New Zealand. Journal of Communication Management, 12(1), 30-50. Tian, R. G. (2011). International communications strategy: Development in cross-cultural communications, PR and social media. Journal of Consumer Marketing, 28(3), 242 - 244. Wilcox, D. L. (2003). Public relations. New York: Allyn and Bacon. Read More