Marketing/Public Relations Service Industry Focus

When business is good, it's especially good for firms specializing in marketing and public relations services.

Globally, more than $520 billion was spent on marketing and public relations in 2004 — a clear indication that the industry has recovered from the slump following the events of Sept. 11, 2001.

Marketing professionals focus on creating brand image for both companies and products. They create and implement tactics to engage consumers, including advertisements, direct marketing, media planning and buying and event marketing. Public relations professionals manage relationships, including those with media, and engage in public education and event management.

However, changes in the role of marketing and PR professionals in recent years have broadened their involvement and impact on client firms. More and more, these professionals are asked to step beyond their traditional disciplines and participate in a meaningful way in companies' strategic decisions and future planning. In other words, they are not only asked to communicate where a client firm is today; they are also asked to help shape where it will be in the future. Most owners and managers have learned that a good business strategy includes a solid communications strategy, so communication issues are being considered earlier in the decision-making process at the top level of a company.

The marketing and public relations industries are continually challenged by the need to evaluate the effectiveness of their efforts. Many client firms insist on measurements and metrics to demonstrate marketing's relevance to the company. Many firms will not willingly pay a retainer fee indefinitely without a clear demonstration on the return on their marketing investment. As a result, many firms either hire the talent in-house or outsource it to a professional free-lancer on a project by project basis.

An additional challenge for some firms is finding the right people for the job. Clients pay high dollar for good marketing and public relations counsel, and they have high expectations. In an industry that is characterized by fluidity and change, keeping staff around to ensure a consistent contact on a day-to-day basis can be an obstacle.

The welcome news for marketing and public relations professionals is that as the economy has steadied, more companies are boosting their marketing and public relations budgets. This means there are more and more opportunities to pitch new business, but there are also opportunities to enhance services to existing clients. Agencies should target companies and industries primed for expansion and work not only to understand a client's vision, but also its resources. If a firm's track record is solid and its new ideas are strong, most clients will find more money to expand the relationship.

We live in the era of "buzz." Good public relations operators are masterful at embedding their client's brand in editorial content, getting people to events, identifying the influencers who cause us all to buy and creating word-of-mouth buzz. Publicity through public relations is one of the most powerful and economic routes to exposure for your company and should be one of the ways you seek to promote yourself – even before advertising and direct mail.

When choosing an external firm to handle marketing and/or public relations, the selection process is critical. Find an agency that can plan an entire campaign and one that can get inside the company to fully understand its message and needs. Find someone who can identify the magic in your company and make that magic newsworthy. And find someone who can fill the gaps in your company. There is no point in paying an agency for the skills you already have in-house.

In searching for that special firm, ask these questions:

• What if their specialty? Look for someone who has worked for other clients in your field.
  
  
• Whom will you work with at the agency? Everyone wants a senior staff member, but if you can't have that, find someone with whom you can communicate, regardless of tenure.
  
  
• How much do you want to spend? Know your budget, and don't always look for the swankiest offices in which to spend it.
  
  
• How important is location? With today's technology, location isn't that critical an issue, unless you need to ensure that your agency is networking with a certain regional press, and then you need to make sure it has easy access. Likewise agencies should be visible at trade shows and events so they can network on your behalf with area business, media and organizations.
  
  
• Do you need marketing or public relations? Don't fall into the trap of believing that public relations is an easy add-on to marketing. It isn't as simple as dropping press releases into the mail for the target area. Relationships with media make all the difference.
  
  
• Whom do the media like to work with? Ask trusted editor with which firms do they prefer to work? They will tell you which agencies are most responsive and helpful.

At the end of the day, it's all about fit and finding someone who can build as good a relationship with the client firm as you hope to build with your customer.

- Mary Paulsell, Director, MU's University Center for Innovation and Entrepreneurship 5/26/06