Month: December 2015

Sometimes no matter what one does to run a business safely, someone deliberately breaks the rules and gets hurt.  Consider this.  The two men had no right to be present in the area nor any business that would grant them access.  Yet, they were there and the hotel has a PR problem on its hands.  It’s frustrating for management to have to deal with the Boob Factor, and it is a burden on industry in general.  Look at warning signs attached to a ladder, for example.  One wonders when and where personal responsibility takes over in accidents.  Chances are that no lawsuit will be filed for negligence against the hotel, but the hotel can’t be sure.  Hence, it has to deal with the incident as if it will become an issue.  There are many PR challenges a hotel has to consider in the ordinary course of business.  It doesn’t need this.

Samsung is making a play for publicity by revealing in advance of the giant CES its futuristic concept products.  It is a smart move.  Hundreds of gadgets debut annually at the show and it taxes the stamina of reporters and editors to cover them all. It is easier to let them know before the show begins when there is time to highlight features and functions.  Samsung is not the only company doing this, of course.  Others are as well.  The outcome of too many marketers looking for advance scoops is that few will get them because once again reporters and editors will be over burdened.  Probably the best approach is to ignore CES and to reveal concepts and products later in the year when there is less competition.  There is no easy answer to brain-clutter that such a show produces.  For many, it is a matter of luck to be covered by the media.

Often when a new electronic device fails in the marketplace, there is no second chance for it.  People scarcely remember the product and what it was supposed to do.  That is why this story is interesting.  Google is reluctant to give up on its Glass series of eye wear in spite of withering criticism it faced when it first came out and fears of invasion of privacy.  The company says it has fixed the previous problems and is now going to offer Glass to companies rather than consumers.  One wishes Google good luck but the chances of Glass becoming a frequently used product are slimmer than they were when it first appeared.  That is because few people who bought Glass the first time around found a must-have use for it.  The product seemed more like a gimmick than an essential tool.  Google needs to market Glass with time-saving activities and practical tips for employing it — much like other electronic products have done.  Public relations will be an important part of the roll-out.

What is happening to drug pricing is an example of why government cannot allow unbridled capitalism.  Some pharmaceutical companies are beginning to charge what the market must bear for medicine, and since there are no other places for consumers to go, they have to fork over bank accounts for life-saving drugs.  This is wrong.  The companies know it.  It is monopoly, and it shouldn’t be allowed to force patients to determine whether they can function or not.  It is bad public relations, and there is hardly a message that can be constructed to defend sudden, massive price increases.  Drug companies will say it is to pay for R&D, but that is a hollow claim. It is greed.  These companies are spurring the government to act, and if they dislike intrusion into their affairs now, wait until there are price controls.  A few bad actors can and will disadvantage an entire industry.  If ethical pharmaceutical companies are smart, they will band together soon to isolate unethical firms and pressure them to moderate their pricing before the government takes action.

This roster of tech companies that were losers in 2015 is a reminder to PR practitioners, as if they needed one.  Nothing is permanent.  Few companies last 50 years.  Fewer still remain in business for 100 or more.  When one thinks about old-line industries — autos, industrial equipment, chemicals — the number of survivors is miniscule by comparison to the beginning of their businesses.  For example, at one time there were 300 auto companies in the US, all vying to be the permanent replacement of the horse-drawn carriage.  The same consolidation is taking place among tech firms and in 25 years there will be fewer of them once the Internet of Things is fully developed.  There will be a few giants who have the prospects of remaining for the long run and tiny firms hoping to sell out to them.  There is no guarantee that Amazon, Apple or Google will still be in business or Hewlett-Packard or IBM.  All these companies face renewal when they have to shift their businesses dramatically to survive — as HP already has done and IBM is attempting.  If nothing is permanent, how does one position a company for the long term?  The only solution is in-depth listening to and observation of customers — what they need — and rapid fulfillment of their desires.

Jeff  Bezos of Amazon is making his mark at the Washington Post.  Rather than tinkering with the editorial product, he is spending most of his time focused on the customer experience and technology. These are areas in which he has few equals and his attention is paying off.  He is a benign owner of one of America’s great newspapers and soon to be great digital product.  From a PR perspective, Bezos is doing well.  He is keeping the faith for readership and delivering news consumers want.  Rather than directing editorial to reflect his views, he is allowing the independence of journalists to remain.  He can serve as a model for news media owners who see their product as a bully pulpit and sacrifice their credibility as a result.  If Bezos can successfully transform the Post for the digital age, that will be as remarkable a feat as building his online emporium.

How can a security company continue to operate when it admits it lied about protecting customers?  This is the situation in which Lifelock, the so-called security firm, finds itself.  Lifelock has paid a $100 million fine to the Federal Trade Commission for deceiving customers.  Yet the business continues.  It lacks credibility.  It doesn’t do the job it claims.  About the only thing in its favor is a fear that one’s identity will be stolen.  I would not be surprised if the business goes bankrupt in a matter of months.  On the other hand, if Lifelock can continue to play on people’s angst, it might squeak through.  Would you trust a security company that cannot protect your personal data?  Lifelock is a cruel joke played on a naive public, and it is next to impossible to do public relations for a business like that.

Thirty four Muslim nations have formed a coalition to fight ISIS.  The question remains open whether it is a serious effort or spin.  It will be public relations if the coalition acts to destroy ISIS.  It will be spin if it doesn’t.  PR is what one does and not what one says.  Action needn’t be dropping bombs on ISIS targets, but it could be strong coordination in rooting out cells of the terrorist group and giving them no place to go. It also could be committing ground troops to the fight in Iraq and Syria. The potential for action is broad but the will to act is the question.   Time will tell how successful the coalition is. Banding together is just a start.

It takes marketing insight and creativity to solve long-standing consumer headaches.  Here is a successful example.  Every householder has a need for maintenance services demanding capabilities beyond the householder’s skill level.  And, therein is the headache.  One doesn’t know who to call except by asking neighbors or clicking through web sites.  The problem with web sites is that they don’t tell one whether the service provider is prompt, knows what he or she is doing and charges a fair price.  The Happy Home Company solves those issues.  Rather than 10 or 20 calls, there is just one call to make, saving time and angst, and a case manager is assigned to the issue to make sure it is resolved.  That is smart marketing.

Often, facts fly in the face of conventional belief.  Consider this case.  It is hard to believe that lettuce produces more greenhouse gas than a pig.  But, if the scientists have calculated correctly, vegetarians contribute as much or more to global warming as carnivores.  Try explaining that to a skeptical reporter.  Sometimes PR requires persuasion against popularly held notions and the task is doubly hard.  One needs to find a journalist who is open-minded and willing to take facts as they are.  Not surprisingly, members of the media have biases whether they accept it or not.  They are convinced that a CEO of a company is a crook and all the evidence in hand won’t change their minds until the CEO is tried and found innocent.  Even then, many, if not most, will say the CEO got away with it.  One thing is certain. In a counter intuitive circumstance, one must have powerful facts in hand to shake the worldview of the party being persuaded.  Opinions won’t change minds.