How to create a powerful marketing message

Marketing messages on a gray board

We are all over-messaged in this harried world – absolutely bombarded with thousands of messages every single day. So how can your business stand out?

To be successful, your company’s marketing must be creatively distinctive. That’s what it takes to:

  • Capture the attention of your target audience, and
  • Deliver a clear and memorable message.

Your marketing must be laser-focused. It cannot be everything to everybody. What should your marketing message achieve?

  • Image & Branding
  • Recognition, Credibility & Trust
  • Call to Action

Business branding basics

Your company is only as powerful as your BRAND. A company’s brand, like an individual’s personality, is unique – and should clearly convey the culture of your organization.

In a nutshell, effective branding takes:

  • Strategizing about who your company is,
  • Aligning your brand with the your company’s core values,
  • Creating an image and advertising that is distinctive, &
  • Integrating all media into an effective and memorable brand message.

These are the basics of business branding. The most successful brands maintain a consistent voice – in the media, on the web, and in person.

What is a brand strategy?

Brand strategy is the who, what, why, where, and how of branding. A well-crafted brand strategy:

  • Captures your company’s personality
  • Creates messaging that resonates with prospects
  • Establishes your company’s competitive advantage
  • Converts prospects’ interest into revenue

A good marketing firm with experience in your competitive niche can listen to key employees (and even customers) to craft a message that clearly and succinctly speaks to your target audience. It’s an important investment in your entire marketing effort – and will make your future advertising expenditures powerful.

For a great example of a rebranding campaign that achieved these objectives, consider Financial Marketing Solutions’ creative work for FirstBank. These concepts can be applied to any business in any industry.

Branding food for thought:
What’s your company’s brand?
How do customers and prospects perceive your company’s personality?
Is it what you want them to think and feel about you?

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For more resources, see our Library topics Marketing and Social Networking.

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ABOUT Lisa M. Chapman: With offices in Nashville Tennessee, but working virtually with international clients, Lisa M. Chapman serves her clients as a business and marketing coach, business planning consultant and social media consultant. As a Founder of iBrand Masters, a social media consulting firm, Lisa Chapman helps clients to establish and enhance their online brand, attract their target market, engage them in meaningful social media conversations, and convert online traffic into revenues. Email: Lisa @ LisaChapman.com

Validate Parking? Easy. Validating Your Work Life with Good Communications…..???

Man and Woman Discussing in Workplace

They had been together for more than 12 years. Clients loved their work. Everybody on the 30+-person staff toiled really hard every day. Even though there were a couple annual parties to spread good will and share the love, something was missing…..Validation.

If the above scenario sounds like your workplace, take heed. The above company is a real one — and a virtual one to boot. Perhaps the lack of a bricks-and mortar setting — or validated parking perks everyday — added to the lack of feeling like “a real company,” a somebody, an affirmed entity. But the employees really did not feel like they were working for a bona fide company until a business profile of the company in the leading local newspaper gave them that boost, that third-party validation, that blessing from outside to make them feel “whole.”

A couple of blogs ago, we looked at an international acquisition that had prepared all of the messages and nuances for the news release. And then the question was asked, “What about the employees of the acquired company and those in the existing company?” What were they being told? A public relations strategy was quickly put in place to communicate internally with the people who report to work everyday, because employees are ultimately public people too who need to be related to with the same professionalism displayed to the company’s customers/stakeholders, media and others.

Memo to self: Create the environment and tools to do that consistently and go the extra mile when big news is in the pipeline.

Internal communications are just as important as your external ones — and in some cases, they may be even more important: How many news stories have you read about “a disgruntled former employee” doing something to avenge his or her treatment, a grudge, or a valid complaint at their former workplace?

Given the variety of channels people have today to flamethrow their pet peeves or their legit rants about where they have worked, validating employees through good communication tactics is simply a no brainer. It doesn’t even have to be a story that’s written about where they work (but that kind of third-party affirmation is priceless — and has a long shelf life). But it does need to be effective.

P.S. You probably didn’t notice — and thank you, if you did — but this blog has been on vacation recently. I should have warned you, or sent a memo around, but I didn’t, I apologize. Nothing personal. It won’t happen again, dear readers and blog constituents. It’s August. If you haven’t taken your time off, get to it. The dog days of summer have set in to be followed quickly by the fall toss of the pigskin and the ringing of the school bell.

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For more resources, see the Library topic Public and Media Relations.

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Martin Keller runs Media Savant Communications Co., a Public Relations and Media Communications consulting company based in the Twin Cities. Keller has helped move client stories to media that includes The New York Times, Larry King, The CBS Evening News with Katie Couric, plus many other magazines, newspapers, trade journals and other media outlets. Contact him at kelmart@aol.com, or 612-729-8585

Online Reputation Management (ORM)

A young lady working with a laptop

Guest Post by Robert Stretch

Monitor Your Web Presence

Since anybody can publish anything online, protecting your brand is more critical than ever. One or two bad reviews wield more power than ever by influencing potential customers and colleagues.

Damage control in the form of (ORM) needs to be one of your top priorities. Online reputation management is monitoring your company’s web presence across the internet. It means watching competitors’ websites, keeping up to date on social media mentions, and monitoring what is said about you through the search engines.

What is ORM?

The gist of ORM is to keep negative content about you, your company and/or brand from popping up on the World Wide Web. Though it sounds tasking, ORM requires little time as long as it’s conducted routinely. To get started, follow a few easy steps to keep your online rep clean.

Think Like the Slanderers

People who want to ruin your reputation—such as disgruntled ex-employees or angry customers — may go to unthinkable lengths to do so. However, if you try to anticipate their moves, you give yourself an advantage. For example, it’s a good idea to buy domains similar to your primary one. But your slanderers might buy domains that defame you, such as johndoefails.com. Of course, if you buy these first, no one else can claim them.

Defend Yourself

ORM is just as much about creating new content as it is countering existing content. First, you need to discover complaints before you post a rebuttal. Start by creating a Google alert. An example for our company would be VA Mortgage Center.com complaint, and variations of that. Once you know where the content is, you may appropriately defend yourself. Getting loyal customers to write testimonials is a great strategy. There’s no harm in asking customers for their support via positive reviews on websites such as Yelp.

Stay Up To Date

Though that Google alert will help, it’s a search confined only to Google’s servers. Scavenging the rest of the information superhighway means manually searching certain terms on Yahoo!, Bing, AltaVista and Dogpile. Branch out, and try different phrases that include your name/brand/company.

Produce and Publish

Now that you know what you’re up against, it’s time to produce content. Blogs are a great, inexpensive method of publishing content. From there, you can share what you’ve done on social networking sites. Don’t get too carried away in your work by boasting excessively, but highlight some recent accomplishments.

Consider making your work a weekly or bi-monthly piece that covers everything you or your company has done. Remember, ORM is about proving that you’re a professional in your field and keeping that image squeaky clean.

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For more resources, see our Library topics Marketing and Social Networking.

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Guest Author Robert Stretch works in web development for VA Mortgage Center.com.

How to Turn a PR Disaster into a PR Victory

Group of people talking together

 

You’ve heard of the NIMBY syndrome, Not in My Back Yard. It’s never pleasant when its symptoms are first detected and it’s usually around the building of new housing that might include public housing units, or a home for the mentally challenged, a halfway house or something similar. There are plenty of examples in any city and you don’t have to look far to find them getting voted up or (usually) down.

NIMBYism showed up like the angry mob in the name your favorite angry mob-Frankenstein-like-movie-here when a client wanted to tear down a butt-ugly old and long-unoccupied bank building and build a mixed use structure that included several public housing apartments and revitalize the rest of the block with new a retail space. Said client contacted their media consultant late in the game, as they were preparing to attend their first big public meeting about the project. (As a closet screenwriter, I would offer that given the basic three-act structure of a good, well-built screenplay, we were already in the early stages of Act III and things did not look good for the home team.)

The mob had been whipped into a near frenzy about the project, with circulating flyers containing a lot of distortions and stinging calls going out to people with rant-slanted talking points and other tactics — not unlike those we’ve sadly seen slithering through the electoral process these many years. The Mob Whipper Upper (MWU) was a seasoned lobbyist at the state legislature who also had property adjacent to the site. Man, the MWU wuz good! Even one of my best friends in that ‘hood was opposed to the project based solely on the garbage put in front of him.

The big meeting featured 300-400 people from several nearby neighborhoods in a crowded church community room, and was run by a neutral third party, the League of Women Voters, who had their hands full. It was a total failure in terms of trying to win over people with our own hastily prepared materials that relied on the facts, who the owners were, and how the neighborhood would actually be better — cosmetically if nothing else — once the block was rehabbed (a city councilman who later toured the site even called it “really distressed real estate” and couldn’t see what all the fuss was about).

Nonetheless, after that first big meeting, the owners felt forced to scale back the scope of the project to just include the mixed-use building. Still, hot heads were still overheating and the MWU looked positively triumphant, as if nothing could stop the sweep of the ugly sentiment that had been purposefully generated.

The next meeting, a smaller one with the immediate neighborhood group where the new building was being proposed, also featured the city council rep from that district. Afterwards with the owners and architect and moi, who had yet to be introduced to the good gentleman, the councilman exclaimed, “This project is a PR disaster.”

“You got that right, Councilman,” I said, introducing myself as the guy in charge of the said miasma. “But we are just getting started.” He wished us well with a look that screamed, “Please don’t be seen with me in public again.”

Fast forward two months down the long and winding road: The Zoning Commission approved the project and it went forward as the NIMBY outrage faded to black once the facts got out and the public process played out. Today, the butt-ugly building is long gone. The now-attractive building has a nice real estate operation on the first floor and the apartments are all rented. The rest of the buildings on the block still look like crap, but their tawdry look just makes the new place shine so much brighter.

Here’s what we did to turn this Hindenburg flame-out into a fairly standard Space Shuttle Lift-Off — and you can do it, too:

1) We met with the editorial writers of the daily and community papers and put the facts on the table, defending the project against the MWU allegations and stressing the fact that the owners and architect all lived in the neighborhood.

Both papers’ editorial boards came out in favor of the project for all the right reasons.

2) We lined up some key interviews on public radio and a couple of commercial stations. During the public radio interview with the MWU, wherein MWU was asked about NIMBYism, the interviewer offered enough rope and MWU took it like a lunk-headed fish chasing after and biting a fancy lure. Hook!

3) We contacted daily and community reporters to cover subsequent meetings, which did not play that well in the press for the angry mob, and it quickly grew thinner and less vociferous as the drama came to a conclusion.

4) We sent out a simple direct mail piece asking people to call local government and support the project, offering the talking points that we used in our media materials.

5) The owners met with people willing to talk with them around the neighborhood. One of them, who really knew her away around the housing bureacracy and city hall, worked all her contacts and sent them our background materials when requested. In short, the client made nice ‘cuz that’s who they were.

And that’s how a PR disaster morphed into a PR triumph, which was a win ultimately for all parties, even the ones who once opposed it.

“All’s well that ends well,” the poet says (and it’s easy for him to say, he didn’t fight battle).

“Roll the credits,” adds the closet screenwriter (including the line, “No MWUs were harmed during the writing of this blog”).

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For more resources, see the Library topic Public and Media Relations.

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Martin Keller runs Media Savant Communications Co., a Public Relations and Media Communications consulting company based in the Twin Cities. Keller has helped move client stories to media that includes The New York Times, Larry King, The CBS Evening News with Katie Couric, plus many other magazines, newspapers, trade journals and other media outlets. Contact him at mkeller@mediasavantcom.com, or 612-729-8585

Six Steps for Getting National Media Coverage

Fingers climbing a step stairs

Guest post by Drew Gerber

PR expert Drew Gerber has insider advice for us – quite exciting for small business owners:

National Media Coverage

Getting national media coverage in top print, broadcast or online media can boost your business in ways it is hard to imagine.

A single placement in a glossy national magazine is worth tens of thousands of dollars, sometimes a lot more, and not just in the value of ad space in the publication. Getting covered by national media lends a level of credibility, prestige and buzz that money cannot buy.

Sales Skyrocket

At Wasabi Publicity Inc., we sent out a pitch that landed author Dr. Jill Murray on Dr. Phil’s TV show less than eight hours after she had signed up as a client. Within one week, that same pitch also got her coverage with CNN Weekend News, Issues with Jane Velez Mitchell, 20/20, syndicated radio shows, and several magazine articles. Sales rankings of Dr. Jill’s newest book “But He Never Hit M” shot up to number 16 on Amazon.com and number 23 on Barnes & Noble within hours of her Dr. Phil appearance (see the exact pitch at http://www.publicityresults.com).

Despite the enormous value of national publicity, many business owners and entrepreneurs don’t understand how to go about attracting the media’s attention. It’s not complicated if you follow six basic steps:

1. Brand Your Message

Be crystal clear about who you are, what makes you unique and why the media should care. Assure you have a consistent message by having all your press materials ready before the press calls. A great way to do this is to get an online press kit. We created a technology called PressKit 24/7 (http://www.presskit247.com) which allows people to create press kits simply and easily without any special technical knowledge. More than 90 percent of journalists prefer to get their information from the Web. Having an online press kit is crucial to giving them the facts they need to cover you, your product, service or business.

2. Develop Your Pitch

Pretend you are in an elevator with Oprah and have 30 seconds to tell her why she should have you on her show. Your pitch should be concise, reflect your passion and stress what makes you unique. As PR professionals we have found that short pitches are often more effective for getting the media’s attention than long press releases.

3. Find the Media

The Internet provides countless ways to research media that may be interested in you. Pitchrate.com (http://www.pitchrate.com) is a free service we created to connect media and sources. You can also research media list sites such as http://www.usnpl.com. Watch your favorite show and find out the producer’s name from the credits, or read your favorite newspapers and magazines to find out who covers your topic area. When you contact reporters, compliment their work to let them know you have taken the time to research.

4. Respond Immediately

When the media calls or emails expressing interest in covering you, respond immediately. Reporters usually work on very tight deadlines, so the sources that respond fastest with the most concise and useful information are most likely to get covered.

5. Be Prepared

Thoroughly prepare for your interview. Decide what you want to say and practice saying it in short, concise sound bites. This is where professional media coaching can be valuable, since many people have had little experience in front of cameras and microphones.

6. Keep it Simple

Try practicing what you plan to say in front of an 8-year-old. Really! If you do this and the child can repeat back to you what you have said, you know that you’re communicating in a way that’s easy to understand.

So remember: brand your message, hone your pitch, find your media and give them what they need to make interviewing you interesting and rewarding. That brings us to a final piece of most important advice: Focus on what the reporter needs and how you can provide content that is useful to the audience, rather than hard-selling yourself or your product. Remember, you are getting great publicity for free, and pay it forward!

Have you garnered great free publicity? Share your story with us.

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For more resources, see our Library topics Marketing and Social Networking.

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About the Author:

L. Drew Gerber is CEO of www.PublicityResults.com and creator of www.PitchRate.com, a free media connection service for journalists, experts, and publicists. Sign up now for free publicity advice including a free online marketing course. Gerber’s business practices and staffing innovations have been revered by PR Week, Good Morning America and the Christian Science Monitor. His companies handle international PR campaigns and his staff develops online press kits for authors, speakers and companies with Online PressKit 24/7, a technology he developed (www.PressKit247.com). Contact L. Drew Gerber at: AskDrew@PublicityResults.com or call him at 828-749-3548.

In Reaching out to the Media, Don’t Forget Your Backside

Young lady recording herself with a smart phone

 

Public Relations is often about telling your story to the media. But what about the people who work for you?

Making news begins at home. It’s possible to send a strong new message to the press that covers your industry, or your company if you’re a big player. But is your message to the media the same one that you are telling internally? Internal communications can sometimes get left in the margins, or not fully engaged. The complications from that scenario should be clear but some of the more obvious ones — like keeping morale high during a transitional phase or a new C-level hire — can get lost or murky in the process.

Case in point: Last year a large, privately-held US company acquired a manufacturing concern across the pond. After a series of meetings to get clear on the media points and overall strategy, a couple of us PR types looked around the room and saw the client contented as clients can get (a good thing). But then we asked, “How are you handling the news here in the US with your employee base and how are you handling it abroad inside the company that is getting acquired (in a country that was already bleeding jobs because of the ‘deep recession’)?”

The three people on the client side of the desk looked at each other and then at their PR people and their contentment turned into a sour cream-like substance. They hadn’t thought of this piece at all. After another round of discussions, all parties agreed that a clear message should be crafted for the presidents of the two merging companies to share with their employees. Each message would reflect the overall merger-and-acquisition announcement but individually there would be take-home news for the workers and their families.

For the US-based employees (who might fear that such an acquisition would mean eventual cut-backs in the labor ranks to help fund the acquisition), the message was simply, “We are expanding our footprint abroad, which will add to our ability to market and manufacture more heavily on the continent. And there will be no loss of jobs in North America.”

For the company abroad being acquired, the message was similar but the nuance was slightly different: “Given the state of the country’s economy [worse than here], we want to assure you that the new ownership does not plan any layoffs at this site, or the other operation (in another city not so far away). In fact, not only will jobs be preserved, the acquisition will create even more positions in the near-term.”

The day the news went live on the international wire at noon, employees at both organizations had already been briefed at a company meeting two hours before the announcement. When the story was reported, both messages were conveyed in the US news release and the release abroad. The coverage was overwhelmingly positive everywhere it was reported. In fact, in the country where they acquisition was done, the news tone was often jubilant!

Moral of the story: Watch your backside in all your communications. Be uniform in your messages and personalize them to your internal audiences whenever you can. It goes a long way — and you won’t have that scent of cream going sour in the employee kitchen when the big news is coming down all round the people who make it happen every day they get up and go to work for you.

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For more resources, see the Library topic Public and Media Relations.

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Martin Keller runs Media Savant Communications Co., a Public Relations and Media Communications consulting company based in the Twin Cities. Keller has helped move client stories to media that includes The New York Times, Larry King, The CBS Evening News with Katie Couric, plus many other magazines, newspapers, trade journals and other media outlets. Contact him at mkeller@mediasavantcom.com, or 612-729-8585

A Little PR Can Go a Long Way

Man in a meeting in a black dress

Guest post by Drew Gerber

Today I have the pleasure of introducing you to a PR expert, Drew Gerber, with plenty of helpful tips and insights for small business owners. This article was written by Drew Gerber:

Your PR Campaign

Hiring a publicist or doing your own PR isn’t something most small business owners or entrepreneurs really want to do. You’re busy running the day-to-day operations that keep the doors to your business open and investing the little time and money you may have just doesn’t seem feasible or realistic. Sound familiar? But think about this. Whether you’re just starting out or have been in business for a few years, media exposure is valuable to your success — just a little work on your PR campaign a day can produce tremendous results.

Valuable and Unique Message

At the very least you have to have a strong brand and message. They’re what define you, and what will help differentiate you from your competition. When creating your brand and message, look to combine what makes you a) unique and b) valuable to your target market. Valuable and unique messages produce great PR campaigns and will attract better and more loyal customers.

Your Unique Message – Your Mantra

After you’ve created your brand and message it’s important to employ consistency into all aspects of your business. You have to give the same messages over and over again through interviews, your pitches and your press materials, so be consistent and make your message your mantra. A repeatable and unique message is what will make you stand out from the crowd, forcing people to remember you and your product.

Your logos have to be a direct reflection of your branding and messaging too, along with all the little things like your voicemail message, how you answer your phone, your website design, etc. Think about it: If you’re branding your business as a fun and carefree company and your voicemail is dull and unenthusiastic, you’re not really holding true to your brand.

The thing about PR is that it’s in everything you do. It’s not just about landing interviews on television, it’s about how you interact with the public — how you deliver your message to make yourself stand out from the crowd.

What ways have you found to stand out from the crowd?

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For more resources, see our Library topics Marketing and Social Networking.

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L. Drew Gerber is CEO of www.PublicityResults.com and creator of www.PitchRate.com, a free media connection service for journalists, experts, and publicists. Sign up now for free publicity advice including a free online marketing course. Gerber’s business practices and staffing innovations have been revered by PR Week, Good Morning America and the Christian Science Monitor. His companies handle international PR campaigns and his staff develops online press kits for authors, speakers and companies with Online PressKit 24/7, a technology he developed (www.PressKit247.com). Contact L. Drew Gerber at: AskDrew@PublicityResults.com or call him at 828-749-3548.

Your Marketing Message – Is it Timely?

Young lady holding a blank card

Listen to What the Market Tells You

If your marketing message hasn’t changed lately, perhaps it’s time for a fresh approach. But the days of engaging a traditional marketing or advertising agency (to come up with a catchy campaign for you to push out to the masses) are over. Way over.

Did traditional ad agencies ever really know what the target market truly needed? The old approach – one-way push marketing – relied on researching broad demographic information, created a memorable marketing message, and mounted an expensive ad campaign. They spent a lot of money – but did they ever really LISTEN to the audience? And, if not, how could they truly know what the audience needed?

New Marketing Messages Authentically Solve Customer Problems

Through new media, companies now listen; and from those learnings, the marketing message becomes clear:

  • Potential customers voice their pain and needs
  • Companies listen and interact with them, beginning real relationship
  • Marketing messages can now communicate how the company can help solve the customers’ pain and problems
  • By giving first, companies build trust and long term value

Traditional ad campaigns took huge budgets, long years, and one message repeated constantly. Now THAT’S risky!

New Marketing Messages are Less Expensive

Enter the little guy…who now competes with the big brands and builds relationship online just like they do. Huge budgets aren’t necessary. Fancy agencies with contrived messages aren’t relevant. And today, one little customer’s voice published online can make a difference – getting a company’s complete attention.

If you haven’t seen the video, “United Breaks Guitars” (8.7 million views – and it’s fun!), along with the accompanying CNN news coverage of its viral impact – it’s well worth a few minutes of your time to show how one bad customer service situation can now become a giant company’s PR nightmare.

So, if your marketing campaign could use a refresher… log on to the internet and listen. Then interact, engage, give, and build relationship.

What are your favorite places to log on and listen to your customers? Your Competitors?

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For more resources, see our Library topics Marketing and Social Networking.

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ABOUT Lisa M. Chapman: With offices in Nashville Tennessee, but working virtually with international clients, Lisa M. Chapman serves her clients as a business and marketing coach, business planning consultant and social media consultant. As a Founder of iBrand Masters, a social media consulting firm, Lisa Chapman helps clients to establish and enhance their online brand, attract their target market, engage them in meaningful social media conversations, and convert online traffic into revenues. Email: Lisa @ LisaChapman.com

Don’t Forget Freelancers —A PR Tip for the Fourth

Young male freelancer smiling while holding a laptop

Cast a wide net. No, not fishing advice, or an Internet command. If you feel you have exhausted your outreach to conventional reporters, editors, producers and assignment desk people, despair not in your quest for coverage. Consider the freelance writer or producer. They’re out there, and they are more in demand now than ever before as media companies trudge through the recession with less staff. Of course, there are more freelancers now than ever before, too, but that’s another story.

Said companies often will backfill with a little help from the brave and noble freelancer (and these days, that can often be a former staffer who was cut or opted out). I can’t think of a section of the Star Tribune in Minneapolis, for example, that doesn’t rely on one or two freelance bylines every day of the week. Knowing who they are and what they cover can be a good way to pitch your story if you’re not working with a PR agency or consultant.

Advantages to Working with Freelancers

1) Freelance writers and producers usually have tight connections to editors, upon whom they rely for work — and vice versa. It’s a mutually beneficial relationship, usually grown over time that proves its worth with every publication or piece that makes its way into your local newspaper, on to a radio or TV broadcast, and into a magazine.

2) With the economy, or recovery, or whatever you want to call it taking its sweet time to make the nation whole again, it’s likely that this trend will become more commonplace. Magazines have always used an abundance of ‘lancers to fill their pages because it’s a business model that works. Newsprint and to some extent, broadcast are now embracing it.

3) Freelancers are hungry for work. Speaking from personal experience, the nonaligned scribe either is hustling to make ends meet and/or working a part time job so they can do what they love more, write or produce. If you feed them a good story, chances are they will come back to you when their own story ideas run out, or perhaps offer you as source in another piece — thus achieving one of the goals in PR: to make media aware of you enough so that they call you as source rather than your PR person. It happens. All the time.

4) Freelancers generally abide by the same rules and professional conduct of those in full time positions so there’s no need to feel that these individuals are somehow second-rate or are not to be trusted or won’t do a good job. I know a handful of freelancers that write and produce circles around their peers and I often pitch them as regularly as I do the folks “inside.” And they usually have more time to hear your pitch.

5) Freelancers can turn into staff employees overnight. When hiring freezes go away, job offers sometimes go to these individuals first. Having a good relationship with a freelancer in that case just become a huge plus for your or your organization.

Do your homework and see who’s freelancing articles in the media you need to reach. Given the many means of finding contact information on many social networking sites, or by just calling the media company where that person is contributing work, can usually get you the information you need to make the connection.

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For more resources, see the Library topic Public and Media Relations.

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Martin Keller runs Media Savant Communications Co., a Public Relations and Media Communications consulting company based in the Twin Cities. Keller has helped move client stories to media that includes The New York Times, Larry King, The CBS Evening News with Katie Couric, plus many other magazines, newspapers, trade journals and other media outlets. Contact him at mkeller@mediasavantcom.com, or 612-729-8585.

The Luxury Brand Effect: Should BMW Sell Ketchup?

Black and Silver BMW Emblem

Top Brands in Trouble

Luxury brands the world over are continuing to struggle. Coach, a luxury leader in the leather handbag market, has experienced quarterly profit slumps exceeding 30%; Saks’ same-store sales down in excess of 23%; BMW’s U.S. sales taking a 28% nosedive; Well, you get it.

And consulting firm Bain & Company predicts that the 10% or greater drop in the overall luxury market won’t recover until 2012. Time magazine give us insightful new ideas:

Diversify – The Promise of Pleasure

“What can these brands do to battle this malaise? Maybe BMW should try selling ketchup or mayonnaise. It’s not as ridiculous as it sounds: according to a study in the Journal of Consumer Psychology, recession-wracked shoppers are eager to embrace luxury brand names over a wide range of product categories, including those with little logical connection to the brand’s core item. The authors attribute this phenomenon to the “promise of pleasure” — a brand like, say, Cartier evokes strong, positive emotional responses in consumers, and those good feelings can be easily transferred to stuff like furniture, cheese and even, yes, ketchup.

Expand Luxury Brand Portfolios

“The message for luxury brand sellers is to expand their brand portfolios to small extravagances. The availability of Coach keychains or Gucci flip-flops allows consumers who are cutting back to re-experience the pleasure of consuming luxury without paying a fortune. During a downturn, it’s easier to pay $10 for a nice bottle of ketchup than $60,000 for a sedan (although the ketchup doesn’t handle as well).

Don’t Overdo Luxury Brand Extensions

“There’s a danger in overdoing it, though. Pierre Cardin is the poster child for bad brand extension, according to the Harvard Business Review. “By 1988, it had granted more than 800 licenses in 94 countries, generating a $1 billion annual revenue stream — and profits plummeted,” the authors wrote in a 2005 article called “How Not To Extend Your Luxury Brand.”

Thanks to Time Magazine for the original article.

Time.com in partnership with CNN; By Sean Gregory, Aug 05, 2009

For this article in its entirety, see Luxury Brand.

What diversification opportunities do smaller brands have in this economy?

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For more resources, see our Library topics Marketing and Social Networking.

. . ________ . .

ABOUT Lisa M. Chapman: With offices in Nashville Tennessee, but working virtually with international clients, Lisa M. Chapman serves her clients as a business and marketing coach, business planning consultant and social media consultant. As a Founder of iBrand Masters, a social media consulting firm, Lisa Chapman helps clients to establish and enhance their online brand, attract their target market, engage them in meaningful social media conversations, and convert online traffic into revenues. Email: Lisa @ LisaChapman.com