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New Year - New Opportunities |
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On an individual level, businesses need to consider what an economic boost will mean to them both in terms of new opportunities and in terms of continued action to manage costs and control risk.
As many suggest, an improving economy may not necessarily mean more jobs. As companies have weathered the economic downturn, they have learned to do more with less - and are likely to continue to do more with less for the forseeable future.
This suggests both challenges and opportunities for all businesses. As we move into a new decade, I for one am choosing to focus on the opportunities and I think they are many, particularly for small, entrepreneurial businesses. Here's why:
- We can do more with less. We're not encumbered by high overhead which means we can be more competitive in our pricing.
- We can move quickly. While every business faces challenges, small businesses are better able to act nimbly and change course quickly.
- We are seeing increasing demand for services from companies who are choosing outsourcing over hiring more staff. Larger companies are weary of cutting staff. Not only is it less risky for companies to outsource or work with contractors, but they can also gain value from the contractors' broader experience with multiple clients.
- We're freer to experiment with social media - we have the time and opportunity and we're not hampered by corporate policies that restrict what we can do.
Happy New Year! As we move into 2010 I'm energized by the possibilities. I think 2010 is going to be a very good year! |
Research: When is Enough Enough?
Moving forward with communication tactics without a good understanding of the target audience, their current attitudes and beliefs and the drivers that might lead them to positive action relative to your product or service is never a good idea.
On the other hand, many companies - particularly small companies - don't have the time or resources to invest in expensive research activities.
It's a conundrum - but one that can be addressed along a continuum that can help you balance risk and reward.
You will never have a 100% go/no go decision based on any level of research. If you did, we'd all be wealthy beyond our wildest dreams! The best you can do is to minimize the risk you have by gaining progressively more information about your target audience based upon the time, money and "brain power" (e.g. internal or external expertise) resources you have available to you.
In determining what type and what level of research activities to consider, here are some questions to ponder:
1) How risky is the tactic you're considering? Sometimes "just doing it" can be research enough if the price is right. Trying an email blast to a specific target group to promote a new offer can be relatively inexpensive - so inexpensive, in fact, that doing research to see whether or not you should do it might cost more than simply doing it! On the other hand, developing a several-thousand dollar multi-media campaign involves significantly more risk and might benefit from some investment in research to determine whether your messaging, offer, etc. will resonate with your target audience.
2) How much do you already know? Many businesses fail to take advantage of the information they have readily available through existing records about customer activities. Mine your own existing data - at no cost but your time - to give you some insights into who your customers are. And, if you don't already have good data on hand, take steps to start collecting information that can help you learn more about the customers you currently serve - so you can go out and look for more people like them.
3) How much can you learn from others? It's not always necessary to conduct primary research. There may be sources of secondary research (information gathered by others) that may be relevant to your target audience. Granted, the secondary information may not specifically address your product, or your geography or the specific traits of your desired audience, but sometimes something is better than nothing at all.
4) What resources do you have at your disposal? Do you have internal staff with expertise (or interest) in market research? Do you have access to local resources - perhaps from area universities - to provide low-cost/no-cost support? Do you "know someone" with experience in research that you might "trade services" with? Consider your options and the cost of those options compared to the risk of moving forward without solid information.
In business, we always have a certain level of risk we deal with in every decision we make. The goal is to make "well-reasoned" decisions based on the information we have available. The *key* is to not overlook available information or access to low-cost information that can significantly reduce the amount of that risk.
The more you know - the more you grow.
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Having a Plan B for Those "Tiger Moments" |
An article I was reading recently in AdWeek - Lessons of Tiger's Tale - made what I thought was a very valid point related to the media frenzy now surrounding Tiger Woods and the impact on his advertising endorsements. "Using celebrities is effective and makes business sense. Just make sure you always have a plan B in mind -- just in case."
Good point. It's a point that applies in non-celebrity situations as well. In fact, having been burned over the years by the use of "real people" in television commercials, I can relate - albeit on a much smaller scale.
Advertising - particularly television advertising - can be extremely expensive to produce well. When "something happens" that casts a new - and often negative - light on someone in one of these commercials they generally have to be pulled. That creates a number of related problems:
1) The investment you made in that ad has been negatively impacted. I have worked for organizations that literally didn't care - they had a lot of money. I think in these economic times, though, those organizations are hard to find.
2) You're now left with a "hole" in your communication campaign. If you've built an entire campaign around one individual and something happens, you have a gap that can take some time (and more money) to fill.
3) Your reputation/image may have been damaged depending on the significance of the issue. Maybe/maybe not - something you need to evaluate and consider and...
4) If your reputation has been damaged you now need to engage in some damage control.
It's a risk I've taken - and lost - and a risk that I'm loathe to recommend for a client. Although, on the other hand, I have to admit that it's a position that many clients do not agree with. They have good and valid reasons for wanting to highlight their staff, customers, and often themselves in their advertising. And, after all, it's their money and reputation to risk.
Still, I think there are some important lessons to be learned from the recent Tiger situation:
- Don't enter into any arrangement with a celebrity spokesperson or any other representative to act on behalf of your organization without giving some serious consideration about what could happen down the road.
- As the author of the AdWeek article suggests - have a Plan B. Be strategic - plan for both the best-case and worst-case scenarios. Both are relevant and can impact your business. In the best case somebody you've used in an advertisement does something wonderful that you may be able to leverage. Be prepared to leverage quickly - the opportunity won't last long. In the worst case somebody you've used pulls a Tiger and you need to act fast. In both situations, knowing what you'll do ahead of time will help you maximize/minimize the impact of the situation.
- It takes significant effort, time and money to build a strong, credible and well-regarded brand. It doesn't take nearly as long for that brand to be negatively impacted.
If using "real people" in your advertising is important to you, move forward - just recognize the risk you're taking and have a Plan B - just in case.
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Publicity Blunders - Don't Do this!
Businesses and business professionals looking for media coverage often make some unintentional missteps that can hinder their opportunities for success. For a FREE white paper on what NOT to do when looking for media coverage, email:
Strategy Matters! |
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Two book updates from Strategic Communications:
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