It is rare that economic commentators all converge to agree on one thing. However, to a man (and women) they say 2009 is going to present some of the most challenging conditions businesses have experienced in almost two decades.

Adding to the difficulties is impending deflation as consumers hoard cash and cut back on spending, despite recent incentives provided by cuts to interest rates and VAT.

All this has a natural knock-on for local businesses – big and small. Those who sell direct to consumers will feel the pinch as spending stalls and those who trade with other businesses will see revenues decline as many of their clients see a drop in demand.

When businesses pull back, so-called discretionary spending comes under the spotlight. Public relations (or reputation management) along with advertising, design, events and other creative services are often first in the firing line when cuts have to made.

There are some very good business reasons for rejecting this strategy, however there’s every chance that in this downturn, short-sighted financial directors will revert to type and agencies will see revenues drop – perhaps suddenly.

So how will the marketing industry in the UK adapt to the coming financial perfect storm of rising debt, lack of credit and failing consumer confidence?

Increasing, as clients struggle themselves, they will look for flexibility from their suppliers and that could mean moving from retained work to less-secure projects on a campaign-by-campaign basis. This presents a problem for the larger agencies as they can have account teams waiting for project briefs. One solution is to negotiate an agreed level of work to cover key periods in the business cycle. Going down this route might just keep the relationship alive until confidence returns.

Offering added-value is not just the preserve of retailers – it goes for service providers too. PR agencies are going to have to go the extra mile (or two) to cement their position with clients and make them an integral part of their business. It might mean over-servicing; a major influence on profitability and definitely a no, no for most agencies, but serious times mean taking exceptional action.

The coming year could be a boon time for small agencies and individual practitioners as companies look for more tailored services to cover peak periods such as exhibitions, product launches and events. With their lower cost base, smaller players can afford to take smaller fee business and at the same time provide experienced hands-on help.

In short, it’s going to be a tough year. PR people are known for their applied creativity, so perhaps it is time to turn the spotlight on their businesses. The Smart Start was launched to offer cost-effective, on-demand PR and marketing services for small and medium-sized businesses.

Nigel Charlesworth, director, The Smart Agency

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Tags: public, relation, strategy, tactic, agency

Issue a Press Release – An oldie, but goodie. The trick is to make sure your press release is a newsworthy event. For example, starting a new newsletter is not necessarily a newsworthy event (but it might in certain niche markets for smaller publications). Issuing a press release about a large donation you are giving, complete with relevant background story might be newsworthy. It all depends on your target audience and the publication(s). Editors pick up press releases if they think there is news for their readers. They do not care about you or your company. Your press release must be framed that way. “What’s in it for me” is very relevant here.

Create a Newsworthy Event – Here’s an idea that a local stereo and electronics store did that would qualify for a newsworthy press release:
# They arranged a “superstition obstacle course” on Friday the 13th in their parking lot, complete with ladders to walk under, a roaming black cat, mirrors to break, umbrellas to open indoors, etc.
# They called all the local radio stations and invited their morning personalities to come down and take the obstacle course challenge.
# One radio station took them up on their offer, and broadcast live from the event.
# The result was that tons of people came down to their store to watch and take part. And of course pick up some gear or supplies while they were there. And that, of course, not only provided a boost in sales for that day, it brought in new customers and generated lots of “word of mouth” advertising for them.

Any business can do something like this; I don’t care if you’re a conservative lawyer or accountant. The key is to find a theme and run with it. There’s no reason why a jeweler or restaurant couldn’t do something like that for Valentine’s Day. Or a local Irish pub could do for St. Patrick’s Day. Or any retail outlet for Christmas. The list goes on and on.

to be continued….

Nicholas Tan
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Tags: tactic, relation, public, advertising