Gambling Vs. Dogfighting – Which Harms a Brand and The Public’s Trust More ?
(as published in Bulldog Reporter’s Daily ‘Dog)

The NBA’s referee betting scandal is much more dangerous for the league’s brand than the NFL’s ongoing issues. While much of the sports and news world at large has been focusing on Michael Vick and his indictment on Federal Dog fighting charges, news Friday that NBA ref Tim Donaghy bet on basketball games he officiated over the past two seasons may prove to be a much bigger public relations mess for the NBA than Vick’s off the field actions.

From a PR perspective, the NBA now has the prospect of every fan watching each game looking for questionable calls that a referee ‘on the take’ might make to swing a point spread one way or another. There is an inherent disconnect for professional sports these days between gambling and sports (I.e. Why does every major newspaper in the U.S. publish lines but gambling is illegal?). For a league that even the media has always joked conspires to put certain team in the NBA finals this could be a tremendous blow, and I don’t see it going away any time soon.

In terms of handling this Public Relations nightmare, NBA Commissioner David Stern needs to act quickly and forcefully. In order for the public to be convinced that the games are in no way fixed, I’d expect the Commissioner to do a full investigation and any referee, player or anyone associated with the league that has the slightest tie to gambling or organized crime will likely be publicly sacrificed to minimize this   public relations nightmare. They need to act quickly, and forcefully.

There’s a big difference between this and the Michael Vick or Pacman Jones issues which have marred the NFL off-season – Those issues have been NFL off the field issues – Individuals rather than institutions and from a league perspective can be confined to the individual player. This issue strikes at the very integrity of the NBA and could have long lasting effects.

Ronn Torossian

5W PR

Just returned from a 36 hour client crisis trip to the West Coast, and on the 6 hour flight back and forth finally read Malcolm Gladwell’s “Blink”, and wow do I agree… and I shouldn’t have waited so long to read it especially after being so mesmerized by his earlier book.

As an entrepreneur, I always tell people I make my best (and most) of my decisions from my gut, rather than from my brain. For better or for worse, I started this business without a business plan, simply the desire to work hard and recognition of a market which (I believed) existed. To do this day, I make most of my decisions instinctively and still follow my gut.

I agree with many of his comments, including:

Sales people shouldn’t judge a “book by its cover.” Many of our clients are folks who you wouldn’t look at twice in terms of their perceived wealth.

I urge people to make a decision one way or the other – Quickly. Not making a decision is akin to making one. Make a decision, for good or for bad. Stand up and take leadership.

I loved the book… and highly recommend it.

Seperately…. I thrive on 4-5 hours sleep a nite… and think that most great business people can get by with less sleep (admittedly making up for it on the weekend)…

Ronn Torossian

5W PR

KNOW THY MARKET… AND PICK YOUR LOVED ONES UP AT THE AIRPORT

Last week in LA, while surveying the pre-BET Awards dinner, I witnessed a who’s who of both Fortune 1000 brands and leading celebrities. Only fifteen years ago what would have been a fringe event has evolved into an event where leading entertainers are hob-knobbing with CEO’s. The brands who sponsored the event saw it for something beyond the typical marriage of brands and celebrities, and recognized the value of this targeted niche, albeit very major, market. The following evening, at the BET Awards, I watched Public Enemy end the night in front thousands… an audience comprised of well-dressed, well-educated, primarily African Americans proudly singing “I am black and I am proud.” Cheers to BET, a brand that not only recognized their target market, they identified with their niche audience… and their audience rightfully loved it. Success story all around.

It is evident, and I fully believe, in today’s business environment plagued by constant distraction; it is imperative that brands and the agencies who represent them must be cognizant of niche markets they can win. The creation of specialized and highly focused stories must develop into an event in order to gain maximum success. The brands that win in today’s world are risk-takers, from a PR firm pitching the media a story to a piece of direct mail… it’s the core of a brand’s being. Niche marketing is where it’s at, and if a brand can achieve market integration, that niche market will result in a financial windfall.

Some brands and categories over the last few years where these examples have thrived: * In the uber-competitive media market, amidst huge criticism, Fox News has emerged over the last 5 years primarily, essentially from nowhere simply because they recognized the right leaning, Republican thinker didn’t have an outlet… hence, Fox News’ growth. They recognized and identified their niche market and ran with it.
* Nike continues to thrive and grow because they grow with their consumer – Their ads continually reflect the changing face of American consumers, and their brand has succeeded in being seen as more than just an athletic brand but in fact is now a lifestyle brand, to the point where Nike’s are often worn at many of the world’s leading nightclubs and entertainment venues where trends are set and created. This “niche” is a lifestyle, whether a young athlete or an elder walker.
* As a 32 year old, I grew up (HS, college and the like) shopping at The GAP. It’s not a surprise at all that their brand has failed miserably and will continue to go down, because they haven’t decided what market to target – Is it today’s college consumer as it was years ago, is it today’s Sex in the City consumer? Is it jeans, T-Shirts or dress jackets? They don’t market to any niche whatsoever. They don’t get it.

As the owner of a PR agency, I believe that we must, in order to continually succeed, always focus both the clients and my business towards the identification and impact of a wide and diverse group of niche markets. Bottom line, it is a different world, the playing field has changed, and the brands who are cleaning- up have already recognized the target. They saw the changes for what they were or are, and it doesnt matter if it was along racial lines, dress style at work, technology or otherwise… the fact is, they are opening their eyes and seeing the field.

My Rabbi once told a story. He was on the phone with his father, who was arriving in NYC the next day. The conversation regarded his desire to make the world a better place, how he loved his congregants, and how much he loved his family. He then told his dad that day due to obligations, he couldn’t pick him up at the airport. His dad’s reply, “Don’t love me so much, pick me up at the airport.”Lesson… Know thy niche (i.e. pick up your Dad)…. And how the key to understanding a niche is just knowledge and involvement.

Lessons for brands? Don’t be afraid to target niche markets, racially, size wise, age wise, technology geeks – Whatever it is don’t try and be all things to all people. Niche and specialization is the key to success for agencies and brands in 2007 and beyond.

Ronn Torossian

5W PR