I am spending 5 days in Kiev, Ukraine with a client and strategic partner with whom we do a lot of business. I’ve made a few random observations while here spending time with this one particular major client and pursuing other business opportunities in this major Eastern European city.

-The concept of a global village is very much alive here – People here all have good relationships in every niche of the world.  There is a tremendous amount of wealth here amongst a segment of the population as evidenced at restaurants, where Audemars, Piguets and Bentleys are more prominent here than anywhere I have ever seen in the world. I was surprised at just how deep relationships run for business people here not just in the US, but worldwide. It is a constant reminder of how much the world truly is a global village.

-Blackberry addictions are much less apparent here than elsewhere.  People certainly use their phones and Blackberries, but telephone use is more than just texting.

-While mass media is important, so too is word-of-mouth media – In many senses because everyone understands that media and government aren’t always what they seem to be.  There is plenty of room throughout Europe for effective word-of-mouth media campaigns.

PR & Marketing food for thought from Kiev, Ukraine

Ronn Torossian
5WPR

In order to conduct a successful PR campaign, one must understand the need for strategic targeting. Since Day 1, we have been very successful at identifying different categories of influencers, as they suit our clients’ needs. The goal of such an undertaking is to reach the ‘influencers’ in a given field, who will help to broadcast your message. This concept of an “influencer” is relevant for every business – Whether a VC for a tech brand seeking funding, the right celebrity for a consumer brand, or an analyst for a publicly traded company.  Owing a PR agency, I know that any of these can move a company’s sales, alter public perception, or change their future.

This morning I came across a very interesting post on social influencers at  and while I am not sure I agree with it all (All numbers aren’t strategic… because many people don’t really “know” their “social” friends)… but nevertheless there are some wise comments here, and I recommend reading it.

Over 2 years ago, I wrote this post on influencers, and I think in many ways the social media influencers of today are as relevant as some of these folks were a few years ago (and in many ways, continue to be).

Ronn Torossian
5WPR

Although I was raised in the Bronx and spent innumerable days at Yankee Stadium, I will nevertheless admit to having attended the Mets home opening of the $800 million Shea Stadium last night.  It was quite a memorable experience.   I went with a top-tier journalist and a major client (who has season tickets), and we sat in the 2nd row behind home plate, celebrity center, listening to Governor Patterson make small talk as he was loudly booed by the stadium. 

Sitting up there was a social event, with everyone constantly moving around.  I spent an inning in the front row with a colleague with whom I sit on a non-profit board, met a lot of potential sources for new business and had face time with influencers.

In terms of the brand, the stadium itself is breathtaking: small town feel, part Disney, and certainly nothing like the old Shea.  The immaculate, luxurious Sterling Club felt more like a high-end hotel than a baseball game. 

One thing which jumped out at me was the lack of big-name advertisers.  A local, small construction company, small car dealerships, and even Caesar’s Palace in Atlantic City – all prominent advertisers at the stadium, but very odd brand fits for the Mets.  Sign of the times, even with Citigroup spending their millions and millions.

Ronn Torossian

5WPR

They used to construct the buildings that housed banks as if they were impenetrable stone fortresses.  The symbolism was obvious: your money is safe with us.  From kids with jars of pennies to young families and businesses of every shape and size, everyone put their hard-earned greenbacks into the hands of the banker, a person above reproach – someone you could trust to protect your money.  Today, that trust is at question.

Once-heralded banks are now seen as symbols of greed and deceit, and politics is equated to corruption.  It’s safe to say that the state of trust in 2008 is but a shadow of its former counterpart.

Who could have ever imagined that in the early stages of the 21st century the idea of a mattress being a safe place for money would be discussed, let alone acted on? So, who do you trust?  What factors foster trust?  And is the trust issue limited to the financial sector?  I think not.  Eaten any tomatoes with salmonella or E-coli in the last six months?

As a marketer of products, I think that today marketers must “over” prove their trustworthiness, because consumers today are “resistant to being sold to.”  This is true across the country, unbounded by belief or status: blue state, red state, urban, suburban and rural.

Welcome to the age of retrusting.

Ronn Torossian

5WPR

What too many PR pros fail to understand is why they are hired.  Real businesses utilize PR firms in a strategic manner to make more money.  A great story is a means to an end, but not the end-all-be-all.  Especially during difficult financial times, marketers need to utilize media and press to make our clients matter.  This means securing articles which push certain viewpoints or products, not intangible concepts.

One of the biggest challenges in our industry is a general lack of understanding about real business models.  CEOs don’t go to sleep at night worrying about a lack of press; they worry about stock prices, account receivables and payroll.  The best PR firms realize that utilizing the press is a tool to assist companies in achieving the bottom line.

I echo and embrace PR Week’s recent editorial, which stated in part:

The average PR pro is still not as nearly well-versed in the financial markets as he or she should or could be… Communications pros should, at the least, take business courses in college; at the most, contemplate an MBA.

While I am not advocating MBA’s necessarily, I am saying a core understanding of business principles is all important in PR today. I believe one of the reasons 5W PR has had such continued success and growth is because at the end of the day, we understand business, which is more important than understanding just PR.  Don’t lose the end goal.

Ronn Torossian

5W PR

Brand equity and brand positioning are both incredibly important.  However, an act that gives your brand power today can bring a cloud of negativity tomorrow.  Ringing the Opening Bell at the NYSE has long been a coveted photo opportunity and a chance to flaunt a brand in front of hundreds of millions of viewers. But with market turmoil and an unpredictable financial landscape, the act of ringing the Opening Bell has become an undesirable risk.  Who could have ever thought that a brand could be sullied by associating with the NYSE?  But, indeed, a New York Times article seems to say so.

As I have stated earlier vis a vis sponsorships, every action has a reaction, and brands have to be cognizant of the world around them before agreeing to participate in any initiative.  Public opinion can shift swiftly and dramatically.  The wrong association can cause it to shift against your brand.  We’ve had a number of clients ring the Opening Bell in the past, when the NYSE was seen as a bastion of power and prosperity, and I am sure those days will return soon. 

Ronn Torossian

5W PR

I attended a major movie premiere last week and found it to be amazingly well organized. Between the after party and the attention to detail, the event must have cost hundreds of thousands of dollars – a major spend for a studio. I enjoyed myself because I had the chance to view influencer marketing at its finest. They really reached key people.

I am a huge proponent of influencer marketing – talking to people who talk to people –for consumer brands, B2B and many additional purposes. Clearly, influencer marketing varies when it comes to Facebook and other forms of social media, but little compares to being in front of someone who talks to many others. It is worthwhile on many fronts.

That said, while I was at the movie premiere, I couldn’t help but wonder why public relations gets the short end of the stick. Events are held costing tens of thousands of dollars, advertisements are placed costing hundreds of thousands (or even millions) of dollars, but in general, the largest companies in the world don’t spend more than $1 million a year with PR agencies. It is a fact that ANY PR firm in the U.S., regardless of its size, would chase after a $500K RFP like there was no tomorrow.

Such an RFP would be front page news in every PR trade magazine. For any PR firm, a major budget is considered to be $15-$25K a month. That’s considered next to nothing to ad agencies. Time and again, PR seems to get short shrift. Because the industry is relatively immature, despite talk to the contrary, it is not given enough financial share or deserved emphasis. Too many companies fail to see the true value of PR, and that is to their detriment. I am sure my colleagues share this viewpoint with me.

Ronn Torossian

5WPR

Born in Brooklyn and bred in the Bronx, I’ve watched the New York City “brand” evolve tremendously over the years.  As someone educated through high school solely by the NYC public school system, I experienced first hand – and not from the movies – through boom boxes, subway buskers, graffiti, ice cream trucks, pizzerias and arcades; the sights, smells and personalities of the City.  A short while back, I had the chance to spend time with Rudy Giuliani for a 5W client project.  We sat in his Times Square office, and he pointed down to the streets below, where prostitutes once haunted the corners and drug dealers used to kill.  I listened to his comments on his Disney-fication of the city: MTV and Toys R Us, clean streets and a Naked Cowboy.  Giuliani changed the face and brand of NYC for the better for business, children, residents and many other publics.  The city will never be the same.

I write this as a marketer and a lifelong New Yorker, saddened at the closing of Coney Island’s Astroland.  Until this past weekend, I visited the landmark (along with Brighton Beach, the boardwalk and aquarium) every 6 weeks or so with family and/or friends.   It was a relic to the old days of NYC, which I fondly remember, and it offered something that didn’t exist anywhere else in the city. Astroland was fun, but it had grown outdated.  I understand why it’s no longer wanted.  It’s the reality of business.  But I won’t forget the last time a few weeks ago when a family member had visited for the first time and said, “Wow.  It feels like we’re in a time machine to 20 years ago.”

The brand of NYC will continue to evolve and embrace change.  Onward and upward, but change nevertheless.

Ronn Torossian

5WPR

I (foolishly) spent the day shopping during this major holiday weekend – admittedly at high-end, brand-name stores, and primarily at those establishments that spend a ton of money in advertising in an attempt to draw customers to the stores’ various locations.
 
Earlier in the week, at a major sporting event, I had a similar thought: Why do brands spend so much money trying to draw people to their stores and then so little time and attention once they have people there? At this event, a 5W client and I stood on line for perhaps 15 minutes attempting to buy food and drink — products that cost more than the employee serving the food makes in an hour — and as the line grew to about 10 people, many simply walked away due to the long wait and the employees’ lack of attention to the customers. Why wouldn’t the brand ensure that the site has enough low-wage employees working rather than turn off its patrons?

Although a lot of noise was made some months ago regarding Starbucks training employees and closing all locations for a few hours, after today’s experience, I came to the conclusion that many of America’s retail outlets could use similar training. From a store manager who loudly said to an employee, “Don’t bother answering that question - it’s dumb,” in response to a customer’s question, to stores that allow people to wander endlessly without its employees simply asking, “Can I help you?” one wonders, why spend millions on advertising? Perhaps the money is better spent retraining employees.

True, it’s tremendously difficult for anyone to manage employees — particularly employees in retail who aren’t well-paid — but I can’t help but believe that many people echo my opinion that stores need to focus much more attention on this arena. Without well-trained employees who reflect positively on the establishments they represent, store operators might as well say, “Take my customers, please.” That’s surely PR too.

Ronn Torossian
5WPR

At the epicenter of today’s branded consumer entertainment culture are consumer/corporate brands hiring (partnering with?) celebrities to represent their products. Whenever a brand hires a celebrity, instant brand associations abound, with tremendous potential upsides and downsides. In my career, I have encountered extremes in this endeavor among CEOs and CMOs of clients. I can remember a major consumer CEO saying, “We will never ever hire a celebrity. Ever. I have worked too hard to allow some DWI-prone star or idiot drug-addict celebrity to affect my business,” and regardless of countless opportunities that CEO had, he always said no. He was too concerned about the potential risks. On the flipside, we at 5W have worked with many brands that did hire celebrities for brand campaigns — large and small — and some of those have been extremely successful.

I write this in reference to David Duchovny being instantly fired as the face and celebrity endorser of shoe company Johnston & Murphy due to his “sex addiction.” Duchovny, who plays a sex-obsessed character on TV apparently has the same issues in his personal life. Interestingly, just last month the brand issued a statement saying: “David embodies success and confidence, along with a great sense of style, communicating the ideal image for the Johnston & Murphy brand.”

Anytime I read about issues like this, I wonder if these brands really did the proper vetting vis a vis celebrities. Did they do more than speak to the agent/manager of this celeb? Did they have essential relationships that enabled them to talk to nightclub owners, or find his wife’s best friend? Hire private detectives? Really ask around in the circle of people who knew the truth? These sorts of things (and others) are all necessities for any brand truly willing to “win” at celebrity endorsements/PR.

Steve Stoute, a master at marrying brands to celebs, is rightly quoted in this week’s Adweek discussing how celebrity sponsorship has forever changed. The most successful relationships, he says, come from brands and artists viewing themselves as true business partners.  Proper vetting and planning is required for celebrity endorsers. It’s much more than just taking someone’s picture holding your shoe in the year 2008 and beyond.

Ronn Torossian
5W PR