Much different than BP, Toyota, Mel Gibson, Tiger Woods and Dell, Apple can better weather negative media and afford a PR crisis (if such a thing is possible).  Let’s keep things in perspective for Apple – The brand is so hot that there are waiting lists for their products, and they won’t even take your money in their stores.  Even with a massive, high-probability record-recall, Apple still will emerge unscathed in the big picture.  They have made so many right moves for so many years that one misstep was to be expected.

In exploring the world of branding and marketing, people tend to lean on the mass marketing concepts taught in schools of business. They teach about power branding, co-branding, differentiation and loyal consumers following their brand preferences. As these are all valid concepts, it is a natural negligence of the power of the brand stemming from media coverage and public awareness. If not for Public Relations management and buzz around innovation, none Apple’s inventions of the last decade would have been as successful as they currently are.

Were people agitated by Dell only since its batteries burst into flames while working on your laptop? No, the batteries were one additional negative aspect of the brand stemming from the late 90s’ caused by reckless communication management instead of quality service. As for the recent Mel Gibson fiasco, are the newly released tapes the only reason the public is asking to end his career? No, there is a recent history with poorly-considered statements and very unfortunate timing. This also applies to BP with the oil spill and the public opinion of corporate ‘Greed,’ goes alongside the jealousy and anger towards Tiger Woods’ glamorous career, and concludes with Toyota, which simply wouldn’t admit to mistakes and playing with peoples lives.  They all paid the price and will continue to for miscommunication.

Apple has been innovating and determining the way consumers of all walks of life live, do business, and interact. It is a brand that applies to all industries and it reinvents itself all the time while dominating the markets of Telecom, Tech, and mass consumption. Just as Fed-ex defined overnight travel, how many people are walking around with “walkmans” these days? No one, now it’s the iPod, stupid. Apple has amazing products, but all of them would mean nothing had Apple neglected the communications around its activity.

If IBM’s Thomas Watson of the 50’s is known for his pathetic statement, “I think there is a world market for maybe five computers“, then Apple is known for the exact opposite. The bi-annual Apple extravaganza in San Francisco is an unprecedented attraction of media attention. It is as if every single year Apple will and should introduce us to a new way to make life easier. Its CEO is a brand power that is reenergized by his quiet, almost “simple” character that lacks colorful dimensions. The products enjoy a pre-sale rate that shows a blindly-directed consumer market, overachieving substitutes.

Today, Apple can afford the iPhone 4 recall because – from the public’s view – they are almost vital to our “existence.” The awareness this brand gained and maintained in the minds of the masses stands as a symbol of technological modernity. It defined mobility.  It reads portability and integration. It defines social interaction through its apps. As a business, it acts as a generator of income for app developers and social media marketers, and let’s not forget how it revolutionized the music industry through iTunes.

What Apple did that no other brand could do is integrate and harmonize all its sub-brands as leverage for a major awareness-building stunt – known to us as “Apple”. In contrast to Toyota, people will return the device and impatiently await its replacement, because Apple doesn’t have peers, whereas a Toyota driver can easily drive a Honda, instead. In addition, Apple lures customers to the next innovation – be it iPad 3, iPod 5 or Shuffle 8. When Toyota cars were returned, it was a ‘Goodbye’ wave from former drivers. The recovery for Toyota will require a regained credibility and loyalty on the consumer’s end. On the other hand, the Apple case is so strong that loyalty remains intact.

The strength of Apple stems from its PR and brand awareness. The probable recall reinforces the public opinion of Apple that displays it as a highly-crucial piece of equipment in our daily lives. Apple described the possible recall as a “sign of its commitment to consumer quality devices,” and that shows how well the PR machine works for Apple. For any other brand this would mean a disastrous outcome and a possible end to periodical success.

For Apple, it’s a re-run of the suspense and sleeping bag phenomenon seen outside Apple stores worldwide. If they sold 3 million devices now, I’m thinking they will sell 5 million by the end of this epic.

Ronn Torossian

5WPR

Through the years, we have represented a slew of celebrities, ranging from Snoop Dogg and Ice Cube, to Pamela Anderson, hall of fame athletes, and others. Whether or a major mega-star, or up and coming celebrity, universally celebrity PR campaigns are very demanding, time consuming and hard work, for many reasons.  (And of course that’s before the “colorful” (and I can tell a ton of stories, but wont am sworn to secrecy).

Adrian Grenier’s recent comments to the WSJ that celebrities wont need Public Relations representatives in the future: “I don’t have a publicist and never have.  I’m no stranger to self promotion. I find it first of all more authentic when you put a bit of your creative touch to what you’re trying to share.”

Public Relations is more than self-promotion for celebrities, its shaping and positioning a brand, its filtering requests, and many other responsibilities.  I agree with a comment I read made by a CEO of a PR agency “Dollar for dollar publicity is one of the great bargains left in Hollywood. If a celebrity makes $6 million a year, for example, they probably pay a publicist give or take $5,000 or $6,000 a month, or one percent of their net. When you compare the hours a publicist puts in to the ten percent a manager or agent gets…I don’t think agents or managers are overpaid, but I think publicists are underpaid.” As he further stated, a good publicist will drive their client to be themselves.

I am just returning to work today from a week in the gorgeous French Riveria (visited Monaco, Nice, Cannes and other areas), and the amount of wealth and high profile people there was amazing.  Who would handle the many celebrity mistakes made in places like this, or false sightings which are reported ?

Nearly all CEO’s have Public Relations pros, or PR agencies handling their needs, and so too should celebrities. Celebrities need PR specialists, much as they need lawyers, accountants, doctors and others who know their fields the best way.

Ronn Torossian

5WPR

The word on the streets in Manhattan and inside my network of CEO’s is that the Venture Capitalists are back. They collected their gains from 2009 which ended strongly and started off a robust Q1 2010. With funds starting off 2010 with $5 billion, -a 41% increase from 2009- venture capital funds have more to offer early-, mid- and late-stage companies — great news for technology and web startups. How will your startup stand out THIS early stage in order to get some funding? Spend some time on PR and see how VC’s find it easier to reach you. Pitch investors as if you’re the next ‘twitter’, ‘Facebook’, or the next great telecom solution.

Venture Capital funds have learned their lesson. In 2004 they raised around $20 billion, increased to $36 billion in 2007 and, well… you know what happened next. With this in mind, $5 billion of course is put in some perspective. The point being, it’s much more competitive out there. If you know you truly deserve it, follow these next steps to gain vantage point when they seek for new opportunities.

The one concept is the creation around buzz – the need to fund your company, That is,  the solution, the lack of alternatives, and finally – the promise coming through innovation. A few concrete ideas:

1. Blogs: start 2 or 3 blogs around the topic. Join existing blogs which cover your field. Start raising the issue. If your startup is solution-based focus on the problem first. Don’t reveal your product, and don’t push the problem too much either. You don’t want to lead anyone towards the solution. Be personal and introduce yourself using your ‘elevator pitch’. It’s a good practice.

1. Social Media: with the problem-solution model in mind, you can join LinkedIn groups; create your social network with people on the provider, manufacturer, analysts and finally investment guys. In addition repeat advice #1 on relevant groups in LinkedIn. Integrate your group posts with your blog posts and vice versa. Its very effective for SEO.

1. Twitter: in contrast to what you may think, twitter is NOT a popularity test for brands and people. It’s a practical marketing and business tool. Use it wisely. Open a twitter account both for yourself and your brand as well as for each of your team members. Use it to create conversations frequently over the solution you’re offering as well as the need for it in the markets. Tap both the markets as well as circles around financial and investment operations. Choose your followed twitters carefully by relevance. Sign your account up on twitter directories for the fields your startup is catering to. End-users as well as developers, programmers, marketing and all players in the tech field.

1. Media relations: this is probably the most challenging for startups but also one of the most effective way of attracting funding opportunities. It’s especially difficult if you don’t really have a PR firm taking care of you yet. The logic behind it is obvious: you want to throw the word out there that you exist, that you are relevant and that you are highly needed to fill up a gap, a social and technological demand etc. In order to have YOUR product answer these questions you need to strategically plan your way in advance. This requires frequent communications about trendy and timely issues that revolve around your startup.

1. Integration: No, not the technological term “integration” but the PR concept. You just have to lead the choir in perfect harmony. Your website, blogs, twitter, social media sites, and various publications should all be well connected. THAT’s the essence of a buzz. Make people from different sources reach the same conclusion: brand ‘X’ is the solution to problem ‘Y’ that we have. I guarantee that if followed correctly, the media will pick up on the buzz themselves. The conversations you lead on twitter, the insightful posts on your blogs, and the presence of your brand and yourself in social media and of course the opportunities granted by media placements all have a crucial role when it comes to the investor.

Venture capitalist read newspapers on the way to work. They have a social-media life too. They seek information online through search engines. And rely on industry analysts. These analysts put a finger up to feel where the wind is blowing. Make sure you blow that wind when they do.

Truth is, ‘positive thinking’ is immediately associated with the ‘self-help’ shelf in your closest Barnes & Noble, but it is much more practical than you might think. My experience in business, and in life makes me more confident on how positive thinking can get you where you want to go.

It is said on Sir. David Ogilvy that during the early days of founding the legendary Ogilvy ad agency he’d go in the office and ask: “Well? Did Coca Cola call already?” Every single morning. Until they actually did. Coincidence? You may think so, but also in this Public Relations business, I can testify: positive thinking integrated into our lives can make a difference.

Here are 5 suggestions:

1)   The power of imagination. It is taken for granted, not fully utilized and seldom used to leverage your professional direction. The truth in contrast is, – imagination is the very first –and very far- achievement towards where you want to get. It could be picturing yourself with a new client, picturing your new office, imagining a media coverage piece on recent major achievements of yours. Anything you picture on a daily basis consistently can materialize physically.

2)  Act as if you already possess what you want. Sometimes we hold back on actions or emotions just because we “aren’t there yet”. A simple tip: Pretend you are there and you’ll find yourself happier, and more fulfilled with what you are currently doing.

3)  Communicate positively.  People are often skeptic of their abilities, and great PR people (and generally business people) recognize that passion is key. It is crucial not only to be passionate about your own job, but on the brand, firm, personality you’re representing. Your positive passion on a product can radiate far, and will be genuinely reflected in your media pitches, releases and placements.

4)  What you give out is what comes back. You claim you can’t do something? It’s certainly harder if you don’t try. Express positive outcomes to ideas, initiatives and efforts. Don’t look for why it WOULDN’T work. It is well reflected in the methods of professional brainstorming. You do not rule out ANYTHING that is brought up. Apply it to something in your life.

5)  Communicate. Yes, it’s a funny tip to offer communicators and public relations practitioners but it’s easily forgotten and is being deserted. Pitching the media? Connect over the phone. Following up? Give ‘em a call! When we express ourselves verbally (and positively) we attract better results. Less space for gaps in mutual understanding, and better personal relationships.

Avoiding Crisis Management – 7 Useful Tips: From Blackwater to Main Street

In what are probably the latest developments in huge declining reputation trends, we read of the up-for-sale of “Blackwater Xe”, the private security firm.  Combine that with the increasing calls on the CEO of BP Energy to step down as a price for the oily mess. These result in a price tag for bad publicity, damaged reputation, and lack of control over brand positioning.

Even the most perfect cross-industry brands and fans of Corporate Social Responsibility companies are not immune.  Patriotic, job generating and substantially-contributing companies may find themselves facing a public fiasco without proper prior warning. It can even apply to “country-brands” like Israel who stand up for many things, but cannot sufficiently channel the limelight towards those advantages when crisis knocks on their doors.

Sometimes you feel you are operating in an environment where you cannot afford to disclose operational secrets, structures, financials or policies. But it’s vital to find focused messages on what you COULD reveal, clarify on, and interact with the public asking for input too.

Ed Murrow, CBS journalist and one of the early directors of the United States Information Agency during the Kennedy years and facing the Bay of Pigs fiasco in 1961 said: “if they want me in the crash landings, I better damn be in on the take-offs”.

Here are 7 reasons and ideas to shift your PR from crisis clean-ups to a management function TODAY:

Having a PR rep in a meeting on policy initiatives can be leveraged for brand building and positioning, both pre-emptatively and for positive impact.

Good reputation management begins early on. Not when damaged reputation requires fixing. Reputation is identified and managed well during decision making processes

Control. Early PR gets the messages YOU want to disseminate to your publics in advance so you won’t have to deal with rumors and blog-standard sources which take all your Google-results space during a crisis.

The key to every PR story a.k.a “the angle” should be pulled from management functions which PR professionals are ear-sensitive to find and pick up

Attending management decision making processes can help create plan B’s and C’s and placed in a drawer for stormy days.

Interaction with key figures on a board can generate new ideas and key messages from various company divisions’ execs used as extra PR “bonus points” in building clarity, integrity and reputation for target audiences. Who knows where your next positive news item placement will come from ?

Most important: realizing PR is a two-street which can be utilized to also receive information from your key publics via PR research on their preferences, tendencies and views of your brand. This can imply on decision making in the boardroom and can prevent the next bad turn by the person on the wheel

Avoid the next bad decision snow ball. You don’t want to find yourself in blackwater mud.

As published by Odwyers PR Report -

TECH TRENDS TO STRENGTHEN PR, MEDIA BOND

AT&T’s move on data pricing and Apple CEO Steve Jobs’ commitment to monetize content will strengthen the marriage bond between PR and media. 

The sum of both requires some real thinking on traditional PR and how messages are communicated.

If you thought AT&T’s timing for coming out with their cancellation of the unlimited data plan was arbitrary, you can’t be more mistaken. Just the previous day during Wall Street Journal’s All Things Digital Conference in California,  Jobs clearly stated that he’s strongly passionate and confident about Apple’s role in turning online content to a service-for-fee.

Combine the two trends in our content world, and what you get is the change not only in telecom, content and the journalism arenas – but also in the communications and PR world, where we will gain even more authority. I would argue that in the near-future PR firms would need to adapt to even more sophisticated ways of reaching publics who will become hesitant and selective of their content providers.

The PR helm will be taken back in full from the hands of novice individuals (i.e. bloggers), back to strategic planners.

In his talk to a content-thirsty audience, Jobs said he was concerned we were almost turning to “a nation of bloggers” and that in his opinion “we need editorial oversight now more than ever. Anything we can do to help newspapers find new ways of expression that will help them get paid, I am all for.”

Here is my “two cents” of analysis to the new double-tactic around content: on the one hand I agree with AT&T which states in their late-clarifying press releases that more subscribers will join the new data plans since the entry price would be as low as $15 for 200MB as opposed to the unlimited plan today charging double. 

In contrast, those who are used to getting their content, information, and interaction with the world via online content will not settle for entry level. They will go with the 2GB and up, reaching high volume of browsing and potentially high rates – which will lead to the creation of very selective content consumers.

What are the practical implications? Consider today’s very active consumer: he constantly checks social media accounts over any mobile device and gets push-based news items of her choice.  Each of the above channels them to second and third party links, pages, videos and images. Would you give up on half the fun?

In the media world, the last three years have brought major transitions to the pace and communication pipes over which messages disseminate to publics, and back.  PR firms have pitched the media with the most innovative channels including social media for reputation management purposes, crisis management, and of course strategic branding and communications with publics. This includes consumer, corporate, and fashion companies concerned with their online presence.

The PR dance with the media over the “online floor” which now will require a fee, -in addition to the fact that access is paid for- sets a high bar for content quality, reliability and credibility.

On the other end with 57.1 million mobile subscribers in the U.S, taking a data “free lunch” off the menu will create a huge population holding on to very smart and advanced devices which allow high capacities of data to stream up and down when necessary. In fact, the trend benefits mobile devices manufacturers and service providers since the content consumer is deserting his desktop at home and relying on multiple mobile solutions such as a BlackBerry, iPad, iPhone and notebooks.

What does it require from PR & media pros? First, the realization that content is profit-sensitive. With advanced phones all around wireless carriers have seen $41.5 billion in revenue just from data use in 2009. And this will grow with the new data plans. Content vehicles such as online news sites will be extra careful and more committed to quality and credibility with the information they choose to offer subscribers. Not everyone is a subscriber, nor is every info valuable enough to be offered for a fee.

On the upside, we will witness better monitoring and profiling of target audiences which adapt to the new way of getting news, info and online access. Today, we find it more difficult to know exactly what the profile of online readers of New York Times online is. With paid content structures, the Times will make sure to get accurate subscriber data, which can allow a customization of the news items offered to these demographics. See it as a “you pay – you decide what you want to read” type of arrangement.

Public relations processes will become more sophisticated so a story can be pitched to the right outlet, for the right key publics, with a better measurement of effective results on placements.

To that end, I project that news and content websites will adapt quickly and begin a process of selection of what goes online and what doesn’t. Media & PR strengthen their bond in search for quality, reliable, clarifying content on both streams between the audience and their input sent back. Ultimately, media focuses and offers its receivers content people specifically want and at almost harmonically PR will make sure to well tailor its pitches accordingly in service of all parties: clients, media and target audience.

A good PR manager who wishes to do it all for his client will make sure to get that story out there in a smart weighed manner which reflects the latest spin on 21st century journalism. After all, PR and journalism feed each other in a sense, and good PR adapts fast.

Our PR agency handles a tremendous amount of crisis communications work, and as such our role is often similar to that of corporate attorneys.  We are hired to protect our clients, which means, at times, the media can become our adversary.

This article in The Wall Street Journal lambasts a company for not permitting media into their annual meeting.  I completely understand the company’s guardedness. Why is it assumed the media should always be present or that public relations people have to kow-tow to reporters?

 My favorite response from reporters is… “I am just doing my job.” I always return with, “I am just doing my job – protecting our client.”

Until the media promises to only publish material that we approve, I’d advise PR pros to not allow unfettered access. 

So, in response to the question posed in The Wall Street Journal: “If a company holds an annual meeting and there are no reporters around to cover it, does it make a sound?” The answer may be no… but who says the company wants the type of “noise” you are proposing.  There’s a time to “control” the message and the amount of information disseminated publically.

Ronn Torossian

5WPR

Stay business minded while riding the wave of positive PR

http://www.nytimes.com/2010/05/09/fashion/09michelle.html?src=me

The article above which appeared in yesterday’s New York Times is a worthwhile read.  As the CEO of a PR agency, I often field questions about how PR positively impacts a brand and the aforementioned article illustrates how First Lady Obama’s super star power brings buzz and affects the businesses of the designers she chooses.

Key Points to Take Away….

By reinforcing the quality attributes of a brand, PR can often result in increased awareness amongst core consumers. As the article states, the young designer, who was lucky enough to dress Michelle Obama on Saturday night commented: “By the next day, traffic on his Web site had shot up. By Monday, he was hearing from stores that do not carry his lines but were now, suddenly, very interested.” Now, its on him to close.

That being said, it is important to stay business minded as the increased attention and sales flood in. As the article states, “you can definitely win the PR race, but there’s still a business to manage.” Certainly, good PR doesn’t mean you can ignore business fundamentals. It is the important to realize that PR is a means to an end, but it is the responsibility of the company’s leadership to take the attention and turn it into a profitable, and sustainable boost to the bottom line.

Different segments are impacted differently by different types of PR. As one designer noted “…clients who have the taste and the money for high-end designer clothes are looking for something they feel is special — not, say, a dress that everyone has seen on magazine covers and on TV.  As a designer of a $3,000 dress noted, “I can promise you I have not sold one Alaia dress because Michelle Obama wore it.”

Via sustained positive buzz and increased visibility, PR remains one of the cheapest ways for a company to build their brand. Food for thought.

Ronn Torossian

5WPR

Read a very interesting blog post today which an employee at my PR firm forwarded me about the value of creation vs. consuming.  As an entrepreneur, absolutely agree it is vital to continually create.  The creation concept is something we always seek to reinforce amongst our staff.  Push and create.  Great blog posting I’d encourage people to read: 

 http://blog.summation.net/2010/04/creating-beats-consuming.html#comments

As an aside, 5WPR is hiring PR pros at all levels.  We are always seeking creative, focused PR folks who seek to be the best.  Resumes to Careers@5wpr.com, and for senior staff, I’d welcome personal emails at Ronn@5wpr.com

Ronn Torossian

5WPR

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