Di’s Predictions: Knowledge is Strength
It’s that time of year when the newspapers review what’s going on and predict what’s to come. Brace yourself. It’s hard not to put on some sort of psychological armour when you look at the headlines.
‘Repossession rates to rocket in 2012’
‘Global economic outlook for 2012 isn’t pretty’
‘2012will be worst since 1980s, says David Cameron’
Throw in the riots and discontent, the Euro in meltdown, and add the usual senseless violence and irrational natural disasters. Our world seems to be an ever harder one.
Christine Lagarde, head of the International Monetary Fund, has said we are at risk of being plunged into a “lost decade.”
For the PR industry, it’s instinctive to think that business will get tougher as more organisations look for ways to slim down their spending. So, is 2012 really so bleak?
No. One of the things that companies with foresight will do is strengthen their position in their market. When times are tough, the strong survive.
Coca-cola and Apple are two brands to learn from for any business. They are testament to the power of selling an idea. Coca-cola has become more than just a fizzy, sugar-laden drink. It’s part of our Western culture. The original Macintosh in the 1980s wasn’t much different in functionality than its rivals, but it had amazing design. It took off after being pitched as the computer for free-thinkers and creatives, appealing to a market who never even knew they needed a computer. It looked cool.
There’s no doubt that good PR, marketing and advertising can make a huge difference to driving sales growth. In 2012, the key will be balancing sales growth and cost control. Yes, customers will be looking for the best possible value for money. But it’s not enough to distinguish a product or service or brand through price alone. A ‘price only’ sales strategy is a profit warning waiting to happen.
The answer? Be the best. Listen to your customers, understand their needs and act on them.
That doesn’t mean gathering information or feedback from clients without a clear strategy. Having 5,000 fans on Facebook doesn’t mean anything if they are not the audience you want to be interacting with. As Einstein pointed out: “information is not knowledge.”
But in an increasingly competitive economy, understanding stakeholder sentiment and making business sense of all relevant information is a source of competitive advantage.
Knowing how you are perceived and how you should be perceived and acting on any misconceptions will make the difference. We live in a world where brand and reputation are inextricably linked. And when business meltdown is an increased risk in a faltering economy, you need to be as clued up as you can be.