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Following an industry
downturn, new leaders tend to emerge. These are savvy
companies who take advantage of opportunities offered
during slow times to build a higher profile and seize
the spotlight.
Every company experiences
stress and disappointment during a recession. How
management reacts to these pressures determines who wins
the prize when the inevitable market upturn occurs.
Many companies pull back
across the board, cutting employment and expenses.
Marketing is usually the first area hit. Advertising
falls, and PR opportunities are lost.
Companies that emerge as
leaders following a downturn also reduce budgets, but
focus on the long-term picture. In fact, they actually
increase their ad budget, gaining a significant edge
over their competitors’ lowered visibility.
In an analysis of the
1990-91 recession by McKinsey & Company, companies that
moved up spent an average 14 percent more than
unsuccessful companies on Sales, General and
Administrative items. (Click
here for report.)
The same is true in public
relations. Companies that aggressively pursue strong PR
strategies will win more media placements than those
that fall under the radar.
What is the key? In today’s
“what have you done for me lately?” rush to soothe
shareholders by employing short-term fixes and focusing
on the next financial report, many businesses fail to
see the benefits of long term public relations
strategies and overlook incredible opportunities that
exist during slow periods.
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