Wednesday, December 2, 2009
Bloggers-the FTC takes us seriously!
The Federal Trade Commission published guides on endorsements and testimonials in October. Along with guidelines advertisers who use celebrity, experts and organizations to endorse their products, bloggers who review products are now required to disclose whether they receive "cash or in-kind payment to review a product..." For more information on this checkout the FTC's Website at www.ftc.gov/opa/2009/10/endortest.shtm. Check it out.
Friday, February 27, 2009
Issues Management: Capitalizing on the Economy
It appears that the troubled US economy is providing some PR/advertising/marketing opportunities for businesses.
Jet Blue recently ran a full page ad that was a parody of the auto industry execs taking private jets to a Washington bail-out meeting - a really bad PR move. The ad encourages CEOs to fly the economical Jet Blue instead of corporate jets. It's quite clever and humorous. The company is also offering to refund to customers who lose their jobs before their trip. The company's news release says the move is aimed to "boost customers' confidence to book travel in advance..." The initiative is called "The JetBlue Promise Program and it promises to honor "a full refund to anyone who experiences involuntary full-time job loss prior to their trip." (There is fine print to read to determine eligibility. See the company's news release.
Jabil, a multinational corporation, is closing its Billerica, MA facility. In a newspaper ad, the company is offering to help their 315 affected employees find jobs. The ad, which bills itself as "An open letter to our employees, their families, customers and neighbors," states that "For employers wanting to hire exceptionally skilled and experienced employees with outstanding service records, Jabil strongly encourages you to contact our Human Resources Department number listed below."
There's also Leonard Abess, the bank president from Miami that President Obama highlighted in his February address to congress. According to Obama, Abess "took a $60 million bonus, and gave it out to all 399 people who worked for him, plus another 72 who used to work for him." This nation-wide publicity can't hurt his bank's business. At the very least, it enhances its reputation.
Hyundai offers to pay car loans for three months for customers who lose their income. The ad states "If that's not enough time to work things out, you can still bring it back."
I've noticed many ads and TV/radio commercials that use the weak economy to promote their products.
As long as companies don't cross the bridge to tastelessness, I believe these ads might actually help boost the economy. Sales and special offers get people to spend. Buying products helps advertisers, the economy and the media outlets who sell advertising. Tastefully done, these tactics help enhance reputations. By acknowledging hard times, a company can position itself as caring, economically responsible and an all around good corporate citizen. Let's keep a watchful eye on how companies use economic hardships to sell products.
Jet Blue recently ran a full page ad that was a parody of the auto industry execs taking private jets to a Washington bail-out meeting - a really bad PR move. The ad encourages CEOs to fly the economical Jet Blue instead of corporate jets. It's quite clever and humorous. The company is also offering to refund to customers who lose their jobs before their trip. The company's news release says the move is aimed to "boost customers' confidence to book travel in advance..." The initiative is called "The JetBlue Promise Program and it promises to honor "a full refund to anyone who experiences involuntary full-time job loss prior to their trip." (There is fine print to read to determine eligibility. See the company's news release.
Jabil, a multinational corporation, is closing its Billerica, MA facility. In a newspaper ad, the company is offering to help their 315 affected employees find jobs. The ad, which bills itself as "An open letter to our employees, their families, customers and neighbors," states that "For employers wanting to hire exceptionally skilled and experienced employees with outstanding service records, Jabil strongly encourages you to contact our Human Resources Department number listed below."
There's also Leonard Abess, the bank president from Miami that President Obama highlighted in his February address to congress. According to Obama, Abess "took a $60 million bonus, and gave it out to all 399 people who worked for him, plus another 72 who used to work for him." This nation-wide publicity can't hurt his bank's business. At the very least, it enhances its reputation.
Hyundai offers to pay car loans for three months for customers who lose their income. The ad states "If that's not enough time to work things out, you can still bring it back."
I've noticed many ads and TV/radio commercials that use the weak economy to promote their products.
As long as companies don't cross the bridge to tastelessness, I believe these ads might actually help boost the economy. Sales and special offers get people to spend. Buying products helps advertisers, the economy and the media outlets who sell advertising. Tastefully done, these tactics help enhance reputations. By acknowledging hard times, a company can position itself as caring, economically responsible and an all around good corporate citizen. Let's keep a watchful eye on how companies use economic hardships to sell products.
Thursday, February 5, 2009
Is it too late to save Unitil?
Unitil Corporation, the power company in Western MA and NH, that left many residents without power, some for more than a week, has apparently hired a PR firm. It's about time! But is it too late? This company made about every PR blunder a company could make. Public relations is about building relationships with the target audience. Ideally this should happen before a crisis. Theory goes, if your customers like you, they'll be more forgiving during a crisis. How to do this? Contribute to the community. Sponsor youth sports. Create useful newsletters full of energy saving tips and company information. Solicit ideas from customers. Care about the people who pay for your product! Simple stuff really.
The key to successful relationship building is communication! Talk to your customers. Visit them. Instead of tea and sympathy many customers got enormous "estimated" electric bills. I wonder if it ever occurred to the powers that be at Unitil to give those most impacted free electricity for a couple of weeks. It might cost a little money but it also might save the company's neck! Unitil's PR firm certainly have their hands full! Good luck with this one.
Read Boston Globe Article.
http://www.boston.com/news/local/massachusetts/articles/2009/01/28/unitil_gets_an_earful_from_angry_residents_left_without_power/?page=1
The key to successful relationship building is communication! Talk to your customers. Visit them. Instead of tea and sympathy many customers got enormous "estimated" electric bills. I wonder if it ever occurred to the powers that be at Unitil to give those most impacted free electricity for a couple of weeks. It might cost a little money but it also might save the company's neck! Unitil's PR firm certainly have their hands full! Good luck with this one.
Read Boston Globe Article.
http://www.boston.com/news/local/massachusetts/articles/2009/01/28/unitil_gets_an_earful_from_angry_residents_left_without_power/?page=1
Wednesday, December 19, 2007
What were they thinking!
I have viewed a few of the new Toyota commercials where the owner destroys his or her old Toyota (at least I think it's a Toyota) in order to buy a new one. The first thought that came to my mind was "This spells trouble." As a public relations professional and instructor I thought this would make a great case study for one of my PR classes. Aren't the ads encouraging viewers to commit insurance fraud? Then I thought, I would hate to be in the public relations department at Toyota. Well, behold, an article in today's Boston Globe Business section (12/19/07) publicizes the issue. I’ve included a link to the article in case you want to read it.
According to the article “Insurers complain ads from Toyota incite fraud,” by Globe staffer, Bruce Mohl, the ad has caught the eyes of the Insurance Fraud Bureau of Massachusetts and the Coalition Against Insurance Fraud. These groups say that “the unspoken message is that an insurance settlement from the old car will help pay for the new Toyota.” The article states that both of the above groups have sent letters to Toyota. A Toyota spokeswoman stated that the ads “were meant to be humorous and, not to be taken literally.” She added that they would review “letters of protest,” and possibly change the ads or include a disclaimer.
Faced with a public relations problem, this statement is probably the best Toyota can do in the short run. As I see it there are really two things wrong with this ad. First is the obvious. Insurance fraud is illegal and you would think the Toyota ad agency executives or the company’s advertising department would consider this issue. When creating this campaign didn’t anyone say, out loud, “What would happen if someone actually did this?” This would be a PR nightmare!
`The other issue is branding. I have always thought that Toyota prided itself on the longevity and the resale value of its cars. I know people who have driven Toyota cars well beyond 200,000 miles. I guess the commercials wouldn’t be as funny if the owners actually went to the Toyota dealer and traded the old one for a new one.
Once again, this situation places PR in the position of being an advertising fallout “pooper scooper.” I don’t know to what extent Toyota’s public relations staff was involved in the creation of these commercials. But this illustrates the need for public relations and advertising to work together on ideas that might be funny, but also might damage the company’s reputation a little. It’s a clash between creativity and reality. As far as I know Toyota has always had a good reputation. I hope this isn’t a case of “bad publicity is better than no publicity at all.”
As of today, I couldn’t find a response on Toyota’s Web site (www.toyota.com). If this issue has received extensive coverage, a response should be posted as soon as the company figures out a next step.
If I were a PR executive at Toyota I would suggest they pull the ads and do more brainstorming to create ads that uphold the reputation of Toyota as a car with good resale value and don’t “suggest” illegal activities. Come on Toyota ad people, you can do it! You've got a great car to work with!
Read the story in the Boston Globe: http://www.boston.com/business/globe/articles/2007/12/19/insurers_complain_ads_from_toyota_incite_fraud/
The Insurance Fraud Bureau of Massachusetts Web site: http://www.ifb.org/default_java.htm
The Coalition Against Insurance Fraud Web site:
http://www.insurancefraud.org/
According to the article “Insurers complain ads from Toyota incite fraud,” by Globe staffer, Bruce Mohl, the ad has caught the eyes of the Insurance Fraud Bureau of Massachusetts and the Coalition Against Insurance Fraud. These groups say that “the unspoken message is that an insurance settlement from the old car will help pay for the new Toyota.” The article states that both of the above groups have sent letters to Toyota. A Toyota spokeswoman stated that the ads “were meant to be humorous and, not to be taken literally.” She added that they would review “letters of protest,” and possibly change the ads or include a disclaimer.
Faced with a public relations problem, this statement is probably the best Toyota can do in the short run. As I see it there are really two things wrong with this ad. First is the obvious. Insurance fraud is illegal and you would think the Toyota ad agency executives or the company’s advertising department would consider this issue. When creating this campaign didn’t anyone say, out loud, “What would happen if someone actually did this?” This would be a PR nightmare!
`The other issue is branding. I have always thought that Toyota prided itself on the longevity and the resale value of its cars. I know people who have driven Toyota cars well beyond 200,000 miles. I guess the commercials wouldn’t be as funny if the owners actually went to the Toyota dealer and traded the old one for a new one.
Once again, this situation places PR in the position of being an advertising fallout “pooper scooper.” I don’t know to what extent Toyota’s public relations staff was involved in the creation of these commercials. But this illustrates the need for public relations and advertising to work together on ideas that might be funny, but also might damage the company’s reputation a little. It’s a clash between creativity and reality. As far as I know Toyota has always had a good reputation. I hope this isn’t a case of “bad publicity is better than no publicity at all.”
As of today, I couldn’t find a response on Toyota’s Web site (www.toyota.com). If this issue has received extensive coverage, a response should be posted as soon as the company figures out a next step.
If I were a PR executive at Toyota I would suggest they pull the ads and do more brainstorming to create ads that uphold the reputation of Toyota as a car with good resale value and don’t “suggest” illegal activities. Come on Toyota ad people, you can do it! You've got a great car to work with!
Read the story in the Boston Globe: http://www.boston.com/business/globe/articles/2007/12/19/insurers_complain_ads_from_toyota_incite_fraud/
The Insurance Fraud Bureau of Massachusetts Web site: http://www.ifb.org/default_java.htm
The Coalition Against Insurance Fraud Web site:
http://www.insurancefraud.org/
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