PR is a lifeboat to keep firms afloat in a storm

As the world lurches through the economic downturn, effective communication strategies are vital if companies are to calm and reassure jittery markets.

Shaking hands to cement a business agreement is a proven way of acknowledging a done deal and recognising trust between the parties.

There are a lot of things we can do to try to regain someone whose trust we have lost. We can write a card, send an e-mail, or make a phone call to explain, and hopefully mend the situation. Regardless of the preferred method, the important thing is to communicate, and as soon as possible. How and when that communication is made will determine whether a broken relationship can be rebuilt, and sustained.

From a business perspective, one of the worst aspects of the global financial crisis was the erosion of trust across all stakeholders. Consumers now feel strongly against parting with their hard-earned money. Investors want greater assurance that they will receive their due returns. Management takes a guarded stance against even the simplest of transactions, while employees constantly question the resilience of their organisations.

Faced with this overall meltdown in confidence, companies need to rethink their communication strategies so that they can provide a calming and reassuring voice amid the turmoil. One of the easiest, and yet worst, things an enterprise can do nowadays is to "keep mum" and pretend that it is "business as usual". While playing safe and keeping silent may provide a cushion against the crisis, it also suppresses potential and can inadvertently send out the wrong message that the business is, in fact, slowly sinking.

The key is to take a fresher, more sensible approach to corporate communications that focuses on the consumer's pursuit of trustworthiness and value. Before the subprime bad loans situation developed into a full-blown international crisis, companies were very generous with their marketing spend. They relied on conventional advertising to sustain already strong consumerism. These days, tighter budgets mean leaner marketing programmes using only the most essential tools. It is during such times that the public relations (PR) sector particularly emerges as a perfect messaging partner.

PR has consistently proven to be an essential and reliable instrument to help companies address chaos, respond to crises, and even gain from turbulent conditions. PR's greatest asset is its ability to build the level of legitimacy and accountability that advertising can't provide as effectively nor as economically. PR allows a business to revive or maintain corporate reputation, which given today's challenging markets has become crucial to survival. It sets up a transparent line of communication that elicits greater trust, familiarity and comfort from all stakeholders.

Studies show that 80 per cent of consumers feel it is still important for brands and companies to allocate money for social purposes even during a recession. In addition, 68 per cent of consumers say they would remain loyal to brands that champion good causes, again, despite the recession. All of these indicate the need to foster strong relationships with stakeholders and invest in social engagement. PR is the best equipped to meet this need.

However, it is not a total solution and is still subject to close scrutiny as part of the broader corporate communications framework. Despite the appeal of their services, many PR agencies are being contracted on a short-term basis, although the number of PR practitioners is rising. PR works best in harmony with other marketing strategies to optimise the unravelling of the corporate message. There are several trends affecting how we in marketing and communications position PR, advertising, and our other key services.

There is greater reliance on digital technology, which has provided consumers with more proactive means to influence brand status; more emphasis on sustainability and the role of brands in promoting social and environmental responsibility; and a shift to a model of globalisation called "world sourcing", which is changing the international economic order. Market research has long been the foundation for marketing campaigns. However, it cannot precisely predict the future. While it may give a fair projection of tomorrow, it will not accurately foresee events next year and beyond.

The financial crisis has shown us that some things can change consumer sentiments in the blink of an eye. It is thus important to learn more about customers and take time to listen closely to their complaints, opinions and suggestions While the natural impulse given the downturn is to save, communications is not an area in which to make cuts. The crisis is changing the corporate marketing paradigm; we can see a growing preference for simpler, clearer and more intimate marketing messages. Online marketing and other interactive approaches are quietly overtaking traditional print and broadcast media. And people are going back to the brands they know and trust.

Companies are turning to PR as a cost-effective tool that can be more effective than traditional methods. A PR campaign can be as simple as a company blog, message board or e-newsletter that reaches out to the online audience and updates them on organisational activities. So what trends can be expected within marketing realm this year and beyond? As we enter the 21st century's second decade, we can expect people to demand more value and social relevance rather than luxury. We will also see more consumers relying on the experiences of friends and strangers posted online rather than information from official websites. This will require us to pay more attention to online brand building.

Another important trend is positional marketing, where advertising is created based on consumer activities and profiles, for example a special offer relayed by an SMS message as an individual walks by a store. Special targeting of various groups such as older consumers will also be more in vogue. These are just some of the things we should take note of as we wage the daily battle against this protracted downturn. The answers are not simple and will vary depending on the nature of our clients and the latest developments in a highly volatile global economy.

Recessions come and go, the world has been able to survive them and continue with progress. Business opportunities, however, are not as cyclic; once gone, they may never come back. The economic downturn can be a perfect opportunity for organisations to enhance brand awareness and reinforce stakeholder trust and confidence. Businesses must be careful not to set aside reliable and effective marketing tools such as PR and instead tap their full potential to stay afloat during the economic storm and sail smoothly once true recovery flows.

Nidal Abou Zaki is the managing director of Orient Planet PR & Marketing Communications @Email:[e-mail]