The Future of PR & Communications
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Deck presented at PRAsia 2013 event in Singapore (Nov 2013)
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The Future of PR & Communications
- 6. “Technology is shifting power away from the editors, the publishers, the establishment, the media elite. Now it’s the people who are taking control” Rupert Murdoch
- 7. Transactional Marketing View of value Relationship Marketing Value is associated with a company’s offering. Maximize value in exchanges Value is associated with customer relationships. Maximize lifetime value of relationships Collaborative Marketing Value is associated with experiences. Maximize value of co-created experiences Place where value is exchanged between customers and the firm. Market is separate from the value creation process Market as a forum where value is co-created through interaction and dialogue Passive buyers to be targeted with offerings Portfolio of relationships to be cultivated Prosumers – active participants in value cocreation Define and create value for consumers Attract, develop, and retain profitable customers Engage customers in defining and co-creating unique value Survey customers to elicit needs and solicit feedback Observe customers and learn adaptively about customers Active dialogue with customers and communities View of market Role of customer Role of firm Nature of Customer Interaction Source: Mohan Sawhney, Kellogg School of Management
- 9. #1: Be Agile, Nimble, 24 x 7, Global
- 10. Community
- 23. Next Decade
- 24. Andrew Pickup Senior Director Corporate Communications Microsoft Asia Pacific +65 91709305 andrewpi@microsoft.com andrewpickup
Editor's Notes
- Good morning, it’s great to be here and to have the opportunity to share with you some of the key future trends that are taking place in our industry, what challenges and opportunities they present to Microsoft and how we are evolving our communications to meet them.
- In thinking about the next digital decade, it’s useful to think back to how marketing and communications used to work.In retrospect, when I first started in marketing, the model was actually very simple. It didn’t feel like it at the time, but it really was!An organisation produced product and services. In order to drive demand for those products and services, it executed marketing campaigns to make the customer aware of - and interested in – buying those goods.In simplified terms, the marketing choices were “advertising” (I use this term loosely to mean any paid-for communications e.g. direct mail, events, TV, radio etc) or PR i.e. non paid-for (or earned) communications.And because the media needed information from the organisation to write their stories, the PR department was formed.
- Since those very early days, this traditional marketing and communications model has been completely disrupted.And at the heart of this revolution is technology.Technology has a long history of disrupting well-established industries, just look at what it has done for the music, photography and books businesses.And it is certainly revolutionizing Public Relations and Communications right now, there is no question of that.Think about the impact of globalization. The fact that billions of people are now connected, that they can read stories about your company or brand from halfway around the world, that news and stories are published instantly, that information about products that are not yet launched in your markets can bleed into your geography, that journalists can now watch that international launch “live” via webcast etc etcOr the explosion of social media , which means that (often times), the target audience may not be even listening to the brand, choosing instead to participate in their own conversation, trusting the independent voices of people they have not even met over the biased content of the brand. And we have only just started, folks. Rapidly rising income levels here in this part of the world, means that literally billions more Asians will soon be connected, whether via mobile, PC, TV of new form factors. Strap-in, it’s going to be an interesting ride
- Now, when you look at that model again, it becomes more complicated.In the middle, you can see that the customer is now connected, not just to the brand, but (more importantly) to each other. And they now have the ability – they have the device, the connectivity and the social atforms – to communicate with one another. To share stories, information and experiences that they once got from brand advertisers or traditional media.So, whether your ad agency will admit to it or not, advertising is now far less effective than it once was. It just does not hold the same dominant place in either the customer’s – of the media planner’s – mind that it did in the 70’s and 80’s.On the right-hand side of the diagram, several things are going on. First, just like the left hand-side, customers are moving away from traditional media, so circulations – and journalist staff headcount - are declining. So journalists today are trying to file more stories with fewer headcount than ever before, and they now have search engines and social media to help them do this more efficiently. They can create a story without you. So, whether your PR agency will admit to it or not, the media are also less susceptible to traditional PR approaches than ever before.
- Rupert Murdoch, the acknowledged king of traditional media, summed it up quite well. Today, it truly is Power To The People!
- Thinking about what is going on at a macro-level, Marketing is really now in its“3rd Act”.1950-70’s – Transaction marketing. This was the “Mad Men” (Don Draper, TV series) era, marketing existed primarily to drive demand the manufacturer’s products and services. The customer was a broad, mass segment, their role in the marketing process largely passive. Think of the Tide housewife passive.1980-2000’s – era of “database/relationship marketing”. Customers were identified as individuals, profiled, targeted individually via direct mail, responses recorded and segmentation, target and messaging defined as a result. Reader’s Digest created this model, Dell defined it, Amazon mastered it. Customer now has a direct and interactive relationship with the brand.21st Century – customers are now connected to each other,as well as the brand. They are “prosumers” – they want to be part of the marketing process itself from design, targeting, distribution etc. Smart companies will participate in an active dialogue with them and their communities.
- OK, so that is the current and likely future landscape, what the hell can we all do about it?
- First, we need to become far more agile, nimble, always-on and global in our outlook.In brand-based Corporate Communications teams, we need to think and act more like a global news room. Time was when we could take 6 months (or even 6 weeks) to land a story with a long lead-time publication. Whilst this will still happen from time-to-time, the likelihood is that we will more often be dealing with issues and opportunities that may need a response in 6 mins or less.We need to have our finger on the pulse of what is trending in the marketplace and what is our brand’s connection to it.Here’s a recent example.Many of you will be aware of the story of Miles Scott, a 5 year old Leukemia survivor in San Francisco who asked the Make-A-Wish foundation to make his dream come true of being Batman for the day. The City of San Francisco pulled together to make his dream come true – hundreds of volunteers worked together and 12,000 people turned out on the streets of San Francisco to cheer him on.Now, President Barack Obama’s team clearly have their finger on the pulse. They interrupted the President’s busy schedule to record a Vine message, cheering Miles on, which they then tweeted from the President’s Twitter account. Go Brand Obama!
- The second capability we need to build is to embrace the community.If an increasing volume of the conversations are happening in the community, we – as brands – need to be part of that.We need to lever the community to help tell our stories.
- Here is a simple example.This is a product called Office 365, which is the new cloud-based version of our market leading productivity suite, Microsoft Office. It allows you to connect with all of your documents through any device – a PC, a smartphone, a tablet – wherever you are.An appropriate target market for this product would be working mothers. The traditional way we would have launched this product to that market would be via a press release.Here is what we did instead……
- We reached out and embraced the community and got them to tell our story for us…. (VIDEO)
- In an increasingly digital and connected world, it is also important that brands become more authentic and transparent.
- Here is an example of a campaign we did for one of our products called Lync. Lync is a unified communication product – it essentially allows you to make phone calls, do instant messaging, conduct conference calls etc – all via your existing PC network. One of the customers that chose to deploy Lync was Volkswagen. We approached Volkswagen and asked them if they would be interested in sharing their experiences of using Lync with our community of customers and prospects.We wanted to communicate authentic conversations – good and bad – in an open and transparent way.Here is who we did it……
- It is clear that the traditional silos of communication channels are being eroded.The campaigns that we all talk about after the Cannesawards for the last few years, be that Dumb Ways to Die, Fair Go Bro or World’s Best Job, are conspicuously PR ideas,executed brilliantly by ad agencies and their partners.Indeed, most of the best ad agency creative these days feature ideas that work well beyond bought media, and in many cases are truly conversational, two-way and engaging. The nature of social media is pushing all agencies - advertising, direct, PR etc – in the same direction, one of integration.
- Here is an example of integration – and engagement – across multiple channels.The product here is our search product, Bing, the target audience is young adults, they use search more than any other demographic.To reach this market, we decided to partner with rapper Jay-Z, who at that time was about to launch his autobiography, “Decoded”.To co-incide with the launch we create an online experience that deeply integrated the content of the book – Jay-Z’s journey from street-wise kid to his current position as a major global cultural icon – to Bing’s website and services, creating a highly integrated and deeply interactive experience.Anyway, I think the following video explains itself…..
- The final capability you need to build is to become you own publisher i.e. build your own media platforms.In this new highly-connected era, every company needs to publish regularly to its various communities, its customers, its staff, it's neighbors. It needs to know how to produce compelling content, great video, podcasts, etc. And now, with social media, it also needs to learn how to listen, how to get involved in online discussions, how to behave on Facebook or Twitter.In addition, with rapidly declining circulations and readership, big brands like Microsoft often now have more visitors to their sites than many traditional IT media.
- A few years ago, at Microsoft, we created a new position, Chief Storyteller.Steve Clayton, long-term Microsoft veteran. Not a comms person, not even a marketing person, just an enthusiast (and a blogger)Ran a blog in the UK calledGeek In Disguise, lots of followers (and awards)Invited to move to Seattle and become Microsoft’s first Chief Story Teller.Moved to Seattle, created Next at Microsoft.
- Then we saw, and were influenced by, this New York Times article.Long-form, highly-digital, embedded videos, it broke new ground in digital story telling.
- And we thought: we can do that!
- Now we create stories about ourselves that drive customers to our site, but are also picked up by the traditional media.
- So that’s it, folks.The 5 capabilitiesyou need to survive and thrive a highly-connected era for PR and Communications.
- Ultimately, the future of PR is all about conversations.I hope this is the start of a rewarding conversation between us today, thanks for listening.