Why Public Relations is Important for your Organization — By Wanja Muthee
Public relations is essential for all businesses, big and small. In appreciating the power of PR, business magnate Bill Gates has been quoted as saying, “If I was down to my last dollar, I would spend it on public relations.” But what exactly is public relations? The Chartered Institute of Public Relations defines PR a “the result of what you do, what you say and what others say about you.” It’s a process of perception creation that boils down to one thing — the organization’s reputation. When you think about it, getting someone else to say that you’re good adds credibility to your organization compared to other methods of putting the organization out there such as advertising. All in all, a good reputation is hard-earned, over time as people assess the organization’s track record of promises made through the brand and actions taken to stay true to the different stakeholders. While seemingly intangible, a robust, positive reputation is just as important as other key drivers of organizational growth and resilience that are also difficult to quantify, such as intellectual capital and brand equity.
The Institute of Public Relations defines reputation from two perspectives, that of the organization and that of the stakeholder. From the organization’s viewpoint, reputation “allows the company to better manage the expectations and needs of its various stakeholders, creating differentiation and barriers vis-à-vis its competitors.” In other words, “what you see, is what you get.” From the stakeholder’s perspective, it is “the intellectual, emotional and behavioral response as to whether or not the communications and actions of an organization resonate with their needs and interests.”
These different views about reputation morph into the need for organizations to embrace reputation management, a strategic function of public relations which incorporates tactics such as stakeholder engagement, crisis communication and corporate social responsibility. The reputation management role of PR professionals is crucial in the increasingly competitive world of business as the reputation of an organization should move it to a differentiated position amongst the competition, and lead to the posting of better financial results.
“A company’s reputation is pegged on having the stakeholders’ needs and interests met by the organization. This can be achieved through a mutually beneficial relationship, created through public relations methods.”
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In essence, a good reputation is like a magnet that not only keeps people’s eyes glued to your organization but also pulls them to do business with you. It greatly improves brand equity, another intangible asset, which is the commercial value of the organization, deriving purely from consumer perception of the brand name, rather than the product or service which the organization provides.
As such, while marketing and advertising may unlock a consumer’s wallet, it is a good PR strategy that will keep it open. In fact, studies have shown that a positive reputation has the significant effect of enhancing consumers’ purchasing intentions as well as working to build brand loyalty. Whilst building a positive reputation definitely offers desirable returns, it works the same as any other investment in that it takes time, energy, and sometimes, money. Once you have built a good reputation, you will find that sustaining it and, even more importantly, protecting it when it is under attack are also key components of the equation.
When crisis strikes the organization, PR methods can be used to put out the fire that threatens to consume all of your hard work. The 1982 Johnson & Johnson Tylenol case is an example of successful crisis public relations, which saw the organization rebuild public trust by using techniques such as media relations. It eventually regained its market share and sustained a good reputation. The organization put people before profit in responding to the crisis, which made the public feel that their needs and interests mattered most to the organization. Johnson and Johnson acted swiftly through the media, warning the masses against consuming Tylenol until further notice. They also immediately recalled approximately 31 million bottles of Tylenol in circulation. Such actions made the company appear as the victim of foul-play rather than as the perpetrator.
In contrast, the 2009 Domino’s YouTube scandal is an example of a lack of diligence in implementing PR as a damage control strategy. Despite delivering pizza across the globe since 1960, Domino’s suffered reputational damage when two of their employees filmed themselves rubbing food on their noses and sneezing on sandwiches in the preparation area and posted it on YouTube. The video went viral and had approximately 750,000 views by the time Domino’s responded two days later. The effect was that people who had been loyal customers for even 15 to 20 years began to second guess the brand. The perception of quality among customers had in a matter of days moved from positive to negative, all owing to the graphic video. Despite the fact that Domino’s took action which included firing the two employees involved and preparing a civil lawsuit against them, the fact that they were uncommunicative with their stakeholders made feel that Domino’s cared little about them.
Especially in this era of heightened online activity, public relations is key. With 65% of people seeing online searches as the most trusted source of information available about people and companies, according to the 2014 Edelman Trust Barometer, no company should bury its head in the sand when it comes to their online footprint. Negative online reviews and articles have become the dread of many organizations, and rightly so as different studies continue to establish the correlation between a negative online reputation and loss of business revenue. The 2018 Review Trackers Online Reviews Survey for instance found that 94% of consumers surveyed avoided a business following negative online reviews and 80% of consumers don’t trust businesses with lower than 4 star ratings. Public relations practitioners have the hard task of pushing positive content online to create positive perceptions of the organization. They should also be prompt in responding to customer queries online, so that they aren’t labelled uncommunicative, which could cause them to lose clients to their competition.
Apart from attracting and sustaining clients, which outright boosts the bottom-line of the organization, other advantages of a good reputation that are often overlooked include: attracting investors, attracting the best talent, employee retention, and lowering the marketing budget. All these advantages are the result of a well — executed public relations strategy. As such, all organizations should embrace PR.
Wanja is an avid reader and writer who lives in Nairobi. She’s a PR Assistant and Blogger at GuidedPR. She holds a Bachelors in Mass Communication from JKUAT and has worked in print media and in academia. When she’s not researching current affairs, you’ll find her on social media, keeping up with what’s hot!
Would you like to share your story or expertise with our readers? Contact our editor-in-chief, Rafael dos Santos, by clicking here.
High Profile Magazine Editor-in-chief Rafael dos Santos
