When faced with customers who are either ignoring or abandoning their products, CEOs often choose to alter their products to fit demand. This is usually a path to disaster.Altering a product is expensive and time-consuming, eating away at precious resources and profits. It also damages
strength of its brand name, confusing
consumer and widening
rift.
The PR Rainmaker understands that there are two ways of doing business. You can compete or you can create.
Most companies compete for
same set of customers. In a growing market, this works just fine. The number of available customers is going up and up, so there’s plenty for anyone who is willing to get out there and fight for them.
But what happens when a market refuses to grow? Or worse, what happens when a market actually begins to shrink. Suddenly, you are fighting for fewer and fewer customers. Your pricing power vanishes. So do your profits.
Instead, companies should seek to change
customer by creating new behaviors. The best method for this is public relations.
No one understood this better than Edward L. Bernays,
father of modern PR. Indeed, according to Bernays, it is this principle of changing
public instead of
product that separates PR from advertising and marketing.
Whenever hired to sell a product to
consumer, Bernays always chose to sell a new behavior instead.
He began by quickly analyzing
public behavior that prevented his client from thriving. He then determined how
public would need to think and to act in order to benefit his client.
Finally, Bernays would select
strategy and
tactics that would alter public opinion and consumer behavior to fit his needs.
His methods were indirect, complex and at times inscrutable. They employed front organizations, public demonstrations, letter-writing campaigns, expert testimony and other alliances. But more often than not, they worked:
Assigned to sell books for Simon & Schuster, Bernays enlisted experts to call for great literature in
everyday home, plus he convinced architects to include built-in bookshelves in their home designs.
Called in to bolster
sagging luggage industry, Bernays persuaded colleges to inform their freshman students about
wide array of suitcases they would need on campus. He also hired singer Eddie Cantor to pose for magazine photos while packing a large trunk for a coming tour.