Now Is The Time For PR

November 20, 2001

Now Is The Time For PR

Reported by Xiaodong Tian

With 14 years of experience in high-tech PR, one-time journalist Lou Hoffman, CEO of The Hoffman Agency, has a unique sensitivity toward the development of Silicon Valley companies. The Hoffman Agency is the fourth-largest public relations agency in the Silicon Valley. Hoffman recommends that high-tech businesses should abandon their tendencies to retreat into silence, and take advantage of the market downturn to get their names out there, to build good relationships with the media and to ultimately raise company profile. The key to capturing this opportunity lies in how you respond to crises, i.e., your crisis-management capability.

From a PR professional's viewpoint, Lou Hoffman provided his thoughts on "whether companies should continue to support PR activities during an economic slowdown." He said: "The high-tech market is highly competitive. When the economy is slowing down and companies are suffering, there is usually less competition for media coverage. Any company that leverages this situation and invests more into public relations will get better return on investment."

Hoffman gave the following example: A CEO from a large American company once canceled a trip to COMDEX, out of the blue, in order to avoid contact with "the outside world." Now he is suffering the consequences of his actions. The company is dealing with large excess inventory and is in terrible financial shape. Every day, the CEO is either busy responding to customer complaints or consulting with industry experts for solutions. Just think about it, who will have faith in a company when the CEO is described by the media as an ostrich with his head hidden in the sand?

Hoffman also gave another example: "Imagine the market reaction to the report that Jeff Bezos, Amazon's CEO, dodged a CNBC interview after hearing that a Wall Street Journal reporter was to participate in the interview as well."

To bolster the reputation of tech companies nowadays, Hoffman pointed out, "Few actions enhance a reputation faster than seeing the head honcho stride front and center, confidently acknowledging the challenge, taking responsibility for past problems - without whining or making excuses - and then moving on to articulate a plan for getting the company back on course."

Apply PR Skills with Smarts

"In the condition of the local market downturn, many companies spare no efforts to explore other markets, and have an urgent intention on increasing a company's brand awareness or reputation," said Hoffman. "As they go global, companies must use public relations wisely by localizing the language and content of the PR program in line with market characteristics in the target country."

"Companies can bring up human interest stories about the process of running and operating PR, which has power in the world," Hoffman added. "Many technology companies still feel their superior products or services help their brand and reputation, but the human element, such as a CEO's role, also plays an important part in shaping companies' personalities and reputations."

"For startups, the No. 1 thing is for them to build a relationship with their customers, to move above and beyond the frenzy for increasing revenues," he said. "Defining a great global company all starts with great customers," suggesting that it takes some time to build a global company; businesses should not be fooled by the myth of Internet speed.

Construct a Bridge of Communication

As the fourth-largest public relations agency in the Silicon Valley, and the first tech public relations specialist to establish a presence in mainland China, The Hoffman Agency is good at strengthening client loyalty with extraordinary planning and operation. It usually carries a long-term partnership with clients. In fact, 60 percent of total revenue comes from clients that have been in cooperation for more than three years.

In the U.S. market, Hoffman has been working with Hewlett-Packard for more than 14 years. Other clients include global companies such as National Semiconductor and Quantum, as well as Internet startups and venture capital firms. The company has regional offices in Beijing, Hong Kong, Taiwan, Singapore, Japan and Korea.

In the Chinese market, The Hoffman Agency's client roster ranges from well-known companies, such as Iomega, CommWorks (a subsidiary of 3Com Corporation), to leading high-tech firms like TIBCO, i2, Virata, etc.

Hoffman said that the goal of The Hoffman Agency is to bridge mainland China with the Silicon Valley. Through providing PR service on a global scale, Hoffman aims to offer opportunities to improve understanding and cooperation between China and the Silicon Valley, through planning and consultation on professional market communication strategy and customized products and services.