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March 2, 2002 |
Hoffman: Conducting a Big PR Campaign on a Global ScaleReporter from PR World In a recent interview, Lou Hoffman, the CEO of the fourth-largest independent high-tech PR firm in the Silicon Valley, provided his ideas on the question of "whether companies should insist on PR communication in the economic downturn." He said, "It is the right time for high-tech companies to develop PR communication; though, the high-tech market is full of competition during the economic downturn, and with comparatively decreasing competition, companies that spend more of an effort in PR communication will get benefit more." Hoffman, a former journalist with 14 years experience in the field of high-tech PR, is sensitive to the development of companies in the Silicon Valley. He discovered that most tech companies embrace the sophisticated strategy known as "hide-and-peek PR." Companies have adopted a bunker mentality to minimize communications with external audiences, periodically searching out that friendly reporter who won't poke and probe. Hoffman said that this is unwise behavior. For example, he remembered one CEO from a big American company cancelled a trip to COMDEX to avoid "the outside world." Now that makes a lot of sense. The company is in the dumpster, inventory languishes in warehouses, and he wants to barricade himself from talking to the very people who buy his product, or observers of the industry who can offer an outside perspective. Contrary to traditional thinking, Hoffman said, "Today's tough market conditions offer terrific opportunities for companies to strengthen relations with the media, tell their story and even bolster their reputations. It's all in how you capitalize on the situation. How the market perceives the method in which your CEO handles a tough situation goes a long way toward eroding or building your reputation. The image of the CEO cowering under a desk does not elicit market confidence." Hoffman offered another example: "Consider the typical reaction to a report in the media that Amazon's Jeff Bezos dodged a CNBC interview after hearing a reporter from The Wall Street Journal was joining Mr. e-commerce on the set. " 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 acknowledge the challenge, take a few bullets for past problems - without whining or making excuses - and then move on to articulate a plan of action to put the company back on course. " Localization and Humanization: Keys to Globalization Hoffman said that during a local market slump, many companies spare no efforts to explore other markets, and have an urgent intention on increasing their brand awareness or reputation. 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. Hoffman mentioned that Virtual Ink, a U.S.-based leading manufacturer in information share technology, made a successful debut in the Chinese market through localizing its PR content. The company tapped its first product, mimio, a digital conference assistant. Hoffman China took the PR responsibility when mimio was introduced into the Chinese market. After serious scrutiny and research, the agency realized a potential prospect for this product in business applications, as well as in university campuses. It was also considered that the Chinese prefer local versions of products, and that the culture emphasizes education. With the development of computers and networks, the Chinese government has developed initiatives to use modern technology in schools, and has attached more importance in exploring distance learning. Therefore, The Hoffman Agency set the theme of the PR program as a two-pronged business and education approach through localization. Hoffman cooperated with Virtual Ink to present the product in a "three-step strategy." First, Virtual Ink successfully developed the Chinese version of mimio. It then positioned mimio as an e-education tool and established relationships with the famous Tsinghua University in China by donating five sets of equipment and providing training for professors. Finally, by taking part in the Seminar on National University and Laboratory Equipment, where equipment buyers from more than 200 universities joined, Hoffman helped Virtual Ink display the excellent qualities and importance in modern and distance learning, and spread the influence of mimio from Tsinghua to the universities around the country. "Companies can bring up human interest stories from the process of running and operating PR, which has power in the world," Lou 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 increased revenues," he said. "Defining a great global company all starts with great customers," This suggests that it takes some time to build a global company, and one should not be fooled by the myth of the speed of the Internet. Hoffman gave the following example: Recently Levis Strauss bought back a pair of its own jeans produced in 1880 for U.S. $46,532. The fact proved that the cost was worthwhile. Many media outlets tried to be the first publication to report on this action. Levis Strauss launched a press release and submitted several photos. The awareness of Levis Strauss went deep into the heart of the customer, creating a great deal of PR results without much money. PR Company and Client: Build the Real Partnership In the new economic era, the word "partnership" is so popular that it seems we can't survive if we don't build one. According to Hoffman, the real partnership between a PR company and its clients should be built on care for each other, and not become a one-sided relationship. The Hoffman Agency always remembers to emphasize this special expectation when it communicates with clients. If the client treats the agency as a vendor, instead of a partner, the internal Hoffman staff does not obtain enough job satisfaction. By emphasizing the partnership as an important element of client relations, The Hoffman Agency has a better chance of recruiting and retaining good people. Hoffman said, "This doesn't mean we expect clients to follow our advice or be docile and obedient. The client has the right to demand great work from the PR company." Hoffman thinks that both the clients and their PR companies should abide by the same professional and moral rules. Some clients have begun to regard PR companies as an extension or member of their marketing ministry. PR companies have found this new style of partnership to run well. HOFFMAN: Conducting a Big PR Campaign on a Global Scale The Hoffman Agency entered the Chinese market in 1997; and in late 1999, two different sets of Chinese government officials met with the office to discuss services. But they weren't looking for PR services. Instead, they were looking for assistance in raising money from venture capitalists based in Silicon Valley. "That's a symbol of the opportunity that they see in The Hoffman Agency- a broad communications company that can bridge mainland China with Silicon Valley." Hoffman said, "Indeed, The Hoffman Agency provides PR service on a global scale. We aim 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 product and service." The Hoffman Agency launched a publication called China ePulse in June 2000, which provided professional reports and market analysis for senior executives in U.S. high-tech companies. Furthermore, a free monthly online news service from Hoffman China - China High-tech PR Newsletter - was offered to companies in the Silicon Valley, and covered information ranging from technical market focus, news anecdotes, to knowledge base of the IT PR arena in China. The purpose was to assist Americans in having a clear idea of the Chinese market. To introduce China to the Silicon Valley, Hoffman also hammered at the reciprocity from Silicon Valley to China. On the advantage of location, in the center of Silicon Valley, The Hoffman Agency published Approaching Silicon Valley in May 2000, to help Chinese companies approach Silicon Valley from different angles - such as the economic model, enterprise management, technology innovation, community and lifestyle. The publication was free to companies and media. As the fourth-largest
public relations agency in 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, and 60 percent of its total revenue comes
from clients the company has worked with for more than three years.
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