In Sequence - December 2003

Feature Articles:

Legal Update: Marketing on the right side
Getting Started and Realistic Expectations with Media Relations
Advice from our Advisory Board
Case Study: RedFlagDeals.com

 

Legal Update: Marketing on the right side

By June Macdonald

In the summer I attended the DM News Breakfast Briefing on Changes to Canadian Law impacting Direct Marketers. Key highlights affecting marketers online are as follows:

Disclaimers: Federal law being drafted would require all disclaimers on a website or html email to have a hyperlink right by the offer to find full information. Marketers are concerned this would distract from the offer. Legal opinion is that this is unnecessary, and having links on the same page and with an asterisk, for example, should be sufficient, as is done in print media. The result is that the Competition Bureau will take into account the location of the disclaimer and whether it alters the overall impression of the offer; the accessibility of complete details of the offer; sufficiency of disclaimers in quantity and location and use of attention-grabbing tools to provide notice of the disclaimer.Application of the Competition Act in online communications: a February memo indicated how the Competition Act would be interpreted online as to apply to all online representations, including emails, chat rooms, etc., for the purpose of promoting a product or business to the public. The industry says that one-to-one email communications are intended to be private and therefore should be left off (compared to mass email communications). The legal opinion is that information posted to a website is public, but emails and posts on bulletin boards could be a 1-1 communication and not intended as public. Therefore the Competition Bureau concluded, "depending on the circumstances, communications within chat rooms, news groups or message boards on the Internet could run afoul of the Competition Act."

Prices, Terms and Taxes: the Bureau initially wanted to require all prices, taxes and terms to be disclosed in online advertising, but it was determined they do not have jurisdiction on this issue.However, the Bureau indicated businesses should take care to disclose any differences in price between environments (online vs. offline). Not disclosing differences could be taken to be materially misleading and thus a criminal offence.Liability of Intermediaries is governed by what nature and degree they have control over the representation. The Bureau considers the following in ascending order of liability: web designers who create the representations, web hosts who own or operate the servers from which they are distributed, service providers who provide access to the Internet, advertising agency who developed the ad, and most liable is the business on whose behalf the representations are being made.

Privacy: the Federal legislation, PIPEDA, was touched on, as it goes into effect January 1st, 2004, unless there is similar provincial legislation in place (which was underway in Ontario but has been put on the backburner; BC and Alberta have their own legislation). A reminder to everyone that you must be collecting consent for use of consumers and employees private information. Private information is any data that could be used to personally identify a person. You must have person in your company consumers can contact as the appointed "privacy advocate". All private information must be auditable and your privacy policy publicly stated. The minimum is opt-out where there is a previous commercial relationship. As we've said on this list before, for permission marketers, this is not a problem and opt-in consent is easy to collect.

Refer-a-Friend Rewards: Ontario is drafting a revision that would allow marketers to reward customers who refer their products and services. This is currently not legal in Ontario, BC and Alberta, or Quebec to some degree, although rarely enforced.

Disclaimer: Please note, the above is not warranted to be complete or accurate and you should consult legal counsel to ensure compliance for all your marketing programs and representations.

Reference Links:
Competition Bureau site:
http://strategis.ic.gc.ca/SSG/ct01250e.htmlOntario Privacy Commissioner
http://www.ipc.on.ca

Privacy Commissioner of Canada
http://www.privcom.gc.ca/index_e.asp

Summary of PIPEDA - Personal Information Protection and Electronic Documents Act
http://strategis.ic.gc.ca/SSG/ca01460e.html

Direct Marketing News
http://www.dmn.ca

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Getting Started and Realistic Expectations with Media Relations

By: Jennifer Evans and Marisa Vernola

What is the difference between public relations and media relations? 
Public relations is the entirety of how a person or individual communicates to the general public. 
Media relations is a small but critical subset of how public relations is accomplished. 

Because media coverage is so valuable and can make such a difference to a growing company, companies often focus on this component of public relations. We are frequently asked by our clients "How do we get mention of our company in the media?" It's good to keep in mind that media relations is merely a subset of complete and effective public relations. 

Here are the things that effective media relations are NOT: 
  • One-off
  • Focused around one specific initiative or event
  • Guaranteed results
  • 100% controlled

Selecting Media
How are you going to reach your prospective audience? 

There are several ways to reach your audiences and as the number of electronic, print and contact communication vehicles has increased, so has the need to reach them. Media relations provides an effective alternative to more traditional communication tools (brochures, newsletters, speeches, etc.) and when used properly, can contribute greatly to the overall success of a public relations campaign. 

For example, the launch of a new consumer product may be targeted towards consumer, business or news reporters and/or industry specific publications, where as a story about the company launching the products may be simply targeted towards business and trade publications. If however, the product was a new software technology created for a specific industry, it would make more sense to target trade and tech reporters at various newspapers as well publications and televisions shows targeted towards the industry.

Many prospective clients come to us with little or no media relations experience and they either have feelings of concern about a complete media relations campaign ("it's so public! What if I say the wrong thing?" or very high expectations ("Why is my press release not generating a lot of results?").

The keys to a successful media relations program are: 
  • Knowing who to target (why are they going to be interested?)
  • How to target them (packaging and issuing your news in a way the reporter wants to see it)
  • When to target them (is there an external event that will make an announcement more effective at a specific time?)
  • Providing media with newsworthy information (make sure primarily that it is something of interest!)
  • Offering context for the information you are delivering
For example, as important as the latest announcement of your newest partnership is to your company, why is it of interest to the world? Is it an introduction of a brand new product to a new region or line of business? Is it a new service that is going to significantly reduce costs, increase efficiencies or offer a new way of doing things to an established market? If not, you should seriously question your goals in developing a media relations campaign. 

Some tips for effective media relations delivery: 
  • Target those who will best deliver your message in a timely and efficient manner. If you are announcing a new business-to-business software product, a consumer expert probably isn't the best person to include. Do your research.
  • Recognize that media relations is ongoing. You need to build relationships and visibility with key members of the media in order to generate effective long-term coverage.
  • Recognize that external factors often intervene. For example, this spring was a very tough time for media relations in the health care sector as everyone in Toronto was focused on SARS. What is news isn't driven by what YOU think is news, but by what the general public thinks is news. Read the publications and watch/listen to your target outlets. What types of stories do they cover? 
  • Remember that you aren't 'planting' stories. You are trying to make the life of a media professional easier by providing them with newsworthy information. If they want to use it, they'll let you know. If not, there's nothing like an overeager media relations professional pestering a reporter to make sure they'll never cover your story!

Example of an effective campaign
One of our earlier successes with media relations occurred when we launched a media relations program for a client who wanted to build visibility for their online company. 

How we did it?

Stage One: Background work
Stage Two: Developing the release and media list
Stage Three: Following up
Stage Four: Training
Stage Five: Execution and follow-up

For weeks we worked on developing the first phase of this particular campaign, which included developing an angle for the story, preparing and writing the press release and other supporting documentation, researching various media channels and creating a detailed media list of targeted contacts. The client's target audience determined the media channels and contacts that the release would be distributed to and for this particular release we chose to focus on consumer, business and tech media. 

A day after the release was distributed, a local news station did a piece on our client's web site for their web trends segment and the following day, a consumer specialist from another station picked the story up. The results: a 1 1/2 minute segment on the 6 o'clock news which included a user testimonial, an interview with the founder and demonstration of how the site works; increased web site traffic; increased newsletter subscriptions; increased online forum users and various inquires of interest about the company and the site.

Not only did this prove to be a successful launch, but our client's key messages were delivered effectively and with ease. And, while success factors do vary among our clients, this client could not have been happier - which for us, makes it all the more meaningful. 



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Advice from our Advisory Board 

Our Advisory Board has a mandate to provide us with advice and information on effectively doing business, as well as comment on the issues and trends facing both the online marketing and public relations industries. Sequentia's Advisory Board is comprised of:

Len Ruby, President, Krug Furniture 
John Hayes, CFO, Engineering.com 
Jacqueline Danforth, President, FACT Group 
Carolyn Burke, President, Integrity Incorporated 
Katherine Macmillan, Vice President, Operations, Manulife Financial 
Geoff Simonett, President, WaterthatWorks 
Jan Crowe
Ted Betts, Blakes Cassels and Graydon

In this issue, our advisory board has provided us with some basic business advice. Here's what they had to say:

1. Getting everything you want in a negotiation is not necessarily a win! 
This applies to business, friendship, marriage, customer relations, and any long-term relationship between two or more people. Every party in a negotiation has a range of possible outcomes and hopefully there is overlap amongst the parties. If you get everything you want in a negotiation, it is likely that the outcomes were not overlapping to begin with, and despite coming to an agreement, chances are one of the parties will not be happy in the end. This happens all the time. If a long-term partnership underlies any negotiation, your best possible outcome must also be a pretty good outcome for your partner(s). If not, the deal/relationship will eventually fall through and everybody ends up with nothing i.e., divorce.

2. Pick a focus and have a plan! 
As George Harrison said, "if you don't know where you're going, any road will take you there." What he meant to say is, "if you don't know where you're going, then you don't know where you'll end up." Presumably, you care where you're business is headed and know of the many roads that will get you there. The chances of you arriving "at the end of the road" successfully and in a timely manner, largely depends on choosing one path and sticking to it. This doesn't mean that your plan needs to be followed rigidly - flexibility is a must - it just means that if you don't define success before you start your journey, you may never know when you've actually succeeded. 

3. Don't count yourself out before the race has started! 
Don't scrap an idea because you assume somebody has already done it or that others could do it better. Most people are surprised by their own success and even more never give themselves a chance to succeed. Never give up.

4. In the service industry it's customer, customer, customer! 
Everything you do and everything you expect from your staff needs to be dedicated 100 per cent to making your clients look good even before worrying about whether you will be getting the credit. Your job is to make your marketing and/or advertising contact appear successful to his/her boss, even if they take all the credit. Deep 
down, they know who helped drive their success. 

5. Existing customers are more valuable than new ones! 
We've all heard this many times and in many different forms, but it really comes down to simple math - a class a lot of people seemed to have skipped. You spend a lot of time and money building a relationship and once you have gained a customer's trust, repeat sales should be a no-brainer. Everybody sells relationships or trust, products and services are always secondary. 

6. Don't get handcuffed by convention!
If ever you make a decision because, "that's the way it has always been done," then it's probably time for a change. There is a heck of a lot of room when it comes to making a change or becoming radical, so push the envelope a little and experiment.

7. Base all management decisions on defendable logic!
First off, it's never that simple. For example, at some point in the life of a small company you will begin to see that employees of equal skill are making widely different salaries. Some employees may be getting paid less because that's simply the decision you made, others may be getting paid more because you couldn't handle the constant complaining, and in some instances, you may not even remember why you made certain decisions regarding pay. Its important to note that once a salary has been determined, you can never go back on your decision only forward. When you find yourself in this situation, there's a good chance that eventually your employees will learn what each other are making. When this happens, brace yourself because your office will be very busy until everybody is satisfied with the salary they are making or receiving the salary they feel they deserve. Things such as this are never black and white and you must be able to defend your position on decisions, often in a public forum. Yes, some people will be upset, but far less than the runaway train you could set in motion.

8. Always play for the team!
Work with your peers and manage them, just like you'd manage up...keep them informed, get their buy in, seek their advice. 

Communication is key even when there is nothing to communicate!
Most people are naturally paranoid. Classic case: most people will immediately assume that if they didn't get invited to a party then they must have done something wrong. That is, instead of considering possible reasons as to why they didn't receive the invite (i.e. it was held up in the mail), most people jump to conclusions and consider the most negative outcome. In the office, people always assume there is something going on that they are not allowed to know about and in most cases there isn't. Keep the lines of communication open and foster an environment that maintains an open door policy. By doing so, you can prevent the onset of such assumptions.

9. It is better to grow a little slower than to risk your reputation early on! 
Try to resist projects where you are less than expert and resist hiring people that are less than a perfect fit. 


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Case Study: RedFlagDeals.com 

RedFlagDeals is Canada's pre-eminent site for finding shopping deals. The site had a very committed community of nearly 5000 users and was generating in excess of 3 million page views per month, but founder Derek Szeto wanted to expand the site's reach from early adopters to the general public. 

In May of last year, Derek Szeto came to us thanks to a lead from Ken Schafer. We were immediately impressed by what Derek had created in RedFlagDeals.com - especially since he is still a university student! Derek wanted to publicize the site and build traffic and greater awareness. We recommended a media relations program since the site has a strong track record, excellent traffic and had just been picked up by 24/7 Canada for advertising, and an email program to keep visitors informed. 
Sequentia developed a strategy that revolved around introducing the site and its offerings to consumer reporters across the country. An introductory release outlined deals available on the site, partner and user testimonials, and the story of Derek Szeto, a third-year student at Queen's University who started the site while in high school. Other initiatives included email newsletters, a user survey, partnership discussions and introductions, pitches to student newspapers and award nominations.

Since we started working with RedFlagDeals:

  • We've generated broadcast, print, web and other coverage for RedFlagDeals 
  • The site is now at 8000 users (an increase of over 60 % in 4 months) 
  • The site is generating 50,000 additional unique visitors every month
  • We assisted in developing a partnership with CanadaHelps.org for the holiday season
  • We conducted a membership survey to which nearly 3000 people responded
  • We developed the survey results into a third anniversary release, resulting in partnership discussions with sites like eBay.ca and FutureShop.ca, key advertisers for RedFlagDeals.com

NEXT MONTH: How a small manufacturing business in Hamilton targeted its communications and got exceptional results!

 


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