Don’t ‘blow water’ with advertorials, engage audiences

30 October 2009

There’s a growing number of advertorials being published in Hong Kong and Asian media – sometimes in controversial circumstances – so when Marketing magazine asked me to write a piece for their own blog this topic immediately suggested itself. Marketing’s blog is Chui Sui Central, Cantonese for “blowing water” which means ”casually chatting”. Read on…

Is it time to “blow water” all over advertorials as the literal English translation of this column title would suggest, to pour water and leave a mess of soggy newsprint? Or shall we, as the Chinese meaning suggests, explore their potential role in strategic communications to inform the public? 

There’s already a bit of talk around Hong Kong about an advertorial which has popped up on p4 of the South China Morning Post (Friday October 23 2009). Promoting the proposed cross-border express rail link between Guangzhou and Shenzhen, its headline promised “Express Rail Link to Put Hong Kong on Fast Track to Greater Prosperity”. With a small “Sponsored Feature” in the top right hand corner, it’s not immediately clear who has paid for or written the article, but there are a couple of references to “a government paper” and “the government”.

It’s not in the Chui Shui Central column’s brief to discuss the advertorial’s political points. The Big Lychee (formerly known as Hemlock) has commented in prose which lives up to the promise of the blog’s tagline “Watching the sun set, little by little, on Asia’s greatest city”. There’s also another critical blog piece on the satirical (and highly amusing) The Dark Side

What is clear is that there’s a growing trend among corporations and government to turn to advertorials as they seek to gain ‘cut through’ in cluttered communications, advertising and editorial environments. Whether it’s a government trying to bolster support for policies and projects or companies raising awareness of programmes or promotions, this is a tactic which is gaining increasing traction with advertisers.

And media outlets, faced with declining spends on traditional advertising and dwindling audiences, are encouraging the trend. However there’s some news to report here – in some cases media proprietors are encouraging the blurring of advertising and editorial spaces by putting increased pressure and requirements on journalists to write positively about advertisers or devote column space when they usually wouldn’t have covered them. This is a trend occurring from London to New York and right here in Hong Kong.

The key question is whether advertorials are effective in winning support or persuading stakeholders?

Research indicates that advertorials sit somewhere in the middle of readers’ trust levels when consuming print media. People reading magazines most appreciated theme features, those editorial features where brands are presented in small segments of text, according to Peter Neijens, Eva Van Reijmersdal and Erik Do Vos in a paper presented to the International Communication Association. Readers then more appreciated and accepted advertorials than advertisements.

In this new age of conversations digitally and offline consumers are also becoming more demanding in their expectations and interactions from advertising. As a result, greater value and impact is being delivered via other channels – editorial, social media and word of mouth. The key to success with these channels is the credibility, confidence and connections to convince third party influencers who are willing to speak convincingly about a brand, company or government project they support.

 There is no doubt though advertorials have a role to play in communications programmes; they are one of many channels to be deployed in the right circumstances. What really matters though is execution – targeted, informative and authentic writing are crucial, together with excellent production.

Put another way, advertisers (shall we say) ‘blowing water’ or spouting on about how wonderful they are in a manner which lacks objectivity in advertorials are wasting their precious marketing budgets and credibility.  It’s when advertorials are poorly conceived and produced, providing little value to readers that they grate the most with media consumers – and other, more critical, stakeholders.

Some considerations for communication with audiences via advertorials include:

  • Engage –Deliver information that is helpful, practical or will stimulate the audience to want to know more.
  • Connect – Build connections with the audience by tapping into their motivations. What are their desires, concerns, expectations or fears? Address those. If there are concerns in media counteract those with your most compelling arguments.
  • Integrate – An advertorial that is one-off or part of a limited number is not a good investment, audiences need repeated exposure to messages and concepts. The piece should be integrated with and cross-reference other communications materials, and ideally stimulate the reader so that they want to know more eg online.
  • Transparency – Be up front about who you are and what you are trying to communicate. Obfuscation merely raises suspicion. Readers these days are very adept at ‘reading between the lines’.
  • Innovate – Don’t fall into the same trap of advertisers who try to imitate the style and layout of the publication, which is merely your vehicle. Provide readers with a better and more interesting experience – they will remember you for that and be open to obtaining more information in future.

Managing growing threats in post-crisis Asia: 3 steps for companies

27 October 2009

Planning, transparency and a proactive approach. These are three key factors for managing issues and minimizing the risk of crisis for companies in Asia.

 

The need for crisis communications management is greater than ever during these complex times. Across Asia, the ongoing liberalization of economies, politics and media have unleashed increasingly critical voices. Everyone has power too with the rise of social media.

 

Now in the wake of the global financial crisis  and recession, rising nationalism and protectionism will likely present challenges in the form of government and consumer actions against foreign companies and brands.       

 

How can risks be minimised and threats contained? How to respond when confronted by difficult situations which could easily escalate into crisis?

 

A holistic approach is needed. It requires planning, discipline and flexibility. Risk management, being in control and appropriate responses result in less damage to reputation, brands and the business. An open and responsible approach provides a solid foundation for rebuilding.

 

A three-step process provides the keys to stronger issues management, laying the foundations and structures for actions which can avert crisis.

 

AWARENESS

 

-       Identify the assets of the business in terms of its reputation and brands so that a clearer picture is developed of what needs to be protected

-       Identify vulnerabilities and weaknesses. Is there anything we could be doing which makes us susceptible?

-       Build a picture of stakeholders’ expectations of the company, operations and brands, mapping our performance against them

-       Consider the threats externally – why and how could the company be attacked?

 

PLANNING

 

-       Constantly monitor the issues and threats based on their likelihood of occurring as well as their potential impact on reputation and brands

-       Develop a plan for managing issues, current and those which are foreseen. The plan needs to include actions and statements for stakeholders. Assign responsibilities and stakeholders to various executives

-       Based on the risk assessment developed during the awareness stage, rectify or actively address those areas where a collision of interests with stakeholders could arise

-       Engage with stakeholders on positive issues or ‘good news’ so that lines of communication are open and goodwill built in the case of difficulties arising

-       A crisis communications plan focuses primarily on a number of possible scenarios, including natural disasters and reputational damage.    

 

RESPONDING

 

 

DO

 

-       Be the first to break your own bad news.This approach provides you with better control over communications. Being on the front foot also demonstrates you are responsible and will resolve the situation.

-       Seize the ‘golden hour’. There’s a period of about one day when a serious issue or crisis breaks out and becomes known to the public during which stakeholders are watching closely. Take advantage of the ‘golden hour’ to set the tone and expectations.

-       Respond quickly. Issues can quickly escalate if a company remains silent. If you don’t speak, your critics and competitors will.

-       Reach out to stakeholders. Talk to all the major parties involved so they know you care about their views and are in charge.

-       Consider the impacts of your statements and actions on other markets. News now travels across borders quickly and given the various regulatory and social differences across Asia can cause problems in other locations.

 

DON’T

 

-       Don’t engage in a cover up. Attempts to hide a situation worsen a crisis when they are uncovered. Remember Arthur Andersen and Enron?

-       Don’t answer with ‘no comment’. Some 65% of people believe a company replying with a ‘no comment’ when alleged to have done wrong is probably engaging in a cover up, according to a Hill & Knowlton survey in the US.

-       Don’t tell stakeholders different things. Consistent messages to all stakeholders are vital for credibility. If they are provided with differing accounts, confusion and suspicion will arise.

 

Employee layoffs can harm brand and reputation – and how to mitigate the impacts

05 May 2009

A difficult task an increasing number of senior executives, managers and communicators have had to undertake in recent months is to consider whether it is necessary to layoff staff. With ongoing viability at stake and in some cases an imminent threat of business failure, the number of redundancies has been rising. Tough for the managers, sure, but even tougher for those on the receiving end.

Across Asia, I’ve noticed in the past six months some companies have handled this toughest of situations with transparency, dignity and compassion while others have been in denial, tried to “spin” the news as something positive or just attempted to gloss it over. Worst of all, I have read newspaper reports quoting senior executives saying the dismissals are no big deal at all. “That’s nothing … this is really a storm in a tea cup,” said one when asked about the number of layoffs at his company.  

 

 

Based on engagements in this area I have undertaken during this recession, it seems that multinational corporations are more open when handling layoffs than local companies (though of course there are some exceptions). They are more willing to consider new approaches, willing to spend time preparing and consider the impact in a holistic manner, rather than focusing solely on the bottom line. They want best practice from developed (or heavily unionised) markets not only in their handling of this difficult exercise but also in all of their HR and employee activities: treating employees as people, not just another headcount or unit of productivity. These employers know that not only their people are watching and making notes for the future (ie when the economy improves and job options elsewhere improve) but so are a large number and wide array of stakeholders, including customers. 

That’s something for executives in Asia to ponder as we all focus on working our way out of this mess. Let’s hope the cycle has hit the bottom, the need for further layoffs is dissipating and better times return soon. 

An article I wrote for Marketing magazine and published this month is below. It deals with communications externally and internally when handling layoffs, outlines a number of considerations and shares some advice we often provide to clients facing this situation:

“These are tough times. With revenues declining and the need to manage margins, companies are having to deal with some of the toughest issues they will ever face – including restructurings and employee layoffs.

Many corporations are rightly focused on managing the negative impacts of downsizing internally. With heavy hearts, they want to make the cuts in a way that ensures the organisation’s ongoing viability, have mimal impact on processes and manage the harm to morale. Managers also focus on the way forward.

As a result, many managers and communicators in Asia have been caught unawares by the level of external scrutiny of workforce reductions particularly by media during what the International Monetary Fund has called the Great Recession.

It’s important to understand why there has been so much scrutiny, recognise that treatment of employees is a vital driver for corporate reputation and realise effective communications externally will mitigate the risks and downside.

As the economic downturn has strengthened its grip since last September, media have been seeking to bring to life in real terms the stories behind the statistics – the human price now being paid for the excessive borrowing, fat bonuses and regulatory shortcomings. Remember that media’s business is to not only inform but also sell itself as a product by attracting readers and viewers – its marketing function is primarily achieved by tapping into fears and desires.

A simple but powerful story is being told by media – innocent victims are losing employment and jobs are in jeopardy. Corporations, particularly those from the financial sector at the heart of this maelstrom, are the villains of the piece. Fear is not the only driver here, there is also a strong need from the community, individuals and businesses to better understand the forces that have been unleashed by the financial meltdown.

Companies need to recognise their reputation and brands still stand as valuable assets which require protection. An important element of reputation in the eyes of stakeholders, and particularly consumers or customers as well as investors, is how a company treats its employees. The relationship with employment practices has been well by numerous corporate reputation models including Fortune magazine’s Most Admired Companies rankings.

There is evidence that layoffs have a negative effect on companies’ reputations. It can also harm share prices, given the average shareholder reaction to a layoff announcement is reportedly slightly negative. Shareholders examine closely the actions of management to gain insights into the performance and outlook of a business.

Accordingly, it is vital during a layoff or restructuring for communications to be part of the planning process and for the function to have a seat at the table of decision makers and advisers. Communicators need to work closely during this difficult period with HR, legal, operations and management – while advising the CEO.

One of the most important considerations during a layoff is to integrate internal and external communications. Too many companies have conducted terminations of staff without considering how the news of layoffs will be perceived externally. Employees – particularly those who have lost their jobs – will tell friends, business associates and competitors. Some will even release information into public channels such as online forums, chat rooms and BBS boards on the Internet. Prudent communicators and managers always factor in the possibility that the bad news will be reported to the media and plan accordingly.

Some considerations for planning communications at the time of restructurings include:

  • Being the first to break your own difficult news can provide greater control in terms of setting the agenda and getting out the company’s messages
  • Explain clearly to internal and external parties why the decision is being made and how it will impact the business
  • Be human. Recognise the difficulties for those who are being laid off as well as for the company in making the decision
  • If providing extra benefits or outplacement assistance to staff in finding new employment then communicate that clearly
  • Communicate openly and frequently with all external stakeholders, not just media. Inform business partners, update regulators, brief politicians, etc. Parties which are well informed by the company will keep an open mind
  • Remain disciplined in communications. Stick to core messages focusing on why, how many, what impact and how the business is planning for recovery
  • Treat all employees, including those who are losing jobs, with dignity and care”

The ‘China effect’ which can lift companies during tough times

26 March 2009

 

There’s plenty of gloom around, so some companies are doing their best to push out good news. China is hurting too from the global economic downturn but also provides a relative bright spot thanks to a massive fiscal stimulus, still-functioning markets and relatively undimmed faith in the potential spending power of over 1.2 billion consumers.

Cue the latest version of the “China effect”. Increasing numbers of multinational companies are rightly tapping into the China growth story to reassure investors, employees and other stakeholders.

Some recent examples: Alcatel Lucent, the telecom equipment maker, won a recent contract from China Unicom to install 3G equipment, giving the share price a fillip. GE Oil & Gas has been selected to supply compression equipment for the second phase of 12,000 mil-long natural gas pipeline built across China.

This is an important development. It’s vital for CEOs and senior management to communicate that not only are they working to get the most out of their businesses in developed economies, but that emerging economies provide some upside during this tough time.

At the same time, communications need to be realistic. These corporate good news items provide opportunities to highlight companies’ prospects for growth in some areas. However, unless activities in China are going to turn a company around, problems elsewhere need to be addressed – and communicated appropriately.

On another note, filtering through all the analysis about the blocking of Coca-Cola’s bid for Huiyuan juice, there’s three forces clearly at work for regulators: competition concerns, a control deal was not acceptable and retaining a strong local brand as Chinese. That’s the reality for foreign investors moving forward. A challenge yes, but not insurmountable.    

 

 

 

 

 

Celebrities can tarnish brands too – time for more creativity in Asian marketing

13 March 2009

It’s time for brands and celebrities to take a long, hard look at each other. Are their tie ups really a match made in heaven? Or are they a tired formula coming under increasing pressure from celebrities’ misdemeanours (and sometimes those of companies too)?

Here in Asia where celebrities have traditionally kept squeaky clean, a number of recent incidents raise questions about the risks for both brands and celebrities in collaborations for endorsements.

 A few mishaps which have raised the cringe factor for marketers recently:

How HK media reported the sex photo scandal involving Edison Chan and a bevy of starlets, a major scare for a number of brands

How HK media reported the sex photo scandal involving Edison Chan and a bevy of starlets, a major scare for a number of brands

- Canto-pop idols Kelvin Kwan Chor-yiu and Jill Vidal, on a short trip from their Hong Kong base to Tokyo, were arrested by police for alleged possession of cannabis in the hip Shibuya neighbourhood. [Unfortunately, the duo featured in a HK Government anti-drugs campaign two years ago, as well as having endorsements with a number of brands];

- Sex photos of Chinese-Canadian pop star Edison Chen and a bevy of Hong Kong starlets including Canto-pop singer Gillian Chung, actress Cecilia Cheung and former actress Bobo Chan were released on the Internet last year. The scandal was revived two weeks ago when Chen, in exile in Vancouver, gave evidence at a court hearing there for the trial of a computer technician accused of stealing and posting the snaps;

- In China, celebrities are upset about a new food safety law. It holds them liable if endorsed products are found to be unsafe. The Food Safety Law has been implemented in response to the dairy milk products scandal last year and holds individuals recommending food in advertisements “jointly liable” for damages. Movie director Feng Xiaogang revealed many stars were concerned and had asked him to raise the issue at the annual session of China’s political advisory body, the CPPCC. “If stars should shoulder joint liability, then quality inspection agencies and media which publicize the ads should be held liable, too,” he said. Several Chinese celebrities advertised Sanlu Group products before it was identified as having added melamine to milk. During the ensuing backlash, online posters demanded stars apologize and compensate families of the six babies killed and 300,000 who fell ill, according to Xinhua, the Chinese news agency.

- The phenomenon is not limited to Asia, of course. US Olympics swimming sensation Michael Phelps must have had some difficult discussions with sponsors after a UK newspaper published photos of him smoking a pipe used for marijuana.

So, not only can an out-of-control celebrity risk damaging a brand by association, unsafe products in parts of Asia where safety issues are problematic can also tarnish a star.

Putting the issue of liability aside, it’s clear right across Asia the use of celebrities for PR and marketing is reaching saturation point. It’s really a question of creativity – marketers, creatives, PR consultants, advertisers and brand managers should be developing more engaging ways of connecting with audiences.

So many products and celebrities are supporting each other these days consumers are becoming overwhelmed and fatigued. On the other hand, there are occasional examples of brands and stars who do work so well together they are even complementary. I am thinking here about the Mandarin Oriental’s and Luis Vuitton’s celebrity-studded advertising campaigns, “Our Fans” and an ode to travel. [Interestingly, both celebrities and corporations in the adverts incorporate a cause marketing element, saying they both support various charities. The Mandarin website says it makes a US$10,000 donation.] These are cases of win-wins for brands and the stars’ own brand.

A celebrity endorsement, if being considered, should only be contemplated where they enhance a robust and creative marketing campaign, not be the centrepiece of it. A comprehensive strategy is needed to bring to life and emphasize product features, irrespective of whether there is an ambassador. Without a broader approach, the brand or product risks being perceived as shallow and, if things do go wrong, tied too closely to a naughty star.

If a star adds lustre to a brand, there are a number of actions marketers and brand managers can undertake to minimize risk surrounding celebrity endorsement:

- Undertake a risk audit of the celebrity. Check their background. Spend time with them and their management. Get to know them better – as well as the people they spend time with. Get out and ask around town, including media;

- Develop the brand so that it has its own celebrity status, not just that of the spokesperson ;

- Build profile for corporate and brand spokespeople separate to the stars. They should appear together, but not always;

- Develop a broader, deeper brand strategy, don’t rely solely on celebrity appeal.

When China’s ‘go global’ investment strategy meets protectionism

06 March 2009

There’s a collision looming as protectionist sentiment rises and Chinese investors ramp up their overseas forays into developed and emerging economies. Well-planned communications can avert a repeat of Chinese companies’ difficulties in the US and other Western markets which have led to deals being blocked.

Some interesting developments in past few days suggest China’s companies are getting closer to a significant expansion which is being eagerly anticipated particularly by cash-hungry businesses in the West as well as bankers and advisers:

  • China Investment Corporation, the nascent sovereign wealth fund, is reportedly switching its focus to commodities, seeking investments in mining and natural resources around the world [An aside: the ex-CEO of mining giant BHP was recently appointed head of Singapore's SWF, Temasek]
  • The President of Chinalco, the world’s second largest alumina producer which wants to take a US$19.5 billion investment in Australian miner, flew down under to lobby government decision makers and stakeholders. He was seeking to allay concerns a Chinese state-owned enterprise taking a stake in what are said to be some of Australia’s most important mines;
  • There are other Chinese forays also in Australia as well as Russia, Brazil and Venzuela, the New York Times reported two weeks ago;
  • The Chinese Government will help small and medium enterprises enter international markets, said Premier Wen Jiabao at the National People’s Congress [report from South China Morning Post, subscription required]. This represents an expansion of China’s ‘go global’ policy encouraging companies to expand abroad.

There are steps which companies expanding internationally during this time of rising protectionism can take to minimise the risk of local backlash and protectionist sentiment:

  • Be open and transparent;
  • Communicate proactively with government in particular;
  • Explain the benefits of investment. Emphasise the importance of an equity or cash infusion for your local partner during these credit-starved times;
  • Actions and messages should address the motivations (fears and desires) of local stakeholders. Rely on research to test their resonance.
  • Adopt a local face, while retaining characteristics of your origins. Realise corporate image is tied to country image.

Get a grip on what’s happening in your China factory

15 February 2008

Too many multinationals with operations in China are not enforcing quality standards in design and right through the supply chain. The consequences are becoming painfully aware as a slew of companies announce product recalls or are embroiled in consumer-related scandals in their home markets such as the US or even Japan.

Take the case of Mattel which recalled almost 20 million toys made in China in the latter part of 2007. And 10 people in Japan have fallen ill this month after eating dumplings imported by Japan Tobacco from a Chinese food factory. There are a plethora of other cases.

With lower wages and a plentiful supply of skilled labour, China’s urbanised eastern and southern provinces have been an attractive manufacturing destination for companies from around the world which then export products to third markets. There’s plenty of upside but also loads of risks as many multinationals are finding, with damage caused to their reputations.

Mattel’s handling of the toy recalls is a matter of some debate. However, its chairman and chief executive Bob Eckert is now saying the right thing. According to an interview in the Financial Times, Mr Eckert has expressed his view that companies need to take responsibility for their manufacturing processes:

“One of the first things we did in early August, with a major recall, we ran a letter from me to consumers that basically said ‘I’m sorry’. I’ve got four kids. I get it…

It could always happen again. One of the things I’ve learned is you never say never. But we’re doing everything we can to prevent it. The important thing is to catch it quickly and do something about it…

Countries don’t make products; people do. The fact is most of the toys today are made in China and most of the toy manufacturing problems are in China…

But we’ve had manufacturing problems in other markets. So the important thing is for companies to take responsibility for their manufacturing process. I don’t know that we need more government intervention.”

Full marks now to Mr Eckert who can (some months after the event) eloquently communicate in a way which puts a human face on the company, takes responsibility (without shifting blame) and puts the issue in perspective. These are all essential components for effective communication when a serious issue or crisis confronts a corporation.

Here are some other reputation management suggestions for multinationals operating  in China:

  • audit all your operations to ensure compliance with local Chinese laws as well as those in the markets where you are exporting
  • abide bv international standards
  • check all ingredients at your production centres as well as those of materials purchased from suppliers to ensure compliance as well as safety
  • bring in a third party auditor to conduct checks
  • be prepared for the worst to happen
  • have crisis management and communications plans including ready-to-go statements in place
  • be a good corporate citizen: communicate regularly with stakeholders locally and in important foreign markets. Goodwill, relationships and trust built up during good times can be invaluable when confronting a crisis and then embarking on the lonely, tough task of brand rebuilding

Hong Kong, Friday February 15 2008

Hitting the jackpot in Macau

14 February 2008

If you’re looking for further signs of the rise of the Asian Century (and some of the associated risks), there’s interesting news from Macau today.

Wynn Resorts – operator of one of the new casinos perched at the mouth of the Pearl River Delta – now makes more money in Macau than in Las Vegas, according to a report by Neil Gough in the South China Morning Post. Profit or operating income at the Wynn Macau in Q4 2007 was US$50.56 million, beating the US$42.38 million profit at the Las Vegas Strip property. And for those more interested in just how much gamblers fork out: estimated net revenues in Macau were US$387 million (up 55 percent) versus US$324 million in Las Vegas.

The huge opportunities on offer in Macau since it deregulated and loosened the gambling monopoly of Stanley Ho have attracted some of the heaviest and brightest operators from Las Vegas and they’re doing well on paper. Walking through the playing rooms with the moderate-sized crowds of mainland Chinese throwing down the red HK$100 notes with apparent ease onto tables gives some sense of how well the casinos are doing. And when you think that only a small proportion of China’s 1.2 billion population will have access to the gambling tables of Macau, then the sheer size of this massive opportunity becomes clearer. And that’s what many foreign and local investors have been focused on during the past few years.

The Macau authorities have done very well so far to manage the risk. The days of shootouts, bombings and executions on the streets of Macau have thankfully faded into memories as the local scene has been progressively cleaned up. Long may that remain the case.

But the massive opportunity that lies across Macau’s border in mainland China is also the potential source of risk. Where is the money that flows across the gaming tables so freely coming from? [Visitors to the VIP gambling rooms talk of gamblers with huge sums of money looking like taxi drivers or the offspring of wealthy families]. What happens in the event of a slowing of the Chinese economy?

In the meanwhile, the good times are rolling.

Hong Kong, Thursday February 14 2008

Is Asia flat?

07 November 2007

Asia is not flat. Surely that’s the riposte we need to send to Thomas Friedman, author of the incredibly popular tome, “The World is Flat”.

A mistake made by many in assessing Asia is that “it’s all the same”. That essentially is the thesis of Friedman’s book writ large and applied to the world, thanks to the trend of globalisation. However, Asia as a region remains – and will continue to be – so diverse in terms of cultures, languages, political systems and business practices that the only thing that really unites the region is its diversity.

With this in mind, it was with relief that I stumbled across a brief review today of a new book by Harvard Business School professor Pankaj Ghemawat, “Redefining Global Strategy”. According to the reviewer in The Economist, a better and more accessible title would have been “The World is Not Flat”.

“Differences between countries matter enormously, Mr Ghemawat explains, and unless companies seek to understand those differences – which can be cultural, administrative, geographic or economic – their global strategies are likely to fail,” says The Economist article.

“Particularly revealing is Mr Ghemawat’s account of how Coca-Cola has gradually developed a global strategy that ‘neither ignores the differences across countries nor caves in to them entirely-that is, it recognises the reality of semiglobalisation.’ This book deserves to be a bestseller …”

It’s my view that multinational companies operating in Asia need to develop not only corporate reputation and branding strategies relevant to each market in the region where they operate but also adopt a local “face” and approach. That involves dropping the typical multinational-style template overlay some companies still insist on keeping for all aspects of their business – and they provide little freedom or room to maneuver in accordance with local preferences. Instead a core set of products or services, principles, values and messages aligned with the global business are required, but much more latitude should be given to develop or alter goods, services and communications materials which also resonate locally.

This is the point I was making in my post, “Five trends that will shape the Asian century”, when referring to the region’s economic rise on the world stage: “Few multinational companies with operations in Asia have yet recognised the impact this massive shift will have on communications and brand strategies – including where the power over related decisions still resides geographically.”

Support for a local approach has recently been expressed by McKinsey & Company which found in a large survey most Chinese consumers trust domestic brands more than foreign brands. In its report on the survey, the Financial Times highlighted “the good news for multinationals [which] is that there is considerable confusion about the national identity of some products, with many Chinese consumers believing that brands produced by multinationals are actually home-grown. In the case of two well-known US toothpaste brands, for instance, more than 80 per cent of respondents said they thought they were Chinese. ‘The successful foreign companies have usually made a real effort to listen to Chinese consumers and create local brand management teams, rather than import approaches from other markets,’ ” said Andrew Grant, the head of McKinsey’s China practice.

The days when foreign brands were generally preferred over local ones are fast disappearing in a complex, dynamic  and more confident Asia.

Persuading and convincing in Asia’s court of public opinion

06 November 2007

How often in Asia do communications professionals truly view themselves as advocates of their clients’ causes? To what extent do they engage intellectually with the tough issues clients are grappling with and then use all the tools at their disposal to present the case persuasively in the court of public opinion?

Those are the questions which occurred to me after reading a really interesting post by Michael Netzley, a fellow blogger in Asia and corporate communications professor in Singapore who writes thoughtful pieces on his CommunicateAsia site. In his fascinating, almost philosophical, discussion of the rhetorical significance of the terms “convincing” and “persuading”, Michael reveals his interest in the topic was reawakened by a Canadian PR site where the writer defines conviction as “a person [who is] convinced by evidence or argument made to the intellect” while persuade refers to, “a person [who is] persuaded by appeals made to the will, moral sense, or emotions.”

Kudos to Michael for highlighting the origins of an important subject for the PR profession in Asia. Let me take it a step further: can we be doing more to convince or persuade stakeholders and audiences? Certainly, our colleagues in advertising and marketing are doing their best to persuade – they are increasingly raising the bar with more creative work. I reckon there’s a huge market emerging in this part of the world for PR professionals who can cut through clients’ own distractions or overcome clients’ seeming reluctance to be forthright in defending their own reputations when coming under attack. At the same time, consultants are working hard to develop the skills, commitment and courage to articulate their clients’ position  in compelling terms. The ability to convince and persuade will be increasingly important as the stakeholder environment in the region becomes more sophisticated – and complex.