Penn State Teaches Painful PR Lessons

Universities are supposed to be bastions of knowledge, research and education. Unfortunately, the allegations about child abuse by former Penn State coach Jerry Sandusky are providing a different kind of learning experience. The tragic situation has been steadily morphing into a case history for mishandling a crisis.

State College, Pa., home to Penn State, has long been known as Happy Valley. The name clearly seemed to fit, especially when it came to the football program. In an era of constant coaching turnover, Joe Paterno had coached there since 1949. He was head coach for 49 of his 61 years on staff, winning 409 games and graduating 89% of his players.

The image of Happy Valley, built over many years, came crashing down quickly in early November. A grand jury report accused Sandusky – the former defensive coordinator – of sexually abusing eight boys in incidents dating back to 1998. The charges themselves were horrific. But the response of the university, both to the initial allegations in 1998 and 2002 as well as the grand jury report, was even more puzzling.

As the story has evolved, it appears the university’s response to the reported incident was slow and not very aggressive. Despite his stature on campus, Paterno seemed content to let the matter drop and not conduct any proactive follow up. Many theories have been offered for why more was not done. Human nature, internal politics or profit motives may have prevented asking the tough questions.

Asking the right questions at the right time could have set Penn State on a different course. Yes, the university likely would still have suffered a black eye if the allegations were true. But the pain might have been limited to a few news cycles, rather than stretching for weeks. Instead, the university seemed surprised by the grand jury report and struggled to deal with the situation.

One of the cardinal rules of crisis communications is to provide fast and accurate information. If you are unsure of the facts, then limit your statements to what you can confirm. In this case, no one at Penn State was following the same playbook. Graham Spanier, former university president, strongly defended two of his staff in his initial comments, and then he had to backtrack. Soon, all three were gone.

The trustees were slow to react, leading to the spectacle of Paterno announcing his resignation in the afternoon before he was fired later that same night. Even in trying to do the right thing, the various parties seemed to be tripping over each other.

After trustee Ken Frazier, CEO of Merck, was named to lead the school’s internal investigation, questions arose about conduct at Merck. Louis Freeh, former FBI director, was quickly named as his replacement in the investigation. No one could question Freeh’s independence, but it kept the story alive for a few more days.

Of course, the final chapter in this situation is still being written as investigations and legal inquiries proceed. But regardless of the final outcome, it’s clear that the stature of the university and the legacy of its long-time football coach have suffered immeasurable harm.

Raising Expectations For Cubs and B2B Marketers

Now that Theo Epstein has finally been named Cubs’ president of baseball operations, I was struck by the similarity between expectations for the new Cubs’ leader and business-to-business marketers.
As a lifelong Cubs’ fan, like many others in Chicago I’m hoping that Epstein will finally lift the curse that‘s followed the team and produce a World Series champion. Expectations are high because the Cubs paid a high price to bring him into the fold, and the team already has a big payroll.
A Forrester Research study, “Bigger B2B Marketing Budgets Come With Great Expectations” raises similar issues for marketers. The report noted that after several years of making cuts, B2B marketing leaders have larger budgets in 2011. However, with these increases in spending comes more scrutiny and greater expectations for results.

Another parallel between the Cubs and B2B marketers is that the raised expectations are coming during a time when the landscape for both baseball and marketing is dramatically changing. Baseball is now making greater use of computer analytics.
Likewise, marketers are facing new challenges to effectively understand how to track, manage and apply many of the new social media tools, online marketing channels and changing customer expectations.

The bottom line, though, is that both Epstein and marketers must effectively use their budgets to achieve results. For many marketers, that means integrating conventional techniques with new online tactics. Marketers need to better understand the impact marketing and technology integration can have in making customer experiences more gratifying and satisfying, thereby improving loyalty, retention and repeat purchases.

Staying Adaptable Critical for Marketing Success

What will B2B marketing communications look like in the future? There’s no consensus, but the warp speed pace of technological change is affecting the way customers receive information. However, a couple of broad trends stand out.

The use of digital communications is clearly accelerating. By 2015, paper use by the magazine, newspaper, book and other publishing sectors is expected to fall by up to 21% compared with 2010 levels, according to a report released by RISI, which provides information to the paper industry.

And within the digital sphere, more people will depend on smaller handheld devices to get information. According to DisplaySearch, tablet computer sales this year are growing at the phenomenal rate of 400 percent over last year. In the second quarter alone, Apple shipped 10 million iPads.

Of course, many pundits argue that these changes do not spell the death of traditional computers, especially in the corporate world. Investments in existing hardware and networks, as well as handheld security and performance issues, will keep them as a fixture for quite some time.

But as mobile usage grows, marketing communications and email messages – with all of their graphics and attachments – will need to be tailored for these mobile platforms. Otherwise, customers and prospects will simply ignore your messages if the information is in an inconvenient form.

Adapting your messages to new media is critical, but you still need to rely on proven communications principles. For most B2B marketing, there will always be a problem to solve, a solution to offer and a benefit to prove to your customers. Successful marketers will adapt to new media to deliver those messages.

Turning the Tables on Global Competition

We often bemoan the rise of offshore competition, particularly from China. However, the typical mindset is to think of products that are manufactured in China but produced to the specifications and market needs of U. S. companies.

I never really thought about how few goods sold here are branded as Chinese products until I read the recent Wall Street Journal article, “Chinese Firm Meets Global Branding.” Among the handful of Chinese firms that have penetrated the U. S. market with their own products are computer maker Lenovo Group Ltd. and household-appliance giant Haier Group.

The article then goes on to describe the struggles of Chinese entrepreneur Jack Yang to sell a dashboard mount for GPS units under its Züuma brand in the U.S. Yang’s quest started in 2005 when he developed a GPS mounting device at the request of a Chinese GPS company. He continues to produce the mounting devices for companies that sell them under their own brands. In the meantime, he is working with two American partners who provide branding and distribution services, a strategy many Chinese businessmen reject. The payoff for selling his own brand is a far larger profit than the 40 cents he makes on each unit he produces for others.
"It's not that small- and medium-sized Chinese companies don't want to develop global brands," Yang explained in the WSJ article. "We don't know how. We don't understand the U.S. market, culture or business model."
While the early groundwork to establish the Züuma brand is promising, and some distributors have reacted positively, sales are not as robust as Yang would like. "Things haven't moved very quickly." But, he notes, "It's like digging a well. If you make superior preparations, you will have big returns."

Yang’s experience is a good lesson to anyone trying to build a successful brand. You need to understand your market and commit to an extended effort. And finally, you should seek out partnerships with professionals that have expertise you are lacking.

Turning to Technology for Marketing Success

United Stationers, a major distributor of paper and traditional office supplies, has been placing a heavy emphasis on online marketing for the past several years. This may seem like an odd way for a company specializing in paper to go to market, but an article we developed for the company’s bimonthly publication, OfficeLine, explains why.

“The Technology Imperative," shows how effectively using technology and online marketing benefits both United Stationers and its vast network of independent office supply dealers. Technology now enables the buy/sell exchange to happen in real time. Procurement professionals are driven to purchase faster, easier and smarter – all the while pushing suppliers to keep pace.

Dealers can reduce order processing staffs, says, Jim Dodson, president, Save It Now, Indianapolis, IN. “In our case, orders come into our system and are automatically submitted to our supplier, United Stationers. This is all done electronically without having to repeat the process,” he says.

Another dealer, Steve Unruh, president, Bertelson Office Supply, Minneapolis, MN, notes, “In addition, eCommerce lets us track where customers are going on our website, where they are landing and how long they are staying there – or the stickiness factor. This is a powerful tool.”

If you’d like help harnessing the power of the eCommerce and online marketing, give me a call. NM Marketing Communications is offering a FREE web analysis and evaluation.

Our free online analysis includes:

Paid Campaigns -- Provide you with an independent evaluation of your ThomasNet, GlobalSpec, and other marketing programs.

Keyword/SEO Ranking Report -- Determine how well your company website ranks on major search engines and provide you with a search engine optimization (SEO) report.

Overall Web Traffic/Conversion Analysis -- We can determine who your biggest sources for leads are and how much it's costing you per lead/acquisition. We can even set up and install Google Analytics.

To learn more, call me at 847.657.6011 or email: info@nmmarketingbiz.com

How Earth Friendly Is E-Green?

All facets of business are under pressure to go GREEN. Whether it’s a genuine core value or one forced upon a business to remain a vendor of choice, companies are quickly converting old processes into those more eco-friendly -- marketing communications among them. Before the birth of the Internet, reaching your target market relied on a compelling message combined with great graphic design that was broadcast through a myriad of printed formats. Today, print is often considered the stepchild of marketing communications with e-commerce now the pampered preference.

No doubt, the Internet is second to none for letting companies and consumers share information instantaneously. Its electronic marketing barrage is witnessed daily via emails, e-newsletters, e-zines, e-brochures, and e-publicity. All the while, its proponents reminding readers to think twice before printing out a copy of anything received electronically- to save a tree. But do these preservationists really know what they're asking? GREEN.

The Hottest Color in Print Trees are a renewable resource. The paper industry as a whole plants three times as many trees as they harvest, according to BizBlog - www.bizprintblog.com - the online voice of Bizprint, a Boise Cascade-owned printer and marketing consultancy. The firm says that vegetable inks are now in widespread use by commercial printers. These are often flax seed or soy based with very low VOC (volatile organic compounds) content.

On the flip side, it’s been reported by NewPage Corporation, the largest coated paper manufacturer in North America, out of Miamisburg, Ohio, that 62 trillion spam emails are sent every year contributing greenhouse gases equivalent to two billion gallons of gasoline; that 70 percent of toxic waste in U.S. landfills comes from e-waste; or that burning one CD produces four times as much C02 as printing a single annual report. GreenPeace USA states that e-waste is now the fastest growing component of the municipal solid waste stream because people are upgrading their computers, printers, televisions, and audio equipment more frequently than ever before.

Metals & Minerals vs. Plants & Trees

Building the machines to transmit our paperless and so called earth-friendly marketing communications has some not-so-friendly ramifications. Bizprint reports that after all the raw materials are collected to manufacture a computer -including zinc, iron and nickel - it takes as many chemicals and as much water and fossil fuels to make one desktop computer as it does to build a mid-size car. In contrast, paper's main component - wood from trees - is a readily renewable resource. In addition, 99 percent of the chemicals used in the pulping process are recovered and burned in the mills’ boilers to create steam energy, says Bizprint. Greener or soy-based inks are easier on the environment, as well, since they release less than one-fifth of the amount of VOCs emitted by petroleum-based inks.

And considering less soy ink is needed for adequate print, this means petroleum-based inks emit 70 percent more VOCs than soy-based inks for the same amount of printing. The online magazine continues in saying that the second benefit of soy-basedinks is environmental. Unlike petroleum, soybeans are a renewable resource. Producing soy inks also requires only .5 percent of the total energy needed to produce petroleum-based inks, and soy inks are biodegradable. And since they spread further, soy inks leave fewer ink containers to dispose of in landfills.

Awareness & Action

Better access to the facts about the environmental impact associated with our choices between print and electronic communications is essential. Both forms of communication play their respective parts in 21st century business communications. We must consider the values of each as well as evaluate their footprint on the environment. But, we need do this fairly and knowledgeably. In a world where decisions based on rhetoric rather than facts can have unintended consequences, writes Don Carli, Senior Research Fellow at The Institute for Sustainable Communications, we can't afford to be swayed by purely emotional appeals, simplistic slogans, half-truths or catchy tag lines.

The Whining Class in America

In complaining that America has become a "country of whiners," retiring Chicago Mayor Richard M. Daley unloaded a speech that no candidate would dare give during a campaign. The speech raises a question: Why didn't this Daley show up much sooner?

He said we whined about the Japanese taking us over in the 1970s and whined about the loss of manufacturing jobs to Mexico some 10 years later. Now, we're whining about China and India slicing off prime cuts of our industrial and business economy.

In a recent speech at Wheaton College located, in Chicago's western suburbs, he went where no politician is supposed to go: criticizing us. The comments by the mayor, who is giving way to Rahm Emanuel after 22 years in office on May 16, came during a lecture before several hundred people at the liberal arts school. The visit was in support of Wheaton College's J. Dennis Hastert Center for Economics, Government and Public Policy. Hastert, a former U.S.
House speaker from Plano, is a college alumnus.

Daley obviously said more in his 44-minute speech, touting, for example, school reform as the major accomplishment of his career. But no matter how brief his references were to whiners, he could have said as much about Chicago, Illinois and the Midwest.

For example, Chicago students "enjoy" possibly the shortest school day and year in the nation, one of the things that long has rankled Daley. Yet, he said, when he asked the teachers union to add 15 minutes to their six-hour workday, the request was trounced. Can't work for nothing, you know. His retort in the speech: "Unions have to understand that you have a responsibility. It's not just a job."

"The cost of government has to come down," he said. "It can't keep growing." of course, this same Daley ran his city into towering debt. Never mind that he is among big-city mayors who whine about trims in federal aid to cities.

Maybe Daley is retiring because he became fed up with all the whining, knowing firsthand that he can't keep all the bellyachers happy. Like whiners at the Wisconsin Capitol in Madison, banging their drums, comparing Gov. Scott Walker to Nazi Germany.

As annoying and counterproductive as their antics are, whining is constitutionally protected speech. The problem isn't the whining itself, but the reason for the whining: a national culture not just of "where's mine?" but of "I've got mine and to hell with the rest of you. So what if Illinois and Chicago are heading for bankruptcy; I'm not giving up a cent of what I was promised."

Bringing Perspective to 2011 Manufacturing

American manufacturing companies will continue to face an uphill battle in 2011, although it looks like the slope is flattening out. The economy is expected to grow about 2.7 percent, and there are recent indications that seasonal consumer year end spending was up substantially.

However, the modest increases in growth and demand are causing most businesses to be cautious when it comes to hiring. Long-term unemployment of nearly 10 percent weighs on the economy. In an early December 2010 interview on CBS' "60 Minutes," Federal Reserve Chairman Ben Bernanke said, "it could be four or five years before we are back to a more normal unemployment rate, somewhere in the vicinity of say 5 percent or 6 percent."

"We've been through recessions before, but the length and depth of the current downturn is different this time," said John D. Littler, president & CEO, Littler Diecast Corporation, Albany, Ind. He acknowledged that unlike his grandparents' generation, it's tougher to wait for a recovering economy to right itself. "With today's global competition and global reach, hesitation could cost many manufacturing executives their businesses in 2011 as more aggressive companies take market share."

According to Littler, the global economy forces many U. S. manufacturers to confront problems unlike those faced by previous generations. These new realities include low-wage offshore suppliers, the rising cost of transportation, especially as oil prices remain in flux, and the availability of affordable raw materials as rapidly developing economies in the Asia-Pacific rim and Eastern Europe compete for supplies.

Many of these factors are obviously beyond the control of individual companies. Therefore, manufacturing companies should focus on the aspects of their business that they can affect. Improving on what have been shrinking margins is the number one concern for forward-looking industrials as they plot their strategies for 2011. With fewer resources available for re-investing in plant and equipment ­- and fewer marketing dollars available to leverage a smaller number of opportunities ­ today's companies cannot afford to make many mistakes either in plant improvements or wasted marketing and sales efforts.