Celebrity Philanthropy and Public Relations

Is celeb philanthropy more about the charity or their public relations? No doubt about it, no matter the reason any type of public service is good, but it seems to me that every time I watch or read the news some celebrity is shown visiting people overseas in a poor economic country or are donating a large sum to a social cause. This has caused me to start question their intentions. Would these celebrities still do the same thing if the cameras were turned off or if their name was not posted on the front page of every pop culture media outlet? Regardless, this PR approach works. Every time a celeb is shown helping a noble cause, it really helps their public image.

Philanthropy public relations began with Ivy Lee when he created this new image building approach for John D. Rockefeller. Rockefeller had a long reputation of being a wealthy robber baron, because he came across as a ruthless, profit-driven businessman who's actions were harsh and uncaring. Instead of writing a series of press releases and public statements, Lee thought that it would help his image more if Rockefeller made some company changes. Lee began advertising Rockefeller on the public relations advantages of a broad range of business decisions and management policy that included mechanisms to redress workers' grievances, the selection of new plant sites, setting employee wages and working conditions, and negotiating contracts with suppliers and vendors. In many ways this interactive, image transformation process wasn't complete until 70 years later. Whatever you call this approach, it completely changed Rockefeller's public image from a cruel autocrat to a warm paternalistic employer and incredibly generous philanthropist.

Of course there are many good things that come with a celebs support such as more awareness of a certain organization, foundation or cause and of course usually money follows. Further, it is always nice when someone well-known sets an example; it encourages onlookers to do the same.

On the other hand, not always are causes or programs thrilled to join forces with a celebrity. It can cause a lot of organizational frustration. Issues that can arise are: sometimes the celebrity wants to dictate what their money must be used for, your organization's image is tarnished if theirs is, sometimes their support suggests the cause/organization has a lot of financial support and it's not true and lastly, sometimes an organization does not want a lot of fanfare for their work and the celebrity does. If you are in public relations and advising this type of work to a client be careful of these problematic items.

I'm not saying I think celebrity gifts are wrong or suggesting that celebrities stop their generous deeds. I think that it's great if they are willing to stand up for a noble cause and give their time or money. I just think it's wrong if they are only showing up to show support an event in hopes of stealing the spotlight. (Even from a PR standpoint.) What I really am asking is for my readers to think a little harder the next time they hear or see a celeb trying to make social change either through: a donation, financial gift or by showing support by appearing at an organization's fundraising gala. What are the celeb's intentions and if you believe in a cause or organization, research it yourself, see what's going on with it and support it yourself if you can.

Some of the largest celebrity givers of 2009:

• Paul Newman
• Oprah Winfrey
• Angelina Jolie and Brad Pitt
• Will Smith and Jada Pinkett-Smith
• Leonardo DiCaprio
• Drew Barrymore
• Laurie and Larry David

Check out some of the websites covering celebrity giving:

• http://www.looktothestars.org/
• http://www.celebritiesforcharity.org/

Mass E-mailing vs. Mass Direct Mailing

Which marketing is more effective, mass e-mailing or direct mailing? What factors should you research when determing which is best for my company? Marketing instructor at the University of St. Thomas, Jonathan Seltzer, answered this question from reader in the Star Tribune business section last week. I thought Seltzer answered this question really well.

While many factors go into a successful campaign, experts agree the most important factor to consider is the quality of the list you have, the relationship the target has with your company and the incentive you are offering.

Lists: All lists are not created equal, so go with the best list -- e-mail or mailing address. Many lists may be a "random" collection of names or addresses, which will not meet your needs. When choosing a list, pick one that's current and, ideally, one for which the individuals have expressed interest in a product or service. Also, ensure the demographics characteristics of the list are similar to those of potential customers.

Relationship: Do the recipients know you and your company? Experience has shown that when the recipient knows neither you nor your company, your e-mail is likely to never make it to the recipient. Assuming the addressee does not know you, consider direct mail to introduce yourself and extend an invitation to provide more information on a topic of the recipients' choosing via e-mail.

Incentive: If you have the right list and a solid relationship, you still need a valued incentive to motivate your audience. Offer me something that I value and I will respond.

Test, test, test: A common rule is "if you do not measure, then you cannot manage" and it certainly applies to direct marketing. Look at your list, draw a sample and prepare two different campaigns to be sent to them. Measure the results to see which was more effective. Repeat this process to fine-tune your message and you will have a winning campaign.

Charlie Gibson Retires and Opens Door For Another Female Anchor, Diane Sawyer

If you haven't heard yet, this is Charlie Gibson's last week serving as anchor for ABC's flagship news broadcast "World News." After 35 years Gibson will fully retire from full-time employment at ABC this Friday, December 18th. Since his announcement to retire on September 2nd, ABC stated that co-anchor, Diane Sawyer will be his replacement.

This move for Sawyer seems to be very similar to Katie Couric who anchors "The CBS Evening News." Both started out on network news morning show and then was promoted to evening news anchor positions. But, I'm curious to know if ABC is promoting Sawyer in hopes of competing more against Couric and CBS? I think so, but am not exactly sure why. For quite awhile "The CBS Evening News" has ranked 3rd (last) against the other major network evening news broadcasts the entire time Couric has anchored. "NBC Nightly News" with Brian Williams has continued to rank first and the "CBS World News" with Charlie Gibson continues to rank second. Regardless of the rankings for Couric, CBS must believe the fact Couric is a woman is not the reason for her low rankings, since they're bringing in their own female anchor.

I am glad another woman is taking a leap into what was considered a man's job. I am interested to see what happens in the coming weeks and years as two strong female journalists compete against one another. I wonder if by adding Sawyer to the ring will actually help Couric, since then she won't be the only female evening news anchor. Or on the other hand, if NBC's first place lead will grow.

Right now, I tend to watch ABC for evening news and going to miss Gibson. I really like his anchoring style in many ways. I can't say that I'll stick with ABC forever after he leaves; it will give me an opportunity to 'shop around.' I hope you enjoyed this post. Thank you for reading and "for all of us at (The Bright Bold Blonde Blog), have a good night."

Not Just Popular Items are Out of Stock this Year; All Inventories are Lean

If you've been holding off from shopping in hopes of retailers giving you better deals, you should rethink your plan. The word on the street is that after last year's overstuffed holiday, retailers are cutting their inventory by as much as 15 percent to dodge huge markdowns that cut into profits.

Like every year, there are items that are more popular than others and there will not be enough to go around, for example the Zhu Zhu pet hamsters. Except this year items that you wouldn't expect to be gone are, and stores will not be restocking their shelves. Macy's said that Ugg boots are sold out at most of their stores and they will not be getting anymore in and many stores are running out of Christmas lights with no plans to order more in.

Retailers are finding this strategy very helpful. Since there are only a certain amount of products, it makes the consumer demand for them higher. Shoppers are more likely pay full price for the item if it is harder to find. Further, stores will sell all of their products without any leftovers. However, the right number of products can create a slippery slope. Stores who could have ordered and sold more of one product are losing sales to online disturbers like Amazon and eBay.

It will be interesting to hear how stores do this holiday season when typically 40 percent of the holiday sales come in during the 10 days before Christmas.

Global Business Basics

Recently, I listened to a very good speaker from Carlson Companies who talked about conducting global business. This is a hot topic right now with most large companies growing internationally. No matter what type of company you work for, before you do any sort of business internationally or with others of a different culture, you should read and consider the checklists below.

The Global Business Executive's Checklist:

• Do now assume that customers speak English or share your cultural heritage
• Find their home city on the map
• Master the pronunciation of names
• Learn their country's PERSIA (Political, Economic, Religion, Social, Intellectual and Arts)
• Contract the service of an interpreter
• Get advice from others who work in that country

Global Imperative: The key to sustained profit

• Global thinking
• Patience and perservance
• Respect
• Long range perspective for results

Retailers Find Success with Internet and Social Media, But Does this kind of Shopping Improve the Economy?

With the economy down and Internet use up, the media has reported that online buying may be retailers hope for the holiday shopping season. However, does online shopping and social media promotions really have that big of an impact on a company's income and does this kind of shopping actually help the economy?

This Cyber Monday many stores offered discounts to online shoppers and they worked, more customers than ever came. Online sales grew 16 percent from last year according to online marketing firm Coremetrics. The entire Thanksgiving weekend struck success for online sales. Discounts spurred an 11 percent jump in online sales on Black Friday and a 10 percent increase on Thanksgiving according to research firm comScore. The whole month stood out for online purchases where online sales were up an average of three percent. This shows that customers are appreciating retailer's online discounts and creative promotions.

Big retailers such as Toys R Us and Best Buy are using the web, especially social media sites Facebook and Twitter to direct buyers to discounts this year. Companies are using special codes for online coupons. This makes this method very easy to track its effectiveness.

Lately every company seems to be jumping on the social media bandwagon. More companies created holiday social media plans this year than ever before:

• 47 percent of retailers planned to increase social media use for the holidays
• 75 percent will improve their Facebook pages
• 59 percent will boost their Twitter use
• 60 percent of consumers will use social media to locate coupons and discounts
• 53 percent will research gift ideas through social media

Source: Deloitte Services, National Retail Federation

Online sales only represent a small portion of retail sales, estimated to be only between 4 and 7 percent of a retailer's overall income. Overall, holiday sales will not be greatly affected by e-commerce. According to the National Retail Federation, in 2008, Americans spent $141 billion online. In stores, we spent $2.4 trillion (excluding auto, food, gas and beverage). Overall, holiday sales will not be greatly affected by e-commerce.

Perhaps no web retailer has been as effective in driving consumers to their site as Amazon. The company did not even feel the recession last year when they reported having one of their best holiday seasons ever. Their fourth-quarter revenue rose by 18 percent to $6.7 billion last year.

Even with a slight increase in retail sales from in store sales, the National Retail Federation, the largest trade group predicts a one percent drop from last year (excluding online) in shopper sales.

Even though online shopping increases a store's revenue, it doesn't exactly improve the economy. According to the Minnesota Department of Employment and Economic Development, there are more than 15 million Americans working in retail jobs. In Minnesota, nearly 300,000 are employed in the retail sector. If we shifted to all online shopping, we'd kill jobs in the retail economy. There would also be a cost to jobs at restaurants and other businesses that surround our major retail centers. The states would lose out on considerable sales tax revenue, as well. Minnesota's House Research estimates that the state loses $50 million in a two-year period due to unpaid sales taxes. By law, retailers with physical stores in Minnesota have to collect sales taxes at the time of purchase. Retailers without a physical presence do not have to collect taxes. Individual residents are responsible for self-reporting Internet purchases if the resident purchases a total of $770 a year.

Tiger Woods Engulfed in PR Storm

Within less than a week Tiger Wood's image has been damaged greatly. Since the report of a car crash involving the superstar, the story has grown and spiraled into allegations of a long-term love affair. Woods has yet to say anything aside from postings on his website. My public relations background and friends say this is not the way to handle his PR crisis situation.

Woods said on his website "Personal sins should not require press releases and problems within a family shouldn't have to mean public confessions."

I think that David Letterman did it right, he addressed his affair and alleged extortion attempt quickly. I believe that Woods has waited too long and has used vague words like "transgressions" in his online apology. If you tell all the facts, tell the truth, nothing else will stand the test of time and get it done quickly. If you tell it quickly there will be no holes for other people, such as journalists, to fill.

I must say, I am surprised that Tiger's main sponsors such as Nike, Gillette and Gatorade are still supporting him. However, I suppose he still is a good golfer and will continue to be. Maybe his career is the reason they are still holding on.

It will be interesting to see if he can recover his brand and image. The next few weeks and months will tell.