PR firms that want to expand their business into an emerging market better realize - it's not your father's Oldsmobile.
It may not even be your older brother's model.
"The Growing Role of PR in Emerging Markets," was the speech topic of Fleishman Hillard senior VP and partner Emilio Pardo at the Public Relations Society of America luncheon on Oct. 15, but the nature of his remarks, said Pardo, would be very different than a year ago because of the Asian financial crisis.
The "financial turmoil in Asia and Latin America creates communication challenges and opportunities.
Countries like Malaysia and Argentina are creating programs for recovery from the crash and are "searching for PR agencies to craft these messages," Pardo said. The result is a steady increase in spending on corporate communications in those regions.
"Our industry is responsible for this international communication," Pardo said. We are global villages, but we are not all the same."
"Look at emerging countries that you are guiding not as expanding borders, but cradles of innovation and bring it back to our markets." Pardo outlined several factors that are driving the emerging markets:
- As public opinion matters more in these countries, the role of PR professional increases
- As new governments emerge, they are met with the demand to meet the needs of their citizens
- Many nations are redefining roles and rules for the media; for example, issues in U.S. cities may not vary widely, but in foreign nations - where political and economic systems vary widely - it is dangerous to apply a generic approach
- New governments who may have owned the media are now courting media attention and want to give the media accurate information and messages
- An emerging middle class in many nations means PR practitioners have new cons consumers who can buy products and services
- International competition has created a need for global branding
- The economic crisis has caused PR to be more cost-effective than advertising
When establishing working relationships with countries in emerging markets, Pardo says to find out where public opinion lies. He gave a list of tools and techniques to use when deciphering what message you need to deliver.
Go where your clients are, said Pardo. You must live in the country and take part in the culture to effectively craft PR messages. One caveat: "Don't go native," he warns. For example, don't begin to converse as if you've suddenly become immersed in the culture, or you may be perceived as insincere.
Also remember that although a nation's economy is emerging, "don't assume it's PR 101." Instead, Pardo said to build local market understanding and expertise. Finally, establish solid working relationships with the local press and international publications such as the Financial Times and The Wall Street Journal.
"Media relations is the core of what we do," Pardo said. "You must use the main ream and global media to get your message across."
(Pardo, 202/659-0330)
The Overseas Scene
Percentage of Growth by Outside PR Firms in Global Regions 1991 to 1998 (excluding regional companies)
Eastern Europe: 43%
Africa: 85%
Asia: 350%
The Americas: 250%
No. of Outside PR firms or Brand Offices In Emerging Countries
Czech Republic: 1991: 1; 1998: 7
Russia: 1991: 2; 1998: 6
China: 1991: 1; 1998: 17
Argentina: 1991: 1; 1998: 7