Studies have shown that most sales are made only after frequent exposures to a product or service through various media. This 'media' can run the gambit from nontraditional media concepts like networking groups, to media that is more conventional like radio, TV, and direct mail.

In much of the media, you will have the choice of using that medium for the purpose of advertising, as a public relations vehicle, or for both.

Advertising usually 'hooks' more entrepreneurs because of its high visibility. Not only do you see hundreds of ads day in and day out (2700 a day according to Jay Conrad Levinsons's Guerrilla Marketing) but ad reps are probably calling on you from a variety of media touting the benefits of advertising in their particular medium. Making the right media selection, and developing the right market appeal, can make an ad campaign very profitable. But as we've said earlier, advertising can be tricky -- not to mention expensive.

Public relations on the other hand can cost little or nothing. Articles written about you are typically more credible than ads, and they can get you far more mileage if you're on a tight budget.

Advertising is just one way to communicate with your marketplace. But all your networking, public relations mentions, feature articles, etc. work together with your advertising to build up the frequency level necessary to get your prospects and customers to buy.

Advertising and public relations, properly placed, can build credibility for your organization, develop product awareness, reach more prospects than direct sales methods, generate leads, and reduce your sales costs.

It’s not possible to pin down an exact return on investment (ROI) a business can expect from its marketing communications investment, however, as it will vary depending upon the product, the appeal, market conditions, and many other factors.

But as Westinghouse and many other organizations have discovered, there is a direct relationship between advertising expenditures and returns that they can pinpoint by studying their results. The Westinghouse study indicates that with a significant amount of advertising at work for their products, the sales dollar-per-dollar of advertising ran from a high of $154 to a low of $9. WalMart on the other hand, has a much higher return on investment, usually over $1,000 for every dollar invested in advertising particular campaigns.

Although advertising can play a vital role in reaching your markets, as I've said before, it is not the only means by which your company's message is conveyed. Impressions may come from signs, displays, editorial press coverage, seminar appearances, radio interviews, networking, and a host of other methods.

Unlike advertising, public relations activities offer a variety of things you can do to get exposure, make impressions, and get leads -- that don't cost much or any money.

Public relations is a tremendous asset for developing market awareness, educating the market, providing positive information about your products and services, and generating response from the target market.

It’s a powerful medium only used by 12%-15% of the businesses that could profit from PR.

A recent study indicated that 45 percent of all the material reported by news media starts from a press release.

Journalists develop their impression of your products and organization through your press materials and conferences. In some regards, building credibility and visibility with the press takes much the same course as advertising. Frequent contact, newsworthy items (not fluff), and maintaining a professional appearance in your releases are very important in creating a good, lasting impression.

Even if your releases are not published (and many won’t be), press releases and other PR efforts will help you begin to build the credibility necessary for a publication or journalist to recognize you at a later date.

Patience is definitely a virtue when it comes to press relations. It sometimes takes months or years to become recognized enough to have a major story published. In other cases, companies got great coverage early on in their efforts. Whatever happens in your situation, you will be well-rewarded by sticking with your PR program.

A high-tech firm had the good fortune to publish an eight-page feature article focusing on the unique aspects of the telecommunication environment they address. Within days of publication they were inundated with phone inquiries, several of which resulted in sales to the tune of $500,000-plus! Although there was some cost incurred for the writer and accompanying artwork, these costs were minimal compared to advertising expenditures that would have been necessary to obtain the same results.

The cost of using PR is minimal. Most of this work can be done in-house by building a well-targeted media mailing list and developing some simple writing skills for press releases and feature articles. Pick up a copy of Power Marketing for Small Business for the 'how-to's' of writing press releases.

Public relations should be an integral part of your marketing strategy to obtain optimal performance from your long range plan. And it’s probably the least expensive way to begin developing the long-term relationships necessary to achieve success.

Public relations programs can be multifaceted, utilizing any or all of the following:

Feature articles (4 to 10 double-spaced, pages) on your company, products, technology, or method of doing business.

News items (1/2 to 2 pages) about any of the above. These may include announcements of new management, new products, or other newsworthy topics.

Press conferences announcing major newsworthy events of interest to your public(s).

Sponsorships of athletic teams, charitable organizations, TV or radio broadcasts, special events, scholarships, etc.

Typically, these programs may have little cost associated with them, especially as compared to advertising programs. But, they can generate widespread awareness about your organization and products, educate your market, and boost sales.

When planning your public relations program, it is important to consider all of your publics. Do you have stakeholders, customers, prospects, or key industry executives you must keep informed? Would you like your prospects to know about events occurring in your organization? How about your staff? Shouldn’t they be included in the information flow as well?

The most frequently required program is one that keeps industry luminaries, prospects, and customers informed of your activities. To accommodate these publics, you may include newspapers, television stations, magazines (possibly both trade and consumer publications), and trade associations. Basically, any media that reaches your target audience, and specifically your target market, should be included on your media list. And please, include the smaller local or regional media if they're appropriate. They’re usually hungry for good stories and may give you far more coverage than the mainstream media.

Table of Contents l Next - Chapter 3: Phase 2 of the Sales Process: The Inquiry