PR growth sector

PR growth sectors

It is not hard to predict that almost all sectors of Public Relations (PR) work will surge ahead in most parts of Asia over coming decades. Indeed the process is well underway, with exceptionally high rates of growth in PR in China and India, to name but the two biggest countries. Many factors are at play. Some of the most important ones relate to the changing business environment:

·         Aloosening of government controls over the economy in much of the region has led to the emergence of increasingly competitive markets, where companies need to try harder to convey a positive image and sell their products.

·         At the same time growing prosperity and rapidly developing consumer markets offer new scope for domestic and overseas brands. As they establish themselves in the marketplace, they use PR alongside advertising.

A recent survey by Hill and Knowlton (China) Public Relations asked Chinese students what Chinese brands they thought were “cool.” The white goods manufacturer Haier topped the list followed by computer giant Lenovo and sports goods manufacturer Li Ning. Notably all have benefited from a lot of very favorable PR. Source: The China Business Review (online)

·         New foreign investment creates further PR needs as newly arrived companies face a host of communication challenges in unfamiliar environments.

·         Finally, as the Asian economies mature they need to promote their own brands in overseas markets, and here PR will also play a crucial role.

Underpinning much of the expansion in PR work are the fruits of economic growth. Maslow’s hierarchy of needs can be seen in action, as basic physiological and security needs are increasingly met, and more emphasis is put on needs such as a sense of belonging, esteem and self-actualization. These new and often complex messages create communications needs which extend well beyond commerce. Modern governments make massive use of PR, as does the growing third sector, NGOs or charities, organizations which are particularly reliant on PR as they often exist solely to communicate a message.

Another important factor which affects all aspects of PR is the continued growth and diversification of the media, old and new. This expands the opportunities for media relations activity, but the sheer volume of media makes PR work increasingly demanding.

Government affairs or lobbying

Western PR firms setting up in Asia have all identified the enormous scope for public affairs or lobbying, and we predict strong growth in this area. In China, for example, a continuing legacy of strong government influence has placed a particular premium on public affairs: businesses need to know about government thinking on issues, and if they wish to influence government policy in any way they need to do it in a professional way. In many countries government affairs or lobbying has to be directed at regional or local authorities as well as national governments: how laws and regulations are implemented by regional or local government can vary considerably.

Healthcare

Healthcare PR is another area where we predict particularly rapid growth. Healthcare is a loose term which can embrace everything from the use of highly specialized PR techniques to promote pharmaceutical products to doctors, to the use of marketing PR to promote widely available personal products which provide health and hygiene benefits – from toothpastes to body lotions.

Marketing prescription drugs is often subject to regulations – hence the use of highly specialized techniques – but given the range and value of such products, and the amounts invested in research and development, it is a major area of PR work. The importance of regulations – products usually have to be approved and can subsequently be banned – means that public affairs and lobbying often plays an important part. Advances in healthcare across much of Asia will put an increasing premium on healthcare PR.

Non-prescription products are also the focus of intense PR activity as often they are unfamiliar and are designed to meet needs which hitherto were not apparent. As a result PR, alongside advertising, has to contribute to the process of public education about what these new products are, how they are used and the benefits that derive from their use.

Promoting toothpaste in China

Edelman, the international PR consultancy, was employed by Crest, a toothpaste brand which belongs to the multinational Proctor & Gamble. To promote the use of their product mothers were engaged as key decision makers with “Crest Van” school visits and road shows. The objective was to create an emotional bond with the brand as well as to communicate the functional benefits of Crest products.

www.edelman.com

Financial PR

As financial markets across Asia continue to develop, reflecting increased domestic and overseas investment in increasingly liberalized economic regimes, the flow of information upon which any marketplace depends will become evermore important. This will be reflected in the growing importance of financial and business media outlets.

Financial PR will grow in importance as companies seek to influence any reporting or comment which might impact on their standing in the market, and particularly their share price. This will spill over from financial media relations into investor relations of all kinds.

Continued economic development will also see more companies floated on stock exchanges and more mergers and acquisitions – all traditional focal points for financial PR work, and the source of high earnings for financial PR firms.

CHARLES WATSON, Group CEO, Financial Dynamics

“The sustainability of Asia’s growth depends as much on the region’s ability to access capital as on the economics of supply and demand. Across the region, hundreds of corporate entities seek to present the attractions of their businesses to the internationalinvestment community, in turn offering the financial comms industry one of its most exciting opportunities in years.

Since Financial Dynamics opened for business in Hong Kong last year, we have been overwhelmed with the opportunities. The Chinese IPO market is the most active in the world, with another $100bn of state-owned assets alone predicted to list on stock markets in the near term.”

Source: PR Week, 2006

Technology PR

This PR specialization focuses on the particular needs of the information technology industry or “TMT” – technology, media and telecoms. The scope for this PR specialization in Asia is worth drawing attention to. Although there are many companies and consumers which already enjoy state of the art TMT facilities, the digital divide is very wide: many more people and businesses enjoy only very limited – if any – access to technologies which many of us now take for granted. The market may be growing swiftly, but the continuing introduction of new products and services imposes fresh demands. Marketing of TMT and education in their use and benefits will be a big task for PR.

PR for overseas markets

One exciting and sometimes new role for PR people across the region involves starting to think beyond domestic media and domestic audiences and beginning to devote more attention to overseas audiences, as Asia not only becomes ever more open to outside investment and businesspeople as well as leisure travel and students, but also starts to export more of its own branded products overseas. The growing role Asian countries play in world affairs means this has a government angle, as Asian governments try to reach and influence audiences in other countries through a process of what is sometimes called “public diplomacy.” Often PR for distant audiences, in Europe, North America and elsewhere, will require collaboration with marketing services specialists from the countries concerned but it will still have to be controlled by people who are knowledgeable in the country of origin.