By Lou Hoffman, CEO, The Hoffman Agency
As a growing number of companies search for revenues outside the U.S. corridors,
there's an expectation for PR to provide air cover. Unfortunately, the
same pitfalls handicap international PR time and time again. With acknowledgement
to David Letterman, here's our top-10 list of international PR mistakes.
No. 1: Americanitis
Some U.S. executives think that having a high profile in the U.S. market guarantees
a hero's welcome when they land on foreign shores. After all, why shouldn't
the image they've spent years cultivating in the U.S. magically cross the Atlantic
and Pacific, conform to local societies, adapt to local market nuances and
reach out to their targeted constituencies? Unfortunately, such an attitude
leads to thinking that the same PR tactics and strategies that work so well
in the U.S. can be thrown over the fence to be used in other countries. Instead,
each and every country has its own market characteristics, culture, language,
society beliefs, etc., which must be taken into account.
No. 2: Lack of Budget
There's a tendency to allocate PR budgets for overseas programs based on revenue.
For example, if Asia Pacific constitutes 10 percent of the company's revenue,
then 10 percent of the PR budget should be allocated for Asia Pacific. Based
on this type of thinking, an annual global PR budget of $500,000 translates
into $50,000 for Asia-Pacific to cover Japan, China, Korea, Taiwan, Hong Kong
and Singapore. Needless to say, it's just not possible. A more effective approach
involves companies examining their business objectives and allocating PR budget
based on supporting those business objectives. There's no single funding formula
for success.
No. 3: Spreading Resources Too Thin
Related to the above, companies often find they don't have resources and/or
budgets to effectively target all the markets in a given region. For example,
a company might be focusing on the UK, Germany, France and Italy, but the PR
budget is only $200,000 for all of Europe. Instead of doing a good job in two
of the markets, they spread their resources too thinly across the four target
countries and don't move the needle anywhere. In this type of situation, a
company gains better ROI by focusing its PR dollars on fewer markets.
No. 4: Corporate HQ Control
Often, the funding for a PR program overseas comes out of the U.S. coffers.
It stands to reason that the U.S. PR executive would want some involvement
in the international PR activities and how the money is spent. Makes sense.
But when the corporate HQ exercises strict control and approval over every
overseas action, an incredible bureaucracy takes hold that handicaps the international
PR effort. Just the simple task of approving a news release can turn into a
nightmarish saga as inputs ping pong between HQ and the country office, exhausting
everyone's time.
No. 5: Inability to Localize Content
Contrary to some perceptions, localizing content goes far beyond the translation
of materials. Look at the daily newspapers from Japan, the U.S. and Germany
on any given day. The headlines will be different with the exception of major
world news events. Naturally, the business issues high on the radar vary from
country to country. Yet most companies aren't willing to put in the time to
localize content and messages for each target country. The more effort a company
puts into shaping content to the specific characteristics of a particular market,
the stronger the content becomes for the targeted audience.
No. 6: Treat Translation of Press Materials as an Administrative Task
A PR activity's efforts can go down the drain if the translation of the press
materials is not handled accurately. Years ago, we had a client situation
in Korea in which the Korean word for merger was used instead of the Korean
word for partnership. The client company was traded on Nasdaq, and all hell
broke loose when the release went out incorrectly announcing a merger with
a Korean company.
No 7: Unrealistic Expectations
An American company enjoys a high profile and substantial market share in
the U.S., so it automatically expects the same type of profile in a foreign
market. The reality is that the media doesn't know the company or knows very
little. Like any "new kid on the block," the company needs to build its reputation
through hard work and establishing new relationships. It takes time for a company
to build a strong image in the U.S., and the same is true for international
markets.
No. 8: Conducting International PR Long Distance
Some companies consider flinging their news releases into foreign countries
via news release distribution services as a form of international PR. Others
purchase directories that list the local media—and in some cases, the names
of publications' reporters – in a given country. But the power of PR comes
from the relationships with the local influencers, government officials and
media as well as understanding the nuances of the local market. This can only
be achieved with local feet on the street.
No. 9: Lack of Local Spokespeople
Often, companies operate what amounts to a sales office in an overseas market.
The top executive in such an office focuses on sales. Deploying this person
as a company spokesperson can be a challenge, since he or she is rewarded based
on the quarter's sales results, not building a long-term image. And leveraging
executives from outside a given country often means sacrificing local market
knowledge (not to mention the language issue).
No. 10: Don't Strive to Be an Asset to the Local Market
"We're committed to the local market." Every company targeting a foreign market
says these words, but many don't take actions to support the statement. This
is a bigger issue than PR. Companies should be looking for ways to become an
asset to the local community and local economy. It doesn't have to require
a large investment in money and time. Instead, it's more a symbol of the commitment
and respect to the local market.
I'll never forget my first overseas press event in Japan years ago when the
VP of marketing plopped his first transparency on the overhead projector and
only two-thirds of the slide showed up on the screen. No one had told us that
the format for overhead projectors in Japan was smaller than in the U.S. I
was mortified while my client experienced an even stronger emotion.
The lesson being, successful international PR starts by plugging into each
local market.
Lou Hoffman is CEO of The Hoffman Agency, a PR company focused on the
tech sector with offices in the United States, Asia Pacific and Europe. E-mail
him atlhoffman@hoffman.com. |