The New Age of Global Marketing

 

For decades, hundreds of corporations based in the United States have been engaged in international business operations including marketing, advertising, and public relations. These activities swelled to unprecedented proportions during the 1990s, largely because of new communications technologies, development of 24-hour financial markets almost worldwide, the lowering of trade barriers, growth of sophisticated foreign competition in traditionally "American" markets, and shrinking cultural differences bringing the "global village" ever closer to reality.

Today almost one third of all U.S. corporate profits are generated through international business. In the case of Coca-Cola, probably the best-known brand name in the world, inter­national sales account for 80 percent of the company's operating profit.

At the same time, overseas investors are moving into American industry. It is not uncommon for 15 to 20 percent of a U.S. company's stock to be held abroad. The United Kingdom, for example, has a direct foreign investment in the United States exceeding $122 billion, followed by Japan and the Netherlands with nearly half that sum each, according to the U.S. Department of Commerce.

Public relations is an essential ingredient in the global megamarketing mix being cre­ated. The 15 largest public relations organizations now generate more than 40 percent of their fees outside the United States. Giant companies such as Burson-Marsteller, Hill and Knowlton, and Shandwick earn about half of their fees abroad. Because of fax machines, e-mail, online services, and the Internet, boutique firms are challenging the big agencies for international business.

Fueling the new age of global marketing are satellite television, computer networks, electronic mail, fax, fiber optics, cellular telephone systems, and emerging technologies such as integrated services digital networks (ISDN) allowing users to send voice, data, graphics, and video over existing copper cables. For example, Hill and Knowlton has its own satellite transmission facilities, and the General Electric Company has formed an inter­national telecommunications network enabling employees to communicate worldwide, using voice, video, and computer data, simply by dialing seven digits on a telephone. Using three satellite systems, Cable News Network (CNN) is viewed by more than 200 million people in more than 140 countries. A number of newspapers and magazines are reaching millions with international editions. Reader's Digest, to cite one instance, distributes about 11.5 million copies abroad 4 national editions in more than a dozen languages.

Differences in language, laws, and cultural mores among countries (to be discussed shortly) pose serious problems. There also is a need for both managers and employees to learn to think and act in global terms as quickly as possible. Already, Burson-Marsteller, with offices in many countries, has been spending more than $1 million a year on training tapes and traveling teams of trainers and seminars to foster a uniform approach to client projects.

Much of the new business jousting took place on West European terrain, where a nearly unified European Community (EC) attracted enormous attention. Although hampered by recession in the early 1990s, public relations expenditures increased significantly. The growth was precipitated in part by expansion of commercial television resulting from wide­spread privatization, the desire of viewers for more varied programming, satellite technology, and slowly developing EC business patterns. Satellite TV reached well over 30 million

Fueling the new age of global marketing are satellite television, computer networks, electronic mail, fax, fiber optics, cellular telephone systems, and emerging technologies such as integrated services digital networks (ISDN) allowing users to send voice, data, graphics, and video over existing copper cables. For example, Hill and Knowlton has its own satellite transmission facilities, and the General Electric Company has formed an international telecommunications network enabling employees to communicate worldwide, using voice, video, and computer data, simply by dialing seven digits on a telephone. Using three satellite systems, Cable News Network (CNN) is viewed by more than 200 million people in more than 140 countries. A number of newspapers and magazines are reaching millions with international editions. Reader's Digest, to cite one instance, distributes about 11.5 million copies abroad - 44 national editions in more than a dozen languages.

Differences in language, laws, and cultural mores among countries (to be discussed shortly) pose serious problems. There also is a need for both managers and employees to learn to think and act in global terms as quickly as possible. Already, Burson-Marsteller, with offices in many countries, has been spending more than $1 million a year on training tapes and traveling teams of trainers and seminars to foster a uniform approach to client projects.

Much of the new business jousting took place on West European terrain, where a nearly unified European Community (EC) attracted enormous attention. Although hampered by recession in the early 1990s, public relations expenditures increased significantly. The growth was precipitated in part by expansion of commercial television resulting from wide­spread privatization, the desire of viewers for more varied programming, satellite technology, and slowly developing EC business patterns.

 

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Job Outlook

Keen competition will likely continue for entry-level public relations jobs as the number of qualified applicants is expected to exceed the number of job openings. Opportunities should be best for individuals who combine a college degree in journalism, public relations, advertising, or another communications-related field with relevant work experience. Public relations work experience as an intern is an asset in competing for entry-level jobs. Applicants without the appropriate educational background or work experience will face the toughest obstacles.

Employment of public relations specialists is expected to increase faster than the average for all occupations through 2008. The need for good public relations in an increasingly competitive business environment should spur demand for public relations specialists in organizations of all sizes. Employment in public relations firms should grow as firms hire contractors to provide public relations services rather than support full-time staff. In addition to growth, numerous job opportunities should result from the need to replace public relations specialists who take other jobs or who leave the occupation altogether.

Median annual earnings for salaried public relations specialists were $34,550 in 1998. The middle 50 percent earned between $26,430 and $46,330; the lowest 10 percent earned less than $21,050, and the top 10 percent earned more than $71,360. Median annual earnings in the industries employing the largest numbers of public relations specialists in 1997 were: Management and Public Relations - $35,100 ; State Government, Except Education and Hospitals - 32,100; Colleges and Universities -30,600.

According to a salary survey conducted for the Public Relations Society of America, the overall median salary in public relations was about $49,100. Salaries in public relations ranged from less than $22,800 to more than $141,400. There was little difference between the median salaries for account executives in public relations firms, corporations, government, health care, or nonprofit organizationsall ranged from over $32,000 to nearly $34,000.

Public relations specialists in the Federal Government in nonsupervisory, supervisory, and managerial positions averaged about $56,700 a year in 1999.

Please note that the earnings and salary data listed here is usually from government sources and may be dated, so please make adjustments accordingly. If you would like to access current salary data for literally thousands of occupations, check out our new Salary Calculator.

Related Occupations. Public relations specialists create favorable attitudes among various organizations, special interest groups, and the public through effective communication. Other workers with similar jobs include fund raisers; lobbyists; advertising, marketing, and promotion managers; and police officers involved in community relations.

 

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Public Relations Officer

Public relations (PR) is about managing reputation. This career field aims to gain understanding and support for clients as well as to influence opinion and behaviour.

PR officers use all forms of media and communication to build, maintain and manage the reputation of organisations ranging from public bodies or services to businesses and voluntary organisations. They communicate key messages, often using third party endorsements, to defined target audiences in order to establish and maintain goodwill and understanding between an organisation and its public.

PR officers monitor publicity and conduct research to find out the concerns and expectations of an organisation's stakeholders. They then report and explain the findings to its management.

 

Typical work activities.

A public relations (PR) officer often works in-house and can be found in both the private and public sectors: from the utility and media sectors to voluntary and not-for-profit organisations. Some PR officers may be based in consultancies.

The role is very varied and will depend on the organisation and sector. Tasks typically involve:

planning, developing and implementing PR strategies;

liaising with colleagues and key spokespeople;

liaising with and answering enquiries from media, individuals and other organisations, often via telephone and email;

researching, writing and distributing press releases to targeted media;

collating and analysing media coverage;

writing and editing in-house magazines, case studies, speeches, articles and annual reports;

preparing and supervising the production of publicity brochures, handouts, direct mail leaflets, promotional videos, photographs, films and multimedia programmes;

devising and coordinating photo opportunities;

organising events including press conferences, exhibitions, open days and press tours;

maintaining and updating information on the organisation's website;

sourcing and managing speaking and sponsorship opportunities;

commissioning market research;

fostering community relations through events such as open days and through involvement in community initiatives;

managing the PR aspect of a potential crisis situation.

 

The Goals of Communication.

Communication is the implementation of a decision, the process and the means by which objectives are achieved. A program's strategies and tactics may take the form of news releases, news conferences, special events, brochures, speeches, bumper stickers, newsletters, rallies, posters, and the like.

The goals of the communication process are to inform, persuade, motivate, or achieve mutual understanding. To be an effective communicator, a person must have basic knowledge of (1) what constitutes communication and how people receive messages, (2) how people process information and change their perceptions, and (3) what kinds of media and communication tools are most appropriate for a particular message.

Concerning the last point, Kirk Hallahan of Colorado State University makes the point that today's communication revolution has given public relations professionals a full range of communication tools and media, and the traditional approach of simply obtaining publicity in the mass media—newspapers, magazines, radio, and television—is no longer sufficient, if it ever was. He writes, "PR program planners need to re-exam their traditional approaches to the practice and think about media broadly and strategically. PR media planners must now address some of the same questions that confront advisers. What media best meet a program's objectives? How can media be combined to enhance program effectiveness? What media are most efficient to reach key audience?"

 

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