Don't confuse charity with corporate social responsibility
Companies are in business to make a fair profit. CSR should be something that comes after that fair profit. Funds should be put where they can do the most good, but also where they offer strategic advantages to the company.
If you think this is too capitalistic, you should be working for a non-profit organization or NGO. Also, CSR begins at home: A company's first CSR objective should be to ensure its own environmental record, to guard employees' welfare, and to paying adequate salaries.
After that, there are Willard's five rules for CSR. They bear an uncanny resemblance to our checklist on what makes for a good promotion:
1. Ownership: If it's a sponsorship, own it. Sharing dilutes benefits. The one exception to this is media co-sponsors. You can make your dollars go further this way.
2. Make it relevant. This means relevant to your business. If you work for a pharmaceutical company, don't sponsor a beautification program. Better to relate your giving to health care.
3. Be innovative. The usual is boring and doesn't draw a crowd. CSR, after all, is a branding opportunity.
4. Longevity. Stay away from one-offs where possible. Branding takes consistency. If your first event is a success, build on it. Hold "The Second Annual Acme Healthy Heart Run," then the third and fourth annual, and so on. Pretty soon, your event has become an institution.
5. Measurability. Is there a way to measure the effectiveness of the CSR program? Few corporations can afford so-called "unselfish" sponsorships. At a minimum, your target is the creation of goodwill.
2. Do you have any thoughts on conflicts? When is representing similar companies not a conflict?
WMM: This question is Biblical in scope. While the basic rules have not changed, the line in the sand keeps moving because many worldwide companies represent such a diversity of products and operate in multiple categories.
As a general concept, public relations and advertising agencies should be able to represent products in different categories even in competing companies.
Additionally, a one-off, short-term project for which an agency competes doesn't represent a marriage, but a date. In this case, it is unfair to the agency to say that it cannot work with competing projects and companies.
This, of course, is easier written than adhered to. A strong-willed company managing director or marketing director sets his or her own rules, and they can be unfair.
What we have found over the years is that the truth will set you free. In other words, always tell both companies if you think or if you think that they will think that a possible conflict could develop. Keeping all the cards on the table is the best insurance for avoiding conflicts and keeping everyone happy.
3. What is Willard Marketing Monthly's philosophy on tenders?
WMM: The answer to that question would take a book. But, here goes…
We believe that the tender process is generally healthy. It can lead to better creative and it can lead to more cost efficiency. There, we have said the litany of what we are supposed to say.
Now, the real skinny: Many tenders in Ukraine are a waste of time, and end up costing not just the agencies but, in the final analysis, the companies that conduct them.
Frankly, you don't want your agency shaving corners in time or less talented people because it has to make up the money it invested competing in the tender.
A tender for a contract worth less than $10,000 is rather silly. If it is a major design project, some companies will invest this much to win the tender - and that company might be competing against six to 10 others.
This is lunacy. If the government had not shut down the casinos in Ukraine, this would be a better place to put your money.
Our advice to agencies?
1. Stay away from any tender under $10,000. If you are really desperate and have capacity, lower that bar to $5,000.
2. Stay away from cattle calls that pit as many as 10 agencies against one another for a relatively small sum. This is an exercise in futility.
3. Only go after tenders that are strategically important to your business. Don't throw your hat into the ring just because there is a competition. Pick your battles.
4. Do the research. If a marketing director's brother-in-law works at a competing ad or PR agency, be suspicious. Only go after business that you believe you have a reasonable chance of winning. This isn't our advice - we were channeling David Ogilvy.
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