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		<title>Facebook Marketing: Is Social Media Really an Effective Marketing Tool?</title>
		<link>http://relationsinc.net/2012/10/11/facebook-marketing-is-social-media-really-an-effective-marketing-tool/</link>
		<comments>http://relationsinc.net/2012/10/11/facebook-marketing-is-social-media-really-an-effective-marketing-tool/#comments</comments>
		<pubDate>Thu, 11 Oct 2012 23:49:27 +0000</pubDate>
		<dc:creator>Merrill Mitchell</dc:creator>
				<category><![CDATA[Branding]]></category>
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		<description><![CDATA[Social Media Marketing is the largest growing trend in marketing today.  Essentially, it is an extension of word of mouth advertising; however, the traditional marketing rules no longer apply.  Social Media Marketing is generating 3x times the search queries from 2009 and most companies now have permanent staff just to take care of Social Media.  [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=relationsinc.net&#038;blog=22399956&#038;post=155&#038;subd=relationsinc&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p><b>Social Media Marketing </b>is the largest growing trend in marketing today.  Essentially, it is an extension of word of</p>
<div id="attachment_183" class="wp-caption alignright" style="width: 310px"><a href="http://relationsinc.files.wordpress.com/2012/10/social-media.png"><img class="size-medium wp-image-183" title="social-media" alt="Social Media Marketing, Marketing on Facebook" src="http://relationsinc.files.wordpress.com/2012/10/social-media.png?w=300&#038;h=276" height="276" width="300" /></a><p class="wp-caption-text">Guide to Marketing on Facebook and other Social Media Marketing Principals.</p></div>
<p>mouth advertising; however, the traditional marketing rules no longer apply.  <b>Social Media Marketing</b> is generating 3x times the search queries from 2009 and most companies now have permanent staff just to take care of <b>Social Media.  </b>So where does that leave your business?</p>
<p>The benefits are endless for your business to get involved in <b>Social Media Marketing</b>.  You will generate exposure, increase traffic to your website, improve search engine rankings, generate qualified leads, improve sales, and reduce your expenses (Stelzner, 2011).  Facebook dominates the social media world, so for this post I will strictly focus on Marketing on Facebook.</p>
<p><b>Facebook Marketing </b>is effective if presented in the right way.  Facebook users are generally interested in what companies have to say.  Facebook allows consumers to control the marketing environment.  This is creating powerful word of mouth evangelist for your business.  So how do you <b>Market Effectively on Facebook?</b></p>
<p><b>Brand Engagement!!!!!!!!  </b></p>
<p>The secret to <b>marketing</b> <b>on Facebook </b>is to generate brand engagement.  Encourage your fans to participate in discussions (Hoffman &amp; Fodor, 2010).  Allow them to communicate their opinions and concerns.  It is also an easy way to hold contest.  Think of creative, attention getting ways to allow your customers to get involved.    Avoid sales pitches at all cost.  Soon your customers will be sharing your post, content, products, and services.  Just be creative and attention getting.</p>
<p>A great example of effecting <b>Facebook Marketing </b>Is how Target created “<a href="http://www.facebook.com/circleofmoms">Circle of Moms</a>” fan page.  Here mothers could share school supply list, share promotions, and arrange carpools (Hoffman &amp; Fodor, 2010).  The way to keep it simple is to let your customers control the <b>Marketing on Facebook.</b>  Think outside the box a little.  Follow the link here to create your own Facebook page for your business and begin to <strong><a title="Marketing with Facebook" href="http://www.facebook.com/pages/create.php">Market on Facebook</a>.</strong></p>
<p><i>If you are interested in <b>Marketing on Facebook</b> or any other social media <a title="Get Started" href="http://relationsinc.net/get-started/">Click Here</a>.</i></p>
<p>What do you think about Social Media Marketing, Leave a reply, take the polls below.</p>
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<p>References</p>
<p>Hoffman, D. L., &amp; Fodor, M. (2010). Can You Measure the ROI of Your Social Media Marketing? <i>MIT Sloan Management Review</i> <i>, 52</i> (1), 41-49.</p>
<p>Holzner, S. (2009). <i>Facebook Marketing: Leverage Social Media to Grow Your Business.</i> Que Publishing.</p>
<p>Stelzner, M. A. (2011). <i>Social Media Marketing Industry Report.</i></p>
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		<title>Pairing Charity with Neuroscience: How American Express Ignited Consumer Behavior by Donating to the Statue of Liberty</title>
		<link>http://relationsinc.net/2012/01/24/cause-marketing-pairing-charity-with-neuroscience/</link>
		<comments>http://relationsinc.net/2012/01/24/cause-marketing-pairing-charity-with-neuroscience/#comments</comments>
		<pubDate>Tue, 24 Jan 2012 22:54:23 +0000</pubDate>
		<dc:creator>Merrill Mitchell</dc:creator>
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		<description><![CDATA[A new trend in marketing has developed over the last 30 years known as cause-marketing or cause-oriented marketing.  This is the event which a for profit organization partners with a non-profit organization to promote awareness of a particular concern.  Cause-Oriented Marketing began in the early 1980’s when American Express announced they would donate one penny [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=relationsinc.net&#038;blog=22399956&#038;post=135&#038;subd=relationsinc&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p><a href="http://relationsinc.files.wordpress.com/2012/01/helping-hand.jpg"><img class="alignleft size-medium wp-image-134" title="Chairity Advertising" src="http://relationsinc.files.wordpress.com/2012/01/helping-hand.jpg?w=300&#038;h=199" alt="" width="300" height="199" /></a>A new trend in marketing has developed over the last 30 years known as <strong>cause-marketing</strong> or <strong>cause-oriented marketing</strong>.  This is the event which a for profit organization partners with a non-profit organization to promote awareness of a particular concern.  <strong>Cause-Oriented Marketing</strong> began in the early 1980’s when <strong>American Express</strong> announced they would donate one penny for every <strong>American Express Card</strong> sale to the renovation of the <strong>Statue of Liberty</strong>; increasing card sales by 28%.  Studies show consumers have an increased positive response to a company that collaborates with a non-profit also preferring those products with a logo of the charity.  This also increases the consumers trust in the product or company.  What marketers don’t know is giving to charity is a science.</p>
<p>Recent fMRI studies indicate our ability to give to charity is actually a science.  Studies show activation between the cognitive areas of the brain contained in the <strong>cerebral cortex</strong> and the more developed goal oriented <strong>limbic system</strong>.  One area of the brain in particular, the <strong>posterior superior temporal cortex (pSTC)</strong>, closely associates itself with the part of the brain that acts for the intentional benefit another person, or people.  In the study, subjects had a choice whether to keep $100 for themselves or donate $100 towards a charity.  An increase in activity took place within the <strong>pSTC</strong> as well as the <strong>septal region</strong> (part of the brain associated with reward), for those who elected not to donate rather than keep the money.  This may help explain why so many people are willing to help someone and so few are able to ask for help.  The positive experience of contributing donating to charity is then associated with the product.  The product is thus associated with consumers as being a trustful product.</p>
<p><strong>Cause Marketing</strong> can have a reverse affect as well.  Since the two companies are partners, actions from either one can have an impact on the other.  For example, recently <strong>Smith Kline Beecham Health Care</strong> entered an agreement with the <strong>American Cancer Society (ACS)</strong>, placing the <strong>ACS</strong> logo on nicotine patches in the <strong>“Partner’s Helping You Quit”</strong> campaign.  The Attorney General’s from 12 states concluded that the partnership implied on the advertisement construed as the <strong>ACS’s</strong> endorsement of the nicotine patches thus misleading and confusing <strong>customers</strong>.  The overall outcome was a settlement of $12 million from <strong>Smith Kline Beecham</strong>.  The reverse can be true as well.  Suppose you purchased an inferior product that has been associated with a non-profit.  Since your negative experience is associated with the product, the same negative feelings attribute to the non-profit as well.</p>
<p><strong>Cause marketing</strong> has the potential to bring awareness to a cause.  High consumer confidence is a direct association with the non-profit.  The <strong>neuro-mechanisms</strong> within the mind associate the positive feeling of helping and the reward we feel for doing so.  Just be careful.</p>
<p style="text-align:center;">References</p>
<p>Pryor, M., Lockyer, B., Blumenthal, R., Ferren, J. M., Butterworth, R. A., Ryan, J., et al. (1999). <em>What&#8217;s in a Non-Profit Name? Public Trust, Profit, and the Potential for Public Deception.</em></p>
<p>Tankersley, D., Stowe, J., &amp; Huettel, S. (2007). Altruism is associated with an increased neural response to agency. <em>Nature Neuroscience</em> <em>, 10</em> (2), 150 &#8211; 151.</p>
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		<title>ThySelf: How Reaching Consumers Self-Concept Created Success for Harley Davidson</title>
		<link>http://relationsinc.net/2012/01/14/thyself-how-reaching-consumers-self-concept-creates-success/</link>
		<comments>http://relationsinc.net/2012/01/14/thyself-how-reaching-consumers-self-concept-creates-success/#comments</comments>
		<pubDate>Sat, 14 Jan 2012 17:42:23 +0000</pubDate>
		<dc:creator>Merrill Mitchell</dc:creator>
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		<description><![CDATA[Independence, Freedom, and Power are words that are being used to describe the personal theme of Harley Davidson Motorcycles and their owners.  How has Harley Davidson become so successful?  The key lies in consumer perception.  More importantly, the image consumers have of themselves and who they want to be, known as self-concept (Arens, Schaefer, &#38; [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=relationsinc.net&#038;blog=22399956&#038;post=114&#038;subd=relationsinc&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Independence, Freedom, and Power are words that are being used to describe the personal theme of <strong>Harley Davidson Motorcycles</strong> and their owners.  How has <strong>Harley Davidson</strong> become so successful?  The key lies in <strong>consumer perception</strong>.  More importantly, the image consumers have of themselves and who they want to be, known as <strong>self-concept</strong> (Arens, Schaefer, &amp; Weigold, 2009).  Unfortunately, <strong>consumer perception</strong> is one of the largest challenges facing <strong>marketing</strong> and <strong>advertising</strong>.  The goal of this article is to demystify the <strong>self-concept</strong> and redirect efforts to mirror the consumer’s self-concept.</p>
<p>Amazingly, the average American is being bombarded by thousands of <strong>advertisements</strong> every day.  Of thousands, only a handful is noticed and even fewer are remembered (Arens, Schaefer, &amp; Weigold, 2009).  The reason only few of these are recognized are due to <strong>psychological screens</strong> we have set in place.  These screens evaluate, filter, and personalize subjective material based on the persons: attitudes, personality, beliefs, and experiences (Arens, Schaefer, &amp; Weigold, 2009).  The process that we evaluate and comprehend these stimuli is called <strong>cognition</strong>.</p>
<p>An interesting process occurs in the human brain when <strong>the positive aspect of a product mirrors that of the self-concept.  </strong>The executive within our mind kicks in.  Suddenly the <strong>ventromedial/ orbitofrontal cortex, the dorsolateral prefrontal cortex, and the anterior cingulated cortex</strong> begin passing chemicals back and forth aiding in <strong>decision making</strong> and regulate thoughts one has of themselves (Cacioppo, et al., 2007).   Even more interesting is the same areas of the brain are directly responsible for our interpretation of rewards and punishments.  When we see an ad that appeals to our <strong>self-concept</strong>, these areas of the brain ignite, releasing <strong>oxytocin</strong> (a stress inhibitor) and <strong>dopamine</strong> (feel good chemicals) thus leaving the <strong>consumer</strong> feeling good about themselves with this product.  Is it starting to come together?  Let us look at the example of <strong>Harley Davidson Motorcycles</strong>.</p>
<p style="text-align:center;"><a href="http://relationsinc.files.wordpress.com/2012/01/harley-davidson-wind.jpg"><img class="size-full wp-image-116" title="Harley Davidson Ad" src="http://relationsinc.files.wordpress.com/2012/01/harley-davidson-wind.jpg?w=630" alt=""   /></a></p>
<p><strong>Harley Davidson Motorcycles</strong> have become more than just a great motorcycle, they have become a symbol, an idea, a feeling.  When researchers at <strong>Harley Davidson</strong> polled their customers about their feeling on the brand, three separate themes manifested: independence, freedom, and power (Kotler &amp; Armstrong, 2008).  Looking at the example ad, we see part of a portrait of a main with long hair and a beard with a clever tag line.  This represents the independence and freedom idea that represents the <strong>Harley</strong> spirit.  The mirror representation of this idea appeals to the <strong>self-concept</strong>, releasing these powerful those powerful brain chemicals and thus creating a positive response to the <strong>Harley Davidson</strong> brand.  The thought of a <strong>Harley</strong> rumbling through the neighborhood exemplifies the freedom, announces independence, and boast the self-expression.  This is how <strong>Harley</strong> has become so successful in American.  Rationally, a human would experience the same pleasure from riding a <strong>Honda</strong> versus a <strong>Harley</strong> but we associate <strong>Harley</strong> with emotion. Its not a motorcycle, it’s a <strong>Harley</strong>, it&#8217;s an idea.</p>
<p align="center">References</p>
<p>Arens, W. F., Schaefer, D. H., &amp; Weigold, M. (2009). <em>Essential of Contemporary Advertising.</em> Boston: McGraw Hill.</p>
<p>Cacioppo, J. T., Amaral, D. G., Blanchard, J. J., Cameron, J. L., Carter, C. S., Crews, D., et al. (2007). Social Neuroscience Progress and Implications for Mental Health. <em>Perspectives on Psychological Science</em> <em>, 2</em> (2), 99 &#8211; 123.</p>
<p>Kotler, P., &amp; Armstrong, G. (2008). <em>Principles of Marketing 12th edition.</em> Upper Saddle River: Pearson Education Group.</p>
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		<title>How Chevy Runs Deeper Than You Think: The Key to Using Psychographics Succesfully in Advertising</title>
		<link>http://relationsinc.net/2012/01/03/key-to-using-psychographics-in-advertising-the-new-market-segmentation/</link>
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		<pubDate>Tue, 03 Jan 2012 19:49:48 +0000</pubDate>
		<dc:creator>Merrill Mitchell</dc:creator>
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		<description><![CDATA[Modern demographic information may not be enough to understand consumers today. Instead, companies are using a new form of market segmentation known as psychographics. Psychographics segments the market based on values, personality, and lifestyle (Arens, Schaefer, &#38; Weigold, 2009, p. 102). Probably the most used and best-known psychographic classification is the VALS system from SRI [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=relationsinc.net&#038;blog=22399956&#038;post=94&#038;subd=relationsinc&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Modern <strong>demographic</strong> information may not be enough to understand <strong>consumers</strong> today. Instead, companies are using a new form of <strong>market segmentation</strong> known as <strong>psychographics</strong>. <strong>Psychographics</strong> segments the market based on values, personality, and lifestyle (Arens, Schaefer, &amp; Weigold, 2009, p. 102). Probably the most used and best-known <strong>psychographic</strong> classification is the <strong>VALS</strong> system from <strong>SRI Consulting Business Intelligence</strong> (visit <a href="http://www.strategicbusinessinsights.com/vals/" rel="nofollow">http://www.strategicbusinessinsights.com/vals/</a> for more information on the VALS System). The <strong>VALS</strong> system divides the market based on two dimensions: primary motivations and resources (Arens, Schaefer, &amp; Weigold, 2009, p. 102). <strong>VALS</strong> places the <strong>consumer</strong> into eight groups: Innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers, and Survivors. For example, the motivating factor for experiencers is self-expression. Typically, they are young and enthusiastic. They seek variety, excitement, and are not afraid to take risk (Strategic Business Insights, 2011). I am sure you can name several experiencers off the top of your head.</p>
<div id="attachment_95" class="wp-caption aligncenter" style="width: 375px"><a href="http://relationsinc.files.wordpress.com/2012/01/usframework.jpg"><img class="size-full wp-image-95" title="VALS US Framework" src="http://relationsinc.files.wordpress.com/2012/01/usframework.jpg?w=630" alt=""   /></a><p class="wp-caption-text">The VALS system of Psychographics can be used to create a successful advertising campaign</p></div>
<p>To see how the <strong>VALS</strong> works in <strong>advertising</strong>, let us look at two recent commercials put out by America’s most popular pickup trucks the <strong>Chevy Silverado</strong> and the <strong>Ford F-150</strong>.<br />
<span class='embed-youtube' style='text-align:center; display: block;'><iframe class='youtube-player' type='text/html' width='630' height='385' src='http://www.youtube.com/embed/Mrl-mm-7WM8?version=3&#038;rel=1&#038;fs=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;wmode=transparent' frameborder='0'></iframe></span><br />
The new <strong>Chevy Silverado</strong> commercial shows a child playing with a toy version of the <strong>Silverado</strong> and other toys strewn about the living room. After completing several &#8216;chores&#8217; the boy returns the toy truck to a toy home, where the male action figure is greeted by a female action figure and states “Hi Honey,” in his best female impression. This is where the boy hears the door of the real <strong>Silverado</strong> shut outside, he knows the Dad is home. This commercial targets the believer <strong>psychographic</strong>. Believers follow established routines and center themselves on home and family (Strategic Business Insights, 2011). Typically, believers are motivated by ideals. The <strong>Silverado</strong> commercial is full of material to mirror the believer group. The boy represents the family aspect and his admiration of the father is one that is strong. After a long day of work, the father returns home, completing the established routine. <strong>Successful advertising creates a positive response to the brand and product in the minds of the consumers. </strong>Believer consumers can identify with the father in the ad, the idea home and family, thus creates a positive reaction to the brand and product. In this case, the brand is <strong>Chevy</strong> and the product is the new <strong>Silverado</strong>.<br />
<span class='embed-youtube' style='text-align:center; display: block;'><iframe class='youtube-player' type='text/html' width='630' height='385' src='http://www.youtube.com/embed/8uT1xTLXSvA?version=3&#038;rel=1&#038;fs=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;wmode=transparent' frameborder='0'></iframe></span><br />
<strong>Ford</strong> targets a different <strong>psychographic</strong>, the makers. The <strong>Ford</strong> commercial begins by explaining the new features of their product. Most of the time I recommend not to explain the features of a product, instead demonstrate the rewards; however, the end of the ad explains how these new features benefit the <strong>consumer</strong> with more towing power and better fuel economy. The <strong>Ford</strong> ad is aiming at the maker <strong>psychographic</strong>. Makers experience the world by building it (Strategic Business Insights, 2011). More towing and better fuel mileage allows makers to create more for less. It is the idea that the <strong>Ford F-150</strong> can create more with better fuel economy is the positive reinforcement of the ad, creating the positive response to the <strong>Ford Motor Company</strong> and the <strong>F-150 Brand</strong>.</p>
<p>I highly recommend that you take the <a title="Take the VALS survey to find out what Psychographic you belong to." href="http://www.strategicbusinessinsights.com/vals/" target="_blank"><strong>VALS</strong> survey</a> and research the eight groups in the <strong>VALS</strong> system, as it is a powerful tool for a more effective form of <strong>market segmentation</strong>.</p>
<p>Also, stay up to date with the <a title="More information on the Chevy Silverado" href="http://www.chevrolet.com/silveradohd/" target="_blank"><strong>Chevy Silverado</strong></a> and <a title="More information on the Ford F150" href="http://www.ford.com/trucks/f150/" target="_blank"><strong>Ford F-150</strong></a></p>
<p>References</p>
<p>Arens, W. F., Schaefer, D. H., &amp; Weigold, M. (2009). <em>Essential of Contemporary Advertising.</em> Boston: McGraw Hill.</p>
<p>Strategic Business Insights. (2011). <em>VALS</em>. Retrieved from strategic business insights: <a href="http://www.strategicbusinessinsights.com/vals/" rel="nofollow">http://www.strategicbusinessinsights.com/vals/</a></p>
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		<title>Mirror Neurons Create Successful Advertising: How The Apple IPod Did It with Positive Consumer Behavior</title>
		<link>http://relationsinc.net/2012/01/02/making-mirror-neurons-work-for-your-advertising-ipod-vs-zune/</link>
		<comments>http://relationsinc.net/2012/01/02/making-mirror-neurons-work-for-your-advertising-ipod-vs-zune/#comments</comments>
		<pubDate>Mon, 02 Jan 2012 19:12:11 +0000</pubDate>
		<dc:creator>Merrill Mitchell</dc:creator>
				<category><![CDATA[Advertising]]></category>
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		<guid isPermaLink="false">http://relationsinc.net/?p=84</guid>
		<description><![CDATA[I cannot stress enough to advertise and demonstrate the benefits of a product.  One way which can help explain how to do this is to understand mirror neurons and how the Apple IPod them successfully.  Mirror neurons have an interesting effect on consumer behavior, for example, imagine you are watching a hockey game on T.V.; [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=relationsinc.net&#038;blog=22399956&#038;post=84&#038;subd=relationsinc&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>I cannot stress enough to <strong>advertise</strong> and demonstrate the <strong>benefits</strong> of a product.  One way which can help explain how to do this is to understand <strong>mirror neurons</strong> and how the <strong>Apple IPod</strong> them successfully.  <strong>Mirror neurons</strong> have an interesting effect on <strong>consumer behavior</strong>, for example, imagine you are watching a hockey game on T.V.; the offensive team flips the puck deep into the offensive zone where two opposing players chase it.  The offensive forward approaches the corner boards, planning to play the puck behind the goal and around the boards.  The player on the opposite team swarms the forward, you can see the hit coming, your muscles tense, your heart rate increases, then you wince as the opposing player slams his entire bodyweight against the forward, shaking the plexi glass wall, and allowing the forward to drop to the ice, what a hit, right?  However, did you notice those <strong>mirror neurons</strong> fire?  You were not the one who was about to be smeared across the boards, but you still prepared yourself as if you were.  These are the <strong>mirror neurons</strong> in action.</p>
<p><strong>Mirror neurons</strong> are a population of <strong>neurons</strong> located in the <strong>ventral pre-motor cortex</strong> of the brain, they discharge when an animal hears or sees the same action of another animal (Keysers, Kohler, Umilta, Nanetti, Fogassi, &amp; Gallese, 2002).  As in the example above, the same response in our brain fires when the player is hit as if it was we.  Now obviously you would not want to “smash” your <strong>customer’s</strong> or intend to harm them at all.  Instead, aim for <strong>positive mirror neurons</strong>, such as enjoyment.  Looking at two examples from similar products, the <strong>Apple IPod</strong> and <strong>Microsoft’s Zune</strong>, we can see how each company approached their <strong>advertising</strong>.</p>
<span class='embed-youtube' style='text-align:center; display: block;'><iframe class='youtube-player' type='text/html' width='630' height='385' src='http://www.youtube.com/embed/mM6InCC_ee0?version=3&#038;rel=1&#038;fs=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;wmode=transparent' frameborder='0'></iframe></span>
<p>The <strong>IPod</strong> video is showing a young adult male, jamming in his living room to some hot techno music.  He then makes a couple clicks on the computer, picks up a device the size of a deck of cards, hits a button on the device, and the music resumes.  The young man is happy, dancing around the apartment.  Our <strong>mirror neurons</strong> fire, we feel as though we can have the same fun with the <strong>product</strong>. Now compare the <strong>IPod</strong> commercial to <strong>Microsoft’s Zune</strong> commercial.</p>
<span class='embed-youtube' style='text-align:center; display: block;'><iframe class='youtube-player' type='text/html' width='630' height='385' src='http://www.youtube.com/embed/PXh8TImWtIY?version=3&#038;rel=1&#038;fs=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;wmode=transparent' frameborder='0'></iframe></span>
<p>The <strong>Zune’s</strong> commercial is, well, confusing.  It is showing two birds together on a tree, and they suddenly burst into flames.  The difference is the <strong>IPod</strong> commercial is demonstrating a key component in <strong>advertising</strong>: show the <strong>benefits</strong>.  We, the viewers, have more of a positive response to the benefit of the <strong>IPod</strong> than the <strong>Zune</strong>.  Our mirror neurons see the young man in the <strong>IPod</strong> commercial enjoying himself, subconsciously we urn to enjoy ourselves, therefore creating a positive response in the reward centers of our brain when we make a purchase.</p>
<p>References</p>
<p>Keysers, C., Kohler, E., Umilta, M. A., Nanetti, L., Fogassi, L., &amp; Gallese, V. (2002). Audiovisual mirror neurons and action recognition. <em>Experimental Brain Research</em> <em>, 153</em> (4), 628 &#8211; 636.</p>
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		<title>Customer Value Setting Pricing:  Where to Begin When Pricing a New Product</title>
		<link>http://relationsinc.net/2011/05/12/customer-value-setting-pricing-where-to-begin-when-pricing-a-new-product/</link>
		<comments>http://relationsinc.net/2011/05/12/customer-value-setting-pricing-where-to-begin-when-pricing-a-new-product/#comments</comments>
		<pubDate>Thu, 12 May 2011 18:21:55 +0000</pubDate>
		<dc:creator>Merrill Mitchell</dc:creator>
				<category><![CDATA[Pricing]]></category>
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		<guid isPermaLink="false">http://relationsinc.net/?p=53</guid>
		<description><![CDATA[Set a value first and the customers will tell you the price. The key to effective pricing is first determining customer value. Initially companies may want to lower prices to generate customer traffic; but often times this leads to lost profits and dangerous pricing wars. To the customer, this comes off as price is more [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=relationsinc.net&#038;blog=22399956&#038;post=53&#038;subd=relationsinc&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Set a value first and the customers will tell you the price. The key to effective pricing is first determining customer value. Initially companies may want to lower prices to generate customer traffic; but often times this leads to lost profits and dangerous pricing wars. To the customer, this comes off as price is more important than their customers are. If a company spends more time on creating product value, then customers are more than happy to pay the higher prices of a premium product. It all begins with customer value and expectations.</p>
<p>Customers will form expectations based on the satisfaction and benefits they will receive on a product. Satisfied customers will buy again and tell other about their experience. For example, I received an Amazon Kindle as a birthday present last month. I love the little reader device. How many people have I told? I would say I told fifty people in less than a month. On the flip side, dissatisfied customers may switch to competitors and will tell other not to buy that product. A company must know their customers; easiest way to find out is to ask.</p>
<p><a href="http://relationsinc.files.wordpress.com/2011/05/apple-logo.jpg"><img class="alignleft size-medium wp-image-54" title="Apple Computer Logo" src="http://relationsinc.files.wordpress.com/2011/05/apple-logo.jpg?w=248&#038;h=300" alt="" width="248" height="300" /></a>Perform a Customer Value Analysis. A customer value analysis determines the benefits for a target audience. For example, Apple listened to consumer complaints in the PC market. The benefits of owning an Apple computer are an easy to use interface, secure computing, and an aesthetically pleasing product. Apple used a three-step process in determining their value:</p>
<ol>
<li>Determine the major needs of customers (ease of use, security, ect.).</li>
<li>Analyze company’s response toward meeting customer needs.</li>
<li>View competitor’s response to customer needs (security threats, constant crashing).</li>
</ol>
<p>If the company meets the customer needs, then the company can charge a higher price for the product. If a product is coming up short in meeting customer needs, then more resources should be invested into meeting those needs. <strong>Set the right level of expectations in a product.</strong> Setting expectations too high and customers will be left disappointed, too low and the company will fail to attract customers. Effective pricing is made up of everything in a floor to ceiling model were customer value, the highest amount a customer will pay, is the ceiling and the cost of producing the product is the floor. Competition, market demand, and internal/ external considerations make up the room.</p>
<p align="center">Customer Perceptions of Value</p>
<p align="center">-</p>
<p align="center">Internal and External Considerations<br />
Marketing Strategy<br />
Competition<br />
Market Demand</p>
<p align="center">-</p>
<p align="center">Product Cost</p>
<p><strong>Setting the correct price </strong>for a product will closely relate to the customer value. Begin a pricing strategy from that point. It may require some research; however, research cost is minimal to the return this research will yield. If customer value is below a product cost, then careful consideration must be made in product development and manufacturing or if the product is worth putting on the market. Remember, it’s all about the customer.</p>
<p align="center">References</p>
<p>Kotler, P., &amp; Armstrong, G. (2008). <em>Principles of Marketing 12th edition.</em> Upper Saddle River: Pearson Education Group.</p>
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		<title>Current Customers First: Where to Emphasize Marketing Efforts</title>
		<link>http://relationsinc.net/2011/05/06/current-customers-first-where-to-emphasis-marketing-efforts/</link>
		<comments>http://relationsinc.net/2011/05/06/current-customers-first-where-to-emphasis-marketing-efforts/#comments</comments>
		<pubDate>Fri, 06 May 2011 18:27:03 +0000</pubDate>
		<dc:creator>Merrill Mitchell</dc:creator>
				<category><![CDATA[Advertising]]></category>
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		<description><![CDATA[Market your current customers now.  The goal for any business is to create partnerships with their clients.  A business must build long-term satisfying relationships with their customers.  These relationships are what build brand equity.  Eventually, 90% of profit will come from repeat customers (Arens, Schaefer, &#38; Weigold, 2009).  This may seem counter-intuitive to the goals [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=relationsinc.net&#038;blog=22399956&#038;post=24&#038;subd=relationsinc&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<div id="attachment_25" class="wp-caption alignleft" style="width: 301px"><a href="http://relationsinc.files.wordpress.com/2011/05/business-handshake.jpg"><img class="size-full wp-image-25" title="Create Long Term Relationships" src="http://relationsinc.files.wordpress.com/2011/05/business-handshake.jpg?w=630" alt=""   /></a><p class="wp-caption-text">90% of profit comes from repeat customers</p></div>
<p>Market your current customers now.  The goal for any business is to create partnerships with their clients.  A business must build long-term satisfying relationships with their customers.  These relationships are what build brand equity.  Eventually, 90% of profit will come from repeat customers (Arens, Schaefer, &amp; Weigold, 2009).  This may seem counter-intuitive to the goals of marketing, which is generating clients; but studies show just how powerful marketing is to your current customers.  The way to market to your current customers is through <em>relationship marketing.  </em></p>
<p><em>Relationship Marketing</em> is more than just making a transaction; it is about <strong>creating and maintaining a relationship with a customer over a long time period</strong>.  It begins with a volley of neurons located in the part of the brain responsible for cognitive thought, the prefrontal cortex.   It is amazing how the different areas of the prefrontal cortex overlap each other when we humans make decisions.  This can be stressful, even though we may not perceive the environment as stressful.  Positive social interactions reduce stress hormones and release the chemical <em>oxytocin</em> into the brain (Cacioppo, et al., 2007).  Oxytocin is the “Whew,” relief feeling we get after responding to a stimulus.  Creating trust within the customer now is possible with the reduction of stress.</p>
<p>Some important facts on repeat customers are:</p>
<ol>
<li>No amount of advertising will win back a lost customer.   Poor products and services will kill a brands reputation.  Mistakes happen; but if handled correctly, the customer will not be lost.</li>
<li>It is 5 to 8 times more expensive to gain new customers.  Utilize this direct channel of communication.  Your customers want to know what is going on in your business.  Let them be a part of decisions made in the company.</li>
<li>90% of pure profit comes from repeat customers.  These customers are more likely to pay premium prices for services or products, tell their friends, and continue to make purchases.</li>
</ol>
<p>Outside advertising remains important; but factor marketing efforts to 20% outside and 80% current customers.  The results will not show up tomorrow, it takes at least a year; but this fan base will create a successful venture.</p>
<p>Arens, W. F., Schaefer, D. H., &amp; Weigold, M. (2009). <em>Essential of Contemporary Advertising.</em> Boston: McGraw Hill.</p>
<p>Cacioppo, J. T., Amaral, D. G., Blanchard, J. J., Cameron, J. L., Carter, C. S., Crews, D., et al. (2007). Social Neuroscience: Progress and Implications for Mental Health. <em>Perspectives on Pychological Science</em> <em>, 2</em>(2), 99 &#8211; 114.</p>
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		<title>E*Trade Baby, Boom or Bust?  What Makes Humor in Advertising Work</title>
		<link>http://relationsinc.net/2011/05/04/etrade-baby-boom-or-bust-what-makes-humor-in-advertising-work/</link>
		<comments>http://relationsinc.net/2011/05/04/etrade-baby-boom-or-bust-what-makes-humor-in-advertising-work/#comments</comments>
		<pubDate>Wed, 04 May 2011 18:14:46 +0000</pubDate>
		<dc:creator>Merrill Mitchell</dc:creator>
				<category><![CDATA[Advertising]]></category>
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		<description><![CDATA[Humor in advertising does not work.  Well, at least in the case of E*Trade and their comical new born known to all as the E*Trade baby, it does not; however I could not help myself one night but to watch a new E*Trade Baby commercial.  My epiphany for this article came from fast forwarding through [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=relationsinc.net&#038;blog=22399956&#038;post=18&#038;subd=relationsinc&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<div id="attachment_21" class="wp-caption alignright" style="width: 310px"><a href="http://relationsinc.files.wordpress.com/2011/05/e-trade_baby-golf3_bigger.jpg"><img class="size-medium wp-image-21" title="The E-Trade Baby" src="http://relationsinc.files.wordpress.com/2011/05/e-trade_baby-golf3_bigger.jpg?w=300&#038;h=243" alt="" width="300" height="243" /></a><p class="wp-caption-text">The deepest circles of hell brought to us: The E-Trade Baby.</p></div>
<p>Humor in advertising does not work.  Well, at least in the case of E*Trade and their comical new born known to all as the E*Trade baby, it does not; however I could not help myself one night but to watch a new E*Trade Baby commercial.  My epiphany for this article came from fast forwarding through the commercials on one of my favorite TV shows I recorded on my DVR the night before.  As I am on warp speed fast forwarding through the commercials, suddenly I stopped, it was a new E*Trade baby commercial.  I was powerless to the wit of the baby and watched the ad, even though I wanted to skip the commercials.  I then asked myself the question, “I love the E*Trade commercials, but I will never use E*Trade as a portfolio builder, Why?”  Turns out, humor in advertising is more complicated than you might expect and yet humor is everywhere in advertising; but in order to be effective, the positive appeal of the ad must coincide with the products benefits.</p>
<p>One out of every five television ads contains some sort of humor (Eisend, 2008).  Clearly humor has its place in advertising; yet the effectiveness of the humor continues to be a mystery because humor, through several studies over the last half century, has shown to improve product attention and awareness.  The attention and awareness is what forced me to stop my fast forwarding, and my fiancée to actively search for E*Trade Baby commercials on You Tube.  This behavior stems from classical conditioning.  Humor in advertising is based on an active response.  Humor in general evokes an active response of happiness, fun, or pleasure (Eisend, 2008).  Imagine that you are now one of Pavlov’s German Shepherds, a bell goes off and food comes down a shoot into a bowl for you to taste and the tender slices of steak taste great.  Eventually the sound of the bell itself makes you salivate and you become hungry.  Because you have linked the positive experience of enjoying the food with the bell, anytime you hear a bell you begin to salivate.  Humor in advertising must work the same way, the positive experience must be linked with the benefits of owning or using the product.  Now let’s say that instead of receiving food every time a bell is rung we now receive a picture of food.  What benefits does this picture have?  Nothing, it looks great; but we cannot smell, taste, or enjoy the picture of the steak in the same way.  E*Trade has given the world a picture instead of the food.  Instead of linking the positive experience of the humor (the bell) towards E*Trades product (the steak), we are linking the humor to the E*Trade Baby (the picture).  Audiences for these commercials are distracted by the baby’s humor and in doing so, are distracted from the advertisements message.  Now, the E*Trade baby has transformed into his own, witty brand.  He is very good at making audiences laugh and creating awareness; however, he is not making consumers want to use E*Trade.  The improper use of humor in advertising can negatively impact a purchase decision as well as the perceived trust and credibility of a company (Eisend, 2008).  We only need to look at E*Trade’s performance since the Baby’s debut.</p>
<p>E*trade has performed awfully since the debut of the commercial.  February 4<sup>th</sup> 2008, the next day, E*Trade stock traded for around $51, today the stock price is under $15.  True, the U.S. economy went through a tremendous period of economic turmoil and prices drops; however, E*Trade’s major competitors Ameritrade and Charles Schwab stock prices remained steady.  In contrast, E*Trade sunk.  In February 2008, these three companies where pretty much equal; however, since that time E*Trade stock plummeted nearly 70% in contrast to Ameritrade and Schwab who only saw a decrease of not even 10%.  Perhaps joking around about a person’s financial future is not a joking matter.  As I stated above, humor in advertising if done incorrectly can negatively impact the company’s credibility and consumers trust in the product.  When a company is selling financial security, don’t you believe they should take it seriously?  That would be like trusting your children to be babysat by “Pogo the Clown” (who was John Wayne Gacy).  Sure he seems harmless and funny, but it is what you don’t see which raises alarm bells.  What the other companies advertised was not humorous in nature; instead Charles Schwab ran ads of a real life cartoon that resembled a Roy Lichtenstein painting.  These commercials feature confident, real life examples of how using Charles Schwab benefited them.  Schwab, Ameritrade, and Fidelity advertisements all focused on two things in their advertisements during this time, confidence and benefits.  The Consumer Confidence Index fell dramatically during 2008 ending at -49 in December (Moynihan, 2008).  Interestingly enough, E*Trade saw a drop in Retail Customer Assets of -39% (E*Trade Financial Corperation, 2009) during this same time; where, Charles Schwab lost only 12% and Ameritrade 9%.  These numbers clearly state my conclusion, in order for humor in advertising to be effective, the positive appeal from the humor must coincide with the product’s benefits.</p>
<p>References</p>
<p>E*Trade Financial Corperation. (2009). <em>E*Trade 2009 Annual form 10-K.</em> New York: E*Trade.</p>
<p>Eisend, M. (2008). A meta-analysis of humor in advertising. <em>Journal of the Acedmey of Marketing Sciences</em> , 191 -203.</p>
<p>Moynihan, P. (2008, December 30th). <em>Confidence Closes Out 2008 With Worst 4th Quarter Ever</em>. Retrieved 2010, from ABC News: <a href="http://abcnews.go.com/PollingUnit/story?id=6550527&#038;page=1" rel="nofollow">http://abcnews.go.com/PollingUnit/story?id=6550527&#038;page=1</a></p>
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		<title>Stand Out: How Creating a Catchy Slogan Wins Customers</title>
		<link>http://relationsinc.net/2011/04/27/stand-out-how-creating-a-catchy-slogan-wins-customers/</link>
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		<pubDate>Wed, 27 Apr 2011 06:29:08 +0000</pubDate>
		<dc:creator>Merrill Mitchell</dc:creator>
				<category><![CDATA[Branding]]></category>
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		<description><![CDATA[Stick in the minds of your customers.  If you are starting a new business, you may be looking at creating a catchy slogan.  A slogan, as well as a strategic business name, helps leave an impression on your potential customers.  Follow these tips to begin branding your company. Relate customer needs. Promote an action. Keep [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=relationsinc.net&#038;blog=22399956&#038;post=15&#038;subd=relationsinc&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Stick in the minds of your customers.  If you are starting a new business, you may be looking at creating a catchy slogan.  A slogan, as well as a strategic business name, helps leave an impression on your potential customers.  Follow these tips to begin branding your company.</p>
<ol>
<li>Relate customer needs.</li>
<li>Promote an action.</li>
<li>Keep the message simple</li>
</ol>
<p>These three ideas will create a catchy slogan.  The greatest slogan still ringing in my head is from Fred’s Towing in Davenport, Iowa. Fred’s is one of the most successful towing services in Eastern Iowa because they made a slogan that echoes among stranded motorist.  Fred’s created “Car dead?  Call Fred!  391-9666.” I have remembered this slogan for over twenty years.  Let us look closely on why I will always remember Fred’s.</p>
<p>A little bit of homework is required in order to relate your customer’s needs.  First, you must be able to identify these needs.  Think clearly, what value does your business provide your customers?  Fred’s provides tow services for all type of vehicles.  People rely on their vehicle for transportation; sometimes vehicles have a mind of their own.  When a motorist car does not start or is involved in a wreck, and is now “dead.”  What should I do?  “Call Fred!”</p>
<p>Promote action, just as this example shows.  The action one is taking is calling Fred for his tow service.  This example also has an additional element, which you may want to consider, an easy to remember phone number.  You want your customers to take action, call you, and pay for your services.  The last bit is the most important.</p>
<p>Keep it simple.  The simpler the message the easier it is to remember (Heath &amp; Heath, 2008).  Small, one-syllable words are the easiest to remember (LaRocqu, 2003).  “Car Dead? Call Fred!” comprises only one-syllable words.  The slogan could have said, “If your car will not start, call Fred’s Towing.”  This example communicates the same idea; however, “Car Dead?  Call Fred!” is the simplest form of this sentence.  Alone, it may sound like caveman talk; but just give simplicity a chance.  The rewards will be endless.</p>
<p>Visit Fred&#8217;s Towing at <a href="http://www.fredstowing.net/" rel="nofollow">http://www.fredstowing.net/</a></p>
<p>Heath, C., &amp; Heath, D. (2008). <em>Made to Stick.</em> New York: Random House.</p>
<p>LaRocqu, P. (2003). <em>The Book on Writing: The Ultimate Guide to Writing Well.</em> Portland: Marion Street Press.</p>
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		<title>Invest in PR, Invest in Growth</title>
		<link>http://relationsinc.net/2011/04/22/invest-in-pr-invest-in-growth/</link>
		<comments>http://relationsinc.net/2011/04/22/invest-in-pr-invest-in-growth/#comments</comments>
		<pubDate>Fri, 22 Apr 2011 18:50:28 +0000</pubDate>
		<dc:creator>Merrill Mitchell</dc:creator>
				<category><![CDATA[PR Articles -]]></category>
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		<description><![CDATA[Investing in public relations is investing in profit.  Let us say that you are looking to purchase a new home.  After days of searching, you find it.  The realtor gives you the keys and you enter your home for the first time as the owner; but something is different.  The home you bought suddenly is [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=relationsinc.net&#038;blog=22399956&#038;post=4&#038;subd=relationsinc&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Investing in public relations is investing in profit.  Let us say that you are looking to purchase a new home.  After days of searching, you find it.  The realtor gives you the keys and you enter your home for the first time as the owner; but something is different.  The home you bought suddenly is eight times larger.  “Surprise,” yells the realtor as they’re dancing around you, pelting you with confetti “We decided to give you eight times the space for free!”  Public relations can do the same thing to business.</p>
<p>One study shows how every $1 invested in TV advertising causes a return of $1.10.  A 10% return.  The same study uncovered that every $1 invested in public relations yields a return close to $8 (Weiner, 2006).  Clear communication is the key to the public’s eye.  In order to capture public attention; one must first gain the trust of the media.</p>
<p>The media acts like a teacher using projector and the press release the transparency.  The projector illuminates the screen with the information provided on the clear plastic to the students (the public).  The teacher must see the information valuable, otherwise he or she will share another lesson.  You want to write the press release as a valuable piece of information people must have.  The tips I am providing will do just that.</p>
<p>The press release’s goal is to answer questions: Who, What, When, Why, and Where.  I am not going to go in detail about writing the press release. Instead, I will offer three key items to remember when drafting a press release:</p>
<ul>
<li>Write in an active voice</li>
<li>Use simple writing</li>
<li>Place subject first</li>
</ul>
<p><strong>Writing in an active voice</strong> simply means to place items in the present (Friend, Challenger, &amp; McAdams, 2005).  This will show up in verbs.  For instance, instead of using the word created, use creates.  Passive writing (past tense) is not engaging to the reader and they will lose interest.  Consider the following sentence: <em>Imagine Inc created the light display that illuminated the new welcome sign.</em>  The sentence seems bland; now place it in the active voice: <em>Imagine Inc creates lighting display to illuminate the new welcome sign.</em>  The active voice is vibrant and inviting.  It engages the reader’s attention.</p>
<p><strong>The simpler the better,</strong> make communication easy for the reader.   The simpler the message, the easier it will be to understand (Heath &amp; Heath, 2008).  Studies show that most people prefer to read under the 10<sup>th</sup> grade level and a Flesch reading score between 60 and 70.  Often times when we write for business, we tend to complicate the story.  Follow these two tips to create a simple and easy to understand sentence:</p>
<ul>
<li>Use one syllable words</li>
<li>Keep sentence length under twenty words.</li>
</ul>
<p>Remember, the goal is to communicate and idea.  Short words are strong and easily suited for storytelling; long words are heavy and weak (LaRocqu, 2003).  Short, simple words create a clear picture for the reader.  Also, consider human speech.  Writing is just an extension of human speech.  Consider this sentence: <em>John hastily summoned the telephone receiver with his hand listening to the full auditory frequency spectrum emanating from the minute speaker located within the handset.  </em> Unlikely we would say that sentence in normal conversation.  You can see how this might distract readers from the message.  Now let us consider the simpler revision: <em>John picked up the phone, hearing only the quiet hiss of static.</em>  The sentence only uses two, two syllable words: <em>only </em>and <em>static</em>; two commonly used words.  Another way to keep writing simple is by limiting sentence length.</p>
<p>Keep readers attention by limiting average sentence length for 20 words or less and one topic per sentence.  One subject per sentence focuses ideas and creates a clear picture of the story.  This blog, for example, has an average sentence length of 13 words.  The complicated sentence about John and his phone is 28 words long, a readability grade level at 18.3 and a readability score of 0.  The simple sentence is 19 words long presenting a grade level of 8.8 and a readability score of 63.  A great tool to use is the readability statistics feature in Microsoft Word.  Shifting gears, from viewing the sentence; let us look at the subject.</p>
<p>The subject is the “<em>what”</em> of the story.  The subject should always come first in the sentence, epically in press releases.  One record company I worked for always put information first then the artist.</p>
<p><em>Tropic records presents:</em> <em>guitar wizard and virtuoso Michael Keen, to perform at Memorial Hall.</em></p>
<p>Revising this sentence with what we learned in this blog might look something like this:</p>
<p><em>Michael Keen, guitar expert, performing at Memorial Hall…</em></p>
<p>The fact Michael Keen is a part of Tropic Record is irrelevant at this point.  The reader wants to know: whom it is, what they do, why they are there, and where they are at. Who is playing? Michael Keen.  What is Michael Keen? He is a great guitar player.  Why is he here?  He is performing.  Where is he performing?  He is performing at Memorial Hall.  Did you notice the change from passive to active voice between the two examples?</p>
<p>Public relations require little input resources giving your company a substantial return on investment.  Keep these ideas in mind when creating your next press release for your business.  Remember; send press releases as often as possible.  Let the media work for you.  Be productive.</p>
<p align="center">
<p align="center">
<p align="center">References</p>
<p>Friend, C., Challenger, D., &amp; McAdams, K. C. (2005). <em>Contemporary Editing.</em> Boston: McGraw Hill.</p>
<p>Heath, C., &amp; Heath, D. (2008). <em>Made to Stick.</em> New York: Random House.</p>
<p>LaRocqu, P. (2003). <em>The Book on Writing: The Ultimate Guide to Writing Well.</em> Portland: Marion Street Press.</p>
<p>Weiner, M. (2006). <em>Unleashing the Power of PR: A Contrarian&#8217;s Guide to Marketing and Communication.</em> San Fransico: Jossey-Bass.</p>
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