Like many of the region’s businesses, PR & Marketing firms have been working extra-hard to overcome the challenges posed by the global economic meltdown, with advertising agencies in particular fighting to hold back the unwanted consequences of the downturn. Industry has been coming to terms with the increased hesitancy among companies to engage in regular marketing activities, with many considering either slashing budgets or focusing on more cost-efficient campaigns. When it comes to Public Relations (PR), however, experts point out that it remains an indispensable tool that should not be underestimated nor overlooked especially during critical periods such as economic downturns.

DNA Communications is a firm believer in the emerging shift being witnessed in corporate communications, one where PR is steadily taking the reigns over advertising as clients seek to restore trust in their operations. The company expects regional PR trends in 2010 to reflect the highest level of market diffusion, especially as new PR horizons such as social media have surfaced to satisfy the demand for highly-targeted marketing channels and more credible and proactive means of communications.

Social networking, viral marketing, online promotional stunts, website optimisation, blogs, mobile communications, and thought leadership represent some of the top global PR and Marketing Communications trends that are currently gaining. They are indicative of broader industry movements and cost-effective marketing approaches and attitudes such as those below that merit extra consideration from practitioners and players:

Strategize: The coming years represent a great opportunity for major companies to build their brands. Unlike the previous years, enterprises are not in a panicked mood and are less inclined to unceremoniously cut marketing budgets. This means that the quality of exposure promises to be better and less costly. After all, PR during recessions is about reassurance and details – helping to build a positive brand identity in the mind of the consumers.

Diversify: Reaching out to a broader range of customers will minimise the pigeon-hole effect, so that if one industry fails, then business activities can be diverted to other optional areas.

Be Ethical: Due to the economic crisis and the lack of faith in financial institututions, more focus is being directed towards transparency in the workplace. Long gone are the days when companies could keep clients/partners in the dark. PR will need to play an increasingly bigger role in the dissemination of transparent ethical information to the target audience.And PR firms must hold clients accountable to high ethical standards in order for the spirit of transparency to prevail.

Explore New Media: Utilising new media and exploring unique avenues for clients is going to be very important in the next couple of years. With marketing budgets undergoing closer scrutiny, PR/Marketing agencies are being obliged to supply new ideas for their clients. Channels such as Web 2.0, blogs, adware gaming, viral marketing, and innovative promotional ideas should thus be exploited. While the traditional trimedia of print, radio and TV should not be ignored, new media should also be integrated into marketing strategies.

Be creative: In a highly competitive market, the impetus is to differentiate. Creativity should thus be an integral part of every firm involved in marketing practices.

Encourage an investment rather than expense mentality: It is a given that companies have to spend their marketing budgets more wisely in light of these trying times. While cuts may be unavoidable due to financial constraints, a lot of thought shoud be give before dropping market funding altogether. The key is for companies to learn to spend money better, and visualize the marketing budget as a critical investment rather than as an unneccessary expense. PR and Marketing professionals should use the customer knowledge that they have and promote SMARTER marketing during financial distress:

S – Strategize
M – Maintain adequate marketing budget
A – Appoint marketing specialists
R – Reach out to your customers
T – Tailor your messages according to your audience
E – Evaluate your campaign
R – Repeat campaign for continuous exposure

Companies CAN work even in recession - The following companies have shown that a product/company marketed right can still maintain its appeal even during a market downturn:

Disney and Microsoft, respected giants in their respective business domains, were both launched during a recession (1923 and 1975, respectively) and are still going strong to this day; they are proof that even in a global crisis, opportunities exist to the passionate and the prepared. Even Apple's revolutionary iPod was introduced during the American recession of 2001.

During the Asian recession of 1997, Standard Chartered Bank decided to stop hiring talented people and cut back their marketing budget. As a result, it lost its favoruable market position to DBS and Citibank.

Fast forward to the global crisis of 2008-2009, where we saw Standard Chartered increasing its marketing budget for 2009 and undertaking an aggressive hiring campaign. On the other hand, Citibank and DBS have opted to implement mass job cuts and reduced marketing spend. It will be interesting to see how this plays out as the world gets back on its feet.

These are just some of the interesting concepts that the region’s PR and Marketing world needs to further discuss, debate and decide on as it moves on forward through the next decade.