The Upside of P.R.
Interesting story in Business Week on the power of public relations. The piece, “What Price Reputation?” explains that improving public image can significantly affect a company’s outcomes.
Yeah, we p.r. people know this already. But for some, there’s quite a lot of “ah ha” information. Take the story of Southwest Airlines, which found that public relations alone could move their stock up or down by 3.5%, equal to $400 million in market value.
It seemed Southwest was getting little return by stressing its budget fares. Instead, there was more upside potential for shares if Southwest stressed its extensive routes and schedules.
So Southwest has begun emphasizing long-haul flights and frequent service between many cities, points that seldom had gotten press. It also plans a new ad campaign. The effect so far: While airline stocks have fallen more than 15% overall in 2007, Southwest's shares are down only 5%, to about 14.80.
Ah ha. Good public relations works.
Yeah, we p.r. people know this already. But for some, there’s quite a lot of “ah ha” information. Take the story of Southwest Airlines, which found that public relations alone could move their stock up or down by 3.5%, equal to $400 million in market value.
It seemed Southwest was getting little return by stressing its budget fares. Instead, there was more upside potential for shares if Southwest stressed its extensive routes and schedules.
So Southwest has begun emphasizing long-haul flights and frequent service between many cities, points that seldom had gotten press. It also plans a new ad campaign. The effect so far: While airline stocks have fallen more than 15% overall in 2007, Southwest's shares are down only 5%, to about 14.80.
Ah ha. Good public relations works.
