Presentation by Burson-Marsteller Korea market leader Margaret Key to a seminar for Korean industry magazine The PR. Focuses on global trends in public relations and communication with implications for Korean organizations.

1. MODERN PUBLIC RELATIONS –
The Road Ahead and Implications for Korea
Margaret Key – Burson-Marsteller Korea, Market Leader

2. Definition of Public Relations…Harold Burson
“The public relations
profession aims to
manage people’s
perceptions in a
scientific way.”
- Harold Burson

3. In the past, ‘scientific’ we were not…
• Based on relationships with face-to-face key
• There was attention span & focused thinking
• Analogue methods were used to
• Primitive technology
• Deliberate and slow
• Publicity vs PR
• Text was King
“Building modern PR campaigns
& telling digital stories in
the age of social technology.”
Presented by Bob Pickard at Hong Kong Baptist University
Nov. 9, 2010

4. In the present, ‘scientific’ we must be…
• Remote e-relationships
• Digital methods
• No attention span;
• Distraction is a constant
• People continuously online
• Scant time for stories
• Technology massively propagates
pictures, videos
• Images are King
“Building modern PR campaigns
& telling digital stories in
the age of social technology.”
Presented by Bob Pickard at Hong Kong Baptist University (Nov. 9, 2010)

5. “The internet has been the
most fundamental
change during my
lifetime and for
hundreds of years.
Someone the other day
said…
‘It’s the biggest thing since
writing.’”
- Rupert Murdoch

6. The media world has changed…
* Source: Burson-Marsteller EMEA Media Survey 2010, among 115
senior journalists from top-tier media organizations in 27 countries.

7. The media world has changed…
• Almost 300 newspapers folded
in the US during 2009
• Eight magazines (with +1
million circulations) stopped
printing
• 600 staff journalists were laid
off from top tier publications.
• Circulation in Korea’s top 116
general dailies is also down…

8. The result…
Decreased news story
QUALITY
Decreased news story
QUANTITY
Decreased media
CREDIBILTY

9. Decreasing control over brand imagery

10. The Message Gap: Mainstream Media
48%
Gap
Company
Message Mainstream
Media
Message

11. The Message Gap:
Mainstream Media by Region
Mainstream Media Global Gap: 48%
Europe Gap:
U.S. Gap:
40%
45%
Asia-Pacific
Gap: 58%
Latin America
Gap: 53%

12. The Message Gap: Bloggers by Region
Blogger Global Gap: 69%
Europe Gap:
U.S. Gap: 59%
76% Asia-Pacific
Gap: 63%
Latin America
Gap: 82%

13. Reduced audience density

14. So what are we to do?
So…?
• The Internet and explosion in social media has changed the
way in which we communicate as PR professionals
• The media finds itself playing in an intensified, competitive
market where time is critical and the story needs to garner
interest
• Consumers and publics have less time and rely on various
news sources -traditional media + social media
• Our messages are being diluted and we have a tougher time
in making sure our initiatives resonate with credibility

15. The PR Response

16. Back to the Basics…
the story is the most important
things a company needs to tell its target
audiences…
…so that those people will do and think
what we want them
to do or think

17. Bad PR?
“Starbucks is another
“A company abusing the example of America
developing world…” pushing its cultural
agenda….”
“Their products are
“Way too expensive…” contributing to obesity
around the world…”

18. More than just a cup of coffee…
1971 – Starbucks opens it first location in Seattle’s Pike
Place Market
1982 – Howard Schultz joins Starbucks as director of retail
operations and marketing.
1983 – Schulz visits Italy, where he is impressed with the
popularity of espresso bars in Milan.
1984 – Schultz convinces founders of Starbucks to test the
coffeehouse concept in downtown Seattle
1988 – Starbucks location total at fiscal year end =17
1989 – Starbucks location total of fiscal year end = 55
1991 – Established a relationship with CARE, the
international relief and development organization,
- Becomes first privately owned US company to offer
a stock option program that includes part-time
employees.

19. More than just a cup of coffee…
1995 – Begins selling CDs as part of in-house music
1996 – Opens in Japan with a total of 1,015 locations
1999 – Opens in Korea with a total of 2,498 locations
2010 - Total stores 16,706
Serving:
• Handcrafted Beverages
• Fresh-brewed coffee, hot and iced espresso beverages,
• coffee and non-coffee blended beverages,
• Merchandise
• Home espresso machines, coffee brewers and grinders,
• coffee mugs and accessories, packaged goods,
• Fresh Food
• Baked pastries, sandwiches, salads, oatmeal, yogurt
• parfaits and fruit cups.
• Consumer Products

20. The Starbucks Story…
• One of the most socially
responsible companies
• A global company
– Starbucks, proudly displays its
beans from exotic locations—
Sumatra, Kenya, Guatemala,
Costa Rica, Ethiopia
– Food – salmon sandwiches in
Japan; green tea frappuccinos
in Asia; men-only and family
areas in the Middle East.
.

21. And a social media success….
1) Starbucks on Twitter – 705, 000 followers
2) Starbucks on Facebook - 5, 448,000 fans
3) Starbucks on YouTube -Over 4800 people subscribe
to the channel. They upload videos of
commercials as well as informational videos
explaining the origins of the different coffee
blends and some of their charity work videos.
Starbucks also allows people to embed its videos
anywhere they like on the Web.
4) My Starbucks Idea – Starbucks’ own version of a
social network where customers are asked to
share their ideas on anything related to
Starbucks. The site gives users the ability to see
what others are suggesting, vote on ideas and
check out the results
5) Starbucks Blog entitled “Ideas in Action” - This blog
is written by various Starbucks employees and
talks about what Starbucks is doing with the ideas
given by users on the My Starbucks Idea site.

22. The Starbucks Story Today
• Now located in 36 countries
• From 17 stores in 1988 to now 11,000+ stores /
Opening 5 per day
• Over 130,000 partners / Hiring more than 200 per day
• Stock has grown 6,500% since going public in 1992
• A dedicated employer
– Partners, not Employees
– First company to give stock options to part-time
employees
– Fortune Most Admired Companies
– Fortune 100 Best Places to Work
– World Class engagement as measured by Hewitt & Gallup
– Astonishing employee involvement in communications
STARBUCKS LISTENS, ENGAGES AND
PARTCIPATES – it is brand that has heart and appeal
all over the world

23. Implications for
Korean Companies

24. Where PR storytelling is growing
Entertainment media Social media

25. The digital consumer
% effectiveness of consumer touch points
Store/agent/dealer interactions
•Word of mouth
Consumer-driven marketing •Online research
•Offline and/or print reviews
Past experience
•Traditional advertising
•Direct marketing
Company-driven marketing •Sponsorship
•In-store product experience
•Salesperson contact
Source: McKinsey Quarterly
“The consumer decision-making journey” 2009 Vol. 3

26. Trusted channels 26
Source: TNS (2010)

27. Channeling audiences to content
Location- Keyword
based strategy
Hosted
Cloud content
communities
Social
Multimedia
communities
Content
streams

28. Our world has changed and we know
the mix between traditional + social is
critical but how are
Korean companies coping in
the New Communications Order?

29. B-M Corporate Social Media Study
October 2010

30. B-M Corporate Social Media Study
October 2010

31. B-M Corporate Social Media Study
October 2010

32. B-M Corporate Social Media Study
October 2010

33. So Korean companies are active
compared to other Asian companies….
but is this social media prowess
connected to
PR initiatives and
story-telling?

34. NO!

35. Why?
• Blogs as marketing tools: Korean companies seem to be more
interested in using blogs as marketing tools to communicate with
their customers rather than using them as Public Relations (PR)
platforms. Korean companies use blogs to promote new brands or
product launches.
• CEO blogs are important and should be maintained: Everyone
thought having a blog was important but then CEOs would not
update and those companies lose more on reputation and
mindshare vs companies which never ever opened a blog.
• Korean companies want message control: Korean companies
want to be innovative but they want to be innovative without
risk. For companies to have a corporate blog, outreach with
international media is expected and so a 100% guarantee of
message control is lost.

36. Why?
• SNS is not just content but profile: who is talking, who is sharing
and how relationships evolving are critical
– Kim Yuna posted a simple tweet, "Going back to the big rink
tmr!!^0^" and this was echoed (or "retweeted," in Twitter lingo)
enthusiastically among Korean users.
– Hyundai Card has 5 different dedicated blogs with rich content
and that is changing constantly.
• Stop trying to copy but focus on innovation: Twitter? Many
experts say that Korea is a country that is capable of easily
following vs taking the lead. It is time for companies to engage,
open themselves to risk and criticism and listen to what is being
said in the social media landscape.

37. Modern means to build an image
#1 – Listen obsessively
#2 – Be authentic & transparent
#3 – Go peer-to-peer
#4 – Focus on the 1%
#5 – Be human
#6 – Build relationships
#7 – Commit for the long-term
#8 – Use storytelling

38. Be transparent
“When there exists a connection
between the endorser and the
seller of the advertised product that
materially affect the weight or
credibility of the endorsement (i.e.,
the connection is not reasonably
expected by the audience), such
connection must be fully disclosed.”
Federal Trade Commission: Guides Concerning the Use of
Endorsements and Testimonials in Advertising
http://www.ftc.gov/os/2009/10/091005
endorsementguidesfnnotice.pdf
Source: The Customer Collective Blog
http://www.thecustomercollective.com/Home/36101

39. Focus on the 1%

40. Be human

41. Build relationships

42. Use digital storytelling ?
Digital Art
DAOW
Written Oral

43. Closing Thoughts

44. Korea – My View
• A very local market= very local services…Naver, Daum and
Cyworld
• But strong international connection so early adoption and ability
to move quickly
• Korea adapts to new technology very fast. What’s incubulated in
Korea right now: IPTV, Robot, 3D technology etc.
• Because of the strong infrastructure and government support
towards a IT-friendly culture, Korea is an excellent test bed and
the market to watch.
• In terms of PR and digital PR, Korea can be a pioneer – more PHd
students in the US studying the market – and when it comes to PR
professionals, you have a first class group…hard working,
ambitious and always primed for learning…

46. “BRIC…I think you need to call it BRICK with the
‘K’ representing Korea.
Korea may be small compared to say India or China but
the online community can be remarkably
powerful…and can serve as a
benchmark on how to create powerful
PR stories and ones that are mass appealing and
extremely successful.”
- Margaret Key

47. Margaret Key
Burson-Marsteller Korea
Market Leader, Korea
Margaret.key@bm.com