Recently, I was looking to get some work done on my house. Google all you want, but reputation is the only reason people buy — or don’t buy — anything. Ever.

It doesn’t really matter what a company says about itself; it’s what the customers say about the company. And when customers have good things to say, that alone will sell to other customers.

The contractor that caught my eye had a customer letter posted on their website. As a business owner, I know if a client takes the time to write a glowing letter filled with specifics, the company has to deliver. This testimonial had details on the day-to-day expectations, the quality of work, and the timeline. A bit skeptical, I asked for another testimonial. This, too, was a glowing review of recent work the company had done. These former customers were very appreciative and it showed.

From testimonials, I learned this company over-delivered, going above and beyond what was expected. They even did things that didn’t make additional money: like cleaning up each evening and taking home their own garbage. One customer wrote that they even brought their garbage cans to the curb! They just thought it was important to do to keep their customers happy and writing rave reviews.

The competition I had considered also had testimonials, but they were one or two sentences with no details, consisting of “they did a good job” and “very professional,” with a five-star rating attached. Ultimately, I went with the company with testimonials that didn’t look like generic, eBay feedback.

That’s what potential customers are looking for: in-depth, non-canned, honest testimonials. Get that and your reputation will do the rest.

If you’ve read my other blog posts, you know I am a strong advocate of first developing a marketing plan before you invest money into advertising or other marketing tools.

A marketing plan should have specific goals you want to achieve for your business. But to achieve them, your plan may possibly recommend TV advertising, building an e-commerce website, or going to national trade shows — all costly endeavors.

Your marketing plan may initially be a “blue sky” approach — meaning there are no limiting factors to your ideas or goals. This is an excellent way to start your planning, as you don’t want to limit your initial creative brainstorming. But eventually every “blue sky” meets a cloud. And the cloudiest forecast for ambitious marketing is money — do you have enough marketing dollars to ensure a good shot in achieving your business objectives? If your budget is limited, and you can’t afford to implement your marketing plan in full, then you may need to readjust how ambitious your business goals can be.

Starting an aggressive marketing effort and not having enough money to finish is poor planning. As a pilot, I’ll use this analogy: it’s like flying across the Atlantic with a half tank of fuel. Sure, you’ll make progress, but your plane better have floats because you’ll be landing in the Atlantic, and not in Paris.

Occasionally, I’ll get a call from someone who wants to do some advertising in Westchester to promote their business. I’ll ask them what kind of budget they have, and they often ask, ‘what can I do $10,000?’

Unfortunately, not much. Westchester County, New York is not only an expensive place to live, but also to advertise. You can easily spend 10 times that amount on advertising and it may still not be enough, depending on what you’re advertising, and to what audience.

Okay, so as not to be a total pessimist, what can you do for $10,000? Well that amount could nicely fund a public relations program, which would help build awareness by getting your name out in the marketplace. Don’t ask PR to generate direct sales like advertising, but it could however, generate indirect sales and get your business off to a good start.

With PR and a $10,000 budget, you may not fly across the Atlantic, but you could go to beautiful Bermuda, and that’s not half bad, now is it?

Fighting public opinion can be tough, as McDonalds found out a few years back. Environmentalist groups had been pressuring McDonalds to change from using Styrofoam packaging to paper. They alleged that Styrofoam was contributing to landfill problems because of Styrofoam’s long life.

The President of McDonalds at the time, Ed Rensi, disagreed and hired archaeologists from the University of Arizona to conduct extensive research into the landfills. They concluded Styrofoam had little, or nothing, to do with the impact or contribution of the landfill problem, especially McDonalds packaging.

McDonalds tried to share their findings with the news media, but found it difficult for them to pick it up. It just seemed that it didn’t fit the narrative of what the news media thought was environmentally correct.

After months of trying to change public opinion and the news media, President Ed Rensi angrily realized he just was not going to change public opinion. He ultimately switched McDonalds from Styrofoam packaging to paper packaging.

In April 2009, two Domino Pizza employees videotaped themselves doing some stomach-churning things to food they were preparing, and then compounded their stupidity by posting it on YouTube.

Despite Domino’s identified the store within 24 hours, sterilized everything, and fired the employees, that didn’t stop the video from getting immense exposure on YouTube, Twitter, and ultimately the broadcast and print news media.

Domino’s had to fight fire with fire and used social media to help them do this. First, they had sites remove the offensive video. Secondly, they produced a video of President Patrick Doyle reassuring customers that Dominos was taking the matter seriously. And third, they rolled out their own Twitter account.

By the end of the week, Domino’s had effectively changed the conversation from the disgusting acts of these two individuals, to how well Domino’s had responded to it.

The demonstrates one of the ways social media can be effective in managing one’s brand and reputation online.

Looks like the “Friendly Skies of United” are a little less friendly for musicians. Country singer Dave Carroll created a video regarding his less than “friendly” experience flying United Airlines

Carroll had his guitar broken by the airline’s baggage handlers and when he received no compensation with the airline, he took out his frustrations by writing a country song and created a music video about his experience.

The video has since gone viral and was featured on major American and Canadian news outlets. With all this unwanted attention, United Airlines recognized its error and has since contacted Carroll to make reparations. In addition, it has asked to use his video as part of its training.

Here’s the music video: http://www.youtube.com/watch?v=5YGc4zOqozo

Public Relations, aka PR, is great, because it gives the consumer a sense of an impartial third-party endorsement. It’s almost like the media outlet is saying:

“This company is good because we have analyzed it. We like the product/service they provide. Their core values are great. We think you should give them a try.”

And, simply by virtue of this unspoken endorsement, the PR coverage makes people want to buy/try/invest in their product or service. People want to be part of “it” – whatever “it” is.

This kind of PR coverage, if done well, can sometimes lead to a brand acquiring a cult status, especially among sophisticated buyers who don’t want to buy what everyone else buys. They don’t shop Wal-Mart or K-Mart. They’re “elites” and are looking for a unique brand experience – and they WANT to pay more for it because they want their experience to be different from a common, everyday experience.

Which is why, if a company is getting a lot of good PR, and developing a core group of devoted followers, one tactic they should employ is to pull back on their advertising, or stop it all together. A brand can be thought of a too “mainstream” if they advertising becomes too ubiquitous. Brands that have a cache can profitably stay off the mainstream “radar” by enjoying the loyal following of those who relish being part of a unknown, undiscovered brand.

In many cases, upscale brands can significantly damage their cache if their advertising appears too frequently or in too many media outlets. IZOD Lacoste polo shirts is an excellent example. A brand popular with the golf and tennis set in the 1980s, it became “mainstream” wildly popular in a few years. But, because of the brand’s overexposure in its advertising and its own popularity, it quickly lost its cache and sales dropped dramatically.

However, because everything old becomes new again, a new audience is rediscovering the brand. This time Lacoste is keeping the price point upwards of $100, which maintains it aspirational brand status and Lacoste is choosing to market the brand virally and eschew any mass advertising.

Let’s say you have a new company. It’s got all the elements of a good brand, but no one knows about it. What’s the best way to break into the market – advertising or PR?

If you answered PR, you’d be right.

Why?

1. Because it’s new, you probably have a great story to tell about the brand. Why you created it, the benefit it provides, etc.
2. PR is going to be more cost-effective than advertising, even in a smaller local markets. This can be a significant consideration for a start-up brand that may have a limited marketing budget.
3. Advertising builds effectively over time, but it’s costly. So, unless you’ve got deep pockets, you’re not going to launch a new brand with extensive advertising. PR is going to be much cheaper and more effective with the initial brand launch.
4. Another subtle benefit of PR is the implied endorsement of your brand from the media that runs a news story about it. This is very powerful and you just can’t buy that kind of influence.