How to advertise in 2011, based on lessons from the Great Depression – Public Relations

To understand the Great Depression and how it affected people, it is important to understand some of the psyche at the time. Travis Scott Luther, President of Luther Media wrote a really good piece a few years ago which described the economic climate:

During the Great Depression of the 1930’s, a backlash against corporate America gained more traction than the bull of the 20’s market ever had. Citizens displaced and bankrupted by the financial fallout of the markets came to call on government for strict regulation and oversight. …

Understanding the increased challenges they faced in earning not only the populations’ business, but their trust, corporations were forced to find ways to bridge the widening gap between themselves and the consumers they so desperately needed to continue to operate. Deconstructing a world-view of large corporations as anti-person, evil teeth gnashing machines grew a new industry usually retained by government, “public relations.” One PR man told Standard Oil Company it would have to alter fundamentally the way it explained itself, saying “Identify yourself not with bondholders,…Wall Street, but with labor, with Americans.”

Public Relations is an element of marketing which is used to build relationships with customers, employees, investors, and other stakeholders. Public Relations may be called corporate communications, media relations, investor relations, or community investment.

Community Investment is perhaps the most visible form of Public Relations. This includes financial sponsorship or active involvement in community programs.This typically works best when it is closely aligned with the corporation’s target market and their interests.

For instance – McDonald’s Restaurants involvement with the Ronald McDonald House has very close alignment with their target market (families) and their interests (their kid’s health).

Lesson #1 from the Great Depression … Public Relations is important.