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November 12, 1999
ELECTION 99
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Speakers Call For New Formulae In Internet BusinessesS Mitra Kalita Marketing and public relations are often overlooked areas in the Internet world, panelists told the TiE-NY gathering on Wednesday night. The four panelists outlined how these two areas are integral, vital parts of any Internet start-up or technology company. There were about 250 people attending the discussion commemorating the one-year anniversary of the New York chapter of The IndUS Entrepreneurs (TiE). Citing a Columbia University Business School study, Don Middleberg said "one article is worth 10 ads." The chairman and chief executive officer of the public relations company, Middleberg & Associates, said the "tried and trued" formulas of corporate America don't apply to the Internet. Strategic planning is outdated but strategic thinking is not, he said. Moderated by Columbia University journalism Professor Sreenath Sreenivasan, the panel discussed how to present and package stories of interest to journalists. Sreenivasan, co-founder of the South Asian Journalists Association, said the relationship between reporters and public relations need not be so adversarial. "We have stories we need to write," he said. "Public relations and marketing people have stories to tell." Shirin Bhan, president of New York public relations firm KNB, was another panelist. She took the audience through a prototype company named Startup.com and outlined ways in which entrepreneurs can market the company to both the public and the media. In Bhan's example, Startup.com's founder was a 27-year-old woman -- a fact that may make her story more newsworthy. Like Middleberg, Bhan stressed the difference between a Fortune 500 company and an Internet start-up. Public relations may begin with founders and CEOs slapping stickers on white folders to create promotional materials and press kits, she said. The panelists stressed the need to find out where one's competitors stand, then dominate the niche market. Customer service has been virtually ignored on the Internet, such as how a person can return a purchased item or speak to a company representative, Middleberg said. Advertising does not mean just banners; the Internet calls for interactive marketing, he said. Panelist Nick Pahade, co-founder and chief strategic officer of Beyond Interactive, the online advertising agency, demonstrated an ad his company had designed for Pringles potato chips. The ad enabled a user to blend the popping sounds of the can and the crunching sounds of chips to make his own music, then forward that creation to friends over email. Going public doesn't have to be a painful process, Anna M Svaldi, vice-president and founder of Edelman Public Relations Worldwide, told the audience. In her cost-benefit analysis of going public versus staying private, she said public companies attract employees and incur lower costs, but also face greater scrutiny and shareholder risk. Svaldi suggested that companies keep sections on their web site allowing journalists and investors to obtain information. None of the services of an Internet or hi-tech public relations firm come cheap. Middleberg's fees range from $ 25,000 to $ 50,000 monthly. "There's no cheap way to do PR," he said. "You get what you pay for."
Tips from panelists on marketing and public relationsThe following are some of the key points that emerged at the TiE-NY event this week at the Yale Club:
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