It's a paradox of the business world that in pessimistic economic conditions like those we are currently experiencing, PR and communication budgets are usually among the first to be cut.

Yet, if used effectively, PR — the management of a corporation's relationships and profile with its target public — is an extremely efficient and effective tool for achieving business objectives.

When I meet a potential or new client that is operating within strict budget restraints, one of the first questions I ask is whether they have considered diverting 10 percent to 15 percent of their advertising spending into other forms of communication.

I have come across many instances of marketing budgets devoted almost exclusively to advertising. While this policy might maximize "opportunities to see," it has definite limitations. Certainly advertising remains one of the most powerful means of mass communication, but effective marketing in today's crowded markets requires a balance of integrated, complementary disciplines that together attract attention and then influence the action of target audiences.

PR is one such discipline, as are other below-the-line initiatives such as sales promotion, direct marketing and sponsorship programs. The problem for many marketers, however, is the difficulty of measuring the tangible benefits of a PR initiative, compared to say, a direct-response advertising program.

In an environment where everyone is under pressure to produce immediate results, many people are wary of investing in a PR program to help increase performance down the line. What this approach ignores is that not investing now will invariably lead to a failure to capitalize on opportunities in the medium- and long-term.

The success of PR is measured by the ongoing effect it has on a corporation's relationships with its target consumer and in turn, on the positive impact these relationships have on commercial performance. In many instances, PR aims to support the achievement of business objectives, including increasing sales, facilitating investment or influencing appropriate legislation or market developments.

Over time, both tangible and intangible benefits of PR manifest themselves in greater customer loyalty and an increased customer base. These include greater impact of marketing activities because of the synergy with, for example, advertising by explaining and justifying key positioning statements made within advertising campaigns. PR can also increase advertising's impact and provide a competitive advantage by securing a greater share of limited communications channels to customers.

The PR program can also provide sustained communication of positive key messages to target publics and foster goodwill among audiences/customers (though it is difficult to measure quantitatively).

Increasing goodwill through PR and related activities can play a significant role in forging closer bonds with customers.

It can also increase understanding and appreciation of a company and its activities, both commercial and, for example, environmental or charity activities that might strengthen a company's position as a responsible corporate citizen within the Czech Republic.

Last year we collaborated with a company that had an ongoing PR campaign to raise awareness about its commitment to the environment. However, in evaluating the initial impact of the campaign, we determined that the company's sponsorship activities were not aligned with its efforts to support environmental responsibility. Together we identified several ongoing sponsorship activities that were complementary to the company's PR program and those have now been put into place.

Evaluation is often an area in which many campaigns (and many agencies) flounder, yet in many cases measurement of results can be as important as the results themselves. A successful campaign requires evaluation criteria, agreed on in advance, that measure the results directly against key objectives and that can be fed back into the ongoing program so as to ensure continued relevance. Any agency not following this path, whether in PR or any other marketing discipline, cannot expect to keep a client for long.

Below are key questions to help you choose the right agency for your needs:

1. What is the PR agency's specialty?

2. What type of client does the agency represent?

3. What clients does the agency work for?

4. What services does the agency provide?

5. Who would work on your account and what is their experience?

6. Who do journalists like to work with?