Getting the Slice of the "Europie;" Local Presence Needed to Succeed in Pan European Marketplace (1991)

Local Presence Needed To Succeed In Pan-European Marketplace The nations of the European Community are on the verge of becoming a single market. But differences in cultures, languages and attitudes mean that public relations programs still must be targeted toward smaller publics by those who know the audiences best. Europe 1992 is coming. Next year at this time, the countries of the European Community (EC) will be on the verge of becoming a single, giant marketplace. In response, businesses in the United States and other countries have beefed up their activities in Europe so as not to lose out on this lucrative market. They are calling on both in-house practioners and consultancies for support. Those who expect a share of the public relations pie created by the pan-European marketplace to fall into their laps without hard work and preparation are in for a surprise. There is a long learning curve involved in establishing relationships, warned Peter Evers, president, Organization International (PROI), a 21-year-old network of independent agencies. Practitioners based on both shores of the Atlantic Ocean experienced in international public relations agree. These they point out, will limit the scope of public relations programs designed for the European market. PR will be done on an individual basis because of language and cultural differences, said Jeffrey R. Sharlach, senior vice president, Rowland Worldwide. Barriers tumbling down The Single European Act, signed in 1986, began the drive toward a single European market. The goal was the elimination of barriers to free movement of goods and people between the 12 nations of the European Economic Community, now known as the European Community (EC): Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain and the United Kingdom. Recently, new cards have been added to the marketplace deck. The democratization of Eastern Europe shattered the traditional East-West polarization on the Continent. Another consequence has been a shift by nations traditionally viewed as neutral. Now that the walls have come down and countries are more buddy-buddy, it is easier for countries that were capitalist but politically neutral to move from neutrality to EC orientation, said Peter L. Walker, chairman/CEO of London-based Pielle Public Relations Consultants, who is also managing director of Belgium-based European Communications Partners, which has 13 offices in Europe. This movement was capped in October when the European Free Trade Association (EFTA), composed of Austria, Finland, Iceland, Norway, Sweden and Switzerland, signed an agreement with the EC creating a European Economic Area (see page 16). Austria and Sweden have applied for full membership in the EC. It's expected that several Eastern and Central European countries will also apply for membership. The EC alone is estimated to have a population of 320 million. This huge target audience will mean business opportunities and big business needs communication, Evers, based in London, said. I foresee sharp growth of in Europe as global companies continue to expand their marketing, said Ed Stanton, chairman and CEO, Manning, Selvage & Lee, Inc., New York City. While those involved in international see growth coming, it's difficult to put a value on it. The market in Europe is expected to grow an average of 20%, according to the members of the International Committee of Public Relations Consultancies Associations, Ltd., based in London. ICO members are public relations trade associations of different countries. Each member association has consultancies as its members. Total ICO membership as of May 1991 was 400. The total fee income reported by these members was 519,947,000 European Currency Units (ECUs). The ECU is a theoretical basket currency made up of fixed quantities of the EC currencies. …