A couple of weeks ago, after a report about the state of mHealth in Europe, we talked about how public relations and marketing can help company expansion. Although some of the conclusions of the study were already expected, having the data to back up intuition is always important.

One piece of information, however, caught our eye: “Croatia, a country which claims to invest in the digital healthcare system and is often cited as an advanced country for its attempt to use ICT to make its healthcare system more efficient, is ranked among the countries with poor market conditions by mHealth practitioners.” The study goes on to advise that Croatian representatives should reevaluate their communication strategy.

Even though not the focus of the report, that short paragraph sums up a traditional business equation that directly involves PR and marketing professionals:

Valuation = Performance + Perception

The formula helps us understand why Croatia was poorly ranked on the survey. Even though the country may have superior performance, its stakeholders are not realizing the value of the government’s investments. In other words, perception is not in line with reality.

This disconnect certainly had an impact on how mHealth practitioners attributed value during their analysis. When off balance, perception skews how an asset is viewed and results in under or overvaluing.

There are many reasons why something may be hyped up to seem to be worth more than it is. But when it is seen as having a lesser value, communication plays an important role to bring higher profits to the seller.

This is another basic economic principle: if a buyer sees value in an item, he/she will be naturally inclined to spend more for it. That is why PR and marketing play an important role in pricing and valuation. Through communication – payed, earned, owned and social – companies can get their message out and generate brand awareness and recognition, adding value to their products and services.

Going back to the Croatian example, if the investments the country is making are driving a positive environment for mHealth expansion, the national representatives should not waste time and communicate. Investors will catch on and, as the infrastructure is already in place, it will turn into a virtuous cycle of growth.

The same can happen to a business. Targeted, efficient messaging will reach the right prospects, driving up sales. As more people get in touch with your product and service, demand will also grow. Just be sure to keep up with supply.

If you’re in healthcare, insurance, technology or other professional services industries, and need help with a PR, marketing or social media campaign, contact Scott Public Relations.

Like what you’ve read? Follow Scott Public Relations on Facebook, Twitter, Pinterest, LinkedIn and Google+.

Sign up to receive our monthly advice on healthcare, insurance and technology PR: Scott Public Relations