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Chapter19
Managing
Public Relations
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Ch. 19: Key Learning Objectives
 Examining the structure and activities of a public
relations department, both domestically and globally
 Designing an effective public relations strategy using
new technological innovations
 Evaluating strategies used by business organizations
to influence public opinion
 Identifying government regulatory agencies charged
with protecting the public from illegal business
practices
 Assessing effective crisis management plans
 Evaluating techniques available for employees to
capably manage the organization’s media image
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The General Public
 An organizational stakeholder composed of individuals
and groups found in society
 The general public affects the firm through its opinions of the
firm’s activities or performance, which in turn help shape the
firm’s public image or reputation
 Companies should be aware of public positions on
important issues, especially since the public may not
always share the same views as the firm
 Similarly, the firm can affect the general public’s values,
attitudes, and actions through various communication channels
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Public Relations in an Emerging Digital World
 An effective public relations program is fundamental to
any organization’s relationship with the public
 A good public relations program sends a constant stream of
information from the company to the public and opens the door
to dialogue with stakeholders whose lives are affected by the
company’s operations
 The role of the public relations department is to manage
the firm’s public image and its relationship with the
public
 It does so through both direct communications (e.g. Web site)
and indirect communications (e.g. newspapers)
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Figure 19.1
Public Relations Activities
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Public Relations in an Emerging Digital World
 With the emergence of new technologies the variety of
available channels of communication for public relations
officers have grown dramatically
 More and more people are finding their news, marketing,
and public relations information through Internet-related
vehicles
 CEOs and other senior executives are some of the key participants
in a new form of business communication – blogging
 The Internet-based communication revolution has
significantly benefited smaller businesses as well
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Figure 19.2
Top CEO Bloggers and Corporate Blogs
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Global Public Relations
 Global businesses have extended their public relations
strategies globally
 When public relations take on a global perspective, new
challenges emerge
 Sensitivity to cultural disparities and similarities when crafting
messages
 Must ensure that sufficient funding is allocated globally for a
positive and effective public affairs impact
 All of the basic public relations tasks are more complex
in an international business environment
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Influencing Public Opinion
 Public Service Announcements
 Since 1942, the Ad Council has been the leading producer of
public service announcements, addressing critical issues for
generations of Americans and global citizens
 The longest-running PSA in American history, introduced in
1944 and continuing today, features Smokey the Bear’s “Only
you can prevent forest fires”
 Modeled after the actions taken by the Ad Council, businesses
have discovered that public service announcement-like
advertisements are an effective means for promoting various
social issues or topics that resonate with the public
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Influencing Public Opinion
 Image Advertisements
 Used by business organizations to enhance their public image,
create good will, or announce a major change such as a
merger, acquisition, or new product line
 These ads promote the image, or general perception, of a
product or service, rather than promoting its functional attributes
 The target the public’s emotions and seek to influence the
consumers’ imaginations
 In the 2000s, many companies touted their concern for the
planet and the need for sustainability practices through image
advertising
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Influencing Public Opinion
 Issue Advertisements
 Also called advocacy advertisements, influence the public’s
opinion of a political or legislative issue of concern to the
company
 Examples include
• 1970s and 1980s when Mobil Oil Company regularly
placed full-page ads in most of the major newspapers in
America to promote its political agenda
• Mid-1990s the U.S. health insurance industry attempted to
thwart President Clinton’s proposed government-backed
health care reform plan by introducing the country to two
middle-class citizens, Harry and Louise
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Protecting the Public through Government Regulation
 Advertising used to promote the organization and its
products must meet both ethical expectations
 The Federal Trade Commission is entrusted with
ensuring that honesty and fairness are found in
company advertising
 The FTC jurisdiction applies to advertising in any medium,
including online advertising
 The Federal Communications Commission, created in
1934, is charged with regulating interstate and
international communications by radio, television, wire,
satellite, and cable
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Crisis Management
 A critical function of the public relations manager
 Corporate crisis – a significant business disruption that
stimulates extensive news media or social networking
coverage
 A crisis is any event that has the potential to negatively affect
the health, reputation, or credibility of the organization
 The Institute for Crisis Management breaks down corporate
crises into four groups:
• Act of God
• Mechanical problems
• Human errors
• Management decision or indecision
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Crisis Management
 The process organizations use to respond to short-term
and immediate corporate crises
 An effective crisis management plan must include these
steps:





Get ready before the crisis hits
Communicate quickly, but accurately
Use the Internet
Do the right thing
Follow up, and where appropriate, make amends to those
affected
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Media Training of Employees
 Media training is necessary because communicating
with the media is not the same as talking with friends
and coworkers
 As an organizational representative, the words one speaks take
on a special, official meaning
 Facial expressions, the tone of one’s voice, and body language
can convey positive and negative impressions
 Media communication experts generally give their
clients the following advice:
 Be honest, current, accessible, helpful, understanding and cool,
courteous, and professional
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