Download Chapter 1 - EdYOUcation

Public Relations, Publicity,
and Corporate Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Public Relations Defined
A management function
which
and
of
and
to
evaluates public attitudes
identifies the policies and procedures
an organization with the public interest
executes a program of action (and communication)
earn public understanding and acceptance
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Public Relations Management Process
Determination and
evaluation of public
attitudes
PR
Identification of policies
and procedures
Development and
execution of the
program
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Traditional PR Perspective
Customers
Community
Investors
Public
Relations
Department
Suppliers
Government
Employees
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Arizona Department of Health Advises
Respect
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© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Integration of PR into the IMC Process
Separate
Marketing
Department
Public
Relations
Coordinated
Marketing
Department
Public
Relations
Integrated
Marketing
Department
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Public
Relations
Marketing Public Relations (MPR) Functions
Building marketplace excitement before media advertising breaks
Improving ROI
Creating advertising news where there is no product news
Introducing a product with little or no advertising
Providing a value-added customer service
Building brand-to-customer bonds
Influencing influentials, providing information to opinion leaders
Defending products at risk, giving consumers a reason to buy
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Benefits of Marketing Public Relations (MPR)
Advantages
Disadvantages
A cost-effective way to
reach the market
Lack of control over media
A highly targeted way to
conduct public relations
Difficult to tie in slogans or
other advertising devices
Endorsements by
independent third parties
Media time and space
aren’t guaranteed
Achievement of credibility
No standards for effective
measurement
Makes advertising
messages more credible
Improved media
involvement w/customers
Breaks though the clutter
Creates influence among
opinion leaders
Circumvents resistance to
sales efforts
Improved ROI
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Successful Implementations of MPRs
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Process of Public Relations
Determining and Evaluating Public Attitudes
Establishing a PR Plan
Developing and Executing a PR Program
Measuring Program Effectiveness
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
In public relations targeting, external audiences
include:
A)
customers
B)
the public at large
C)
suppliers
D)
stockholders
E)
all of the above
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Research on Public Attitudes
Provides input for
the planning process
Serves as an “early
warning system”
Increases
communications
effectiveness
Secures internal
cooperation, support
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
10 Questions for Evaluating
Public Relations Plans
1. Does the plan reflect a thorough
understanding of the company’s business
situation?
2. Has the PR program made good use of
research and background sources?
3. Does the plan include full analysis of
recent editorial coverage?
4. Do the PR people fully understand the
product’s strengths and weaknesses?
5. Does the PR program describe several
cogent, relevant conclusions from the
research?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
10 Questions for Evaluating
Public Relations Plans
6. Are the program objectives specific and
measurable?
7. Does the program clearly describe what
the PR activity will be and how it will
benefit the company?
8. Does the program describe how its results
will be measured?
9. Do the research, objectives, activities, and
evaluations tie together?
10. Has the PR department communicated
with marketing throughout the
development of the program?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Determining Public Relations Audiences
Internal or Associated
Stockholders and
Investors
Employees of the
Firm
Customers and
Clients
Vendors and
Suppliers
Community
Members
External or Independent
Educators
The Media
Governments
Civic and Business
Organizations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Financial Groups
Implementing the PR Program
Press
Releases
Press
Conferences
Interviews
PR Tools
The Internet
Exclusives
Community
Involvement
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Internet as a PR Tool
The Internet allows information to be
presented quickly
The Internet provides the media with instant
access to additional sources of information
The Internet offers the ability to provide
much more substantial information
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Special Olympics Torch Run
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The Media Also Engages in Public Relations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advantages of Public Relations
Credibility
Image
Building
Cost Savings
PR
Provides
Avoidance of
Clutter
Selectivity
Lead
Generation
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
Which of the following communications is most likely
to have more credibility among its receivers?
A)
Vogue's magazine layout introducing its
latest models
B)
Volvo's television ad promoting new
standard safety features
C)
Motor Trend's announcement of the "Car
of the Year"
D)
the appearance of the CEO of Ford Motor
Company in its ads
E)
the appearance of some of the
participants in American Idol in Old Navy
ads
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
General Mills Capitalizes on Positive Publicity
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Criteria for Measuring PR Effectiveness
Total number of
impressions . . .
Over time
On the
target
audience
Percentage of . .
Positive
articles over
time
Negative
articles over
time
On specific
target
audiences
Ratio of positive
to negative
articles
Percentage of
positive and
negative articles
by . . .
Subject
Publication
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Reporter
Target
audience
Publicity
The Generation of News About a Person,
Product, or Service That Appears in the Media
Part of the PR Process
May Be Out of the Marketer’s Control
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
A Response to Negative Publicity
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advantages and Disadvantages of Publicity
Advantages
Disadvantages
Substantial credibility
Timing difficult or
impossible to control
News value
Inaccuracy, omission,
or distortion may
result
Significant word-ofmouth
Perception of
endorsement by
media
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Corporate Advertising
An extension of the PR
function
Does not promote a specific
product or service
Promotes the organization
Image
enhancement
Assuming a
position on an
issue or cause
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Seeks
involvement
Why Is Corporate Advertising Controversial?
Consumers aren’t
interested in this
form of advertising
Corporate
advertising Is a
waste of money
Claims of
Opponents to
Corporate
Advertising
This is a costly form
of corporate selfindulgence
The firm’s finances
or image must be in
trouble
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Objectives of Corporate Advertising
Establish
diversified
company’s
identity
Create a positive
image for the
firm
Communicate
the
organization’s
viewpoint
Objectives
Help newly
deregulated
industries
Boost employee
morale
Smooth labor
relations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Types of Corporate Advertising
Image
Advertising
General Image Ads
Positioning Ads
Event
Sponsorship
Sponsorship
Recruitment
Advocacy
Advertising
Financial Support
Cause-related
Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Grant Thornton Uses Advertising for
Employee Recruitment
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Boeing Advertises to Enhance Its Image
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© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Event Sponsorship
Corporate Sponsor
Sporting
Events
Music,
Entertainment
Causes
Festivals
Cultural Events
Arts
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
Why would World Wrestling Entertainment (WWE)
sponsor a car on the NASCAR racing circuit?
A)
to build equity and gain affinity with its
target market
B)
to show its position on sports marketing
C)
to create a generic positioning strategy
D)
to further segment its target market
E)
to reduce its overall promotional
expenses
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advocacy Advertising
Advocacy advertising:
is the propagation of ideas and
elucidation of controversial social
issues of public importance in a
manner that supports the
interests of the sponsor.
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An American Gas Association Advocacy Ad
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cause Related Marketing
Cause related marketing:
is a form of marketing whereby
companies link with charities or
nonprofit organizations as
contributing sponsors.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advantages and Disadvantages
of Corporate Advertising
Advantages
Disadvantages
Excellent vehicle for
positioning the firm
May have
questionable
effectiveness
Takes advantage of
benefits derived from
public relations
Raises questions of
constitutionality and
ethics
Reaches a selected
target market
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Measuring Corporate Advertising Effectiveness
Attitude Surveys
Effective?
Relating to Stock Prices
Focus Group Research
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin