Download 17 Public Relations, Publicity, and Corporate - McGraw-Hill

17
Public Relations, Publicity, and
Corporate Advertising
McGraw-Hill/Irwin
Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed
Public Relations Defined
A management function
Which evaluates public attitudes
And identifies the policies and procedures
Of an organization with the public interest
And executes a program of action (& communication)
To earn public understanding and acceptance
17-2
Public Relations Management Stages
Determination and
evaluation of public
attitudes
PR
Identification of policies
and procedures
Development and
execution of the
program
17-3
Traditional PR Perspective
Customers
Community
Investors
Public
Relations
Department
Suppliers
Government
Employees
17-4
Integration of PR into the Promotional Mix
Separate Functions
Marketing
Department
Public
Relations
Coordinated and Equal
Marketing
Department
Public
Relations
Integrated
Marketing
Department
Public
Relations
17-5
Marketing Public Relations Functions
Build market excitement before media ads break
Defend products at risk, give consumers reason to buy
Create ad news where there is no product news
Introduce a product with little or no advertising
Provide a value-added customer service
Build brand-to-customer bonds
Influence the influentials
Improve ROI
17-6
MPR in Practice
17-7
Benefits of MPR
A cost-effective way to
reach the market
Breaks though the
clutter
Highly targeted way to
conduct public relations
Circumvents resistance
to sales efforts
Endorsements by
independent third
parties
Improved media
involvement
w/customers
Achievement of
credibility
Creates influence
among opinion leaders
Makes advertising
messages more credible
Improved ROI
17-8
Disadvantages of MPR
Lack of control over media
Difficult to tie in slogans or other
advertising devices
Media time and space aren’t
guaranteed
No standards for effective
measurement
17-9
The Process of Public Relations
Determining and Evaluating Public Attitudes
Establishing a PR Plan
Developing and Executing a PR Program
Measuring Program Effectiveness
17-10
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
17-11
Research on Public Attitudes
Provides input for
the planning process
Serves as an “early
warning system”
Increases
communications
effectiveness
Secures internal
cooperation, support
17-12
10 Evaluation Questions
• Click to add text
• Second
level
1. Does
the plan reflect a thorough
understanding of the company’s business
• Third level
situation?
– Fourth
2. Haslevel
the PR program made good use of
» Fifth
leveland background sources?
research
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?
17-13
10 Evaluation Questions
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?
17-14
Determining Public Relations Audiences
Internal or Associated
External or Independent
Employees
The Media
Stockholders and
Investors
Educators
Community Members
Civic & Business
Organizations
Suppliers & Customers
Governments
Financial Groups
17-15
Implementing the PR Program
Press
Releases
Press
Conferences
Interviews
PR Tools
The
Internet
Exclusives
Community
Involvement
17-16
Advantages of Public Relations
Credibility
Image
Building
Cost
Savings
PR
Provides
Avoidance
of Clutter
Selectivity
Lead
Generation
17-17
Potential Problems of Public Relations
Potential for incomplete
communication process
Potential
Problems
Receiver not making
connection to the source
Lack of coordination with
marketing dept.
Inconsistent, redundant
communications
17-18
Test Your Knowledge
Which of the following communications is most likely
to have more credibility among its receivers?
A) Vogue's 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 CEO of Ford Motor Company
appearing in its ads
E) The appearance of American Idol
participants in Old Navy ads
17-19
General Mills Capitalizes on Publicity
17-20
Measuring PR Effectiveness
Contributions made?
What was achieved?
Quantitative measures?
Quality?
17-21
Criteria for Measuring PR Effectiveness
17-22
Additional Measures of PR Effectiveness
• Walter Lindenmann recommendations
• Did the audience receive the message?
• Did they pay attention to them?
• Were the messages understood?
• Where the messages retained?
• Mark Weiner suggests
• Media content analysis
• Survey research
• Marketing-mix modeling
17-23
Publicity versus Public Relations
Publicity:
The generation of news about a person,
product, or service that appears in the media
A short-term strategy
A subset of public relations
Not always positive
Often originates outside the firm
17-24
A Response to Negative Publicity
17-25
Pros and Cons 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 media
endorsement
17-26
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
Seeks
involvement
17-27
Why is Corporate Advertising Controversial?
Consumers aren’t
interested in this form of
advertising
Opponents to
Corporate
Advertising
This is a costly form of
corporate self-indulgence
The firm must be
in trouble
Corporate advertising is
a waste of money
17-28
Objectives of Corporate Advertising
Establish
diversified
company
identity
Create a positive
image for the
firm
Communicate
the
organization’s
viewpoint
Objectives
Help newly
deregulated
industries
Boost
employee
morale
Smooth labor
relations
17-29
Types of Corporate Advertising
Image
Advertising
General Image Ads
Positioning Ads
Event
Sponsorship
Sponsorships
Recruitment
Advocacy
Advertising
Financial Support
Cause-related
Advertising
17-30
Employee Recruitment by Grant Thornton
17-31
Event Sponsorship
Corporate Sponsor
Sporting
Events
Music,
Entertainment
Causes
Festivals
Cultural Events
Arts
17-32
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
17-33
Advocacy Advertising
Propagating ideas and
elucidating controversial social
issues of public importance in a
manner that supports the
interests of the sponsor
17-34
Advocacy Ad
17-35
Cause Related Marketing
A form of marketing whereby
companies link with charities
or nonprofit organizations as
contributing sponsors
17-36
Cause Related Marketing
17-37
Pros and Cons 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
17-38
Measuring Corporate Ad Effectiveness
Attitude Surveys
Effective?
Stock Prices
Focus Group Research
17-39