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17
Public Relations, Publicity, and
Corporate Advertising
McGraw-Hill/Irwin
Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed
Negative Publicity
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Ends it’s decades long relationship with Planned Parenthood
Had not voiced reasons adequately
Received thousands of threats via social media
Resignation of Komen’s VP / decreases in contributions /
black mark on it’s positive image
17-2
The Power of Publicity
• Can be positive or negative
• Directly affects companies
• financially / trust / image
• Impacted by far and fast reaching Internet /
social media sites
• Element to be managed as part of IMC
17-3
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
17-4
Public Relations Management Stages
Determination and
evaluation of public
attitudes
PR
Effective PR program
continues over months / years
Identification of policies
and procedures
Development and
execution of the
program
17-5
Role of PR
To maintain
mutually beneficial
relationships
Customers
Community
Investors
Public
Relations
Department
Suppliers
Government
Employees
Communicate thru company newsletters
17-6
What Does PR Do?
Build market excitement before media ads break
Apple
Create ad news where there is no product news
Super
Bowl
ads
Introduce a product with little or no advertising
Apple
Provide a value-added customer service
Build brand-to-customer bonds
Improve ROI
Butterball
“
Free publicity
17-7
Value Added Customer Service
Butterball
provides
help during
the
Thanksgiving
Holidays
17-8
The Process of Public Relations
Determining and Evaluating Public Attitudes
Establishing a PR Plan
Developing and Executing a PR Program
Measuring Program Effectiveness
17-9
Research on Public Attitudes
Provides input for
the planning process
Serves as an “early
warning system”
Increases
communications
effectiveness
Secures internal
cooperation, support
17-10
Determining Public Relations Audiences
Internal
External
connected with company
not connected with company
Employees
The Media
Stockholders and
Investors
Financial Groups
Community Members
Governments
Suppliers & Customers
Public
PR efforts are targeted to more than one group
17-11
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
17-12
Implementing the PR Program
Press
Releases
Press
Conferences
Interviews
PR Tools
The
Internet /
Social
Networks
Exclusives
Community
Involvement
17-13
Advantages of PR
Credibility
Image
Building
Cost
Savings
PR
Provides
Reach
Specific
Groups
Blogs
Avoidance
of Clutter
Lead
Generation
17-14
Potential Problems of Public Relations
Receiver not making
connection to the source
Potential
Problems
Lack of coordination with
marketing dept.
Inconsistent, redundant
communications
17-15
Criteria for Measuring PR Effectiveness
17-16
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
Not under control of firm
17-17
A Response to Negative Publicity
News report:
Alar,
chemical to
grow apples,
causes cancer
TreeTop
produced
print ads
and
video
news releases
17-18
Video News Release (VNR)
• Publicity piece produced by publicists
so that stations can air it as a news
story
• Used by marketers to have control
over the time and place where
information is released
Pros and Cons of Publicity
Advantages
Substantial credibility
News value
Disadvantages
Lack of control
Timing
Significant
word-of-mouth
Inaccuracy
Perception of media
endorsement
17-20
Publicity = Credibility
17-21
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
17-22
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
17-23
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
Solar power
Boost
employee
morale
Smooth labor
relations
17-24
Types of Corporate Advertising
Image
Advertising
General Image Ads
Positioning Ads
Event
Sponsorship
Sponsorships
Recruitment
Advocacy
Advertising
Financial Support
Cause-related
Advertising
17-25
Corporate Advertising
• Creates an image of the
company in the public
mind
17-26
Event Sponsorship
Corporate Sponsor
Sporting
Events
Music,
Entertainment
Causes
Festivals
Cultural Events
Arts
17-27
Corporate Sponsorship
• McDonald’s associates
with sponsorship of the
Olympics
• Excellent platform to
build equity and gain
affinity with target
audience
17-28
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
17-29
Advocacy Advertising
Propagating ideas and
elucidating
Controversial social issues of
public importance
in a manner that supports the
interests of the sponsor
17-30
Advocacy Ad
GE promotes its concern for the environment
17-31
Cause Related Marketing
A form of marketing
whereby companies link with
charities
or nonprofit organizations as
contributing sponsors
17-32
Cause Related Marketing
New Balance promotes it’s support for breast cancer awareness
17-33