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Advertising Principles and Practices Public Relations Questions We’ll Answer • What is public relations, and what are different types of public relations programs? • What key decisions do public relations practitioners make when they create plans? • What are the most common types of public relations tools? • Why is measuring the results of public relations efforts important, and how should that be done? Prentice Hall, © 2009 17-2 GE Goes Green with Ecomagination • GE is committed to being on the cutting edge of cleaner power and environmental technology. \ • GE’s investing $1.5 billion by 2010 in R&D for green technologies plus running a campaign to encourage their Visit the Site publics to go green. • Won a 2006 Silver Effie; 49% of those surveyed liked the dancing elephant commercial “a lot.” Prentice Hall, © 2009 17-3 What is public relations? • Used to generate goodwill for an organization. • Focuses on relationships with an organization’s publics. • Publics/stakeholders—all the groups of people with which an organization interacts— employees, members, local communities, shareholders, customers other institutions. • Publicity—getting news media coverage. • PR is a managerial function and a tactical function. Prentice Hall, © 2009 17-4 Who practices public relations? • • • • • • • • • Companies Governments Nonprofit organizations Travel/tourism industry Labor unions School systems Politicians Organized sports Agencies (for clients) and in-house departments Prentice Hall, © 2009 17-5 Public Opinion • What people think; their beliefs based on perceptions or evaluations of events, people, institutions or products (not necessarily on fact). • PR strategists want to know: – What publics are important to us now and in the future? – What do these publics think? • Opinion Leaders— important people who influence the opinions of others—are especially important.. Prentice Hall, © 2009 17-6 Reputation: Goodwill, Trust, and Integrity • Goodwill is a company’s greatest asset—PR’s job is to create it. • “If you tell the truth, you don’t have to remember anything.” • Integrity is not just about having a positive image, it’s a result of a company’s actual behavior. Principle: Public relations is the conscience of the company, with the objective of creating trust and maintaining the organization’s integrity. Prentice Hall, © 2009 17-7 Public Relations Society of America As a member of the Public Relations Society of America: I base my professional principles on the value and dignity of the individual, holding that the free exercise of human rights, especially freedom of speech, freedom of assembly, and freedom of the press, is essential to the practice of public relations. In serving the interests of clients and employers, I dedicate myself to the goals of better communication, understanding, and cooperation among the diverse individuals, groups, and institutions of society, and of equal opportunity of employment in the public relations profession. www. prsa.org Prentice Hall, © 2009 PRSA is the world’s largest organization for PR professionals with the vision to unify, strengthen, and advance the profession of public relations. Visit the Site 17-8 The Goal of PR Specialists • Communicating with various public (stakeholders), managing the organization’s image and reputation, creative positive public attitudes, and goodwill toward the organization. • Public relations takes a longer, broader view of the importance of image and reputation as a corporate competitive asset and addresses more target audiences than advertising. Prentice Hall, © 2009 17-9 Comparing PR and Advertising • Media use • Control • Credibility • Seek to persuade media gatekeepers to carry stories about or “cover” their companies. • Gatekeepers are writers, editors, producers, talk-show coordinators, and newscasters. • This aspect of PR is called publicity. Prentice Hall, © 2009 17-10 Comparing PR and Advertising • Media use • Control • Credibility • With news stories, PR people are at the mercy of the media gatekeeper. • They don’t have to run your story. • Advertising runs exactly as the client who paid for it has approved. Prentice Hall, © 2009 17-11 Comparing PR and Advertising • Media use • Control • Credibility • Public tends to trust the media more than they do advertisers. • Consumers assume a story is legitimate if it appears in the media; this is an implied third-party endorsement. Prentice Hall, © 2009 17-12 Types of PR Programs Prentice Hall, © 2009 17-13 Types of PR Programs • Media relations • Employee relations • Financial relations • Public affairs • Fund-raising • Cause marketing • Focus on developing media contacts • Knowing who in the media might be interested in the organization’s story • Relationships must be built on honesty, accuracy, and professionalism Prentice Hall, © 2009 17-14 Types of PR Programs • Media relations • Employee relations • Financial relations • Public affairs • Fund-raising • Cause marketing • Programs that communicate information to employees • Related program is internal marketing Prentice Hall, © 2009 – Communication efforts aimed at informing employees about marketing programs 17-15 Types of PR Programs • Media relations • Employee relations • Financial relations • Public affairs • Fund-raising • Cause marketing • Communications aimed at financial community • Press releases to business magazines, meetings with investors, annual (financial) reports Prentice Hall, © 2009 17-16 Types of PR Programs • Media relations • Employee relations • Financial relations • Public affairs • Fund-raising • Cause marketing • Communication with government and with the public on issues related to government and regulation Prentice Hall, © 2009 – Lobbying to get legislators to support a bill – Issue management (monitor and communicate to and with public) 17-17 Types of PR Programs • Media relations • Employee relations • Financial relations • Public affairs • Fund-raising • Cause marketing Prentice Hall, © 2009 • The practice of raising money by collecting donations • Used by nonprofits: museums, hospitals, Red Cross, etc. and directed at potential donors • Sometimes called development 17-18 Types of PR Programs • Media relations • Employee relations • Financial relations • Public affairs • Fund-raising • Cause marketing • Companies associate themselves with a cause, providing assistance and financial support • Whirlpool and Habitat for Humanity Prentice Hall, © 2009 17-19 Other Types of PR Programs • Corporate Reputation Management – Focused on image, reputation, trust • Crisis Management – Anticipating and planning for disasters from a media perspective and with stakeholders • Marketing Public Relations – Plan and deliver programs to drive sales and build customer satisfaction to communicating to address consumer wants and needs • Public Communication Campaigns – To change public opinion, discourage harmful behaviors – “Truth” campaign to protest smoking Prentice Hall, © 2009 17-20 Public Relations Planning: Research • A communications audit assess the internal and external environment. • Benchmarking identifies a baseline from a previous audit, or a competitor. • Gap analysis measures differences in perceptions between publics, or between a public and the organization. • Three types of publics: – Latent publics are unaware of their connection to an organization an an associated problem. – Aware publics recognize their connection with a problem but don’t communicate about it. – Active publics communicate and act on a problem. Prentice Hall, © 2009 17-21 Public Relations Planning: SWOT Analysis • Strengths, Weaknesses, Opportunities, Threats • Helps companies understand the nature of the problem so they can develop appropriate objects and target the right publics to address a problem. • May cover a variety of issues: – – – – – Changes in public opinion Industry and consumer trends Economic trends Government regulations and oversight programs The effect or corporate strategies on stakeholders Prentice Hall, © 2009 17-22 Public Relations Planning: Targeting • Research identifies appropriate target audiences. • CIGNA insurance identified conscientious consumers and directed their “Power of Caring” campaign toward them. • The campaign featured wellknown personalities and charitable causes like Alex’s Lemonade Stand. Prentice Hall, © 2009 17-23 Public Relations Planning: Objectives and Strategies • PR objectives are to change the public’s knowledge, attitudes, and behaviors related to a company brand or organization. • Typical PR objectives focus on: – Creating credibility – Delivering information – Building positive images, trust, and corporate goodwill Principle: Before changing behavior, a communication program may need to change beliefs, attitudes, and feelings. Prentice Hall, © 2009 17-24 Public Relations Planning: Objectives and Strategies • Change agent strategies – Focused on changing attitudes that drive behavior either internally with employees or externally with other publics. • Involvement strategies – Focused on intensifying publics’ involvement by creating excitement, strengthening customer loyalty. – Must be carefully conceived—Pizza Hut’s school “book it” program, which rewards students with free pizzas has been criticized for promoting unhealthy eating habits. Prentice Hall, © 2009 17-25 Typical Public Relations Objectives • Creating a corporate brand • Shaping or redefining a corporate reputation • Positioning or repositioning a company or brand • Moving a brand to a new market or a global market • Launching a new product or brand • Disseminating news about a brand, company, or organization • Providing product or brand information • Changing stakeholder attitudes, opinions, or behaviors about a brand or company • Creating stronger brand relationships with key stakeholders, such as employees, shareholders and the financial community, government, members (for associations), and the media • Creating high levels of customer (member) satisfaction • Creating excitement in the marketplace • Creating buzz (word of mouth) • Involving people with the brand, company, or organization through events and other participatory activities • Associating brands and companies with good causes Prentice Hall, © 2009 17-26 Public Relations Planning: The Big Idea • Creative ideas get attention • A Nevada conservation program used a 50-year-old tortoise as a mascot to promote desert ecology • TBS’s Cartoon Network used electronically lit cartoon characters on buildings and bridges to promote their show “Aqua Teen Hunger Force,” causing bomb scares in Boston – Cost TBS $2 million and the network head resigned Prentice Hall, © 2009 17-27 PR’s Role in IMC • In integrated programs, PR and advertising communicate complementary messages. • Because they’re often separate functions, the message may be inconsistent. • PR and advertising use many of the same tools. • PR’s greatest strengths is in an IMC program are raising awareness, creating credibility, and providing media contacts. • In this fragmented media society, PR and advertising must merge or find common ground to be part of the IMC program. Prentice Hall, © 2009 17-28 Two Main Categories of PR Tools • Controlled media – Sponsoring organization pays for media and controls how and when the message is delivered. • Uncontrolled media – Sponsoring organization doesn’t pay for media; the media controls how and when the message is delivered. – Semicontrolled media include electronic media over which companies maintain some, but not all control (e.g., company Web sites vs. other Web sites, blogs, chat rooms). Prentice Hall, © 2009 17-29 Table 17.1 Public Relations Tools Controlled Media Uncontrolled Media (Company controls the use and placement) • House ads • Public service ads • Corporate, institutional, advocacy advertising • Publications: brochures, flyers, magazines, newsletters • Annual reports • Speakers • Photographs • Films, videos, CD-ROMs • Displays, exhibits • Staged events • Books (Media controls the use and placement) • The news release (print, audio, video, email, faxes • Features (pitch features) • Fillers, historical pieces, profiles • The press conference and media advisory (media kits, fact sheets, background info) • Media tours • Bylined articles, op/ed pieces, letters to the editor • Talk and interview shows • Public service announcements Semicontrolled Media (Some aspects are controlled or initiated by the company, but other aspects aren’t) • Electronic communication (Web sites, chat rooms) • Special events and sponsorships • Word of mouth (buzz) • Weblogs (blogs) Prentice Hall, © 2009 17-30 PR Tools: Advertising • House ads – Used in a company’s own publication or programs (self promo) • Public service announcements – Run free on TV, radio, or print for a charities or civic organizations • Corporate advertising – Focused on corporate image or viewpoint – Corporate identity advertising – Advocacy advertising Prentice Hall, © 2009 Visit the Site 17-31 PR Tools: Publicity • News releases – Deliver PR messages to external media; answer five “Ws” – VNRs contain video footage • Pitch letters – Engaging letter about a feature story idea sent to editors who have to be “sold,” usually a human interest angle • Press conferences – An event at which a spokesperson makes a statement to the media; a media kit may be sent ahead of time • Media tours – “Press conference on wheels”; spokesperson makes speeches and announcements, holds press conferences, and offers interviews Prentice Hall, © 2009 17-32 Media Assessment of News Values • Editor’s decide to use news releases based on news value. • News value is based on timeliness (something just happened or is about to happen), proximity (a local angle), impact (importance or significance), or human interest. Replace Prentice Hall, © 2009 17-33 PR Tools: Publications • • • • • • • • • Pamphlets Booklets Annual reports Collateral material Books Bulletins Newsletters Inserts and enclosures Position papers Prentice Hall, © 2009 17-34 PR Tools: DVDs, CDs, Podcasts, Books, and Online Video • DVD and podcasts are now major PR tools. • Books can be published simply with electronic publishing. • Videos are expensive but are ideal for distributing indepth information. • YouTube is being used for corporate messages. Prentice Hall, © 2009 17-35 PR Tools: Speakers and Photos • Speaker’s bureau – A group of articulate people who will talk about topics at the public’s request. • PR departments maintain file of photos to provide to the public. Prentice Hall, © 2009 17-36 PR Tools: Displays and Exhibits • Displays include booths, racks, and holders for promotional literature, and signage. • Exhibits are larger than displays and may have moving parts, sound, or video. Prentice Hall, © 2009 17-37 PR Tools: Special Events and Tours • Events celebrate company milestones: – Open houses – Birthday celebrations – Corporate sponsorship of events • Tours such as plant tours and trips by delegates and representatives – The “truth” tour reaches 750,000 teens annually with information about smoking’s harmful effects. Prentice Hall, © 2009 17-38 The Truth Campaign This public communications campaign was designed to counter advertising that appeals to teenagers by getting them to rebel against big tobacco companies. Visit the Site Prentice Hall, © 2009 17-39 PR Tools: Online Communication • Intranet – Connects people within an organization. • Extranet – Connects people in one business with its business partners. • External communication – Web sites, email contact with reports, press releases distributed by email or PR newswire. • Internal communication – Connects people in separate sites and it’s inexpensive. – However, it can be used in court against a company. • Web challenges – Search optimization is a major issue. – Anyone can post anything about your company; gossip and rumors can spread around the world in hours. – Companies can monitor what’s being said about them. Prentice Hall, © 2009 17-40 Getting Attention in a New-Media World Wrap your story around a bigger idea. Find a broader context or news hook for your product or service and show how your company fits into it. Keep it short and personal. When reaching out to journalists, a few quick sentences via email, free from industry jargon, explaining who you are and what your business is usually will suffice. Try to keep the first email readable without having to scroll down. Also, referring to past works by journalists shows you understand their area of coverage. Pay attention to Web basics. Building a Web site and getting good rankings on search engines such as Yahoo! and Google can help customers find businesses, especially new ones. Consider blogging as a way to tell your story and interact with the public. Using sites such as technorati.com can help turn up other like-minded bloggers. Podcasting and online video-sharing sites such as youtube.com can help tell your story, but do it creatively, avoiding pure commercial pitches. Host events. These don’t have to be expensive, but small themed events with food and drink for customers can be a good draw, particularly on streets crowded with multiple merchants. Seek out brand ambassadors. Find customers willing to talk up your product to others, and encourage their word-of-mouth marketing with discounts or first looks at new products and sales. Publish a newsletter. It sounds old-fashioned, but with so much information coming to people online these days, a mailed paper newsletter to customers can seem more personal than mass emails and help your business stand out. Prentice Hall, © 2009 17-41 Effectiveness and PR Excellence • Evaluation is based on measurable objectives established in planning. • Difficult to measure the effect on the bottom line • Practitioners track the impact of a campaign in terms of: – Output—number of mentions – Outcome—change in attitude or behavior Prentice Hall, © 2009 17-42 Communications Campaign Plan • Even in PR, the media and messages must work together to deliver communication objectives. Prentice Hall, © 2009 17-43 Would you like to work in PR? Here’s a short list of required skills for public relations managers or public affairs specialists: 1. Knowledge of how public relations and public affairs support business goals. 2. A knack for discerning which opponents to take seriously. 3. The ability to integrate all communications functions. 4. Understand how to control key messages. 5. The ability to have influence without being too partisan. 6. A talent for synthesizing, filtering, and validating information. 7. An aptitude for information technology. 8. A global perspective. Prentice Hall, © 2009 17-44 Discussion Questions Discussion Question 1 • Why is public opinion so important to the success of public relations? • In how many different ways does it affect the success of a program like GE’s Ecomagination? Prentice Hall, © 2009 17-46 Discussion Question 2 • What is reputation management, and how does it intersect with advertising programs? • Find a corporate reputation campaign and analyze its effectiveness. Prentice Hall, © 2009 17-47 Discussion Question 3 • Three-minute debate: Think about a publicity stunt that backfired, such as the Aqua Teen Hunger Force bomb scare in Boston. • Is all publicity good publicity? Or was this just a bad idea that hurt the client? • Organize into small teams, with each team taking one side or the other. In class, set up a series of threeminute debates with each side having half of that time to argue its position. Every team of debaters has to present new points not covered in the previous teams’ presentations until there are no arguments left to present. Then, the class votes as a group on the winning point of view. Prentice Hall, © 2009 17-48 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Prentice Hall, © 2009 17-49