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Public Relations Part 5: Principles: How to Win the Battle of the Buzz Chapter 17 Prentice Hall, © 2009 17-1 CHAPTER KEY POINTS 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 THE PRACTICE OF PUBLIC RELATIONS What is public relations? • Communicating with various public (stakeholders), managing the organization’s image and reputation, and creative positive public attitudes, and generate 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. • 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 17-3 THE PRACTICE OF PUBLIC RELATIONS 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 17-4 THE PRACTICE OF PUBLIC RELATIONS Reputation: Goodwill, Trust, 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. • Public relations is the conscience of the company, with the objective of creating trust and maintaining the organization’s integrity. Prentice Hall, © 2009 17-5 THE PRACTICE OF PUBLIC RELATIONS 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 17-6 THE PRACTICE OF PUBLIC RELATIONS 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 17-7 THE PRACTICE OF PUBLIC RELATIONS 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 17-8 THE PRACTICE OF PUBLIC RELATIONS Comparing PR and Advertising • 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 17-9 THE PRACTICE OF PUBLIC RELATIONS Comparing PR and Advertising • Media relations • Employee relations • Financial relations • Public affairs • Fund-raising • Cause marketing • Programs that communicate information to employees. • Related program is internal marketing. – Communication efforts aimed at informing employees about marketing programs. Prentice Hall, © 2009 17-10 THE PRACTICE OF PUBLIC RELATIONS Comparing PR and Advertising • 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 17-11 THE PRACTICE OF PUBLIC RELATIONS Comparing PR and Advertising • 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. – Lobbying to get legislators to support a bill. – Issue management (monitor and communicate to and with public). Prentice Hall, © 2009 17-12 THE PRACTICE OF PUBLIC RELATIONS Comparing PR and Advertising • Media relations • Employee relations • Financial relations • Public affairs • Fund-raising • Cause marketing • The practice of raising money by collecting donations. • Used by nonprofits: museums, hospitals, Red Cross, etc. and directed at potential donors. • Sometimes called development. Prentice Hall, © 2009 17-13 THE PRACTICE OF PUBLIC RELATIONS Comparing PR and Advertising • 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 17-14 THE PRACTICE OF PUBLIC RELATIONS 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 17-15 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 17-16 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 17-17 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 well-known personalities and charitable causes like Alex’s Lemonade Stand. Prentice Hall, © 2009 17-18 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 • Before changing behavior, a communication program may need to change beliefs, attitudes, and feelings. Prentice Hall, © 2009 17-19 PUBLIC RELATIONS PLANNING The Big Idea • Creative ideas get attention. • A Nevada conservation program used a 50year-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 17-20 PUBLIC RELATIONS TOOLS 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 17-21 PUBLIC RELATIONS 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 17-22 PUBLIC RELATIONS 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 17-23 PUBLIC RELATIONS TOOLS Publications • • • • • • • • • Pamphlets Booklets Annual reports Collateral material Books Bulletins Newsletters Inserts and enclosures Position papers Prentice Hall, © 2009 17-24 PUBLIC RELATIONS 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 in-depth information. • YouTube is being used for corporate messages. Prentice Hall, © 2009 17-25 PUBLIC RELATIONS 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 17-26 PUBLIC RELATIONS 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 17-27 PUBLIC RELATIONS 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 the harmful effects of smoking. Prentice Hall, © 2009 17-28 PUBLIC RELATIONS 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 17-29 PUBLIC RELATIONS TOOLS Effectiveness and PR Excellence • Evaluation is based on measurable objectives established in planning. • Difficult to measure the effect on the bottom line. • Even in PR, the media and messages must work together to meet objectives. • Practitioners track the impact of a campaign in terms of output (how many mentions) and outcome (change in attitude or behavior). Prentice Hall, © 2009 17-30 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 17-31