Transcript Chapter 17
17 Public Relations, Publicity, and Corporate Advertising McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. 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 Public Relations Management Process Determination and evaluation of public attitudes PR Identification of policies and procedures Development and execution of the program Traditional PR Perspective Customers Community Investors Public Relations Department Suppliers Government Employees 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 Marketing Public Relations Functions Building market excitement before media ads break Improving ROI Creating news where there is no news Introducing a product with little or no advertising Providing a value-added customer service Building brand-to-customer bonds Influencing influentials, giving info to opinion leaders Defending products at risk, giving consumers reasons to buy MPR in Practice Benefits of MPR Advantages 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 Benefits of MPR Disadvantages 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 The Process of Public Relations Determining and Evaluating Public Attitudes Establishing a PR Plan Developing and Executing a PR Program Measuring Program Effectiveness 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 Research on Public Attitudes Provides input for the planning process Serves as an “early warning system” Increases communications effectiveness Secures internal cooperation, support 10 Evaluation Questions 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? 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? Determining Public Relations Audiences Internal or Associated External or Independent Stockholders and Investors Educators Customers and Clients Governments Employees Financial Groups Community Members Civic and Business Organizations Vendors and Suppliers The Media Communicating With Target Audiences Internal or Associated External or Independent Newsletters Public relations ads Bulletin boards Press releases Direct mail Conferences Annual reports Research reports The Media Also Engages in Public Relations Implementing the PR Program Press Releases Press Conferences Interviews PR Tools The Internet Exclusives Community Involvement Special Olympics Torch Run *Click outside of the video screen to advance to the next slide The Internet as a PR Tool The Internet… Allows information to be presented quickly Provides the media with instant access to additional sources of information Allows much more substantial information to be presented Advantages of Public Relations Credibility Image Building Cost Savings PR Provides Avoidance of Clutter Selectivity Lead Generation 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 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 the participants in American Idol in Old Navy ads General Mills Capitalizes on Publicity Measuring PR Effectiveness Contributions made? What was achieved? Quantitative measures? Quality? Criteria for Measuring PR Effectiveness Ratio of positive to negative articles Number of impressions . . . Over time On the target audience On specific target audiences Percentage of . . Positive articles over time Negative articles over time Percentage of positive and negative articles by . . . Subject Publication Reporter Target audience Additional Measures of PR Effectiveness Personal observation and reaction Matching objectives and results The team approach Management by objectives Public opinions and surveys Audits 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 A Response to Negative Publicity 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 endorsement by media 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 Why is Corporate Advertising Controversial? Consumers aren’t interested in this form of advertising Claims of Opponents to Corporate Advertising Corporate advertising is a waste of money The firm’s finances or image must be in trouble This is a costly form of corporate self-indulgence 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 Types of Corporate Advertising Image Advertising General Image Ads Positioning Ads Event Sponsorship Sponsorship Recruitment Advocacy Advertising Cause-related Advertising Financial Support Boeing Advertises to Enhance Its Image *Click outside of the video screen to advance to the next slide Employee Recruitment by Grant Thornton Event Sponsorship Corporate Sponsor Sporting Events Music, Entertainment Causes Festivals Cultural Events Arts 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 Advocacy Advertising Advocacy advertising: The propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor. American Gas Association Advocacy Ad Cause Related Marketing Cause related marketing: A form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors. 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 Measuring Corporate Ad Effectiveness Attitude Surveys Effective? Relating to Stock Prices Focus Group Research