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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 • • • • 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