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ARE YOU READY?• Evaluate the various sales  promotion tools and decide which  promotional tools would you use.  Allocate t...
Public Relations, Publicity,and Corporate Advertising         © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
At the end of this lecture, you will be able to understand:  Meaning and Scope of Publicity and Public                 Re...
PUBLIC• A public is any group  that has an actual or  potential interest in or  impact on a company’s  ability to achieve ...
Public Relations Defined        A management function        A management functionwhich   evaluates public attitudes      ...
Public Relations Management Process                                         Determination and                             ...
Traditional PR Perspective                      Customers                      CustomersCommunityCommunity                ...
Integration of PR into the IMC Process                       Separate   Marketing                                         ...
Marketing Public Relations (MPR) Functions Building marketplace excitement before media advertising breaks Building market...
The Process of Public Relations Determining and Evaluating Public Attitudes Determining and Evaluating Public Attitudes   ...
Research on Public Attitudes  Provides input for   Provides input for                                          Serves as a...
Determining Public Relations Audiences                Internal or Associated                Internal or Associated  Stockh...
Implementing the PR Program                              Press                              Press                         ...
Advantages of Public Relations                         Credibility                         Credibility  Image  Image Build...
General Mills Capitalizes on Positive Publicity             © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Criteria for Measuring PR Effectiveness                                                                 On the            ...
Benefits of Marketing Public Relations (MPR)     Advantages                                                  Disadvantages...
PR in India• Challenges
Publicity   The Generation of News About a Person,   The Generation of News About a Person,Product, or Service That Appear...
PUBLICITY• PUBLICITY is any communication about an  organization, its products, or policies through  the media not paid fo...
Advertising Versus Publicity Factor Factor       Advertising              Advertising       Publicity                     ...
Indias biggest sporting extravaganza,   IPL, gets off to a cracking start
Publicity Vehicles                    Feature                    Feature                    Articles                    Ar...
Coca-Cola in India:        Controversy and Comeback  Controversy• In 2003, Coca-cola was accused for alleged  impurities i...
Results of Controversy• Several states banned the drinks from  government canteens and schools.• Immediate 10 per cent plu...
Suppose you are the brandmanager for Coca Cola India, whatwill you do in such situation
How did Coca-Cola Tackle with                Tarnished Consumer Trust?• Carefully-worded statements by industry experts in...
Cadbury manages a crisis with IMC
Advantages and Disadvantages of Publicity    Advantages                                                 Disadvantages     ...
Corporate Advertising              An extension of the PR              An extension of the PR                     function...
ADITYA BIRLA• Corporate Ad
Why Is Corporate Advertising Controversial?    Corporate     Corporate                                                    ...
Objectives of Corporate Advertising                    Create a positive                    Create a positive             ...
Types of Corporate Advertising     Image     Image                                          General Image Ads             ...
Grant Thornton Uses Advertising forEmployee Recruitment            © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Event Sponsorship         Corporate Sponsor         Corporate Sponsor    Sporting    Sporting                             ...
IPL SPONSOR• DLF IPL
Advocacy Advertising Advocacy advertising: Advocacy advertising:  is the propagation of ideas and   is the propagation of ...
An American Gas Association Advocacy Ad           © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cause Related Marketing Cause related marketing: Cause related marketing:  is a form of marketing whereby   is a form of m...
RELIANCE FOUNDATION &SATYAMEVA JAYATE
Advantages and Disadvantages  of Corporate Advertising    Advantages                                               Disadva...
Measuring Corporate Advertising Effectiveness                                                Attitude Surveys             ...
Hometask- Next week• Wednesday - Plan events to gain  publicity. Mention the brief of an  event along with the allocated  ...
Hometask – Next Week• Thursday - How will you measure  the results of the different  campaigns and media• Friday – Final s...
Lecture 22(public relations)
Lecture 22(public relations)
Lecture 22(public relations)
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Lecture 22(public relations)

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Transcript of "Lecture 22(public relations)"

  1. 1. ARE YOU READY?• Evaluate the various sales promotion tools and decide which promotional tools would you use. Allocate the budget month-wise and tool-wise (Total Budget – 1 crore)
  2. 2. Public Relations, Publicity,and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  3. 3. At the end of this lecture, you will be able to understand:  Meaning and Scope of Publicity and Public Relations Its Relationship and Function with Other IMC Tools  Function of Public Relations  Different Models of Public Relations Difference Between Advertising and Publicity  Different types of corporate advertising
  4. 4. PUBLIC• A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.
  5. 5. Public Relations Defined A management function A management functionwhich evaluates public attitudes evaluates public attitudes and identifies the policies and procedures identifies the policies and procedures of an organization with the public interest an organization with the public interest and executes a program of action (and communication) executes a program of action (and communication) to earn public understanding and acceptance earn public understanding and acceptance © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  6. 6. Public Relations Management Process Determination and Determination and evaluation of public evaluation of public attitudes attitudes Identification of policies Identification of policies PR PR and procedures and procedures Development and Development and execution of the execution of the program program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  7. 7. Traditional PR Perspective Customers CustomersCommunityCommunity Investors Investors Public Public Relations Relations Department DepartmentSuppliersSuppliers Government Government Employees Employees © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  8. 8. Integration of PR into the IMC Process Separate Marketing Public Department Relations Coordinated Marketing Public Department Relations Integrated Marketing Public Department Relations © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  9. 9. Marketing Public Relations (MPR) Functions Building marketplace excitement before media advertising breaks Building marketplace excitement before media advertising breaks Improving ROI Improving ROI Creating advertising news where there is no product news Creating advertising news where there is no product news Introducing a product with little or no advertising Introducing a product with little or no advertising Providing a value-added customer service Providing a value-added customer service Building brand-to-customer bonds Building brand-to-customer bonds Influencing influentials, providing information to opinion leaders Influencing influentials, providing information to opinion leadersDefending products at risk, giving consumers a reason to buyDefending products at risk, giving consumers a reason to buy © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  10. 10. The Process of Public Relations Determining and Evaluating Public Attitudes Determining and Evaluating Public Attitudes Establishing a PR Plan Establishing a PR Plan Developing and Executing a PR Program Developing and Executing a PR Program Measuring Program Effectiveness Measuring Program Effectiveness © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  11. 11. Research on Public Attitudes Provides input for Provides input for Serves as an “early Serves as an “earlythe planning process the planning process warning system” warning system” Increases Increases Secures internal Secures internal communications communications cooperation, support cooperation, support effectiveness effectiveness © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  12. 12. Determining Public Relations Audiences Internal or Associated Internal or Associated Stockholders and Stockholders and Employees of the Employees of the Investors Investors Firm FirmCustomers andCustomers and Community Community Vendors and Vendors and Clients Clients Members Members Suppliers Suppliers External or Independent External or Independent Educators Educators Governments Governments Civic and Business Civic and Business The Media The Media Financial Groups Financial Groups Organizations Organizations © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  13. 13. Implementing the PR Program Press Press Releases Releases Press PressInterviewsInterviews Conferences Conferences PR Tools PR ToolsThe InternetThe Internet Exclusives Exclusives Community Community Involvement Involvement © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  14. 14. Advantages of Public Relations Credibility Credibility Image Image Building Cost Savings Cost Savings Building PR PR Provides Provides Avoidance of Avoidance ofSelectivitySelectivity Clutter Clutter Lead Lead Generation Generation © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  15. 15. General Mills Capitalizes on Positive Publicity © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  16. 16. Criteria for Measuring PR Effectiveness On the On the On specific On specificTotal number of Total number of Over time Over time target target target targetimpressions .. .. .. impressions audience audience audiences audiences Positive Positive Negative NegativePercentage of .. ..Percentage of articles over articles over articles over articles over time time time timeRatio of positiveRatio of positive to negative to negative articles articles Percentage of Percentage of positive and positive and Publica- Publica- Target Target Subject Subject Reporter Reporternegative articlesnegative articles tion tion audience audience by .. .. .. by © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  17. 17. Benefits of Marketing Public Relations (MPR) Advantages Disadvantages A cost-effective way to A cost-effective way to Lack of control over media Lack of control over media reach the market reach the marketA highly targeted way toA highly targeted way to Difficult to tie in slogans or Difficult to tie in slogans orconduct public relations conduct public relations other advertising devices other advertising devices Endorsements by Endorsements by Media time and space Media time and spaceindependent third parties independent third parties aren’t guaranteed aren’t guaranteed No standards for effective No standards for effectiveAchievement of credibilityAchievement of credibility measurement measurement Makes advertising Makes advertising Improved media Improved mediamessages more crediblemessages more credible involvement w/customers involvement w/customersBreaks though the clutter Creates influence among Creates influence amongBreaks though the clutter opinion leaders opinion leadersCircumvents resistance toCircumvents resistance to sales efforts Improved ROI Improved ROI sales efforts © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  18. 18. PR in India• Challenges
  19. 19. Publicity The Generation of News About a Person, The Generation of News About a Person,Product, or Service That Appears in the MediaProduct, or Service That Appears in the Media Part of the PR Process Part of the PR Process May Be Out of the Marketer’s Control May Be Out of the Marketer’s Control © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  20. 20. PUBLICITY• PUBLICITY is any communication about an organization, its products, or policies through the media not paid for by the organization.• TYPES: – Good Publicity – Bad Publicity• THREE MEANS – Prepare & distribute a story – Personal communication with a group – One-on-one personal communication (Lobbying)
  21. 21. Advertising Versus Publicity Factor Factor Advertising Advertising Publicity Publicity Control Control Great Great Little LittleCredibilityCredibility Lower Lower Higher Higher Reach Reach Measurable Measurable Undetermined UndeterminedFrequencyFrequency Schedulable Schedulable Uncontrollable Uncontrollable Cost Cost High/Specific High/Specific Low/Unspecified Low/UnspecifiedFlexibilityFlexibility High High Low Low Timing Timing Specifiable Specifiable Tentative Tentative
  22. 22. Indias biggest sporting extravaganza, IPL, gets off to a cracking start
  23. 23. Publicity Vehicles Feature Feature Articles Articles News News Interviews Interviews InterviewsReleasesReleases Publicity Publicity Vehicles Vehicles Press Press Special Special Conferences Conferences Events Events
  24. 24. Coca-Cola in India: Controversy and Comeback Controversy• In 2003, Coca-cola was accused for alleged impurities in their drinks.• Found elevated pesticide levels in carbonated drinks made by Coca-Cola.
  25. 25. Results of Controversy• Several states banned the drinks from government canteens and schools.• Immediate 10 per cent plunge in sales.
  26. 26. Suppose you are the brandmanager for Coca Cola India, whatwill you do in such situation
  27. 27. How did Coca-Cola Tackle with Tarnished Consumer Trust?• Carefully-worded statements by industry experts in support of the Coca-Cola.• Assurance by senior scientists.• Intensive communication and engagement strategy.• Use of Aamir Khan and Smriti Irani to regain faith of Indian consumers• Guided tours of its manufacturing facilities to showcase its commitment to quality
  28. 28. Cadbury manages a crisis with IMC
  29. 29. Advantages and Disadvantages of Publicity Advantages Disadvantages Timing difficult or Timing difficult orSubstantial credibilitySubstantial credibility impossible to control impossible to control Inaccuracy, omission, Inaccuracy, omission, News value News value or distortion may or distortion may result resultSignificant word-of-Significant word-of- mouth mouth Perception of Perception of endorsement by endorsement by media media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  30. 30. Corporate Advertising An extension of the PR An extension of the PR function function Does not promote a specific Does not promote a specific product or service product or service Promotes the organization Promotes the organization Assuming a Assuming a Image Image Seeks Seeks position on an position on anenhancementenhancement involvement involvement issue or cause issue or cause © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  31. 31. ADITYA BIRLA• Corporate Ad
  32. 32. Why Is Corporate Advertising Controversial? Corporate Corporate Consumers aren’t Consumers aren’t advertising Is a advertising Is a interested in this interested in this waste of money waste of money form of advertising form of advertising Claims of Claims of Opponents to Opponents to Corporate Corporate Advertising AdvertisingThis is a costly formThis is a costly form The firm’s finances The firm’s finances of corporate self- of corporate self- or image must be in or image must be in indulgence indulgence trouble trouble © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  33. 33. Objectives of Corporate Advertising Create a positive Create a positive image for the image for the firm firm Establish Establish Communicate Communicatediversified diversified the thecompany’scompany’s organization’s organization’s identity identity viewpoint viewpoint Objectives ObjectivesHelp newly Help newly Boost employee Boost employeederegulatedderegulated morale morale industries industries Smooth labor Smooth labor relations relations © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  34. 34. Types of Corporate Advertising Image Image General Image Ads General Image Ads Advertising Advertising Positioning Ads Positioning Ads Event Event Sponsorship Sponsorship Sponsorship Sponsorship Recruitment Recruitment Advocacy Advocacy Financial Support Financial Support Advertising Advertising Cause-related Cause-related Advertising Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  35. 35. Grant Thornton Uses Advertising forEmployee Recruitment © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  36. 36. Event Sponsorship Corporate Sponsor Corporate Sponsor Sporting Sporting Music, Music, Events Events Entertainment Entertainment Causes Causes Festivals Festivals Cultural Events Cultural Events Arts Arts © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  37. 37. IPL SPONSOR• DLF IPL
  38. 38. Advocacy Advertising Advocacy advertising: Advocacy advertising: is the propagation of ideas and is the propagation of ideas and elucidation of controversial social elucidation of controversial social issues of public importance in a issues of public importance in a manner that supports the manner that supports the interests of the sponsor. interests of the sponsor. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  39. 39. An American Gas Association Advocacy Ad © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  40. 40. Cause Related Marketing Cause related marketing: Cause related marketing: is a form of marketing whereby is a form of marketing whereby companies link with charities or companies link with charities or nonprofit organizations as nonprofit organizations as contributing sponsors. contributing sponsors. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  41. 41. RELIANCE FOUNDATION &SATYAMEVA JAYATE
  42. 42. Advantages and Disadvantages of Corporate Advertising Advantages Disadvantages May have May haveExcellent vehicle forExcellent vehicle for questionable questionablepositioning the firmpositioning the firm effectiveness effectiveness Takes advantage of Takes advantage of Raises questions of Raises questions ofbenefits derived frombenefits derived from constitutionality and constitutionality and public relations public relations ethics ethics Reaches a selected Reaches a selected target market target market © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  43. 43. Measuring Corporate Advertising Effectiveness Attitude Surveys Attitude SurveysEffective?Effective? Relating to Stock Prices Relating to Stock Prices Focus Group Research Focus Group Research © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  44. 44. Hometask- Next week• Wednesday - Plan events to gain publicity. Mention the brief of an event along with the allocated budget and month-wise schedule (1 crore)
  45. 45. Hometask – Next Week• Thursday - How will you measure the results of the different campaigns and media• Friday – Final submission
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