Week 6 Lecture - Georgetown University MPPR - 750

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Lecture for Week #6 of Mark Story's class, MPPR-750, "the Intersection of Online and Offline."

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Week 6 Lecture - Georgetown University MPPR - 750

  1. 1. Measuring Trust and Mistrust in Public Relationships
  2. 2. Our text <ul><li>Katie Delahaye Paine - “for more than two decade, she has been helping companies measure their success and listen to their customers.” </li></ul>
  3. 3. Comparing Media Relations to Other Disciplines <ul><li>Pre and post survey for our class </li></ul><ul><ul><li>How many people are or have been involved in a media relations role? </li></ul></ul><ul><li>There is an increasing demand for results accountability </li></ul><ul><ul><li>We’ll work on what the results actually are or mean </li></ul></ul><ul><ul><li>A tighter economy means more tightfisted ad spends </li></ul></ul>
  4. 4. What You Want at the End
  5. 5. What NOT To Do <ul><li>Advertising Value Equivalencies </li></ul><ul><ul><li>Applying the dollar cost of an ad space purchase to the amount of earned media coverage achieved by public relations efforts </li></ul></ul><ul><ul><li>Problems: </li></ul></ul><ul><ul><ul><li>public relations and advertising and two entirely different disciplines designed to do things different ways </li></ul></ul></ul><ul><ul><ul><li>There is no scientific evidence to demonstrate that a six-column inch ad has the same impact as a six-inch story in the same publication </li></ul></ul></ul><ul><ul><ul><ul><li>Which has more? </li></ul></ul></ul></ul><ul><ul><ul><li>If you apply the same metric across all articles, you neglect to account for the credibility of the placement or the reputation of the article </li></ul></ul></ul><ul><ul><ul><li>AVEs are based upon open rates and ad rates are often negotiated </li></ul></ul></ul>
  6. 6. What NOT To Do <ul><li>Advertising Value Equivalencies </li></ul><ul><ul><li>On average 10 to 20 percent of earned media coverage is negative, yet most companies include this in their AVE coverage! </li></ul></ul><ul><ul><ul><li>You would not run an ad saying “our company sucks” </li></ul></ul></ul>
  7. 7. What TO Do <ul><li>Cost per impression or cost per 1,000 eyeballs </li></ul><ul><ul><li>This is the standard in online, print and broadcast </li></ul></ul><ul><ul><li>Remember that CPM measures just reach, not message penetration </li></ul></ul><ul><li>It’s easy to compute: </li></ul><ul><li>AVE - Total circulation stats of all outlets / total costs and expenses </li></ul>
  8. 8. The AVE Math is Pretty Simple
  9. 9. Better: Cost Per Message Communicated <ul><li>CPMC: based upon message impressions, rather than article impressions </li></ul><ul><li>This is a good metric because only about 20 percent of public relations placements contain a key message. </li></ul><ul><ul><li>Think about that: of all of the earned media that organizations churn out, only one fifth of them contain key messages. </li></ul></ul>
  10. 10. Better: Cost Per Message Communicated
  11. 11. Better: Cost Per Message Communicated <ul><li>Formula: </li></ul><ul><li>total opportunities to see a message = </li></ul><ul><li>(number of key messages in article #1) x (circulation of article #1) </li></ul><ul><li>(number of key messages in article #2) x (circulation of article #2) </li></ul><ul><li>(number of key messages in article #3) x (circulation of article #3) </li></ul><ul><li>total PR costs / total opportunities to see a key message </li></ul>
  12. 12. Measuring Trust and Mistrust <ul><li>Enron vs.. FedEx </li></ul><ul><li>When trust helps an organization build relationships with key constituencies, it can save money through reduced costs of : </li></ul><ul><ul><li>Litigation </li></ul></ul><ul><ul><li>Regulation </li></ul></ul><ul><ul><li>Legislations </li></ul></ul><ul><ul><li>Pressure (corporate) campaigns </li></ul></ul><ul><ul><li>Lost revenue from bad relationships </li></ul></ul>
  13. 13. What is Trust? <ul><li>A component of the quality of relationships </li></ul><ul><ul><li>Multilevel - interactions that span coworker, team, organizational and interorganizational alliances </li></ul></ul><ul><ul><li>Culturally-rooted - Norms, values and beliefs of the organization - is it in the organization’s DNA? </li></ul></ul><ul><ul><li>Communications-based - the outcome of communications behaviors, like providing accurate information, explanation for decisions demonstration sincere and appropriate openness </li></ul></ul>
  14. 14. What is Trust? <ul><li>A component of the quality of relationships </li></ul><ul><li>Dynamic - it changes as it cycles through business phases of building destabilizations and dissolving - it’s important to measure over time </li></ul><ul><li>Multidimensional - multiple factors at the cognitive, emotional and behavioral levels, all of which affect an individual's perception of trust </li></ul>
  15. 15. Reflexive Trust <ul><li>If you consistently obfuscate, lie and spin, at some point your very statements begin to enhance you competitor’s -- or enemy’s -- credibility. </li></ul><ul><li>Examples? </li></ul>
  16. 16. Measuring Trust - Grunig Relationship Survey <ul><li>Agree/disagree statements (Likert scale) </li></ul><ul><ul><li>I am happy with this organization. </li></ul></ul><ul><ul><li>Whenever this organization makes an important decision, I know it will be concerned about people like me. </li></ul></ul><ul><ul><li>This organization can be relied upon to keep its promises. </li></ul></ul><ul><ul><li>I believe that this organization takes the opinions of people like me into account when making decisions. </li></ul></ul><ul><ul><li>I feel very confident about this organization’s skills. </li></ul></ul>
  17. 17. Measurement Tools <ul><li>In depth phone survey </li></ul><ul><ul><li>Why is this #1? </li></ul></ul><ul><li>Online surveys </li></ul><ul><ul><li>Low cost and quick turnaround </li></ul></ul><ul><ul><li>What are the disadvantages? </li></ul></ul><ul><li>Focus groups </li></ul>
  18. 18. Setting Up Your Trust Measurement <ul><li>Define your publics - who matters? </li></ul><ul><li>Set specific measurable goals and objectives </li></ul><ul><ul><li>This is really hard </li></ul></ul><ul><li>Select a measurement tool </li></ul><ul><ul><li>Surveys </li></ul></ul><ul><ul><li>Focus groups </li></ul></ul><ul><ul><li>Before and after polls </li></ul></ul><ul><li>Analyze the results </li></ul>
  19. 19. More on Analyzing Results <ul><li>Identify opposition to management goals or decisions before it becomes a crisis or develops into an issue. </li></ul><ul><li>Use your data to help management understand that certain decisions may have adverse consequences on public trust. </li></ul><ul><li>Set realistic expectations..your results might be invisible like avoiding lawsuits, strikes, protests </li></ul>
  20. 20. Post-Lecture Survey <ul><li>How many of you who have been involved in a communications role have used: </li></ul><ul><ul><li>One of these tactics </li></ul></ul><ul><ul><li>Two to four of these tactics </li></ul></ul><ul><ul><li>Five or more? </li></ul></ul>

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