Pr and marketing


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Pr and marketing

  2. 2. LEARNING OBJECTIVES • Explain how Public Relations can work with the key functions in organizations. • Confidently explain the role of marketing. • Define the Promotional Mix and its components. • Describe the relationships between Public Relations and other promotional activities. PREPARED BY :MS GOMALA SUKUMARAN
  3. 3. ORGANISATIONS • The key functions in any organization are : – Financial – Production – Procurement (buying) – Distribution – Personnel – Marketing PREPARED BY :MS GOMALA SUKUMARAN
  4. 4. financial • Responsible for all the finances of an organization • Everything from the use of capital to build new factories, etc to the collection of money owed by the organisation‟s customers. • Everything that public relations may want or be asked to do must be properly costed and approved PREPARED BY :MS GOMALA SUKUMARAN
  5. 5. PRODUCTION • In a manufacturing organisation, the production director is responsible for making whatever the organisation sells. • Under his control are the factories, the machinery and the people who make the products. PREPARED BY :MS GOMALA SUKUMARAN
  6. 6. continued… • Public relations will regularly be involved with production. • Typical activities – To arrange media visits to factories – To help launch new product concepts – To help develop good relationships with local communities PREPARED BY :MS GOMALA SUKUMARAN
  7. 7. PROCUREMENT • Organizations have to buy of all kinds, from raw materials for production to office stationery • Public relations people may indirectly have a major impact on buying decision, because they will help to specify the organization's image. • This image will influence what the organization does and how it behaves PREPARED BY :MS GOMALA SUKUMARAN
  8. 8. • Thus, buyers may have to locate environmentally friendly suppliers. • Their products may be more expensive to buy, but the overall benefit may well justify the extra cost. PREPARED BY :MS GOMALA SUKUMARAN
  9. 9. DISTRIBUTION • Products have to be sent out to the customers • The distribution function takes responsibility from the factory gate to the customer‟s warehouse. • All depots, warehouses, delivery vans and personnel are the responsibility of the head of distribution PREPARED BY :MS GOMALA SUKUMARAN
  10. 10. • Public relations will be concerned because the image of the organization is carried to the community by those who distribute • The way the vans are painted and kept clean and the uniforms and behavior of delivery staff must comply with the organization's overall image. PREPARED BY :MS GOMALA SUKUMARAN
  11. 11. PERSONNEL • Many organisations see their people as an important resouce. • The staff should be carefully recruited, then trained so that they can cheerfully carry out their duties. • Public relations often has a major role to play inside an organisation. PREPARED BY :MS GOMALA SUKUMARAN
  12. 12. marketing • The marketing director and his team are the only function in direct and regular contact with the organization's customers. • Marketing is often described as the “bridge to the consumer” because marketers work hard to develop 2way communication. PREPARED BY :MS GOMALA SUKUMARAN
  13. 13. • Public relations people will often work closely with marketers. • Both need the organization to have communication policy. • Sometimes this is set by top management with public relations, and is followed by marketing. • Sometimes it is set from marketing and is followed by the organization and public relations. PREPARED BY :MS GOMALA SUKUMARAN
  14. 14. • Sometimes it is set from marketing and is followed by the organization and public relations • Often senior managers, public relations and marketers work closely together to establish policy. PREPARED BY :MS GOMALA SUKUMARAN
  15. 15. advertising • Advertising is not normally an organizational function • It was once a powerful internal function, but it is now usual for advertising agencies to supply specialist skills from outside the organization. • Marketing normally works closely with advertising professionals in the creation of promotional campaigns. PREPARED BY :MS GOMALA SUKUMARAN
  16. 16. • Public relations will almost always be involved in such work, because the whole of communication must be integrated to achieve maximum effect. PREPARED BY :MS GOMALA SUKUMARAN
  17. 17. MARKETING • The management process responsible for identifying, anticipating and satisfying customer requirements profitably.(British Chartered Institute of Marketing (CIM)) PREPARED BY :MS GOMALA SUKUMARAN
  18. 18. KEY POINTS • Management – Marketing is a management process – It has a management responsibility for one whole function of an organization. • Identification – Customers and their needs have to be identified so that product offers can be constructed to meet those needs. PREPARED BY :MS GOMALA SUKUMARAN
  19. 19. • Anticipation – Marketing works to the future. – The need is to identify what will be needed in time for the product offer to be constructed – Marketers are , therefore, risk takers. Nobody can know exactly what will happen in future, yet marketing has to anticipate future demand PREPARED BY :MS GOMALA SUKUMARAN
  20. 20. • Satisfaction – The actual identified need(s) have to be satisfied • Profitability – Marketing is in the business of making profit – This need not be a cash profit PREPARED BY :MS GOMALA SUKUMARAN
  21. 21. MARKETING –THE BRIDGE • Marketing is the bridge to the organization's clients, customers and consumers • It is the only part of an organization that is externally focused. PREPARED BY :MS GOMALA SUKUMARAN
  22. 22. COMMUNICATION • Marketers need to show prospective customers, consumers and clients why their products should be chosen. • They must be skilled communicators and be skilled in using PREPARED BY :MS GOMALA SUKUMARAN a range of tools.
  23. 23. PRODUCTS OR SERVICES • Whatever the organisation offers, it must be made (or put together in some way) so that it will do something that the prospoctive customers, consumers or clients will value PREPARED BY :MS GOMALA SUKUMARAN
  24. 24. INFORMATION • All managers need to be informed about what is happening and to make judgments about what might happen in the future • Marketing is a major source of information from outside an organisation. PREPARED BY :MS GOMALA SUKUMARAN
  25. 25. CASH OR OTHER BENEFITS • All organisations need some funding to survive, but not all earn it in the marketplace by selling products. • Those that provide an intangible benefit such as a marriage guidance service, measure their success by the number of clients they have helped, and how effective their help has been. BY :MS GOMALA SUKUMARAN PREPARED
  26. 26. Marketing mix • “Mix”is used by marketers to describe the elements that have to be combined to achieve success. • In a kitchen you have recipe, which lists the ingredients and says how much of each to use. • The marketing mix lists the tools a marketer can use in his planning. PREPARED BY :MS GOMALA SUKUMARAN
  27. 27. • Public relations is, of course, one of the key elements. • The marketing mix has seven components – known as 7 Ps. • It is marketing‟s task to blend the components of the mix so as to produce a „Product Offering‟ that meets identified customer and consumer need. PREPARED BY :MS GOMALA SUKUMARAN
  29. 29. PRODUCT • People buy what product will do for them. • Carpenters only buy drills because they want to make holes. • Gardeners buy cabbage seeds because they want to grow cabbages. • Unless the product offer shows why it will help to meet a need, it will not be bought. PREPARED BY :MS GOMALA SUKUMARAN
  30. 30. CONTINUED… • Public relations can be of great help in building overall understanding and in showing what needs are met. PREPARED BY :MS GOMALA SUKUMARAN
  31. 31. PRICE • What accountants call price is what customers call cost. • Unless customers think the cost is reasonable, there is will be no sale. • Public relations can illustrate how valuable the product is in use, and how others have benefited. PREPARED BY :MS GOMALA SUKUMARAN
  32. 32. PLACE • Do we take goods to the customer or bring the customer to the goods? • Direct marketing is a major step in taking goods to customers and consumers. • Interactive television is allowing shopping from the armchair • Public relations has a major role in shaping opinion and in educating target audiences. PREPARED BY :MS GOMALA SUKUMARAN
  33. 33. PROMOTION • The contact made between organisation and its audiences is of major important. PREPARED BY :MS GOMALA SUKUMARAN
  34. 34. PHYSICAL EVIDENCE • Everything physical that surrounds an offer is noted by a potential customer, often subconsciously. • Customers notice such things as how clean and tidy the sales person is, how busy the shop seems to be, and what kind of people shop there. PREPARED BY :MS GOMALA SUKUMARAN
  35. 35. CONTINUED… • Public relations skills can help the creation of a favourable image and so help to influence decisions. PREPARED BY :MS GOMALA SUKUMARAN
  36. 36. PARTICIPANTS • The people involved are of key importance. • Compare the attitude of a sales person in a very high quality jewellers with a counter hand in burger king. • The one‟s attitude and behaviour would be wrong in the other‟s shop. • Public relations can assist by generating publicity in the media best suited to the image the organisation wants to project . PREPARED BY :MS GOMALA SUKUMARAN
  37. 37. PROCESS • How easy and straightforward is it make the purchase? • Do things happen as promised? • Buyers want their needs met at once • They will switch products if another offers the same value in use, but faster or easier processing. PREPARED BY :MS GOMALA SUKUMARAN
  38. 38. CONTINUED… • Public relations can help by showing through that the organisation is friendly and easy to deal with, and that it is safe to trade with because it is sympathetic and fair in its dealings. PREPARED BY :MS GOMALA SUKUMARAN
  39. 39. package • Marketers put together a “package of benefits” that meet the needs of the identified customers and consumers. • We have seen that people buy what a product or service does for them. • They don‟t mind if the offer is a product, a service or a combination. PREPARED BY :MS GOMALA SUKUMARAN
  40. 40. CONTINUED… • So if you have tried to separate product from service – forget it. • We shall not refer to “ product or service” again. • Instead we shall refer to package (of benefits) or the product offering. PREPARED BY :MS GOMALA SUKUMARAN
  41. 41. Tips • Do not confuse package as used in promotion with package as used to describe a physical pack. PREPARED BY :MS GOMALA SUKUMARAN
  42. 42. PROMOTIONAL MIX • Four tools –Public relations –Advertising –Sales promotion –Selling PREPARED BY :MS GOMALA SUKUMARAN
  43. 43. CONTINUED… • Each tool has a separate role. • They must work together. • When they do, we have an “integrated campaign”. • Public relations people must know when to operate alongside marketing, in support of marketing objectives, and when to operate on a wider front. PREPARED BY :MS GOMALA SUKUMARAN
  44. 44. ADVERTISING • Public relations and advertising appear to be similar. • They are both concerned with communication to an organisation‟s target audiences. PREPARED BY :MS GOMALA SUKUMARAN
  45. 45. THEY DIFFER…BECAUSE • Public relations is used to create understanding. • Advertising is used to promote. PREPARED BY :MS GOMALA SUKUMARAN
  46. 46. CONTINUED… • The advertiser‟s job is to put forward the best points, to link them to consumer need. • It is understood that an advertisement will “puff” a product. PREPARED BY :MS GOMALA SUKUMARAN
  47. 47. puffing • Puffing a product is to exaggerate –to emphasize the good parts. • Typical puffs are – “world‟s largest” – “everybody‟s buying it” – “it will reach where other beers cannot reach” PREPARED BY :MS GOMALA SUKUMARAN
  48. 48. CONTINUED… • Puffing a product in an advertisment is legal, because everyone reading an advertisment e expects the benefits to be stressed. • Therefore they allow for exaggeration and are not deceived. PREPARED BY :MS GOMALA SUKUMARAN
  49. 49. ADVERTISING..DEFINED • Advertising presents the most persuasive possible selling message to the right prospects for the product or service at the lowest possible cost. (British Institute of Ptactioners in Advertising (IPA)) • Any paid for, non-personal presentation and promotion of ideas, goods or services by an identified person. (Kotler) PREPARED BY :MS GOMALA SUKUMARAN
  50. 50. SALES PROMOTION • Packaging was redesigned to add information • Advertising was designed for Point of Purchase (PoP) and extra incentives were also added. • Sales promotion was born. PREPARED BY :MS GOMALA SUKUMARAN
  51. 51. Sales promotion…defined • Short-term incentives to encourage purchase at Point of Sale (PoS) (Kotler) PREPARED BY :MS GOMALA SUKUMARAN
  52. 52. KEY POINTS • Short term – Sales promotion works at the PoP where a decision is usually taken quite quickly. – Often decision is made on impulse – especially where there is little risk. – Eg : how long do you take to decide between bars of chocolate or breakfast cereals? PREPARED BY :MS GOMALA SUKUMARAN
  53. 53. CONTINUED… • Incentive – The extra incentive must be something that will appeal to members of the target audience. – Kids toys in breakfast cereals, loyalty points at a filling station. • Encourage purchase – Sales promotion works to encourage the buying decision – now. – It is ultra short-term- immediate PREPARED BY :MS GOMALA SUKUMARAN
  54. 54. CONTINUED… • We have been influenced by sales promotion • We have all met such offers as : – Two for the price of one – Free sample – Voucher of next purchase • Sales promotion works to clear objectives and must integrate with the other promotional tools. PREPARED BY :MS GOMALA SUKUMARAN
  55. 55. Selling • Sales people meet customers personally, sometimes over the telephone, usually face to face. • They can always speak direclty with the potential customers. • Sales people are the only promotional tool that can instantly react to feedback. PREPARED BY :MS GOMALA SUKUMARAN
  56. 56. DIRECT SELLING…DEFINED • An oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales. (Kotler) PREPARED BY :MS GOMALA SUKUMARAN
  57. 57. KEY POINTS • Oral means of speech – An oral presentation is talking with somebody • Conversation – This emphasises the need for interactive communication • Prospective purchasers – All contacts are treated as prospective buyers even if they buy regularly. – They may change to another supplier at any time • Making sales – Sales people exist to sell – Never allow a sales person to become on an “ order taker” PREPARED BY :MS GOMALA SUKUMARAN
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