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Public Relations, Publicity, and Corporate
Advertising




McGraw-Hill/Irwin   © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
The Role of Public Relations

To manage relationships with the public


                      General
                      Public

    Employees                    Customers
                CLIENT

          Suppliers         Stockholders
Public Relations Management Process



    Determination and evaluation of
    public attitudes
    Identification of policies and
    procedures of an organization
    Development and execution of the
    program
Marketing Public Relations (MPR) Functions


 Building marketplace excitement before media
 advertising breaks
 Creating advertising news where there is no
 product news
 Introducing a product with little or no
 advertising
 Providing a value-added customer service
 Building brand-to-customer bonds
 Influencing the influentials/opinion leaders
 Defending products at risk and giving
 customers a reason to buy
Segway: An Example of MPR’s at Work
The Process of Public Relations



    Determining and evaluating public
    attitudes

    Establishing a PR plan

    Developing and executing the PR
    program
Research on Public Attitudes



 Provides input for the planning process

 Serves as an “early warning system”

 Secures internal cooperation, support

 Increases communications effectiveness
Evaluating Public Relations Plans

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?
Evaluating Public Relations Plans

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?
Public Relations Audiences


      Employees of the firm
      Stockholders and investors
      Community members
      Suppliers and customers
      The media
      Educators
      Civic and business organizations
      Governments
      Financial groups
Public Relations Tools


       Press releases
       Press conferences
       Exclusives
       Interviews
       Community involvement
       The internet
Example of a Press Release
Reebok Used a Press Conference to
Announce the Sponsorship of Shakira
Telling the Story

  Technological methods make it
  easier for the press
  They increase the likelihood
  media will use the story
   – Telephone press conferences
   – In-studio media tours
   – Multicomponent video news releases
     (VNR)
   – Targeted wire stories
PR Publications


     Inserts           News releases
     Enclosures        Media kits
     Annual reports    Booklets
     Posters           Leaflets
     Bulletin boards   Pamphlets
     Exhibits          Brochures
     Audiovisuals      Manuals
     Position papers   Books
     Speeches          Letters
Advantages of Public Relations



        Credibility
        Cost
        Avoidance of clutter
        Lead generation
        Selectivity
        Image building
Criteria for Measuring PR Effectiveness

    Total number of impressions . . .
      Over time
      On the target audience
      On specific target audiences
    Percentage of . . .
      Positive articles over time
      Negative articles over time
    Ratio of positive to negative articles
    Percentage of positive and negative
    articles by . . .
      Subject
      Publication
      Reporter
      Target audience
Publicity

   Publicity involves the generation of news about a
 company, product, service, brand or person in various
   media. It is a subset of the public relations effort.


Key points regarding publicity:
 Publicity is generally short-term
 focused
 Publicity is not always under the
 control of the firm
 Publicity can be negative as well as
 positive
The Power of Publicity


  Perceived as more credible
  Often perceived as endorsed by the
  medium in which it appears
  Often has high news value
  Often generates high frequency of
  exposure
Publicity Vehicles


Feature                      Special
Articles                     Events

               Captioned
                Photos


 News                        Press
Releases                   Conferences
Responding to Publicity
Using Positive Publicity
Advertising Versus Publicity

 Factor       Advertising        Publicity

 Control         Great             Little

Credibility      Lower            Higher

 Reach         Achievable      Undetermined

Frequency     Schedulable      Undetermined

  Cost        Specific/High   Unspecified/Low

Flexibility       High             Low

 Timing        Specifiable       Tentative
Corporate Advertising


Advertising done to promote the interests of the firm
 by enhancing its image, assuming a position on a
   particular issue or promoting a certain cause


 Types of Corporate Advertising

       Image Advertising
       Event sponsorship
       Advocacy advertising
       Cause-related advertising
Objectives of Corporate Advertising


 Create a positive image for the firm
 Communicate the organization’s
 viewpoint on various issues
 Boost employee morale
 Smooth labor relations
 Help newly deregulated industries
 Help diversified companies establish an
 identity
Chevron Engages in Image Advertising
Event Sponsorship – a form of marketing communications
   whereby an organization becomes involved with a
  particular event by developing sponsorship relations.



Events used for sponsorship:
• Sporting events
• Music/entertainment
• Festivals
• Arts/cultural events
• Causes
Advocacy Advertising




 Advocacy advertising is the propagation of
  ideas and elucidation of controversial social
 issues of public importance in a manner that
     supports the interests of the sponsor
The San Diego Zoological Society uses
advocacy advertising
Cause Related Marketing



Cause related marketing is a form of
marketing whereby companies link with
 charities or nonprofit organizations as
          contributing sponsors
KitchenAid uses cause-related marketing

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Chap17 Public Relations, Publicity, And Corporate Advertising

  • 1. 17 Public Relations, Publicity, and Corporate Advertising McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 2. The Role of Public Relations To manage relationships with the public General Public Employees Customers CLIENT Suppliers Stockholders
  • 3. Public Relations Management Process Determination and evaluation of public attitudes Identification of policies and procedures of an organization Development and execution of the program
  • 4. Marketing Public Relations (MPR) Functions Building marketplace excitement before media advertising breaks Creating advertising news where there is no product news Introducing a product with little or no advertising Providing a value-added customer service Building brand-to-customer bonds Influencing the influentials/opinion leaders Defending products at risk and giving customers a reason to buy
  • 5. Segway: An Example of MPR’s at Work
  • 6. The Process of Public Relations Determining and evaluating public attitudes Establishing a PR plan Developing and executing the PR program
  • 7. Research on Public Attitudes Provides input for the planning process Serves as an “early warning system” Secures internal cooperation, support Increases communications effectiveness
  • 8. Evaluating Public Relations Plans 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?
  • 9. Evaluating Public Relations Plans 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?
  • 10. Public Relations Audiences Employees of the firm Stockholders and investors Community members Suppliers and customers The media Educators Civic and business organizations Governments Financial groups
  • 11. Public Relations Tools Press releases Press conferences Exclusives Interviews Community involvement The internet
  • 12. Example of a Press Release
  • 13. Reebok Used a Press Conference to Announce the Sponsorship of Shakira
  • 14. Telling the Story Technological methods make it easier for the press They increase the likelihood media will use the story – Telephone press conferences – In-studio media tours – Multicomponent video news releases (VNR) – Targeted wire stories
  • 15. PR Publications Inserts News releases Enclosures Media kits Annual reports Booklets Posters Leaflets Bulletin boards Pamphlets Exhibits Brochures Audiovisuals Manuals Position papers Books Speeches Letters
  • 16. Advantages of Public Relations Credibility Cost Avoidance of clutter Lead generation Selectivity Image building
  • 17. Criteria for Measuring PR Effectiveness Total number of impressions . . . Over time On the target audience On specific target audiences Percentage of . . . Positive articles over time Negative articles over time Ratio of positive to negative articles Percentage of positive and negative articles by . . . Subject Publication Reporter Target audience
  • 18. Publicity Publicity involves the generation of news about a company, product, service, brand or person in various media. It is a subset of the public relations effort. Key points regarding publicity: Publicity is generally short-term focused Publicity is not always under the control of the firm Publicity can be negative as well as positive
  • 19. The Power of Publicity Perceived as more credible Often perceived as endorsed by the medium in which it appears Often has high news value Often generates high frequency of exposure
  • 20. Publicity Vehicles Feature Special Articles Events Captioned Photos News Press Releases Conferences
  • 23. Advertising Versus Publicity Factor Advertising Publicity Control Great Little Credibility Lower Higher Reach Achievable Undetermined Frequency Schedulable Undetermined Cost Specific/High Unspecified/Low Flexibility High Low Timing Specifiable Tentative
  • 24. Corporate Advertising Advertising done to promote the interests of the firm by enhancing its image, assuming a position on a particular issue or promoting a certain cause Types of Corporate Advertising Image Advertising Event sponsorship Advocacy advertising Cause-related advertising
  • 25. Objectives of Corporate Advertising Create a positive image for the firm Communicate the organization’s viewpoint on various issues Boost employee morale Smooth labor relations Help newly deregulated industries Help diversified companies establish an identity
  • 26. Chevron Engages in Image Advertising
  • 27. Event Sponsorship – a form of marketing communications whereby an organization becomes involved with a particular event by developing sponsorship relations. Events used for sponsorship: • Sporting events • Music/entertainment • Festivals • Arts/cultural events • Causes
  • 28. Advocacy Advertising Advocacy advertising is the propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor
  • 29. The San Diego Zoological Society uses advocacy advertising
  • 30. Cause Related Marketing Cause related marketing is a form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors