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  1. 1. Public Relations, Publicity, and Corporate Advertising .
  2. 2. Public Relations Defined A management function A management function which and of and to evaluates public attitudes evaluates public attitudes identifies the policies and procedures identifies the policies and procedures an organization with the public interest an organization with the public interest executes a program of action (and communication) executes a program of action (and communication) earn public understanding and acceptance earn public understanding and acceptance
  3. 3. Public Relations Management Process Determination and Determination and evaluation of public evaluation of public attitudes attitudes PR PR Identification of policies Identification of policies and procedures and procedures Development and Development and execution of the execution of the program program
  4. 4. Traditional PR Perspective Customers Customers Community Community Investors Investors Public Public Relations Relations Department Department Suppliers Suppliers Government Government Employees Employees
  5. 5. Integration of PR into the Promotional Mix Separate Functions Marketing Department Public Relations Coordinated and Equal Marketing Department Public Relations Integrated Marketing Department Public Relations
  6. 6. Marketing Public Relations Functions Building market excitement before media ads break Improving ROI Creating news where there is no news Introducing a product with little or no advertising Providing a value-added customer service Building brand-to-customer bonds Influencing influentials, giving info to opinion leaders Defending products at risk, giving consumers reasons to buy
  7. 7. MPR in Practice
  8. 8. Benefits of MPR Advantages A cost-effective way to reach the market Breaks though the clutter Highly targeted way to conduct public relations Circumvents resistance to sales efforts Endorsements by independent third parties Improved media involvement w/customers Achievement of credibility Creates influence among opinion leaders Makes advertising messages more credible Improved ROI
  9. 9. Benefits of MPR Disadvantages Lack of control over media Difficult to tie in slogans or other advertising devices Media time and space aren’t guaranteed No standards for effective measurement
  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
  11. 11. Research on Public Attitudes Provides input for Provides input for the planning process the planning process Serves as an “early Serves as an “early warning system” warning system” Increases Increases communications communications effectiveness effectiveness Secures internal Secures internal cooperation, support cooperation, support
  12. 12. Determining Public Relations Audiences Internal or Internal or Associated Associated External or External or Independent Independent Stockholders and Investors Educators Customers and Clients Governments Employees Financial Groups Community Members Civic and Business Organizations Vendors and Suppliers The Media
  13. 13. Communicating With Target Audiences Internal or Internal or Associated Associated External or External or Independent Independent Newsletters Public relations ads Bulletin boards Press releases Direct mail Conferences Annual reports Research reports
  14. 14. The Media Also Engages in Public Relations
  15. 15. Implementing the PR Program Press Press Releases Releases Press Press Conferences Conferences Interviews Interviews PR Tools PR Tools The The Internet Internet Exclusives Exclusives Community Community Involvement Involvement
  16. 16. Special Olympics Torch Run *Click outside of the video screen to advance to the next slide
  17. 17. The Internet as a PR Tool The Internet… Allows information to be presented quickly Provides the media with instant access to additional sources of information Allows much more substantial information to be presented
  18. 18. Advantages of Public Relations Credibility Credibility Image Image Building Building Cost Cost Savings Savings PR PR Provides Provides Avoidance Avoidance of Clutter of Clutter Selectivity Selectivity Lead Lead Generation Generation
  19. 19. Potential Problems of Public Relations Potential for incomplete communication process Potential Potential Problems Problems Receiver not making connection to the source Lack of coordination with marketing dept. Inconsistent, redundant communications
  20. 20. Test Your Knowledge Which of the following communications is most likely to have more credibility among its receivers? A) Vogue's layout introducing its latest models B) Volvo's television ad promoting new standard safety features C) Motor Trend's announcement of the "Car of the Year" D) The CEO of Ford Motor Company appearing in its ads E) The appearance of the participants in American Idol in Old Navy ads
  21. 21. General Mills Capitalizes on Publicity
  22. 22. Measuring PR Effectiveness Contributions made? What was achieved? Quantitative measures? Quality?
  23. 23. Criteria for Measuring PR Effectiveness Ratio of positive to negative articles Number of impressions . . . Over time On the target audience On specific target audiences Percentage of . . Positive articles over time Negative articles over time Percentage of positive and negative articles by . . . Subject Publication Reporter Target audience
  24. 24. Additional Measures of PR Effectiveness Personal observation and reaction Matching objectives and results The team approach Management by objectives Public opinions and surveys Audits
  25. 25. 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 Often originates outside the firm
  26. 26. A Response to Negative Publicity
  27. 27. Pros and Cons of Publicity Advantages Disadvantages Substantial credibility Timing difficult or impossible to control News value Inaccuracy, omission, or distortion may result Significant word-ofmouth Perception of endorsement by media
  28. 28. 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 Image enhancement Assuming a position on an issue or cause Seeks involvement
  29. 29. Why is Corporate Advertising Controversial? Consumers aren’t interested in this form of advertising Claims of Claims of Opponents to Opponents to Corporate Corporate Advertising Advertising Corporate advertising is a waste of money The firm’s finances or image must be in trouble This is a costly form of corporate self-indulgence
  30. 30. Objectives of Corporate Advertising Establish Establish diversified diversified company company identity identity Create a positive Create a positive image for the image for the firm firm Communicate Communicate the the organization’s organization’s viewpoint viewpoint Objectives Objectives Help newly Help newly deregulated deregulated industries industries Boost Boost employee employee morale morale Smooth labor Smooth labor relations relations
  31. 31. Types of Corporate Advertising Image Image Advertising Advertising General Image Ads General Image Ads Positioning Ads Positioning Ads Event Event Sponsorship Sponsorship Sponsorship Sponsorship Recruitment Recruitment Advocacy Advocacy Advertising Advertising Cause-related Cause-related Advertising Advertising Financial Support Financial Support
  32. 32. Boeing Advertises to Enhance Its Image *Click outside of the video screen to advance to the next slide
  33. 33. Employee Recruitment by Grant Thornton
  34. 34. Event Sponsorship Corporate Sponsor Corporate Sponsor Sporting Sporting Events Events Causes Causes Cultural Events Cultural Events Music, Music, Entertainme Entertainme nt nt Festivals Festivals Arts Arts
  35. 35. Advocacy Advertising Advocacy advertising: The propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor.
  36. 36. American Gas Association Advocacy Ad
  37. 37. Cause Related Marketing Cause related marketing: A form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.
  38. 38. Pros and Cons of Corporate Advertising Advantages Disadvantages Excellent vehicle for positioning the firm May have questionable effectiveness Takes advantage of benefits derived from public relations Raises questions of constitutionality and ethics Reaches a selected target market
  39. 39. Measuring Corporate Ad Effectiveness Attitude Surveys Attitude Surveys Effective? Effective? Relating to Stock Prices Relating to Stock Prices Focus Group Research Focus Group Research