PR involves a variety of programmes designed to promote or protect a company’s image or its individual products. It is essentially defensive: It is a corporate armour that the company can wear which would protect the company during adverse times
Marketing PR: Long-term strategic image building, developing credibility, raising the organisation’s profile, and enhancing other marketing activities. Corporate PR: Long-term relationship building strategy with various publics. Short-term tactical response to an unforeseen crisis.
Marketing experts who use public relations and other forms of promotion to suggest a mental picture to the public. Typically, a corporate image is designed to be appealing to the public, so that the company can spark an interest among consumers, create share of mind, generate brand equity, and thus facilitate product sales. A corporate image is the perception that the general public holds about a particular business. Many companies invest a great deal of time and other resources in an effort to influence the opinion that consumers hold about the products offered by the business, as well as the business itself. This process of cultivating positive public relations extends to not only interaction with consumers, but also ongoing interaction with the media, labor unions, industrial associations, and other entities that have a direct and indirect impact on public opinion. Corporate image is the best way of perceiving and corporations image. One of the most basic ways of shaping a corporate image is establishing and maintaining positive relationships with the general public. This effort usually begins by offering products that successfully meet the needs of customers, thus generating goodwill. As consumers come to know and trust the product lines offered by the business, they begin to share their opinions with others. This positive word of mouth helps to introduce other consumers to the products offered by the business, and makes it easier to establish a favorable perception in the minds of more people.
Corporate images is an overall perception of the company held by different segments of the public (Villanova, Zinkhan and Hyman, 1990). At the same time a company will have more than one image depending on the nature of the interaction with the different groups. People tend to ‘humanize’ companies, and to give them attributes such as ‘caring’, ‘friendly’ and ‘ ruthless’,
1. Corporate Identity this is the so-called “ideal” self-image. It is how a company chooses to identify itself to the public, how it projects itself to the public. 2. Corporate Advertising Communicating the organization’s identity in the way that the achievement of company’s goals is facilitated. This is a management responsibility. Institutional advertising generates awareness and goodwill of a company behind a product or service 3. Brand Image Why is Brand A more successful than Brand B? Brand image plays an important role to the success of a product. It consists of functional, symbolic and experiential aspects. This is when there is a significant interaction between brand and corporate image. 4. Public Relations A means to build up a general reservoir of goodwill. These can be for example sponsoring local events and contributing to charities, which can project an image of “good corporate citizenship”. 5. Frontline Employees Behaviour Contact with frontline employees of a company serves to form an impression about that company, e.g. the courtesy and knowledge of the telephone receptionist. Vice versa the the behaviour of these employees is influenced by the corporate culture (“the pattern of shared values and beliefs…”) and climate within the organization. 6. Websites Internet is a potential means of communication to all their stakeholders. It is part of an integrated marketing communications concept. The help stakeholders gather information, form perceptions, and more than that gives them the possibility to directly respond back. Further websites enable organizations to recreate and reposition themselves to meet the demands of the market place.
1. Industry image The general image of an industry can have an impact on the one of a company. Think of the insurance industry versus the real estate industry, for example. Thus, it is always a managerial issue whether the image of the industry is positive or negative. 2. Country-of-Origin Image: FCUK DKNY PRADA 3. Press Reports Press releases are controlled by a company. Press reports are done by any and all others. People tend to sharpen their idea about a company through the broad variety of news items. 4. Word-of-mouth Tends to be highly persuasive and credible and can significantly influence the image a stakeholder forms towards a given company
Public relations and corporate image
Public Relations and corporate image
INTRODUCTIONPublic relations defined The deliberate, planned and sustained effort to institute and maintain mutual understanding between an organisation and its publics.Institute of Public Relations (IPR)
FUNCTIONS OF PUBLIC RELATIONSSpecific public relations disciplines include: Financial public relations – providing information mainly to business reporters Consumer/lifestyle public relations – gaining publicity for a particular product or service, rather than using advertising Crisis public relations – responding to negative accusations or information Industry relations – providing information to trade bodies Government relations – engaging government departments to influence policymaking
How has the Role of PR Changed?Traditional Role: Communicating and gaining acceptance of policies and programs in the communityNew Role: More marketing-oriented (Marketing Public Relations – MPR) Operates within a marketing department to develop programs and policies Supports marketing objectives and adds value to the integrated marketing communications program Incorporates marketing and corporate PR functions.
What do PR people do?1. Determine the public’s existing attitude toward the firm Helps planning Serves as early warning system for problems2. Design a PR plan that is proactive rather than reactive.3. Execute the plan. E Determine relevant target audiences D Decide on tools4. Determine the effectiveness of the plan
Public Relations Tools The Sponsoring Organization Pays for Controlled Media soThey Maintain Total Control Over How and When the Message is Delivered. Prepared by the Organization for Use in House Ads Its Own Publication or One Over Which It Has Some Control. Ads Designed by Charitable or Civic Public Service Organizations for Broadcast Free of Announcements Charge. Corporate Designed to Promote a Corporate Image (Institutional) or Viewpoint. Advertising
Public Relations Tools Publications Such as Pamphlets, In-House Booklets, and Annual Reports for anPublications Organization’s Own Employees and Other Publics. Speakers, Maintaining Visual Contact With thePhotographs, Various Publics is a Big Part of PR. & Films Displays, All Are Used in Both Sales Promotion and Exhibits, & PR Programs and Include Open HousesStaged Events and Plant Tours.
Public Relations ToolsThe Media, Rather Than the Organization, Controls the Use and Placement of Uncontrolled Media. News Release Press Conference Primary Medium Used Convening Media Reps To Deliver PR Messages To Make a Statement. to Media Editors And Reporters. Risky, Because Media May Not See Company’s Video News Releases Announcement as Being Contain Video Coverage Real News. That Can be Used During a TV Newscast. May Distribute Press Kits.
Corporate image A corporate image refers to how a business is perceived. It is a generally accepted image of what a company stands for. A corporations image is not solely created by the company. Other contributors to a companys image could include: news media, journalists, labor unions, environmental organisations, and other NGOs.
Corporate ImageDefinition:Corporate images are selectively perceivedmental pictures of an organization.The sum total of these perceived characteristics of the corporation is what we refer to as the “corporate image”.(Zinkhan, Ganesh, Jaju, Hayes)
Who is interested in the corporate image? The most important groups are- Stockholders: who have invested in the company- Board of Directors: who manage the company- Employees: who is in middle management and below- Suppliers: who supplies any kinds of materials and services (banks)- Channel members: who are involved in the distribution network- Customers: who purchase the company’s products and/or services- Community: who asses the company’s role as corporate citizen
Benefits of an effective corporate image stimulating sales establishing company goodwill creating an identity for employees influencing investors and financial institutions promoting favourable relations with the community, government and opinion leaders achieving a competitive position
How is Corporate Image formed?Step 1: Influence and manage corporate image Internal controllable sphere External non-controllable sphere The internal controllable sphere can be used to influence the stakeholders’ image of the organization. The external factors, however can also be indirectly manipulated.
Forming a corporate image on the internal sphereSteps to follow: Forming a corporate image on the internal sphere through the six major sources:1.Corporate Identity.2. Corporate Advertising3. Brand Image4. Public Relations5. Frontline Employees Behaviour6. Websites
Forming a corporate image on the external sphereSteps to follow:There are four major sources:1. Industry image.2. Country-of-Origin Image3. Press Reports and Press releases.4. Word-of-mouth
MARKETING MIX Marketing involves a number of activities. To beginwith, an organisation may decide on its target groupof customers to be served. Once the target group isdecided, the product is to be placed in the market byproviding the appropriate product, price, distributionand promotional efforts. These are to be combinedor mixed in an appropriate proportion so as toachieve the marketing goal. Such mix of product,price, distribution and promotional efforts is knownas ‘Marketing Mix