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Public Relations,
Publicity, and Corporate
Advertising
17
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Aqua Teen Hunger Force
Guerilla Marketing
Guerilla Marketing
• The body of
unconventional
ways of pursuing
conventional
goals.
• A proven
method of
achieving profits
with minimum
money.
Guerilla Marketing Gone Apes
• To promote the new Aqua Teen Hunger
Force Movie, Turner Broadcasting Network
teamed up with Guerilla Interference Inc.
• The Goal: Deploy 400 LED “LiteBright”
displays within 10 major cities.
• Part of the marketing plan was to promote
The Cartoon Network’s eccentric, nighttime,
college-crowd brand of programming Adult
Swim.
Guerilla Marketing Gone Apes
• Some of Boston’s residents mistook the
devices for explosives and contacted
authorities.
• The city quickly reacted and shut down
all major public transportation and
spent $500,000 deploying police and
bomb sniffing dogs.
• Turner Broadcasting was fined
$1,000,000 from the city of Boston and
also paid $1,000,000 to “goodwill”
funds to homeland security.
Results
• In the days since the event:
– Made national televised news
– The average number of American
households who viewed Aqua Teen Hunger
Force rose 5%, to 1,082,500, from the
previous week of 1,030,500 viewers.
– T-shirts were instantly available for sale
portraying the controversial characters.
– Web site spiked 105.2%, to 790,000 from
385,000 one week before.
– Total US Gross: $5,520,368
– US DVD Sales: $11,084,232
– Movie Budget: $750,000
Ethical Breach?
• Turner Broadcasting failed to notify
the major cities about what was
going on. The lack of
communication cost them
unnecessary fines.
• The Ethics Code published by the
Word of Mouth Marketing
Association stresses honesty of
relationship, honesty of opinion,
and honesty of identity.
Sources:
• http://www.businessweek.com/innovate/cont
ent/feb2007/id20070209_934852_page_2.htm
• http://youtube.com/watch?v=9yigQGKaf2A
• www.Google.com
Public Relations Defined
A management function
evaluates public attitudes
which
identifies the policies and procedures
and
an organization with the public interest
of
executes a program of action (and communication)
and
earn public understanding and acceptance
to
Public Relations Management Process
Identification of policies
and procedures
Determination and
evaluation of public
attitudes
Development and
execution of the
program
PR
Traditional PR Perspective
Customers
Employees
Investors
Government
Community
Suppliers
Public
Relations
Department
Integration of PR into the Promotional Mix
Marketing
Department
Public
Relations
Separate Functions
Marketing
Department
Public
Relations
Coordinated and Equal
Marketing
Department
Public
Relations
Integrated
Marketing Public Relations Functions
Building market excitement before media ads break
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
Improving ROI
Defending products at risk, giving consumers reasons to buy
MPR in Practice
Benefits of MPR
A cost-effective way to
reach the market
Highly targeted way to
conduct public relations
Endorsements by
independent third parties
Achievement of credibility
Makes advertising
messages more credible
Breaks though the clutter
Circumvents resistance to
sales efforts
Advantages
Improved ROI
Creates influence among
opinion leaders
Improved media
involvement w/customers
Benefits of MPR
Difficult to tie in slogans or
other advertising devices
No standards for effective
measurement
Lack of control over media
Media time and space aren’t
guaranteed
Disadvantages
The Process of Public Relations
Measuring Program Effectiveness
Developing and Executing a PR Program
Establishing a PR Plan
Determining and Evaluating Public Attitudes
Test Your Knowledge
In public relations targeting, external audiences
include:
A) Customers
B) The public at large
C) Suppliers
D) Stockholders
E) All of the above
Research on Public Attitudes
Provides input for
the planning process
Serves as an “early
warning system”
Secures internal
cooperation, support
Increases
communications
effectiveness
10 Evaluation Questions
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?
10 Evaluation Questions
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?
Determining Public Relations Audiences
Customers and
Clients
Employees
Vendors and
Suppliers
Community
Members
Stockholders and
Investors
Internal or
Associated
The Media
Governments
Financial Groups
External or
Independent
Educators
Civic and Business
Organizations
Communicating With Target Audiences
Bulletin boards
Direct mail
Annual reports
Newsletters
Internal or
Associated
Press releases
Conferences
External or
Independent
Public relations ads
Research reports
The Media Also Engages in Public Relations
Implementing the PR Program
Press
Releases
Community
Involvement
Press
Conferences
Exclusives
Interviews
The
Internet
PR Tools
Special Olympics Torch Run
*Click outside of the video screen to advance to the next slide
The Internet as a PR Tool
Allows much more substantial information
to be presented
Provides the media with instant access
to additional sources of information
Allows information to be presented quickly
The Internet…
Advantages of Public Relations
Credibility
Lead
Generation
Cost
Savings
Avoidance
of Clutter
Image
Building
Selectivity
PR
Provides
Potential Problems of Public Relations
Potential
Problems
Potential for incomplete
communication process
Receiver not making
connection to the source
Lack of coordination with
marketing dept.
Inconsistent, redundant
communications
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
General Mills Capitalizes on Publicity
Measuring PR Effectiveness
Contributions made?
What was achieved?
Quantitative measures?
Quality?
Criteria for Measuring PR Effectiveness
Subject
Publication
Reporter
Target
audience
Percentage of
positive and
negative articles
by . . .
Over time
On the target audience
On specific target audiences
Number of impressions . . .
Ratio of positive to negative articles
Positive articles over time
Negative articles over time
Percentage of . .
Additional Measures of PR Effectiveness
Personal observation and reaction
Matching objectives and results
The team approach
Management by objectives
Public opinions and surveys
Audits
Publicity versus Public Relations
A short-term strategy
Publicity:
The generation of news about a person,
product, or service that appears in the media
A subset of public relations
Not always positive
Often originates outside the firm
A Response to Negative Publicity
Pros and Cons of Publicity
Substantial credibility
News value
Significant word-of-
mouth
Perception of
endorsement by
media
Advantages
Inaccuracy, omission,
or distortion may
result
Timing difficult or
impossible to control
Disadvantages
Corporate Advertising
An extension of the PR
function
Promotes the organization
Does not promote a specific
product or service
Image
enhancement
Assuming a
position on an
issue or cause
Seeks
involvement
Why is Corporate Advertising Controversial?
Claims of
Opponents to
Corporate
Advertising
Consumers aren’t
interested in this form of
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
Objectives of Corporate Advertising
Create a positive
image for the
firm
Smooth labor
relations
Communicate
the
organization’s
viewpoint
Boost
employee
morale
Establish
diversified
company
identity
Help newly
deregulated
industries
Objectives
Types of Corporate Advertising
Positioning Ads
Sponsorship
Recruitment
General Image Ads
Financial Support
Image
Advertising
Event
Sponsorship
Advocacy
Advertising
Cause-related
Advertising
Boeing Advertises to Enhance Its Image
*Click outside of the video screen to advance to the next slide
Employee Recruitment by Grant Thornton
Event Sponsorship
Sporting
Events
Music,
Entertainment
Causes Festivals
Cultural Events Arts
Corporate Sponsor
Test Your Knowledge
Why would World Wrestling Entertainment (WWE)
sponsor a car on the NASCAR racing circuit?
A) To build equity and gain affinity with its
target market
B) To show its position on sports marketing
C) To create a generic positioning strategy
D) To further segment its target market
E) To reduce its overall promotional expenses
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.
American Gas Association Advocacy Ad
Cause Related Marketing
Cause related marketing:
A form of marketing whereby
companies link with charities or
nonprofit organizations as
contributing sponsors.
Pros and Cons of Corporate Advertising
Raises questions of
constitutionality and
ethics
May have
questionable
effectiveness
Excellent vehicle for
positioning the firm
Takes advantage of
benefits derived from
public relations
Reaches a selected
target market
Advantages Disadvantages
Measuring Corporate Ad Effectiveness
Relating to Stock Prices
Attitude Surveys
Focus Group Research
Effective?

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Chapter17-1.ppt

  • 1. Public Relations, Publicity, and Corporate Advertising 17 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. Aqua Teen Hunger Force Guerilla Marketing
  • 3. Guerilla Marketing • The body of unconventional ways of pursuing conventional goals. • A proven method of achieving profits with minimum money.
  • 4. Guerilla Marketing Gone Apes • To promote the new Aqua Teen Hunger Force Movie, Turner Broadcasting Network teamed up with Guerilla Interference Inc. • The Goal: Deploy 400 LED “LiteBright” displays within 10 major cities. • Part of the marketing plan was to promote The Cartoon Network’s eccentric, nighttime, college-crowd brand of programming Adult Swim.
  • 5. Guerilla Marketing Gone Apes • Some of Boston’s residents mistook the devices for explosives and contacted authorities. • The city quickly reacted and shut down all major public transportation and spent $500,000 deploying police and bomb sniffing dogs. • Turner Broadcasting was fined $1,000,000 from the city of Boston and also paid $1,000,000 to “goodwill” funds to homeland security.
  • 6. Results • In the days since the event: – Made national televised news – The average number of American households who viewed Aqua Teen Hunger Force rose 5%, to 1,082,500, from the previous week of 1,030,500 viewers. – T-shirts were instantly available for sale portraying the controversial characters. – Web site spiked 105.2%, to 790,000 from 385,000 one week before. – Total US Gross: $5,520,368 – US DVD Sales: $11,084,232 – Movie Budget: $750,000
  • 7. Ethical Breach? • Turner Broadcasting failed to notify the major cities about what was going on. The lack of communication cost them unnecessary fines. • The Ethics Code published by the Word of Mouth Marketing Association stresses honesty of relationship, honesty of opinion, and honesty of identity.
  • 9. Public Relations Defined A management function evaluates public attitudes which identifies the policies and procedures and an organization with the public interest of executes a program of action (and communication) and earn public understanding and acceptance to
  • 10. Public Relations Management Process Identification of policies and procedures Determination and evaluation of public attitudes Development and execution of the program PR
  • 12. Integration of PR into the Promotional Mix Marketing Department Public Relations Separate Functions Marketing Department Public Relations Coordinated and Equal Marketing Department Public Relations Integrated
  • 13. Marketing Public Relations Functions Building market excitement before media ads break 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 Improving ROI Defending products at risk, giving consumers reasons to buy
  • 15. Benefits of MPR A cost-effective way to reach the market Highly targeted way to conduct public relations Endorsements by independent third parties Achievement of credibility Makes advertising messages more credible Breaks though the clutter Circumvents resistance to sales efforts Advantages Improved ROI Creates influence among opinion leaders Improved media involvement w/customers
  • 16. Benefits of MPR Difficult to tie in slogans or other advertising devices No standards for effective measurement Lack of control over media Media time and space aren’t guaranteed Disadvantages
  • 17. The Process of Public Relations Measuring Program Effectiveness Developing and Executing a PR Program Establishing a PR Plan Determining and Evaluating Public Attitudes
  • 18. Test Your Knowledge In public relations targeting, external audiences include: A) Customers B) The public at large C) Suppliers D) Stockholders E) All of the above
  • 19. Research on Public Attitudes Provides input for the planning process Serves as an “early warning system” Secures internal cooperation, support Increases communications effectiveness
  • 20. 10 Evaluation Questions 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?
  • 21. 10 Evaluation Questions 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?
  • 22. Determining Public Relations Audiences Customers and Clients Employees Vendors and Suppliers Community Members Stockholders and Investors Internal or Associated The Media Governments Financial Groups External or Independent Educators Civic and Business Organizations
  • 23. Communicating With Target Audiences Bulletin boards Direct mail Annual reports Newsletters Internal or Associated Press releases Conferences External or Independent Public relations ads Research reports
  • 24. The Media Also Engages in Public Relations
  • 25. Implementing the PR Program Press Releases Community Involvement Press Conferences Exclusives Interviews The Internet PR Tools
  • 26. Special Olympics Torch Run *Click outside of the video screen to advance to the next slide
  • 27. The Internet as a PR Tool Allows much more substantial information to be presented Provides the media with instant access to additional sources of information Allows information to be presented quickly The Internet…
  • 28. Advantages of Public Relations Credibility Lead Generation Cost Savings Avoidance of Clutter Image Building Selectivity PR Provides
  • 29. Potential Problems of Public Relations Potential Problems Potential for incomplete communication process Receiver not making connection to the source Lack of coordination with marketing dept. Inconsistent, redundant communications
  • 30. 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
  • 32. Measuring PR Effectiveness Contributions made? What was achieved? Quantitative measures? Quality?
  • 33. Criteria for Measuring PR Effectiveness Subject Publication Reporter Target audience Percentage of positive and negative articles by . . . Over time On the target audience On specific target audiences Number of impressions . . . Ratio of positive to negative articles Positive articles over time Negative articles over time Percentage of . .
  • 34. Additional Measures of PR Effectiveness Personal observation and reaction Matching objectives and results The team approach Management by objectives Public opinions and surveys Audits
  • 35. Publicity versus Public Relations A short-term strategy Publicity: The generation of news about a person, product, or service that appears in the media A subset of public relations Not always positive Often originates outside the firm
  • 36. A Response to Negative Publicity
  • 37. Pros and Cons of Publicity Substantial credibility News value Significant word-of- mouth Perception of endorsement by media Advantages Inaccuracy, omission, or distortion may result Timing difficult or impossible to control Disadvantages
  • 38. Corporate Advertising An extension of the PR function Promotes the organization Does not promote a specific product or service Image enhancement Assuming a position on an issue or cause Seeks involvement
  • 39. Why is Corporate Advertising Controversial? Claims of Opponents to Corporate Advertising Consumers aren’t interested in this form of 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
  • 40. Objectives of Corporate Advertising Create a positive image for the firm Smooth labor relations Communicate the organization’s viewpoint Boost employee morale Establish diversified company identity Help newly deregulated industries Objectives
  • 41. Types of Corporate Advertising Positioning Ads Sponsorship Recruitment General Image Ads Financial Support Image Advertising Event Sponsorship Advocacy Advertising Cause-related Advertising
  • 42. Boeing Advertises to Enhance Its Image *Click outside of the video screen to advance to the next slide
  • 43. Employee Recruitment by Grant Thornton
  • 45. Test Your Knowledge Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing circuit? A) To build equity and gain affinity with its target market B) To show its position on sports marketing C) To create a generic positioning strategy D) To further segment its target market E) To reduce its overall promotional expenses
  • 46. 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.
  • 48. Cause Related Marketing Cause related marketing: A form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.
  • 49. Pros and Cons of Corporate Advertising Raises questions of constitutionality and ethics May have questionable effectiveness Excellent vehicle for positioning the firm Takes advantage of benefits derived from public relations Reaches a selected target market Advantages Disadvantages
  • 50. Measuring Corporate Ad Effectiveness Relating to Stock Prices Attitude Surveys Focus Group Research Effective?