Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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 executes a program of action (and communication) an organization with the public interest identifies the policies and procedures evaluates public attitudes A management function Public Relations Defined © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Identification of policies and procedures Determination and evaluation of public attitudes Identification of policies and procedures Determination and evaluation of public attitudes Public Relations Management Process © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Development and execution of the program PR

Customers Employees Investors Government Community Suppliers Employees Government Investors Customers Traditional PR Perspective © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Public Relations Department

Arizona Department of Health Advises Respect © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin *Click outside of the video screen to advance to the next slide

Integration of PR into the IMC Process © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketing Department Public RelationsSeparate Marketing Department Public RelationsCoordinated Marketing Department Public RelationsIntegrated

Marketing Public Relations (MPR) Functions © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 influentials, providing information to opinion leaders Improving ROI Defending products at risk, giving consumers a reason to buy 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 influentials, providing information to opinion leaders Improving ROI

Benefits of Marketing Public Relations (MPR) © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 A cost-effective way to reach the market A 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 AdvantagesDisadvantages Difficult to tie in slogans or other advertising devices Lack of control over media Media time and space aren’t guaranteed A cost-effective way to reach the market A 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 Improved ROI Creates influence among opinion leaders Improved media involvement w/customers

Successful Implementations of MPRs © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Process of Public Relations © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Measuring Program Effectiveness Developing and Executing a PR Program Establishing a PR Plan Determining and Evaluating Public Attitudes Developing and Executing a PR Program Establishing a PR Plan Determining and Evaluating Public Attitudes

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin In public relations targeting, external audiences include: A)customers B)the public at large C)suppliers D)stockholders E)all of the above

Provides input for the planning process Serves as an “early warning system” Secures internal cooperation, support Serves as an “early warning system” Provides input for the planning process Research on Public Attitudes © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Increases communications effectiveness

10 Questions for Evaluating Public Relations Plans © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 Questions for Evaluating Public Relations Plans © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Media Governments Financial Groups The Media Governments External or Independent Educators Civic and Business Organizations Educators Civic and Business Organizations Customers and Clients Employees of the Firm Vendors and Suppliers Community Members Stockholders and Investors Customers and Clients Employees of the Firm Vendors and Suppliers Community Members Internal or Associated

Implementing the PR Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Press Releases Community Involvement Press Conferences Exclusives Interviews The Internet PR Tools Press Releases Community Involvement Press Conferences Exclusives The Internet

The Internet offers the ability to provide much more substantial information The Internet provides the media with instant access to additional sources of information The Internet allows information to be presented quickly The Internet provides the media with instant access to additional sources of information The Internet allows information to be presented quickly The Internet as a PR Tool © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Special Olympics Torch Run © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin *Click outside of the video screen to advance to the next slide

The Media Also Engages in Public Relations © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Credibility Lead Generation Cost Savings Avoidance of Clutter Image Building Selectivity Lead Generation Avoidance of Clutter Cost Savings Credibility Advantages of Public Relations © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin PR Provides

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Which of the following communications is most likely to have more credibility among its receivers? A)Vogue's magazine 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 appearance of the CEO of Ford Motor Company in its ads E)the appearance of some of the participants in American Idol in Old Navy ads

General Mills Capitalizes on Positive Publicity © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Positive articles over time Negative articles over time Positive articles over time Over time On the target audience On specific target audiences Subject Publica- tion Reporter Target audience Over time On the target audience On specific target audiences Subject Publica- tion Reporter Criteria for Measuring PR Effectiveness © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Percentage of positive and negative articles by... Ratio of positive to negative articles Percentage of.. Total number of impressions...

May Be Out of the Marketer’s Control Part of the PR Process The Generation of News About a Person, Product, or Service That Appears in the Media Part of the PR Process The Generation of News About a Person, Product, or Service That Appears in the Media Publicity © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

A Response to Negative Publicity © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Inaccuracy, omission, or distortion may result Timing difficult or impossible to control Substantial credibility News value Significant word-of- mouth Perception of endorsement by media Advantages and Disadvantages of Publicity © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin AdvantagesDisadvantages Timing difficult or impossible to control Substantial credibility News value Significant word-of- mouth Perception of endorsement by media

Image enhancement Assuming a position on an issue or cause Image enhancement Assuming a position on an issue or cause Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An extension of the PR function Promotes the organization Does not promote a specific product or service An extension of the PR function Does not promote a specific product or service Seeks involvement

Corporate advertising Is a waste of money Consumers aren’t interested in this form of advertising The firm’s finances or image must be in trouble This is a costly form of corporate self- indulgence Why Is Corporate Advertising Controversial? © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Claims of Opponents to Corporate Advertising Corporate advertising Is a waste of money Consumers aren’t interested in this form of advertising The firm’s finances or image must be in trouble

Create a positive image for the firm Smooth labor relations Communicate the organization’s viewpoint Boost employee morale Establish diversified company’s identity Help newly deregulated industries Smooth labor relations Boost employee morale Communicate the organization’s viewpoint Create a positive image for the firm Objectives of Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Objectives

Positioning Ads Sponsorship Recruitment General Image Ads Financial Support General Image Ads Positioning Ads Sponsorship Recruitment Types of Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Image Advertising Event Sponsorship Advocacy Advertising Cause-related Advertising

Grant Thornton Uses Advertising for Employee Recruitment © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Boeing Advertises to Enhance Its Image © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin *Click outside of the video screen to advance to the next slide

Sporting Events Sporting Events Music, Entertainment Causes Festivals Cultural Events Arts Sporting Events Sporting Events Music, Entertainment Causes Festivals Cultural Events Event Sponsorship © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Corporate Sponsor

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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.

An American Gas Association Advocacy Ad © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Cause Related Marketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Cause related marketing: is a form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.

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 May have questionable effectiveness Reaches a selected target market Takes advantage of benefits derived from public relations Excellent vehicle for positioning the firm Advantages and Disadvantages of Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin AdvantagesDisadvantages

Relating to Stock Prices Attitude Surveys Relating to Stock Prices Attitude Surveys Measuring Corporate Advertising Effectiveness © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Focus Group Research Effective?