Marketing Essentials Public Relations

Public Relations SECTION 17.3 The nature and scope of public relations What You'll Learn The nature and scope of public relations The different audiences for public relations The duties of public relations specialists How to prepare a news release

Public Relations SECTION 17.3 Why It's Important Public relations is image-building. A company is concerned with how its employees, customers, and the general public (including its stockholders) view it. This section explains how the public relations department of a company fosters goodwill among the public.

Public Relations SECTION 17.3 customer advisory boards Key Terms customer advisory boards consumer affairs specialists community relations news release press kit press conference

Public Relations SECTION 17.3 The Nature and Scope of Public Relations Businesses want to present a positive image to their customers, employees, and the general public. Well-planned and organized public relations efforts can increase sales, reinforce a good reputation, and increase the willingness of consumers to respond to advertising efforts for a company’s products. Businesses want to present a positive image to their customers, employees, and the general public. Public relations specialists attempt to create goodwill for their companies by creating public relations events. Here are some examples: Grand opening of a new mall Interview with a company official about hiring plans Launch a new product or product line Announcement of employee promotions or retirements Presentation of an award to the company or to one of its employees Company-sponsored sports event Community activity, such as a scholarship program sponsored by the business Charitable activity, such as a walkathon for local charity, in which the business participates Cultural activity, such as support for a new exhibit at a museum The goodwill generated by such public relations events benefits the business in many ways. Well-planned and organized public relations efforts can increase sales, reinforce a good reputation, and increase the willingness of consumers to respond to advertising efforts for the company’s products.

Public Relations SECTION 17.3 Customer Relations Good communication between employees and customers is vital in promoting a favorable business image. Many businesses go beyond courtesy to offer special services and amenities such as on-site restaurants and child-care facilities in order to maintain good customer relations. Good communication between employees and customers is vital in promoting a favorable business image. Courtesy, helpfulness, interest, tolerance, and friendliness help make customers come back. This repeat business is what makes a company successful. Many businesses, however, go further than just friendliness and courtesy. They offer special services and amenities in order to maintain good customer relations. These services and amenities might include on-premise restaurants, child-care facilities, gift wrapping, check-cashing services, fax and copying services, and free delivery. Slide 1 of 2

Public Relations SECTION 17.3 Customer Relations Customer advisory boards are panels of consumers who make suggestions about products and businesses. National companies often employ consumer affairs specialists to handle customer complaints and to serve as consumer advocates within the firm. Other public relations efforts are less obvious. Customer advisory boards are panels of consumers who make suggestions about products and businesses. Manufacturers, wholesalers, and retailers use customer advisory boards to test new products. A supermarket might want to learn about customer preferences regarding store hours and preferred cultural or health food products to stock. It may also want to lean whether customers like in-store promotional devices, such as electronic coupons and videocarts. By consulting with an advisory board, the supermarket can adjust or change policies, products, or promotional efforts to meet customers’ needs. Some larger department stores also hire consultants to assist customer with their purchases. Fashion, cosmetic, travel, bridal, and interior decorating consultants, as well as personal shoppers are examples of employees with specialized training who are hired by some retail firms. National companies often employ consumer affairs specialists to handle customer complaints and to serve as consumer advocates within the firm. Consumer affairs specialists design programs to reflect customer needs for information on topics such as nutrition, health and wellness, and product safety. Slide 2 of 2

Public Relations SECTION 17.3 Employee Relations Successful businesses have loyal and well-motivated employees who feel they are important to the company. Some examples of programs for employees include providing: Tuition reimbursement for college courses Newsletters for and about the company and its employees Recreational programs Employee recognition programs for improvements in performance and efficiency Successful businesses have loyal and well-motivated employees who feel they are important to the company. The public relations staff works with management and employees to design programs that foster positive attitudes. Some examples include: Tuition reimbursement for college courses Newsletters for and about the company and its employees Recreational programs Employee recognition programs for improvements in performance and efficiency Positive employee relations are necessary for all companies. They are the building block for developing a good reputation—made up of positive public and community relations.

Public Relations SECTION 17.3 Community Relations Community relations refers to the activities that a business uses to acquire or maintain the respect of the community, such as participating in and sponsoring activities that benefit the community's civic, social, and cultural life. Community relations refers to the activities that a business used to acquire or maintain the respect of the community. Businesses foster good community relations by participating in and sponsoring activities that benefit the civic, social and cultural life of a community. Some examples of community relations activities include sponsoring Special Olympics, providing mentors for marketing students, and matching employee donations to local charities. Companies encourage employees to join and remain active in civic organizations, such as the Optimists, Rotary Club or the Lions. In addition, involvement with school and community organizations, such as business advisory committees, business and school partnership programs, or the local chamber of commerce, provide recognition for individual employees and present a favorable image for the business. Some companies release employees form normal job responsibilities for limited time periods to chair important charitable fund-raising efforts, such as United Way campaigns. Effective businesses need to be active participants in their communities. Although the primary aim of community relations work is to promote civic pride and help the local residents, these events also help create goodwill for their business participants. Customers and the general public pay attention to the sponsors of community-wide activities. Example: Sponsoring the Special Olympics, or providing mentors for students.

Public Relations SECTION 17.3 The Role of Public Relations Specialists The principal task of a public relations specialist is to publicize the good news about a company and its products—and to control the damage done by any negative news. Public relations specialists work in the public and private sector. Companies often hire public relations firms or establish public relations departments. Public relations specialists work with more than just customers, employees, and the media. They also consult with civic and professional groups, legislators, government officials, consumer activities, stockholders, environmentalists, and suppliers. Public relations specialists work in both the public and the private sector. The public sector includes schools, hospitals, universities, government agencies, charitable organizations, and the military. Like private businesses, public agencies also have a need to project a favorable image. The principal task of a public relations specialist is to publicize the good news about a company and its products—and to control the damage done by any negative news.

Public Relations SECTION 17.3 Writing News Releases A news release is a prewritten story about a company that is sent to the media containing information about the company’s employees, stores, operations, products, corporate philosophy, or participation in an event or program. The public relations specialist's principal publicity tool is the news release. A news release is a prewritten story about a company that is sent to the various media. It usually contains information about the company’s employees, stores, operations, products, corporate philosophy, or participation in an event or program. Publicity projects should be selected for multiple uses. Information gathered for a news release should also be appropriate for use in a new company brochure or ad. Slide 1 of 2

Public Relations SECTION 17.3 Writing News Releases A news release must contain newsworthy information in order to be picked up by the media. It should be properly formatted and answer five basic questions: who, what, where, when, and why. A news release must contain a certain amount of newsworthy information in order to be picked up and carried by the media. There are certain guidelines that public relations personnel must observe in planning and carrying out publicity projects. A public affairs staff should send only important news releases to the media. A news release telling of a shopping mall expansion that will result in many new jobs created in a community has a good chance of being run by the media. When a media source is overwhelmed with submissions, it will tend to disregard them. By sending significant news releases to all media, both print and broadcast, at the same time. The chances that one will use the material are greater when all are contacted. Remember that the media are interested in news, not publicity. The word publicity should never be used when communicating with media personnel. A news release should be properly formatted. It also must answer five basic questions: who, what, where, when and why. Try to avoid editorial comment and personal opinion; your focus should remain on the facts and details, not personal commentary. When an opinion must be included, attribute it to the originator by using quotes. Use simple and accurate words. Words that are unfamiliar or jargon used in a business might confuse news personnel. Be as brief as possible but be sure to cover important facts about the event. News releases should have a continuity of theme extending over many months or even years. Similar repeat messages will achieve maximum impact on an audience. A consistent message might be that a business is community minded. Slide 2 of 2

Public Relations SECTION 17.3 Other Public Relations Duties In addition to writing news releases, public relations specialists also perform these tasks: Prepare annual reports, brochures, and responses to customer inquiries. Write feature articles for trade magazines. Develop press kits, which are folders containing articles, news releases, feature stories, and photographs. These are given to the media to assist in reporting. News releases are the major written documents for which public relations specialists are responsible, but they are not the only ones. Public relations staff members also prepare annual reports for investors and interested customers. They also prepare brochures and responses to customer inquiries. Occasionally, they even write short feature articles for trade magazines. Public relations staff members may help keep a company web site updated with noteworthy and interesting news. They also develop press kits. A press kit is a folder containing articles, news releases, feature stories, and photographs about a company, product or person. Press kits are given to the media to assist them in reporting on the intended news item. These save time for public relations specialists because frequently asked questions can be covered in one place. Public relations personnel frequently meet customer sand the public face-to-face. They attend public relations events and organize press conferences. A press conference is a meeting in which a business or organization invites media members to hear an announcement about a newsworthy event.

Reviewing Key Terms and Concepts ASSESSMENT 17.3 Reviewing Key Terms and Concepts 1. Name three ways in which the goodwill generated by public relations can benefit a company. 2. What are customer advisory boards? 3. What is meant by community relations? 4. What is the primary task of public relations specialists? 5. What are three reasons why a company may call a press conference? Increase sales, reinforce good reputation, increase customers’ response to advertising. Panels of customers who make suggestions about new products Activities a business uses to acquire or maintain respect of the community They publicize the good news about a company, its products, and policies, and attempt to control damage from any negative publicity. Corporate officer changes, reorganizations, new products, expansions, or closings.

ASSESSMENT Thinking Critically 17.3 What is meant by this following statement? "To the customer, the employees are the company." Image customers have of company’s employees reflect feelings about their products.