Chapter 13 Public Relations

Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand public relations and its strength and limitations To understand the reasons for corporate advertising and its advantage and disadvantage Chapter 13 : Public Relations

Chapter 13 : Public Relations Chapter Objectives To know how to compile a public relations plan To understand how public relations is obtained partly through publicity generated through news media Chapter 13 : Public Relations

Chapter 13 : Public Relations Traditional Definition of PR The management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance. ( Definition by the Public Relation News) Chapter 13 : Public Relations

Chapter 13 : Public Relations Required stages in PR The determination and evaluation of public attitudes The identification of policies and procedures of an organization with a public interest The development and execution of a communications program designed to bring about public understanding and acceptance Chapter 13 : Public Relations

Chapter 13 : Public Relations The New Role of PR It demonstrates four relationships that marketing and public relations can assume in an organization Defined by the degree of use of each function 4 different classes Chapter 13 : Public Relations

Four Classes of Marketing and Public Relations Relationships are characterized by minimal use of either function Class 2 Relationships have a well-established public relation functions but do very little in the way of formal marketing Chapter 13 : Public Relations

Four Classes of Marketing and Public Relations Organizations, in which marketing dominates and public relation function is minimal Class 4 Enterprises have both strong marketing and strong PR Chapter 13 : Public Relations

Chapter 13 : Public Relations The New Role of PR Example: Small social service agencies Example: Hospitals, colleges and universities Weak MARKETING Example: Small manufacturing companies Example: Large, Fortune five-hundred companies Strong Weak Strong PUBLIC RELATIONS Chapter 13 : Public Relations

Chapter 13 : Public Relations The New Role of PR PR departments position themselves as a tool to both supplant and support traditional advertising and marketing efforts a key part of IMC program PR must play an integral role in IMC program Chapter 13 : Public Relations

Publicity: One Effect of Public Relations It refers to the generation of news about a person, product,service, or organization that appears in broad cast or print media In some instances… Publicity and PR are synonymous. (I.e. Tree Top‘s respond to an adverse publicity) Publicity is the end result or effect of PR effort Chapter 13 : Public Relations

Publicity: One Effect of Public Relations Marketers like to have controls over the time and place where information is released They accomplish this by… Video news release (VNR) A Publicity piece produced by publicists The effective media use for product launches Chapter 13 : Public Relations

Publicity: One Effect of Public Relations Publicity complications The publicity typically lasts for a short time The publicity is not always positive and is not always under the control of, or paid for by, the organizations Publicity’s sheer power as a form of communication (I.e. Tylenol, and Johnson & Johnson) Chapter 13 : Public Relations

Strength of Public Relations Credibility The public does not realize the organization paid for public relations Cost In both absolute and relative terms, the cost of public relations is very low Chapter 13 : Public Relations

Strength of Public Relations Avoidance of clutter They are typically perceived as news, PR messages are not subject to the clutter of ads Lead generation Inquiries generated by Information about technological innovations, and like may give the firms some quality sales leads Chapter 13 : Public Relations

Strength of Public Relations Ability to reach specific groups It can reach small market segments with relatively low costs Image building Effective PR can helps to develop positive image for the organization Chapter 13 : Public Relations

Limitations of Public Relations Weaker brand or corporate identification effect The major disadvantage of PR is the potential for not completing the communication process Inconsistent message Chapter 13 : Public Relations

Limitations of Public Relations Timing It is hard to control a timing of publicity Accuracy Information sometimes gets lost in transaction – it is not always reported the way the provider wishes it to be Chapter 13 : Public Relations

Chapter 13 : Public Relations Public Relation Plan PR is an ongoing process requiring formalized policies and procedures for dealing with problems and opportunities. Situation analysis Determine Relevant Target Audiences Behavioral objectives Communication objectives Strategy Tactics Chapter 13 : Public Relations

Chapter 13 : Public Relations Situation Analysis It provides input into the planning process. It serves as an early warning system. It secures support internally. It increases the effectiveness of the communication Chapter 13 : Public Relations

Determine Relevant Target Audiences Internal Audiences Employees of the firm Stockholders and investors Community members Suppliers and customers Chapter 13 : Public Relations

Determine Relevant Target Audiences External audiences The Media Educators Civic and business organizations Governments Financial groups Chapter 13 : Public Relations

Behavioral Objectives Trial purchase Repeat purchase Purchase-related action Consumption Chapter 13 : Public Relations

Communication Objectives Category need Brand awareness Brand attitude Purchase intention Purchase facilitation Chapter 13 : Public Relations

Chapter 13 : Public Relations Strategy Focus of the message Marketing public relations – public relations activities designed to support marketing objectives A major threat of marketing public relations is that it may lead to public relations becoming subservient to marketing Creative of the Message Chapter 13 : Public Relations

Chapter 13 : Public Relations Strategy Marketing public relations can be used effectively in following ways Building marketplace excitement before media advertising breaks Creating advertising news where there is no product news Introducing a product with little or no advertising Chapter 13 : Public Relations

Chapter 13 : Public Relations Strategy Influencing the influential– providing information to opinion leaders. Defending products at risk with a message of reassurance Constructively promoting a product Chapter 13 : Public Relations

Criteria for Measuring PR Effectiveness Total number of impressions . . . Over time On the target audience On specific target audiences Percentage of . . . Positive articles over time Negative articles over time Chapter 13 : Public Relations

Criteria for Measuring PR Effectiveness Ratio of positive to negative articles Percentage of positive and negative articles by ... Subject Publication Reporter Target audience Chapter 13 : Public Relations

Chapter 13 : Public Relations Tactics The tactic of public relations partly depend on they type of media or dissemination tool used Chapter 13 : Public Relations

Public Relations Strategy News Media Options The press release Information must be factual, true, and interest to the medium as well as its audience. Telephone press conference In-studio media tours. Multi-component video news release (VNR) Targeted newswire stories Chapter 13 : Public Relations

Public Relations Strategy News Media Options Press conferences The topic must be a major interest to a specific group Exclusives To offer one particular medium exclusive right to the story if the medium reaches a substantial number of target customers Chapter 13 : Public Relations

Public Relations Strategy News Media Options Interviews Community involvement Membership in local organizations Contributions to or participation in community events Chapter 13 : Public Relations

Strength of News Media Options News media messages are highly credible Consumers perceive this information more objective Endorsement Publicity information may be perceived as endorsed by the medium Frequency potential The frequency of exposure it generates Chapter 13 : Public Relations

Limitations of News Media Options Timing Timing of the publicity through news media is not always completely under the control of the marketer Accuracy The information contained in the press release sometimes gets lost in translation Chapter 13 : Public Relations

Corporate Advertising Options Corporate Advertising It designed to promote the firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something One of the most controversial from of advertising Chapter 13 : Public Relations

Corporate Advertising Options Corporate Advertising Why is this controversial? Consumers are not interested in this form of advertising. It’s a costly form of self-indulgence. The firm must be in trouble. Corporate advertising is a waste of money Chapter 13 : Public Relations

Corporate Advertising Options Image Advertising General image or positioning ads To create an image of firm in the public mind It is also used when a company changes its name Television sponsorship A firm often runs corporate image advertising on TV programs or specials ( I.e. Hallmark, IBM) Chapter 13 : Public Relations

Corporate Advertising Options Image Advertising Recruiting It is designed to attract new employees Generating financial support It is designed to generate investments in the corporation In this instance, corporate image advertising is almost attempting to make a sale; the product is the firm Chapter 13 : Public Relations

To 30 Companies Based on RQ (Reputation Quotient) Figure 13-4 Chapter 13 : Public Relations

Corporate Advertising Options Advocacy Advertising It is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interest of the sponsor It adopts a position on a particular issue Advocacy Advertising has been creasing Chapter 13 : Public Relations

Corporate Advertising Options Cause-related Marketing Companies link with charities or nonprofit organizations as contributing sponsors 80 percent of consumers say that they have more positive impression of companies that support a cause Chapter 13 : Public Relations

Corporate Advertising Options Event Sponsorship Sports receive the majority of event sponsorship monies (I.e. golf, tennis, etc) Traditionally, tobacco,beer, and car companies have been the largest sports event sponsors Event marketing, contests, sampling, and sweep takers are effective promotion tools. Chapter 13 : Public Relations

Corporate Advertising Options The Internet Differences between traditional media and the Internet: The Internet offers a more limited opportunity to gain attention due to short exposure times It offers the opportunity to build internal links that provide the media with instant access to additional sources of information on the issue It offers the ability to provide much more substantial information Chapter 13 : Public Relations

Strength of Corporate Advertising It is an excellent vehicle for positioning the firm It offers some control that the message will be disseminated It reaches a select target audience Chapter 13 : Public Relations

Limitation of Corporate Advertising Questionable effectiveness There is no strong evidence to support the belief that corporate advertising works Constitutionality and/or ethics Since large firms have more money, they can control public opinion unfairly Chapter 13 : Public Relations