Chapter 3.4 Public Relations Communication

Public Relations Definition “The professional maintenance of a favorable public image by an organization or a famous person.” “The state of the relationship between the public and a company or other organization or an important person.”

Public Relations Department Separate entity and depend on organization structure. Part of marketing department Eg. Department of Communications, Corporate Communication Public relations tools Goal  Get hits Develop PR strategy that fits Strengthen company’s voice

Public Relations Functions 1. Identify and monitor internal and external stakeholders 2. Assess the corporate reputation 3. Audit corporate social responsibility 4. Create positive image-building activities 5. Responsible to prevent or reduce image damage from negative events.

1. Identifying Stakeholders Has vested interest (protected or established by law or contract). Internal stakeholders External stakeholders INTERNAL STAKEHOLDERS EXTERNAL STAKEHOLDERS Employees Unions Shareholders Channel members Customers Media Local community Financial community Government Special-interest groups

2. Assessing Corporate Reputation Reputation is fragile, but valuable Assess reputation of the company Monitor corporate reputation Less than half companies have someone assigned for the job.

3. Auditing Corporate Social Responsibility Obligation to be ethical Corporate transparency Undertaken by management Organizations need Ethical guidelines for all employees Code of ethics

Examples of Activities that Affect a Company’s Image Image Destroying Activities Image Building Activities Discrimination Harassment Pollution Misleading communications Deceptive communications Offensive communications Empowerment of employees Charitable contributions Sponsoring local events Selling environmentally safe products Outplacement programs Support community events

4. Creating a Positive Image By using 3 ways; Cause-related marketing Green marketing and pro-environmental activities Preventing or reducing image damage

Cause-Related Marketing Partnership with charity Brand equality Supporting cause can create bond In past, companies only contribute monetary funding Companies need a benefit, which should relate to business But companies must be careful in supporting a cause Cause liked by one – disliked by another To benefit from cause-related marketing, the pubic needs to know. But, companies have to be careful. Too much publicity and the public thinks the company is using the charity for personal gain. Not enough publicity and no one knows about it so there are no tangible benefits.

Green Marketing and Pro-environmental Activities Products environmentally safe Survey concerning green marketing Try to save electricity (58%) Recycle newspapers (46%) Return bottles and cans (45%) Buy products – recycled materials (23%) Consumers support, but only when equal Green products seen as inferior

5. Preventing or Reducing Image Damage Damage control Negative publicity and events Bad news travels fast Two situation Firm has made an error Unjustified or exaggerated negative press Two strategies Proactive prevent strategies Reactive damage control strategies

Damage-Control Strategies Proactive Strategies - to prevent or reduce chances of negative events Entitling - claim responsibility for positive outcomes Enhancements - increase desirable outcome Reactive Strategies - to react to negative situation Internet interventions Crisis management programs Apology strategy Impression management techniques

Internet Interventions Use Internet to react Consumers can spread bad news quickly Assign employees to monitor online communications Provides information on what people are thinking

High probability of occurrence Low probability of occurrence Crisis Management High probability of occurrence Low probability of occurrence High likely impact High priority Contingency plans Avoids or reduce risk Serious concern Adapt strategy Limit likely consequences Low likely impact Low concern Can get ignored Some concern Reduce, limit or defect risk

Apology Strategies Reactive form of crisis management Firm at fault Apology should be offered Used when violation is minor Firm cannot deny responsibility Effective for creating emotional bond Must be sincere

Impression Management A goal-directed conscious or unconscious process in which people attempt to influence the perceptions of other people about a person, object or event; they do so by regulating and controlling information in social interaction. Usually used synonymously with self-presentation, in which a person tries to influence the perception of their image. Refers to practices in professional communication and public relations, where the term is used to describe the process of formation of a company's or organization's public image.