Peggy Simcic Brønn 1 Informasjon og Samfunnskontakt (Public Relations) Høyskole i Stavanger Norsk Hotellhøgskole Peggy Simcic Brønn

Peggy Simcic Brønn 2 The Four P’s of the Marketing Mix (Kotler) Marketing Mix Target Market Place Channels Coverage Assortments Locations Inventory Transport Promotion Sales Advertising Sales force PUBLIC RELATIONS Direct marketing Product Variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns Price List price Discounts Allowances Payment period Credit terms

Peggy Simcic Brønn 3 Marketing-Mix Strategy Company Offer Mix Products Services Prices Promotion Mix Sales Promotion Advertising Salesforce Public Relations Direct mail & Telemarketing Distribution channels Target Customers

Relative Importance of Promotional Tools in Consumer versus Industrial Markets Consumer GoodsIndustrial Markets Relative Importance Advertising Sales Promotion Public Relations Personal Selling

Peggy Simcic Brønn 5 Public Relations and Marketing - Differing Views l Separate but equal functions l Equal and overlapping functions l Marketing the dominant function l Public Relations the dominant function l The same function

Peggy Simcic Brønn 6 PR AND MARKETING Public Relations l Relationship building is everything. l Relationships with all groups affecting organization. l Goal - save money by managing threats and finding opportunities. Marketing l Relationship building is key. l Relationships mainly with customers/clients. l Goal - organization’s economic objectives.

Peggy Simcic Brønn 7 “PR - A COMMUNICATION FUNCTION OF MANAGEMENT THROUGH WHICH ORGANIZATIONS ADAPT TO, ALTER, OR MAINTAIN THEIR ENVIRONMENT FOR THE PURPOSE OF ACHIEVING ORGANIZATIONAL GOALS.”

Peggy Simcic Brønn 8 Marketing Communications Mix l Advertising l Direct Marketing l Sales Promotion l Public Relations and Publicity l Personal Selling

Peggy Simcic Brønn 9 Advertising l Print and broadcast ads l Packaging - outer l Packaging - inserts l Motion pictures l Brochures and booklets l Posters and leaflets l Directories l Reprints of ads l Billboards l Display signs l Point-of-purchase displays l Audio-visual materials l Symbols & logos

Peggy Simcic Brønn 10 Sales Promotion l Contests, games, sweepstakes, lotteries l Premiums, gifts l Samplings l Fairs, trade shows l Exhibits l Demonstrations l Couponing l Rebates l Low-interest financing l Entertainment l Trade-in allowance l Trading stamps l Tie-ins

Peggy Simcic Brønn 11 Personal Selling l Sales presentations l Sales meetings l Incentive programs l Samples l Fairs and trade shows

Peggy Simcic Brønn 12 Direct Marketing l Catalogs l Mailings l Telemarketing l Electronic shopping l TV shopping

Peggy Simcic Brønn 13 Public relations: An umbrella term... l Product publicity l Corporate communications l Issues management l Investor relations l Financial communications l Lobbying l Public affairs l Media relations l Community affairs l Crisis management l Events management l Sponsorship l A range of services feeding into these...

Peggy Simcic Brønn 14 Success Criteria l Skills l Knowledge l Abilities l Qualities

Peggy Simcic Brønn 15 Public Relations Functions l Publications and communications materials l Conventions, meetings, seminars l Interpreting government actions l Compiling and publicizing relevant statistics l Preparing and distributing material to press

Peggy Simcic Brønn 16 Public Relations Functions l Promoting codes and ethics l Institutional advertising l Furthering employer-employee relations l Crisis coordination l Public service activities

Peggy Simcic Brønn 17 What are We ? l Corporate Affairs l Corporate Communications l Communications l Public Affairs l Public Relations l Marketing Communications l Information l Government Affairs l Community Affairs l Employee Relations l Publications l Press and Media Relations l Marketing

Peggy Simcic Brønn 18 Tools l Written material l Audio-visual material l Corporate identity media l News l Events l Speeches l Telephone information service l Internet

Peggy Simcic Brønn 19 Tools l Written material »Annual reports »Catalogs »Employee newsletter »Magazines »Posters and flyers l Audio-Visual material »Films »Slides »Audio cassettes

Peggy Simcic Brønn 20 Tools l Events »Attract attention »Develop stories around »Important for non- profits »Anniversaries »Art exhibits »Auctions »Fashion shows l Speeches »Effective spokespersons for organization »Address topical issues

Peggy Simcic Brønn 21 Tools l News »Finding, creating, selling to appropriate media »3 qualities –Higher veracity –Catches people off guard –Potential for dramatization l Telephone Information Service »Numbers to get information »Pre-recorded answers to common questions »Shows a caring about public

Peggy Simcic Brønn 22 Tools l Internet »Pluses –Edit self –Dialog (two-way) –Always updated –Extremely cheap –Global coverage »Minuses –Boring –Rigid –People must be looking for information on you

Peggy Simcic Brønn 23 Ethics l Moral guidelines »Truthful »Testimonials »Children and young people »Exploitation of goodwill »Comparisons »Imitation »Safety »Denigration »Responsibility

Peggy Simcic Brønn 24 Traditional PR Responses l Circle the Wagons l Cosmetic l Missionary l Interactive Communications l Open Door

Peggy Simcic Brønn 25 CORPORATE IMAGE - WHAT IS IT? Corporate Identity Individual Interpretation Corporate Image = $ Lundquist, O. S., Rønning, L., Sandberg, G., ‘Corporate Identity and Corporate Image, En litteraturstudie av begrepenes definisjoner, Diplomoppgave, Siviløkonomstudiet, BI (1997).

Peggy Simcic Brønn 26 CORPORATE IDENTITY l The way in which an organization presents itself »Symbols »Communication »Behavior l Referred to as Corporate Identity (CI) Mix l Personality manifested through this mix

Peggy Simcic Brønn 27 Peggy Simcic Brønn27 CORPORATE IDENTITY MEDIA l Product l Price l Logos l Name l Stationery l Brochures l Signs l Visit cards l Buildings l Uniforms l Sponsorship l Packaging l Work environment l Figure or “character”

Peggy Simcic Brønn 28 Peggy Simcic Brønn28 IMPORTANCE OF IDENTITY l Raises motivation among employees l Inspires confidence in stakeholder groups l Acknowledges important role of customers l Acknowledges vital role of financial groups

Peggy Simcic Brønn 29 Peggy Simcic Brønn29 TYPES OF CORPORATE IDENTITY l Monolithic -- Shell, Philips, BMW l Endorsed -- GM, L’Oreal l Branded -- Unilever

Corporate Identity Names Self-Presentations Customer Image Community Image Investor Image Employee Image Corporate Reputation Fombrun, C. J., Reputation, Harvard Business School Press

Peggy Simcic Brønn 31 Reputation is the most important commercial mechanism for conveying information to consumers. It is a distinctive capability that accrues competitive advantage to an organization. John Kay Foundations of Corporate Success

Peggy Simcic Brønn 32 Peggy Simcic Brønn32 WHY DO WE NEED TO CARE ABOUT IMAGE? Consumers are more sophisticated than ever before There is more distrust than ever regarding motives of big business There has been more changes in the last ten years than in the last 80 There is a clear relationship between a positive image and profitability

Image is no longer solely the realm of marketing, but rather a strategic instrument of top management. De Soet (CEO Dutch KLM) When having to choose similar products, 9 out of 10 consumers base their decisions on the reputation of the company. Mackiewicz

Peggy Simcic Brønn 34 Peggy Simcic Brønn34 TODAY’S SITUATION l Quality and good service taken as given l Programs such as TQM and ISO9000 have worked l Organizations need new differentiators, new USP’s »Advocacy advertising »Green advertising

Peggy Simcic Brønn 35 Peggy Simcic Brønn35 REASONS FOR IMAGE ‘MANAGEMENT’ l General promotion value l Encourage favorable behavior towards organization l Build sales l Attract shareholders l Attract and motivate employees/build morale l Reduce cost of capital l Aid in relations with community/ government l Serve corporate objectives l Create familiarity and favorability l Create position in industry l Can demand premium prices

Peggy Simcic Brønn 36 Peggy Simcic Brønn36 IT HELPS POSITION PRODUCT l Physical product attributes l Distribution l Price l Image

Peggy Simcic Brønn 37 Peggy Simcic Brønn37 IMAGE LEVELS l Product class l Brand l Company l Sector l Shop l Country l User

Peggy Simcic Brønn 38 Peggy Simcic Brønn38 IMAGE AUDIENCES l Consumers l Shareholders l Investment community l Employees l Communities l Suppliers

Peggy Simcic Brønn 39 Peggy Simcic Brønn39 What are the most important things to know about a company to judge its reputation? (percentage)Bus. General City Business Editors Public Investors Press - Financial Performance Quality of Management Quality of Products/ Services Customer Services

Corporate Image Corporate Identity and Corporate Personality Super and subordinate images Personal and nonpersonal communication Experiences with product/service & staff Management/ employees Products/ServicesEthics/Community Finances 40

Management/Employees Quality of Management Quality of work conditions (physical and social) Quality of strategies Products/Services Quality Satisfaction Technology Value Selection Ethics/Community Equal employment Socially responsible Protect jobs Contributes to charity Helps the community Conserves energy Environmentally conscience Supports culture Responsible citizen Finances Sound investment opportunity Pays dividends Reporting practices Stock price Diversified Wise use of assets Consistent growth

Peggy Simcic Brønn 42 Peggy Simcic Brønn42 CORPORATE IMAGE IS THE PERCEIVED SUM OF THE ENTIRE ORGANIZATION - ITS OBJECTIVES AND PLANS. IT ENCOMPASSES PRODUCTS, SERVICES, MANAGEMENT STYLE, COMMUNICATIONS ACTIVITIES AND ACTIONS AROUND THE WORLD. G.A. Marken

Peggy Simcic Brønn 43 Peggy Simcic Brønn43 FACTORS CONTROLLING COMPANY IMAGE l Reality of company l Newsworthiness of company l Diversity of company l Communications effort l Time l Memory decay

Peggy Simcic Brønn 44 Peggy Simcic Brønn44 IMAGE-ORIENTED ADVERTISING OBJECTIVES Industry - develop and maintain favorable industry image. Generate primary demand. Company - develop and maintain a favorable company image. Generate selective demand.

Peggy Simcic Brønn 45 Peggy Simcic Brønn45 BARRIERS TO ACHIEVING ‘DESIRED’ IMAGE l “CEO disease” l Mental models l If it’s not broke don’t fix it l Inability to read environment l Confusion regarding who’s job it is

Peggy Simcic Brønn 46 Peggy Simcic Brønn46 OPTIMAL - AN INTEGRATED EFFORT l Unified image l Data base management-driven integration l Integrated customer contact points l Stakeholder-based integration

Peggy Simcic Brønn 47 Peggy Simcic Brønn47 Goal: Credible Image l Believable message l Clearly stated l Continually and consistently l Through appropriate channels l At the appropriate level of understanding

Peggy Simcic Brønn 48 The Three I’s - Mission Oriented l Identity: Who we are l Image: What we are l Ideas: What we stand for and believe

What you have How you intend to use it The organization Corporate Visuals Corporate Identity Audience Perceptions Monitoring Corporate Identity: Era 1 -- Badging Source: Bamber Forsyth in White, J. and Mazur, L. Strategic Communications Management, Addison Wesley, London, 1996.

What you have How you intend to use it The organization Corporate Visuals Corporate Identity Audience Perceptions Monitoring Corporate Identity: Era 2 -- Visuals plus Communication Source: Bamber Forsyth in White and Mazur Corporate Communications

What you have How you intend to use it The organization Corporate Identity Audience Perceptions Monitoring Corporate Identity: Era 3 -- The integrated approach Source: Bamber Forsyth in White and Mazur Corporate Communications Corporate Behavior Process Vehicles Corporate Values