McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. THE DYNAMICS OF MASS COMMUNCATION Joseph R. Dominick University of Georgia--Athens

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Specific Media Professions

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Chapter 13 Public Relations  Case Study – Wal-Mart Case Study – Wal-Mart  Defining Public Relations Defining Public Relations  A Short History of Public Relations A Short History of Public Relations  Organization of the PR Industry Organization of the PR Industry  Departments and Staff Departments and Staff  The Public Relations Program The Public Relations Program  Economics Economics  PR Online PR Online  Public Relations Careers Public Relations Careers Chapter Outline

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Wal-Mart employs 1.2 million 3600 stores Global sales in 2004 of $256 billion Target of negative criticism and publicity Sued 6000 times in 2002 Opposition and protests from community groups Employees paid poverty-level wages with no health benefits Stock steadily declining Executive dismissed Case Study – Wal Mart

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Public relations is the art and social science of analyzing trends, predicting their consequences, counseling organization leaders, and implementing planned programs of action which serve both the organization’s and the public’s interests. --- World Assembly of Public Relations Defining Public Relations

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. PR compared with Advertising –Both persuade –Both use mass media –Advertising is a marketing function –Public relations is a management function –Advertising does not use interpersonal communication –Public relations uses every communication form –Advertising is sponsored (paid for) –Public relations messages are usually free Defining Public Relations

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Common practices that are not public relations: –Press agentry – staging media events to attract public attention –Publicity – attempting to place favorable stories in the media Defining Public Relations Extensive publicity and bad public relations??? It’s possible!

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. What PR people actually do: –Work with public opinion –Explain their organization to various publics –Listen to the publics –Work with top management to achieve goals Defining Public Relations

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. A Short History of Public Relations American Revolution –Boston Tea Party –Liberty Tree –Samuel Adams, Thomas Paine, Abigail Adams, Benjamin Franklin Industrial Revolution –Initially public completely disregarded –Muckraking exposés –Prototypical press agents

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Ivy Lee –Press representative for anthracite coal mine operators and Pennsylvania RR (late 1900s) –Declaration of Principles –The “humanizing” of business Woodrow Wilson’s Creel Committee –PR tactics in WW I –“Save food”; “Buy war bonds” A Short History of Public Relations

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Edward Bernays, Crystallizing Public Opinion, first book on public relations (1923) Carl Byoir opens PR agency (1930) Franklin Roosevelt’s radio “fireside talks –Depression –New Deal reform program WW II – creation of Office of War Information A Short History of Public Relations

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Growth of PR late 20 th Century –Some companies acknowledge social responsibilities –Consumerism forces organizations to pay attention –Organizational complexity necessitates PR department –Public is more complex Population growth Workplace specialization Job mobility A Short History of Public Relations

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. PR late 20 th Century –“Era of Public Relations” –19,000 (1950)  300,000 (2003) –Public Relations Society of America (1947) –Code of Standards (1954) –Public Relations Student Society of America (1967) –US military operations in Iraq and embedded reporters –Enron, Arthur Anderson –One of fastest growing professions in USA A Short History of Public Relations

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Organization of the Public Relations Industry Internal PR Department –More in-depth knowledge about the company –Assigned or reassigned on short notice –Less costly External PR Agencies –Fresh, objective viewpoints –More services –Purchasable prestige –May cause morale problems in company

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Organization of the Public Relations Industry Business Government Education Hospitals Nonprofit organizations Professional associations Entertainment and sports International PR Investor relations Politics Crisis management Areas of Public Relations Practice

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Internal PR Departments –No two are identical –PR director always reports directly to top management –Three main divisions 1)Corporate communications (internal publics) 2)Community relations (external publics) 3)Press relations (news media) Departments and Staff

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. External PR Departments –More complex –Five typical main divisions 1)Creative services – press releases 2)Research – surveys, focus groups 3)Publicity and marketing – merchandising, promotions 4)Accounts – relations with clients 5)Administration – business aspects of the department Departments and Staff

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. The Public Relations Program The Four Steps of a Typical PR Program Step One Planning –Strategic Long term, general goals Formed by top management Tasks that achieve the strategic goals –Tactical More specific, often short term –Management by Objective “Inform >50% of Cartown about reasons for move” How much will the company save? How many workers will be transferred? What about the empty buildings? Will the people believe the company? How will it affect the company’s other operations?

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Step Two Information Gathering –Organizational records, books, journals –Letters, , interviews –Formal research techniques –Program-specific questions:

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Step Three Communication –Organization is the source of the communication –PR requires thorough knowledge of mass media –Personal communication channels also necessary –Example: news conferences, ads, news releases, public meetings (external publics) –Example: bulletin boards, newsletters, speeches, letters, memos (internal publics) Example: An automobile manufacturing plant is closing soon in Cartown, Midwest USA Challenge: Communicate this to the people of Cartown

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Step Four Evaluation –“How well did it work?” –Works with MBO techniques – measurable goals make measurement of success possible –Measure accomplishment of tasks as well as achievement of desired effect –Simple measurements: # brochures delivered –Complex measurements: shift of perception –Example: Change in customer loyalty due to move

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. $Weak economy  revenues decline $Top 50 USA PR firms: $2B in 2003 $Industry domination: giants owned by ad agencies (Hill & Knowlton, Burson-Marsteller) of WPP (Porter-Novelli, Fleishman-Hillard) of Omnicom $Independents Edelman PR Worldwide Ruder Finn $Fees: fixed, retainer, hourly Economics

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. used for press releases Internet used to distribute info to the media PR Newswire Corporate website first line of communication with: consumers, shareholders, reporters Crisis management uses corporate website –Example: Online corporate pressroom PR Online

McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. PRPR Internships at various firms, or in the media Writing and communication skills very important Business, law, public opinion research, social sciences are useful Editing, writing, speech-making, media production Public Relations Careers