Public Relations, Publicity, and Corporate Advertising Chapter 17 Public Relations, Publicity, and Corporate Advertising
The Role of Public Relations To manage relationship with the public General Public Employees Customers CLIENT Suppliers Stockholders
Public Relations Management Process Determination and evaluation of public Identification of policies and procedures Development and execution of the program
Four Classes of Marketing and Public Relations Strong Weak Example: Small social service agencies Example: Hospitals, colleges and universities Example: Small manufacturing companies Example: Large, Fortune five-hundred companies
Marketing Public Relations (MPR) Functions Building marketplace excitement before media advertising breaks Creating advertising news where there is no product news Introducint a product with little or no advertising Providing a value-added customer service Building brand-to-customer bonds Influencing the influentials (i.e., providing information to opinion leaders) Defending products at risk and giving customers a reason to buy
Evaluating Public Relations Plans 1. Does the plan reflect a thorough understanding of the company’s business situation? 2. Has the PR program made good use of research and background sources? 3. Does the plan include full analysis of recent editorial coverage? 4. Do the PR people fully understand the product’s strengths and weaknesses? 5. Does the PR program describe several cogent, relevant conclusions from the research? 6. Are the program objectives specific and measurable? 7. Does the program clearly describe what the PR activity will be and how it will benefit the company? 8. Does the program describe how its results will be measured? 9. Do the research, objectives, activities, and evaluations tie together? 10. Has the PR department communicated with marketing throughout the development of the program?
Research on Public Attitudes Provides input for the planning process Serves as an “early warning system” Secures internal cooperation, support Increases communications effectiveness
Public Relations Audiences Employees of the firm Stockholders and investors Community members Suppliers and customers Print and broadcast media Educators Civic and business organizations Governments Financial groups
Public Relations Tools Press releases Press conferences Exclusives Interviews Community involvement The internet
Telling the PR Story Technical methods make it easier for the press They increase the likelihood media will use the story Telephone press conferences In-studio media tours Multicomponent video news releases (VNR) Targeted wire stories
Promotional Publications Inserts Enclosures Annual reports Posters Bulletin boards Exhibits Audiovisuals Position papers Speeches News releases Media kits Booklets Leaflets Pamphlets Brochures Manuals Books Letters
Advantages of Public Relations Credibility Cost Avoidance of clutter Lead generation Selectivity Image building
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 Ratio of positive to negative articles Percentage of positive and negative articles by . . . Subject Publication Reporter Target audience
Corporate Advertising Types Image advertising Event sponsorship Advocacy advertising Cause-related advertising Objectives Boost employee morale Smooth labor relations Help newly deregulated industries Ease consumer uncertainty Answer investor questions Help diversified companies Establish identity for parent Decrease reliance solely on brand
To 30 Companies Based on RQ (Reputation Quotient) 1 Johnson & Johnson 83.4 2 Coca-Cola 81.6 3 Hewlett-Packard 81.2 4 Intel 81.0 5 Ben &Jerry’s 81.0 6 Wal-Mart 80.5 7 Xerox 79.9 8 Home Depot 79.7 9 Gateway 78.8 10 Disney 78.7 11 Dell 78.4 12 General Electric 78.1 13 Lucent 78.0 14 Anheuser-Busch 78.0 15 Microsoft 77.9 16 Amazon.com 77.8 17 IBM 77.6 18 Sony 77.4 19 Yahoo! 76.9 20 AT&T 75.7 21 FedEx 75.7 22 Procter & Gamble 71.9 23 Nike 71.3 24 McDonald’s 71.2 25 Southwest Airlines 70.6 26 America Online 69.2 27 Daimler Chrysler 69.1 28 Toyota 68.6 29 Sears 67.6 30 Boeing 67.3
Top 5 Companies for Each of 6 Elements of Reputation Emotional Appeal How much the company is liked, admired, and respected Social Responsibility Perceptions of the company as a good citizen in its dealings with communities, employees, and the environment 1 Johnson & Johnson 2 Coca-Cola 3 Hewlett-Packard 4 Ben & Jerry’s 5 Xerox 1 Ben & Jerry’s 2 Amazon.com 3 Johnson & Johnson 4 Wal-Mart 5 Xerox
Top 5 Companies for Each of 6 Elements of Reputation Products & Services Perceptions of the quality, innovation, value, and reliability of its products and services Workplace Environ. Perception of how well the company is managed, how it is to work for, and the quality of its employees 1 Johnson & Johnson 2 Intel 3 Hewlett-Packard 4 Xerox 5 Ben & Jerry’s 1 Johnson & Johnson 2 Lucent 3 Ben & Jerry’s 4 Hewlett-Packard 5 Intel
Top 5 Companies for Each of 6 Elements of Reputation Vision & Leadership How much the company demonstrates a clear vision and strong leadership Financial Performance Perceptions of its profitability, prospects, and risk 1 Microsoft 2 Intel 3 Anheuser-Busch 4 Coca-Cola 5 Dell 1 Microsoft 2 Wal-Mart 3 Coca-Cola 4 Johnson & Johnson 5 Intel