Introduction to Public Relations and Publicity Management How does this relate to the other elements of promotion?

Public Relations Often misused and misunderstood It is a Management function that focuses on the relationships and communications that individuals and organizations have with other groups for the purposes of creating mutual goodwill.

Public Relations Use various forms of communication to relay information to the audience. A wide variety of media are used to sway public opinion Involves identifying important ‘publics’ and developing and maintaining relationships

Consequences of Poorly Managed PR Functions Loss of customers and revenues Time lost dealing with complaints or lawsuits Loss of esteem Weakens brand equity Impacts ability to secure financing

Impact of Negative Publicity Today’s Example: Tom Cruise and Scientology Negative publicity consequences Incident One – Oprah and her couch Box Office Impact War of the Worlds - $234 million (budget $132m) Mission Impossible Three - $133 million (budget $150m) Lions for Lambs $14.9m (budget $35m) Before Couch Incident Mission Impossible II $215m

Companies Dealing Negative Press Steven Jobs and his questionable health at this time Apple stock prices have fluctuated resulting from conflicting reports regarding his health Apple beat Wall Street estimates for profits in 2008 GM continues to cut production and workers; Sales forecasted to drop 20% over 2008

Advertising vs. PR Advertising uses the mass media and is paid for by the sponsor Customers view with skepticism rarely the best tool for building credibility Carefully placed to gain TA attention

Differences between Advertising and PR PR Communications generally are not openly sponsored or financed Info received in the form of news articles, interviews, feature stories after being edited and reviewed by the media More credible to publics Less precise in reach Often followed with corporate ad campaigns to increase effectiveness

Differences in Viewpoint Advertising professionals have a business background and view marketing as the umbrella process in which product development, how to distribute and sell them PR professionals have a background in journalism and feel that pr should be the umbrella process “PR is a management discipline that encompasses a wide range of activities from marketing to advertising.” Inside PR

Strengths of PR Targets and maintains relationships with important stakeholders can reach difficult to reach audiences such as opinion leaders and upscale consumers pr professionals can advise clients and companies regarding the implications of trends and corporate activities on consumer opinions can break through clutter more effectively than ads

Strengths of PR laws less strict for press releases pr specialists can present the company as good citizens can handle crises, minimizing negative effects on the organization’s reputation offers the business more flexibility than advertising and sales promotion laws less strict for press releases adds credibility and believability - why would Dan Rather lie? (ha ha!) cost effective

Weaknesses of PR lack of control over the story slant and coverage subject to others’ approval for news story to run Bottom-line impact difficult to measure PR objectives are difficult to quantify

Who are the Publics? all of the audiences that the marketing communicator targets to receive messages about the company or who are perceived as influencing opinions about the firm

Segments to Target Internal Stakeholders employees shareholders suppliers, distributors, brokers, wholesalers, retailers, dealers consumers (regular or loyal)

External Publics The media local community neighbors local, regional and federal governmental bodies and regulators financial community special interest groups prospective customers, employees, shareholders

Importance of Stakeholders Employee satisfaction and confidence WOM (Word of Mouth) Governmental motivation to monitor financial market confidence community involvement and perceptions consumer confidence

The Public Relations Job Media relations corporate public relations crisis management employee relations financial relations public affairs community relations marketing public relations Reputation Management

Media Relations Function primarily responsible for publicity generation and management Develop personal relations with media contacts provide information regarding story ideas press releases supplemental info

Corporate PR High-level counseling with senior management about the company’s overall reputation, its image in the eyes of the various stakeholders, and its response to issues that may impact the success of the firm

Corporate PR Issue Management Corporate advertising practice of planning a company’s response to important issues Corporate advertising ads used to create positive attitudes and goodwill toward the firm Advocacy Advertising expresses a viewpoint of the firm on an important issue

Reputation Management Long-term process using a number of strategies to manage the image or reputation of your client or firm Tools employed include publicity, press releases, press agentry, crisis management, and community involvement Press agentry Planning and staging of events Bring attention to new products or services or portray the organization favorably

Crisis Management Strategies to address crises or disasters oil spills, plane crashes, management improprieties Unless react quickly and effectively can destroy brand value Often referred to as reactive PR addresses negative publicity

Employee Relations participation Motivation programs newsletters flyers video programming bulletin boards Keys to success security consideration recognition opportunity respect participation

Financial Relations Comply with governmental regulations manage communications with stockbrokers, investors distribute and deal with financial reporting of acquisitions, actions that effect stock prices

Public Affairs and Community Relations Public Affairs - focus on communication with government agencies Community Relations management of relations with stakeholders in the local community event marketing

Marketing Public Relations Seeks positive publicity for products very important for new products MPR specialists work closely with marketing staff members on the design of the new product, strategic positioning in the marketplace handle special events for major announcements coordination of imc