Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 17 Public Relations, Publicity, and Corporate Advertising

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Public Relations (PR)  Evaluates public attitudes  Identifies the policies and procedures of an organization with the public interest  Executes a program of action to earn public understanding and acceptance 2

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Role of PR Traditional role Maintain mutually beneficial relationships between the organization and its publics Act as a management communications function New role Work together with the marketing department Contribute to the IMC process in a way that is consistent with marketing goals 3

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Marketing Public Relations (MPR)  Public relations activities designed to support marketing objectives  Functions  Building marketplace excitement Improving ROI  Creating advertising news where there is no product news  Introducing a product with little or no advertising  Providing a value-added customer service  Building brand-to-customer bonds  Influencing the influentials  Defending products at risk & giving consumers reason to buy 4

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure Advantages and Disadvantages of MPRs Sources: Thomas L. Harris, “Marketing PR—The Second Century,” Reputation Management, January/February 1999, pp. 1–6 5

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Determining and Evaluating Public Attitudes  Reasons  Provides input into the planning process  Serves as an early warning system  Secures support internally  Increases the effectiveness of the communication 6

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Steps to Develop a PR Plan Define public relations problemsPlan and programTake action and communicateEvaluate the program 7

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure Ten Questions for Evaluating Public Relations Plans 8

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Types of Target Audiences Internal audiences People who are connected to a firm with whom the firm communicates on a routine basis Employees Stockholders Investors Members of the local community Suppliers Current customers External audiences People who are not closely connected with the organization Media Educators Civic and business organizations Governments Financial groups 9

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Tools for Implementing the PR Program PR Tools Press Release Exclusives Community Involvement Social Networks & Blogs Internet Interviews Press Conferences 10

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Advantages and Disadvantages of PR Advantages  Credibility  Cost  Avoidance of clutter  Lead generation  Ability to reach specific groups  Image building Disadvantages  Potential for incomplete communication process  Lack of connection between receiver and sender  Lack of coordination with marketing unit  Erratic, redundant communications 11

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Measuring the Effectiveness of PR  Should consider whether the target audience:  Received the messages  Paid attention to the messages  Understood the messages  Retained the messages  Methods  Media content analysis  Survey research  Marketing-mix modeling 12

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Publicity  Generation of news about a person, product, or service that appears in broadcast or print media  Differs from public relations by:  Being a short-term strategy  Not always being positive  Not always being controlled or paid by the organization 13

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Video News Release (VNR)  Publicity piece produced by publicists so that stations can air it as a news story  Used by marketers to have control over the time and place where information is released 14

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Pros and Cons of Publicity Pros  Substantial credibility  News value  Significant word-of-mouth  Perception of media endorsement Cons  Lack of control  Timing  Accuracy 15

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Corporate Advertising  Designed to promote the firm overall by:  Enhancing its image  Assuming a position on a social cause  Seeking direct involvement in something 16

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Reasons for Corporate Advertising Being Controversial Consumers are not interestedCostly form of self-indulgenceBelief that the firm must be in troublePerceived as a waste of money 17

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Types of Corporate Advertising Image Advertising General ImageSponsorshipRecruiting General Financial support Event Sponsorship Advocacy Advertising Cause Related Marketing 18

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Methods for Measuring the Effectiveness of Corporate Advertising Attitude surveys Studies relating corporate advertising and stock prices Focus group research 19