14 Public Relations

© 2005 McGraw-Hill Ryerson Limited Chapter Objectives To recognize the role of public relations in the promotional mix. To understand public relations and its strengths and limitations. To understand the reasons for corporate advertising and its strengths and limitations. To know how to compile a public relations plan. To understand how public relations is obtained partly through publicity generated through news media.

© 2005 McGraw-Hill Ryerson Limited Public Relations Defined A Management Function Evaluates Public Attitudes which Identifies the Policies and Procedures and An organization with the Public Interest for Executes a Program of Action (and Communication) then Earn Public Understanding and Acceptance to Executes a Program of Action (and Communication) An organization with the Public Interest Identifies the Policies and Procedures Evaluates Public Attitudes A Management Function

© 2005 McGraw-Hill Ryerson Limited Public Relations Management Process Identification of Policies and Procedures Determination and Evaluation of Public Attitudes Identification of Policies and Procedures Determination and Evaluation of Public Attitudes Development and Execution of the Program PR

© 2005 McGraw-Hill Ryerson Limited Traditional PR Perspective Customers Employees Investors Government Community Suppliers Employees Government Investors Customers Public Relations Department

© 2005 McGraw-Hill Ryerson Limited Integration of PR into the IMC Process Marketing Department Public RelationsSeparate Marketing Department Public RelationsCoordinated Marketing Department Public RelationsIntegrated

© 2005 McGraw-Hill Ryerson Limited Strengths of Public Relations Credibility Lead Generation Cost Savings Avoidance of Clutter Image Building Selectivity Lead Generation Avoidance of Clutter Cost Savings Credibility PR Provides

© 2005 McGraw-Hill Ryerson Limited Limitations of Public Relations Weakens Brand or Corporate Identification Effect May Deliver Inconsistent Message Weakens Brand or Corporate Identification Effect Public Relations

© 2005 McGraw-Hill Ryerson Limited May Be Out of the Marketer’s Control Can Occur at the Same Time as Public Relations Publicity Part of the PR Process The Generation of News About a Person, Product, or Service That Appears in the Media

© 2005 McGraw-Hill Ryerson Limited Strengths and Complications of Publicity Unplanned by Organization Lasts for a Short Period of Time Substantial Credibility News Value Significant Word-of- mouth Perception of Endorsement by Media StrengthsComplications Lasts for a Short Period of Time Substantial Credibility News Value Significant Word-of- mouth Perception of Endorsement by Media Not Always Positive

© 2005 McGraw-Hill Ryerson Limited Public Relations Plan 1.Situation Analysis a.IMC Plan Review b.Current assessment of people’s attitudes toward the firm 2.Determine Relevant Target Audiences 3.Objectives 4.Strategy 5.Tactics

© 2005 McGraw-Hill Ryerson Limited Determine Public Attitudes Provides Input for the Planning Process Serves As an “Early Warning System” Secures Internal Cooperation, Support Serves As an “Early Warning System” Provides Input for the Planning Process Increases Communications Effectiveness

© 2005 McGraw-Hill Ryerson Limited Questions for 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?

© 2005 McGraw-Hill Ryerson Limited Questions for Evaluating Public Relations Plans 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?

© 2005 McGraw-Hill Ryerson Limited Determine Relevant Target Audiences Customers and Clients Employees of the Firm Vendors and Suppliers Community Members The Media Governments Financial Groups Stockholders and Investors Customers and Clients Employees of the Firm Vendors and Suppliers Community Members The Media Governments Internal or Associated External or Independent Educators Civic and Business Organizations Educators Civic and Business Organizations

© 2005 McGraw-Hill Ryerson Limited Objectives Behavioural Communication

© 2005 McGraw-Hill Ryerson Limited Strategy Focus of the message Creative of the message Delivery of the message

© 2005 McGraw-Hill Ryerson Limited Tactics Vary depending on whether the PR is generated via news media or corporate advertising.

© 2005 McGraw-Hill Ryerson Limited News Media Tactics Press Releases Community Involvement Press Conferences Exclusives Interviews The Internet PR Tools Press Releases Community Involvement Press Conferences Exclusives The Internet

© 2005 McGraw-Hill Ryerson Limited Strengths and Limitations of News Media Timing Highly Credible Endorsement Frequency Potential Timing Highly Credible Endorsement Frequency Potential Accuracy StrengthsLimitations

© 2005 McGraw-Hill Ryerson Limited Corporate Advertising Image Enhancement Assuming a Position on an Issue or Cause Image Enhancement Assuming a Position on an Issue or Cause An Extension of the PR Function Promotes the Organization Does Not Promote a Specific Product or Service An Extension of the PR Function Does Not Promote a Specific Product or Service Seeks Involvement

© 2005 McGraw-Hill Ryerson Limited Types of Corporate Advertising Positioning Ads Sponsorship Recruitment Advocacy Financial Support Advocacy Positioning Ads Sponsorship Recruitment Image Advertising Event Sponsorship Advocacy Advertising Cause-related Advertising

© 2005 McGraw-Hill Ryerson Limited San Diego Zoo Protects Endangered Species

© 2005 McGraw-Hill Ryerson Limited Boeing Advertises to Enhance its Image

© 2005 McGraw-Hill Ryerson Limited Sponsorship Sporting Events Sporting Events Music, Entertainment Causes Festivals Cultural Events Arts Sporting Events Sporting Events Music, Entertainment Causes Festivals Cultural Events Sponsorship

© 2005 McGraw-Hill Ryerson Limited Why Use Sponsorship? Brand Positioning Target Audience Fit

© 2005 McGraw-Hill Ryerson Limited Measuring Sponsorship Effectiveness Exposure Methods Tracking Methods Figure 14-7

© 2005 McGraw-Hill Ryerson Limited Cause-Related Marketing Cause related marketing: is a form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.

© 2005 McGraw-Hill Ryerson Limited KitchenAid Uses Cause-Related Marketing

© 2005 McGraw-Hill Ryerson Limited Strengths and Limitations of Corporate Advertising Raises Questions of Constitutionality and Ethics May Have Questionable Effectiveness Excellent Vehicle for Positioning the Firm Takes Advantage of Benefits Derived From Public Relations Reaches a Selected Target Market May Have Questionable Effectiveness Reaches a Selected Target Market Takes Advantage of Benefits Derived From Public Relations Excellent Vehicle for Positioning the Firm StrengthsLimitations