1. Chapter 13
Public Relations

2. Chapter 13 : Public Relations
Chapter Objectives
To recognize the role of public relations in the promotional mix
To understand public relations and its strength and limitations
To understand the reasons for corporate advertising and its advantage and disadvantage
Chapter 13 : Public Relations

3. Chapter 13 : Public Relations
Chapter Objectives
To know how to compile a public relations plan
To understand how public relations is obtained partly through publicity generated through news media
Chapter 13 : Public Relations

4. Chapter 13 : Public Relations
Traditional Definition of PR
The management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance.
( Definition by the Public Relation News)
Chapter 13 : Public Relations

5. Chapter 13 : Public Relations
Required stages in PR
The determination and evaluation of public attitudes
The identification of policies and procedures of an organization with a public interest
The development and execution of a communications program designed to bring about public understanding and acceptance
Chapter 13 : Public Relations

6. Chapter 13 : Public Relations
The New Role of PR
It demonstrates four relationships that marketing and public relations can assume in an organization
Defined by the degree of use of each function
4 different classes
Chapter 13 : Public Relations

7. Four Classes of Marketing and Public Relations
Relationships are characterized by minimal use of either function
Class 2
Relationships have a well-established public relation functions but do very little in the way of formal marketing
Chapter 13 : Public Relations

8. Four Classes of Marketing and Public Relations
Organizations, in which marketing dominates and public relation function is minimal
Class 4
Enterprises have both strong marketing and strong PR
Chapter 13 : Public Relations

9. Chapter 13 : Public Relations
The New Role of PR
Example:
Small social service agencies
Example:
Hospitals, colleges and universities
Weak
MARKETING
Example:
Small manufacturing companies
Example:
Large, Fortune five-hundred companies
Strong
Weak
Strong
PUBLIC RELATIONS
Chapter 13 : Public Relations

10. Chapter 13 : Public Relations
The New Role of PR
PR departments position themselves as
a tool to both supplant and support traditional advertising and marketing efforts
a key part of IMC program
PR must play an integral role in IMC program
Chapter 13 : Public Relations

11. Publicity: One Effect of Public Relations
It refers to the generation of news about a person, product,service, or organization that appears in broad cast or print media
In some instances…
Publicity and PR are synonymous. (I.e. Tree Top‘s respond to an adverse publicity)
Publicity is the end result or effect of PR effort
Chapter 13 : Public Relations

12. Publicity: One Effect of Public Relations
Marketers like to have controls over the time and place where information is released
They accomplish this by…
Video news release (VNR)
A Publicity piece produced by publicists
The effective media use for product launches
Chapter 13 : Public Relations

13. Publicity: One Effect of Public Relations
Publicity complications
The publicity typically lasts for a short time
The publicity is not always positive and is not always under the control of, or paid for by, the organizations
Publicity’s sheer power as a form of communication
(I.e. Tylenol, and Johnson & Johnson)
Chapter 13 : Public Relations

14. Strength of Public Relations
Credibility
The public does not realize the organization paid for public relations
Cost
In both absolute and relative terms, the cost of public relations is very low
Chapter 13 : Public Relations

15. Strength of Public Relations
Avoidance of clutter
They are typically perceived as news, PR messages are not subject to the clutter of ads
Lead generation
Inquiries generated by Information about technological innovations, and like may give the firms some quality sales leads
Chapter 13 : Public Relations

16. Strength of Public Relations
Ability to reach specific groups
It can reach small market segments with relatively low costs
Image building
Effective PR can helps to develop positive image for the organization
Chapter 13 : Public Relations

17. Limitations of Public Relations
Weaker brand or corporate identification effect
The major disadvantage of PR is the potential for not completing the communication process
Inconsistent message
Chapter 13 : Public Relations

18. Limitations of Public Relations
Timing
It is hard to control a timing of publicity
Accuracy
Information sometimes gets lost in transaction – it is not always reported the way the provider wishes it to be
Chapter 13 : Public Relations

19. Chapter 13 : Public Relations
Public Relation Plan
PR is an ongoing process requiring formalized policies and procedures for dealing with problems and opportunities.
Situation analysis
Determine Relevant Target Audiences
Behavioral objectives
Communication objectives
Strategy
Tactics
Chapter 13 : Public Relations

20. Chapter 13 : Public Relations
Situation Analysis
It provides input into the planning process.
It serves as an early warning system.
It secures support internally.
It increases the effectiveness of the communication
Chapter 13 : Public Relations

21. Determine Relevant Target Audiences
Internal Audiences
Employees of the firm
Stockholders and investors
Community members
Suppliers and customers
Chapter 13 : Public Relations

22. Determine Relevant Target Audiences
External audiences
The Media
Educators
Civic and business organizations
Governments
Financial groups
Chapter 13 : Public Relations

23. Behavioral Objectives
Trial purchase
Repeat purchase
Purchase-related action
Consumption
Chapter 13 : Public Relations

24. Communication Objectives
Category need
Brand awareness
Brand attitude
Purchase intention
Purchase facilitation
Chapter 13 : Public Relations

25. Chapter 13 : Public Relations
Strategy
Focus of the message
Marketing public relations – public relations activities designed to support marketing objectives
A major threat of marketing public relations is that it may lead to public relations becoming subservient to marketing
Creative of the Message
Chapter 13 : Public Relations

26. Chapter 13 : Public Relations
Strategy
Marketing public relations can be used effectively in following ways
Building marketplace excitement before media advertising breaks
Creating advertising news where there is no product news
Introducing a product with little or no advertising
Chapter 13 : Public Relations

27. Chapter 13 : Public Relations
Strategy
Influencing the influential– providing information to opinion leaders.
Defending products at risk with a message of reassurance
Constructively promoting a product
Chapter 13 : Public Relations

28. 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
Chapter 13 : Public Relations

29. Criteria for Measuring PR Effectiveness
Ratio of positive to negative articles
Percentage of positive and negative articles by ...
Subject
Publication
Reporter
Target audience
Chapter 13 : Public Relations

30. Chapter 13 : Public Relations
Tactics
The tactic of public relations partly depend on they type of media or dissemination tool used
Chapter 13 : Public Relations

31. Public Relations Strategy News Media Options
The press release
Information must be factual, true, and interest to the medium as well as its audience.
Telephone press conference
In-studio media tours.
Multi-component video news release (VNR)
Targeted newswire stories
Chapter 13 : Public Relations

32. Public Relations Strategy News Media Options
Press conferences
The topic must be a major interest to a specific group
Exclusives
To offer one particular medium exclusive right to the story if the medium reaches a substantial number of target customers
Chapter 13 : Public Relations

33. Public Relations Strategy News Media Options
Interviews
Community involvement
Membership in local organizations
Contributions to or participation in community events
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34. Strength of News Media Options
News media messages are highly credible
Consumers perceive this information more objective
Endorsement
Publicity information may be perceived as endorsed by the medium
Frequency potential
The frequency of exposure it generates
Chapter 13 : Public Relations

35. Limitations of News Media Options
Timing
Timing of the publicity through news media is not always completely under the control of the marketer
Accuracy
The information contained in the press release sometimes gets lost in translation
Chapter 13 : Public Relations

36. Corporate Advertising Options Corporate Advertising
It designed to promote the firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something
One of the most controversial from of advertising
Chapter 13 : Public Relations

37. Corporate Advertising Options Corporate Advertising
Why is this controversial?
Consumers are not interested in this form of advertising.
It’s a costly form of self-indulgence.
The firm must be in trouble.
Corporate advertising is a waste of money
Chapter 13 : Public Relations

38. Corporate Advertising Options Image Advertising
General image or positioning ads
To create an image of firm in the public mind
It is also used when a company changes its name
Television sponsorship
A firm often runs corporate image advertising on TV programs or specials
( I.e. Hallmark, IBM)
Chapter 13 : Public Relations

39. Corporate Advertising Options Image Advertising
Recruiting
It is designed to attract new employees
Generating financial support
It is designed to generate investments in the corporation
In this instance, corporate image advertising is almost attempting to make a sale; the product is the firm
Chapter 13 : Public Relations

40. To 30 Companies Based on RQ (Reputation Quotient)
Figure 13-4
Chapter 13 : Public Relations

41. Corporate Advertising Options Advocacy Advertising
It is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interest of the sponsor
It adopts a position on a particular issue
Advocacy Advertising has been creasing
Chapter 13 : Public Relations

42. Corporate Advertising Options Cause-related Marketing
Companies link with charities or nonprofit organizations as contributing sponsors
80 percent of consumers say that they have more positive impression of companies that support a cause
Chapter 13 : Public Relations

43. Corporate Advertising Options Event Sponsorship
Sports receive the majority of event sponsorship monies (I.e. golf, tennis, etc)
Traditionally, tobacco,beer, and car companies have been the largest sports event sponsors
Event marketing, contests, sampling, and sweep takers are effective promotion tools.
Chapter 13 : Public Relations

44. Corporate Advertising Options The Internet
Differences between traditional media and the Internet:
The Internet offers a more limited opportunity to gain attention due to short exposure times
It offers the opportunity to build internal links that provide the media with instant access to additional sources of information on the issue
It offers the ability to provide much more substantial information
Chapter 13 : Public Relations

45. Strength of Corporate Advertising
It is an excellent vehicle for positioning the firm
It offers some control that the message will be disseminated
It reaches a select target audience
Chapter 13 : Public Relations

46. Limitation of Corporate Advertising
Questionable effectiveness
There is no strong evidence to support the belief that corporate advertising works
Constitutionality and/or ethics
Since large firms have more money, they can control public opinion unfairly
Chapter 13 : Public Relations