1. Chapter 3.4 Public Relations Communication

2. Public Relations Definition
“The professional maintenance of a favorable public image by an organization or a famous person.”
“The state of the relationship between the public and a company or other organization or an important person.”

3. Public Relations Department
Separate entity and depend on organization structure.
Part of marketing department
Eg. Department of Communications, Corporate Communication
Public relations tools
Goal  Get hits
Develop PR strategy that fits
Strengthen company’s voice

4. Public Relations Functions
1. Identify and monitor internal and external stakeholders
2. Assess the corporate reputation
3. Audit corporate social responsibility
4. Create positive image-building activities
5. Responsible to prevent or reduce image damage from negative events.

5. 1. Identifying Stakeholders
Has vested interest (protected or established by law or contract).
Internal stakeholders
External stakeholders
INTERNAL STAKEHOLDERS
EXTERNAL STAKEHOLDERS
Employees
Unions
Shareholders
Channel members
Customers
Media
Local community
Financial community
Government
Special-interest groups

6. 2. Assessing Corporate Reputation
Reputation is fragile, but valuable
Assess reputation of the company
Monitor corporate reputation
Less than half companies have someone assigned for the job.

7. 3. Auditing Corporate Social Responsibility
Obligation to be ethical
Corporate transparency
Undertaken by management
Organizations need
Ethical guidelines for all employees
Code of ethics

8. Examples of Activities that Affect a Company’s Image
Image Destroying Activities
Image Building Activities
Discrimination
Harassment
Pollution
Misleading communications
Deceptive communications
Offensive communications
Empowerment of employees
Charitable contributions
Sponsoring local events
Selling environmentally safe products
Outplacement programs
Support community events

9. 4. Creating a Positive Image
By using 3 ways;
Cause-related marketing
Green marketing and pro-environmental activities
Preventing or reducing image damage

10. Cause-Related Marketing
Partnership with charity
Brand equality
Supporting cause can create bond
In past, companies only contribute monetary funding
Companies need a benefit, which should relate to business
But companies must be careful in supporting a cause
Cause liked by one – disliked by another
To benefit from cause-related marketing, the pubic needs to know. But, companies have to be careful. Too much publicity and the public thinks the company is using the charity for personal gain. Not enough publicity and no one knows about it so there are no tangible benefits.

11. Green Marketing and Pro-environmental Activities
Products environmentally safe
Survey concerning green marketing
Try to save electricity (58%)
Recycle newspapers (46%)
Return bottles and cans (45%)
Buy products – recycled materials (23%)
Consumers support, but only when equal
Green products seen as inferior

12. 5. Preventing or Reducing Image Damage
Damage control
Negative publicity and events
Bad news travels fast
Two situation
Firm has made an error
Unjustified or exaggerated negative press
Two strategies
Proactive prevent strategies
Reactive damage control strategies

13. Damage-Control Strategies
Proactive Strategies - to prevent or reduce chances of negative events
Entitling - claim responsibility for positive outcomes
Enhancements - increase desirable outcome
Reactive Strategies - to react to negative situation
Internet interventions
Crisis management programs
Apology strategy
Impression management techniques

14. Internet Interventions
Use Internet to react
Consumers can spread bad news quickly
Assign employees to monitor online communications
Provides information on what people are thinking

15. High probability of occurrence Low probability of occurrence
Crisis Management
High probability of occurrence
Low probability of occurrence
High likely impact
High priority
Contingency plans
Avoids or reduce risk
Serious concern
Adapt strategy
Limit likely consequences
Low likely impact
Low concern
Can get ignored
Some concern
Reduce, limit or defect risk

16. Apology Strategies Reactive form of crisis management Firm at fault
Apology should be offered
Used when violation is minor
Firm cannot deny responsibility
Effective for creating emotional bond
Must be sincere

17. Impression Management
A goal-directed conscious or unconscious process in which people attempt to influence the perceptions of other people about a person, object or event; they do so by regulating and controlling information in social interaction.
Usually used synonymously with self-presentation, in which a person tries to influence the perception of their image.
Refers to practices in professional communication and public relations, where the term is used to describe the process of formation of a company's or organization's public image.