2. EDUCATIONS Pertemuan 9 By: Dr. Drs. Dominikus Tulasi, MM. Mata kuliah: 00332 - PUBLIC REALTIONS ADVERTISING Tahun : 2010

3. Bina Nusantara University 3 Learning Objectives At the end of this meeting, students expected to conclude the comprehension, definition, and concept of Public Relations, related to advertising tools, in achieving and consumers or market targeting. The students are expected to originate their analysis based on Marketing Mix as a traditional fame of mind and the promotional mix as its derivation.

4. Bina Nusantara University 4 CORPORATE ADVERTISING Corporate advertising, actually an extension of the public relations function. Corporate advertising does not promote any one specific product or service. Why is corporate advertising controversial? 1)Consumers are not interested in this form of advertising. 2)It’s a costly form of self-indulgence. 3)The firm must be in trouble. 4)Corporate advertising is a waste of money.

5. Bina Nusantara University 5 OBJECTIVES OF CORPORATE ADVERTISING Corporate advertising is designed with two goals in mind: (1) creating a positive image for the firm, (2) communicating the organization’s views on business, and social issues including: 1)Boosting employees morale and smoothing labor relations. 2)Helping newly deregulated industries ease consumer uncertainty and answer investor questions.

6. Bina Nusantara University 6 3.Helping diversified companies establish an identity for the parent firm rather than relying solely on brand names.

7. Bina Nusantara University 7 ADVANTAGES OF CORPORATE ADVERTISING: 1)It is an excellent vehicle for positioning the firm— firms, like products, need to establish an image. 2)It takes advantage of the benefits derived from public relations—As the PR efforts of firms have increased, the attention paid to this event. 3)It reaches a select target market—corporate image advertising should not be targeted to the general public.

8. Bina Nusantara University 8 DISADVANTAGES OF CORPORATE ADVERTISING 1)Questionable effectiveness. The is no strong evidence to support the belief that corporate advertising works. 2)Constitutionality and/or ethics. Some critics contend that since larger firms have more money, they can control public opinion unfairly. This point was resolved in the courts in favor of the advertisers. Nevertheless, many consumers still see such advertising as unfair and immediately take a negative view of the sponsor.

9. Bina Nusantara University 9 MEASURING THE EFFECTIVENESS OF CORPORATE ADVERTISING 1)Attitude survey. One way to determine the effectiveness of corporate advertising is conducting attitude survey to gain insights into both the public’s and investors’ reactions to ads. 2)Studies relating corporate advertising and stock prices. 3)Focus group research. Focus group have used to find out what investors want to see in ads and how they react after the ads are developed.

10. Bina Nusantara University 10 THE SCOPE OF PERSONAL SELLING Personal selling involves selling through a person-to- person communications process. The emphasis placed on personal selling varies from firm to firm depending on a variety of factors, including the nature of the product or service being marketed. Personal selling often plays the dominant role in industrial firms, while in other firms, such as makers of low-priced consumer nondurable goods, its role is minimized.

11. Bina Nusantara University 11 COMBINING PERSONAL SELLING AND PUBLIC RELATIONS (PR) The salesperson may also be used directly in a Public Relations (PR) role. Many firms encourage sales reps to participate in community activities. Sometimes sales reps, in conjunction with the company, sacrifice time from their daily duties to help people in need. The personal selling agent is often the firm’s best source of public relations. In their day-to-day duties, sales people represent the firm.