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Chapter 16

Public Relations

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The Practice of Public Relations

Goal: Achieve effective relationships with various audiences to manage the organization’s image and reputation.Publics may be external (customers, news media, investment community, general public, government), or internal (investors or employees).PR is a growing industry that employs approximately 150,000 people.

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Advantages and Disadvantages of PR

-Credibility- Low cost- Less clutter-Lead generation-Ability to reach specific groups- Image building

Advantages

- Not completing the

communication Process

- Redundancieswith the

marketing effort

Disadvantages

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PR May Not Work in Concert With Other Communication and Promotion Functions.

PR May Not Work in Concert With Other Communication and Promotion Functions.

Advertising is Primarily Concerned with Enhancing Sales WhilePR is Concerned With Managing the Organization’s Image.

Advertising is Primarily Concerned with Enhancing Sales WhilePR is Concerned With Managing the Organization’s Image.

Physical TasksPhysical Tasks

PR Operates on Two Levels in Most FirmsPR Operates on Two Levels in Most Firms

Advice to ManagementAdvice to Management

People in Advertising May be Reluctant to Incorporate PR Into Their Planning Since It is Not a Bottom-Line Profit Producer.

People in Advertising May be Reluctant to Incorporate PR Into Their Planning Since It is Not a Bottom-Line Profit Producer.

The Practice of Public Relations

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Media Use

Advertising PaysPR

Persuades

Media Use

Advertising PaysPR

Persuades

Control

Advertising – More

PR – Less

Control

Advertising – More

PR – Less

Public Relations Differs From Advertising in ThreeImportant Ways:

Public Relations Differs From Advertising in ThreeImportant Ways:

Credibility

Advertising-Some

PR – MuchMore

Credibility

Advertising-Some

PR – MuchMore

Comparing Public Relations and Advertising

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Managing a PR

Program Begins With a Plan

CrisisManagement

CrisisManagement

RelationshipManagement

RelationshipManagement

Public Affairs &Issues Management

Public Affairs &Issues Management

Image & ReputationManagement

Image & ReputationManagement

Types of Public Relations Activities

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Public OpinionAsk two primary questions about public opinion to design public affairs programs:Which publics are most important to the

organization, now and in the future?What do these publics think?

Public opinion is what people think, a “belief, based not necessarily on fact but on the conception or evaluation of an event, person, institution, or product”. 8

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Image and Reputation Management

A corporate image reflects how the public views the organization.Image programs try to send the right cues and hope the audience will develop a positive image of a company.Overriding goal of a reputation management program is to strengthen the trust that stakeholders have in an organization.An organization’s policies and actions determine its reputation.

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From Identity to Reputation

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Government Communicating withGovernment Bodies.

Financial Relations

Communications AimedAt the Financial

Community.

MediaDeveloping Media

Contacts.

EmployeesPrograms Designed to

KeepEmployees Informed.

Relationship Management

Involved in the ManagementOf Relationships With

Various Types ofStakeholders.

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Twenty Key Publics of a Typical Multinational Corporation

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Plan Should Detail Who Does What and Says What to Whom.

Develop a Plan for Dealing With the Crisis.

Be Prepared By Anticipating the Possibility of a Crisis.

Crisis Management

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Public Relations Tools

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House AdsHouse AdsPrepared by the Organization for Use in

Its Own Publication or One Over Which It Has Some Control.

Prepared by the Organization for Use in Its Own Publication or One Over Which It

Has Some Control.

The Sponsoring Organization Pays for Controlled Media so They Maintain Total Control Over How and When the Message

is Delivered.

Corporate(Institutional)Advertising

Corporate(Institutional)Advertising

Designed to Promote a Corporate Image or Viewpoint.

Designed to Promote a Corporate Image or Viewpoint.

Public Service AnnouncementsPublic Service

AnnouncementsAds Designed by Charitable or Civic Organizations for Broadcast Free of

Charge.

Ads Designed by Charitable or Civic Organizations for Broadcast Free of

Charge.

Public Relations Tools

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In-House PublicationsIn-House

Publications

Publications Such as Pamphlets, Booklets, and Annual Reports for an

Organization’s Own Employees and Other Publics.

Publications Such as Pamphlets, Booklets, and Annual Reports for an

Organization’s Own Employees and Other Publics.

Displays, Exhibits, &

Staged Events

Displays, Exhibits, &

Staged Events

All Are Used in Both Sales Promotion and PR Programs and Include Open Houses

and Plant Tours.

All Are Used in Both Sales Promotion and PR Programs and Include Open Houses

and Plant Tours.

Speakers, Photographs,

& Films

Speakers, Photographs,

& Films

Maintaining Visual Contact With the Various Publics is a Big Part of PR.

Maintaining Visual Contact With the Various Publics is a Big Part of PR.

Public Relations Tools

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News Release

Primary Medium Used To Deliver PR Messages

to Media EditorsAnd Reporters.

Video News ReleasesContain Video Coverage

That Can be UsedDuring a TV Newscast.

News Release

Primary Medium Used To Deliver PR Messages

to Media EditorsAnd Reporters.

Video News ReleasesContain Video Coverage

That Can be UsedDuring a TV Newscast.

Press Conference

Convening Media RepsTo Make a Statement.

Risky, Because MediaMay Not See Company’sAnnouncement as Being

Real News.

May Distribute Press Kits.

Press Conference

Convening Media RepsTo Make a Statement.

Risky, Because MediaMay Not See Company’sAnnouncement as Being

Real News.

May Distribute Press Kits.

Public Relations ToolsThe Media, Rather Than the Organization, Controls the Use

and Placement of Uncontrolled Media.

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Practical Tips # 2How to Measure PR Effectiveness

The following are common types of evaluation used in public relations: Output (What goes out)

Production: number of PR products generated. Distribution: number of media outlets receiving PR products. Coverage: column inches, seconds, or minutes of air time. Impressions: media placements x circulation or broadcast

reach. Advertising value: equivalent ad costs for time or space. Systematic content analysis: positive or negative slant, key

messages, sources, prominence. Outcome (Effect on the audience)

Goals/ objectives achievement: surveys, focus groups, PR product testing.

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Additional Means for Measuring PR’s Effectiveness

Personal observation and reaction

Matching objectives and results

The team approach

Management by objectives

Public opinion and surveys

Audits

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Marketing Public Relations (MPR)

Advertising and Public Relations Overlap in Marketing Public Relations (MPR), Which is the Process of Planning, Executing, and Evaluating

Programs That Encourage Purchase and Consumer Satisfaction Through Credible

Communication of Information and Impressions That Identify Companies and Their Products With

the Needs, Wants, Concerns, and Interests of Consumers.

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Building marketplace excitement before media advertising breaksCreating advertising news where there is no product newsIntroducing a product with little or no advertising

Providing a value-added customer service Building brand-to-customer bondsInfluencing the influentialDefending products at risk and giving consumers a reason to buy

Marketing Public Relations (MPR) Adds Value:

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Cause and Mission Marketing

Cause Marketing Adopting a good

cause and sponsoring its fund-raising and other efforts.

Mission Marketing More Long Term and

Pervasive Because the Cause is Linked to the Company’s Mission.

Customer Attitudes of Disrespect, Disgust, and Distrust Toward Advertising and Marketing Create New Marketplace

Challenges and Companies Must Prove They Are Good Corporate Citizens Through:

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EXH 12-16

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Types of Corporate Advertising

Image Chevron

advertising

Advocacy California Avocado advertising Commission

Cause-related J.C. Penney-PBS advertising

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Corporate Advertising

Corporate image (or identity) advertising To increase a firm’s name recognition or establish

goodwill for the firm and its products Ex.:“Think Different” campaign by Apple Computer

Corporate issue advertising (advocacy adv.) To take a position on a controversial social issue

of public importance in hopes of swaying public opinion

Ex.:“We want you to know where we stand” by Philip Morris

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Advantages and Disadvantages of Corporate Advertising

Advantages:Excellent vehicle for positioning

the firmTakes advantages of benefits of PRReaches a select target market

Disadvantages:Questionable effectivenessConstitutionality and/or ethics