To manage relationship with the To manage relationship with the publicpublic

GeneralPublic

Employees

Suppliers Stockholders

Customers

CLIENT

The Role of Public RelationsThe Role of Public Relations

Public Relations Management Public Relations Management ProcessProcess

Determination and evaluation Determination and evaluation of public of public

Identification of policies and Identification of policies and proceduresprocedures

Development and execution of Development and execution of the programthe program

MA

RK

ET

ING

PUBLIC RELATIONS

Str

on

gW

eak

StrongWeak

Four Classes of MarketingFour Classes of Marketingand Public Relationsand Public Relations

Example:Small social service agencies

Example:Large, Fortune five-hundred companies

Example:Small manufacturing companies

Example:Hospitals, colleges and universities

Marketing Public RelationsMarketing Public Relations(MPR) Functions(MPR) Functions

Building marketplace Building marketplace excitement before media excitement before media advertising breaksadvertising breaks

Creating advertising news where Creating advertising news where there is no product newsthere is no product news

Introducing a product with little Introducing a product with little or no advertisingor no advertising

ContinuedContinued

Providing a value-added customer Providing a value-added customer serviceservice

Building brand-to-customer bondsBuilding brand-to-customer bonds Influencing the influential Influencing the influential (i.e., (i.e.,

providing information to opinion leaders)providing information to opinion leaders) Defending products at risk and giving Defending products at risk and giving

customers a reason to buycustomers a reason to buy

Evaluating Public Relations PlansEvaluating Public Relations Plans

1.1. Does the plan reflect a thorough Does the plan reflect a thorough understanding of the company’s understanding of the company’s business situation?business situation?

2.2. Has the PR program made good use of Has the PR program made good use of research and background sources?research and background sources?

3.3. Does the plan include full analysis of Does the plan include full analysis of recent editorial coverage?recent editorial coverage?

4.4. Do the PR people fully understand the Do the PR people fully understand the product’s strengths and weaknesses?product’s strengths and weaknesses?

5.5. Does the PR program describe several Does the PR program describe several relevant conclusions from the research?relevant conclusions from the research?

continuedcontinued

66.. Are the program objectives specific and Are the program objectives specific and measurable?measurable?

7.7. Does the program clearly describe what the PR Does the program clearly describe what the PR activity will be and how it will benefit the activity will be and how it will benefit the company?company?

8.8. Does the program describe how its results will be Does the program describe how its results will be measured?measured?

9.9. Do the research, objectives, activities, and Do the research, objectives, activities, and evaluations tie together?evaluations tie together?

10.10. Has the PR department communicated with Has the PR department communicated with marketing throughout the development of the marketing throughout the development of the programprogram

Research on Public AttitudesResearch on Public Attitudes

Provides input for the planning processProvides input for the planning process

Serves as an “early warning system”Serves as an “early warning system”

Secures internal cooperation, supportSecures internal cooperation, support

Increases communications effectivenessIncreases communications effectiveness

Public Relations AudiencesPublic Relations Audiences Employees of the firmEmployees of the firm Stockholders and investorsStockholders and investors Community membersCommunity members Suppliers and customersSuppliers and customers Print and broadcast mediaPrint and broadcast media EducatorsEducators Civic and business organizationsCivic and business organizations GovernmentsGovernments Financial groupsFinancial groups

Public Relations ToolsPublic Relations Tools

Press releasesPress releases Press conferencesPress conferences ExclusivesExclusives InterviewsInterviews Community involvementCommunity involvement The internetThe internet

Promotional PublicationsPromotional Publications InsertsInserts EnclosuresEnclosures Annual reportsAnnual reports PostersPosters Bulletin boardsBulletin boards ExhibitsExhibits AudiovisualsAudiovisuals SpeechesSpeeches

News releasesNews releases Media kitsMedia kits BookletsBooklets LeafletsLeaflets PamphletsPamphlets BrochuresBrochures ManualsManuals BooksBooks LettersLetters

Advantages of Public RelationsAdvantages of Public Relations CredibilityCredibility CostCost Avoidance of clutterAvoidance of clutter Lead generationLead generation SelectivitySelectivity Image building eg; TylenolImage building eg; Tylenol DisadvantageDisadvantage – not complete – not complete

the Communication processthe Communication process

Misfire thru mismanagement,Misfire thru mismanagement,

Lack of coordinationLack of coordination

Measuring the Effectiveness of Measuring the Effectiveness of Public Relations Public Relations

personal observation and reactionpersonal observation and reaction matching objectives and resultsmatching objectives and results the team approachthe team approach public opinions and surveyspublic opinions and surveys management by objectivesmanagement by objectives Audits- internal – superiors and peers Audits- internal – superiors and peers External-consultants etcExternal-consultants etc

PUBLICITYPUBLICITY Generation of news about a person, Generation of news about a person,

product, or service that appears in product, or service that appears in broadcast or print mediabroadcast or print media

Short term strategyShort term strategy The Power of Publicity The Power of Publicity The Control and Dissemination of The Control and Dissemination of

Publicity (press releases, or “leaks” Publicity (press releases, or “leaks” may be used to make sure that the may be used to make sure that the information gets out.) information gets out.)

Advantages and Disadvantages of Advantages and Disadvantages of Publicity Publicity

credibilitycredibility news valuenews value high word-of-mouth high word-of-mouth

communicationscommunications perceived endorsement by the perceived endorsement by the

mediamedia DisadvantagesDisadvantages timeliness and (2) accuracytimeliness and (2) accuracy

Why corporate Advertising is Why corporate Advertising is controversial?controversial?

Consumers are not interested in this Consumers are not interested in this form of advertisingform of advertising

It is a costly form of self indulgenceIt is a costly form of self indulgence The firm must be in troubleThe firm must be in trouble Corporate advertising is a waste of Corporate advertising is a waste of

money.money.

ObjectivesObjectives• 1) creating a positive image for the firm and1) creating a positive image for the firm and• (2) communication of the organization’s views (2) communication of the organization’s views

on social, business and environmental issue on social, business and environmental issue

• Boost employee moraleBoost employee morale• Smooth labor relationsSmooth labor relations• Help newly deregulated industriesHelp newly deregulated industries

Ease consumer uncertaintyEase consumer uncertainty Answer investor questionsAnswer investor questions

• Help diversified companiesHelp diversified companies Establish identity for parent firmEstablish identity for parent firm Decrease reliance solely on brandDecrease reliance solely on brand

Corporate AdvertisingCorporate AdvertisingTypesTypes

1.Image advertising-1.Image advertising- General image or positioning adsGeneral image or positioning adsSponsorshipsSponsorshipsRecruitingRecruitingGenerating financial supportGenerating financial support

2.Advocacy advertising- 2.Advocacy advertising- addresses addresses social ,business or environmental social ,business or environmental issues.issues.

3.Cause-related advertising3.Cause-related advertising

Advantages and Disadvantages of Advantages and Disadvantages of Corporate Advertising Corporate Advertising

excellent vehicle for positioning the excellent vehicle for positioning the firm firm

way of reaching select target way of reaching select target marketsmarkets

takes advantage of the efforts of takes advantage of the efforts of public relations. public relations.

DisadvantagesDisadvantages ethically wrong.ethically wrong. Questionable effectiveness.Questionable effectiveness.

Measuring the Effectiveness of Measuring the Effectiveness of Corporate Advertising Corporate Advertising

, , attitude surveys, studies relating attitude surveys, studies relating corporate advertising and stock corporate advertising and stock prices, prices, andand focus group research focus group research