Chapter 17 Public Relations, Publicity, and Corporate Advertising

1. Chapter 17Public Relations, Publicity, and Corporate Advertising

2. Public Relations (PR) • Evaluates public attitudes • Identifies the policies and procedures of an organization with the public interest • Executes a program of action to earn public understanding and acceptance

3. Role of PR Traditional role New role • Maintain mutually beneficial relationships between the organization and its publics • Act as a management communications function • Work together with the marketing department • Contribute to the IMC process in a way that is consistent with marketing goals

4. Marketing Public Relations (MPR) • Public relations activities designed to support marketing objectives • Functions • Building marketplace excitement Improving ROI • Creating advertising news where there is no product news • Introducing a product with little or no advertising • Providing a value-added customer service • Building brand-to-customer bonds • Influencing the influentials • Defending products at risk & giving consumers reason to buy

5. Figure 17.2 - Advantages and Disadvantages of MPRs Sources: Thomas L. Harris, “Marketing PR—The Second Century,” Reputation Management, www.prcentral.com , January/February 1999, pp. 1–6

6. Determining and Evaluating Public Attitudes • Reasons • Provides input into the planning process • Serves as an early warning system • Secures support internally • Increases the effectiveness of the communication

7. Steps to Develop a PR Plan Define public relations problems Plan and program Take action and communicate Evaluate the program

8. Figure 17.3 - Ten Questions for Evaluating Public Relations Plans

9. Types of Target Audiences Internal audiences External audiences • People who are connected to a firm with whom the firm communicates on a routine basis • Employees • Stockholders • Investors • Members of the local community • Suppliers • Current customers • People who are not closely connected with the organization • Media • Educators • Civic and business organizations • Governments • Financial groups

10. Tools for Implementing the PR Program

11. Advantages and Disadvantages of PR Advantages Disadvantages Potential for incomplete communication process Lack of connection between receiver and sender Lack of coordination with marketing unit Erratic, redundant communications • Credibility • Cost • Avoidance of clutter • Lead generation • Ability to reach specific groups • Image building

12. Measuring the Effectiveness of PR • Should consider whether the target audience: • Received the messages • Paid attention to the messages • Understood the messages • Retained the messages • Methods • Media content analysis • Survey research • Marketing-mix modeling

13. Publicity • Generation of news about a person, product, or service that appears in broadcast or print media • Differs from public relations by: • Being a short-term strategy • Not always being positive • Not always being controlled or paid by the organization

14. Video News Release (VNR) • Publicity piece produced by publicists so that stations can air it as a news story • Used by marketers to have control over the time and place where information is released

15. Pros and Cons of Publicity Pros Cons Lack of control Timing Accuracy • Substantial credibility • News value • Significant word-of-mouth • Perception of media endorsement

16. Corporate Advertising • Designed to promote the firm overall by: • Enhancing its image • Assuming a position on a social cause • Seeking direct involvement in something

17. Reasons for Corporate Advertising Being Controversial Consumers are not interested Costly form of self-indulgence Belief that the firm must be in trouble Perceived as a waste of money

18. Types of Corporate Advertising

19. Methods for Measuring the Effectiveness of Corporate Advertising Attitude surveys Studies relating corporate advertising and stock prices Focus group research