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Chapter 16

Chapter 16. Public Relations. The Practice of Public Relations. Goal : Achieve effective relationships with various audiences to manage the organization’s image and reputation.

Faraday
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Chapter 16

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  1. Chapter 16 Public Relations

  2. 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.

  3. Advantages and Disadvantages of PR Advantages Disadvantages • Credibility • Low cost • Less clutter • Lead generation • Ability to reach • specific groups • - Image building • Not completing • the • communication • Process • Redundancies • with the • marketing • effort

  4. PR Operates on Two Levels in Most Firms Physical Tasks Advice to Management The Practice of Public Relations Advertising is Primarily Concerned with Enhancing Sales While PR is Concerned With Managing the Organization’s Image. PR May Not Work in Concert With Other Communication and Promotion Functions. People in Advertising May be Reluctant to Incorporate PR Into Their Planning Since It is Not a Bottom-Line Profit Producer.

  5. Comparing Public Relations and Advertising Public Relations Differs From Advertising in Three Important Ways: Media Use Advertising Pays PR Persuades Control Advertising – More PR – Less Credibility Advertising- Some PR – Much More

  6. Types of Public Relations Activities Public Affairs & Issues Management Managing a PR Program Begins With a Plan Crisis Management Image & Reputation Management Relationship Management

  7. Public Opinion • Ask 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

  8. 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.

  9. From Identity to Reputation

  10. Relationship Management Media Developing Media Contacts. Government Communicating with Government Bodies. Involved in the Management Of Relationships With Various Types of Stakeholders. Employees Programs Designed to Keep Employees Informed. Financial Relations Communications Aimed At the Financial Community.

  11. Twenty Key Publics of a Typical Multinational Corporation

  12. Be Prepared By Anticipating the Possibility of a Crisis. Develop a Plan for Dealing With the Crisis. Plan Should Detail Who Does What and Says What to Whom. Crisis Management

  13. Public Relations Tools

  14. Public Relations Tools The Sponsoring Organization Pays for Controlled Media so They Maintain Total Control Over How and When the Message is Delivered. House Ads Prepared by the Organization for Use in Its Own Publication or One Over Which It Has Some Control. Public Service Announcements Ads Designed by Charitable or Civic Organizations for Broadcast Free of Charge. Corporate (Institutional) Advertising Designed to Promote a Corporate Image or Viewpoint.

  15. In-House Publications Publications Such as Pamphlets, Booklets, and Annual Reports for an Organization’s Own Employees and Other Publics. Speakers, Photographs, & Films Maintaining Visual Contact With the Various Publics is a Big Part of PR. Displays, Exhibits, & Staged Events All Are Used in Both Sales Promotion and PR Programs and Include Open Houses and Plant Tours. Public Relations Tools

  16. Public Relations Tools The Media, Rather Than the Organization, Controls the Use and Placement of Uncontrolled Media. Press Conference Convening Media Reps To Make a Statement. Risky, Because Media May Not See Company’s Announcement as Being Real News. May Distribute Press Kits. News Release Primary Medium Used To Deliver PR Messages to Media Editors And Reporters. Video News Releases Contain Video Coverage That Can be Used During a TV Newscast.

  17. 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.

  18. 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

  19. 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. Marketing Public Relations (MPR)

  20. Marketing Public Relations (MPR) Adds Value: • Building marketplace excitement before media advertising breaks • 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 influential • Defending products at risk and giving consumers a reason to buy

  21. 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. Cause and Mission Marketing 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:

  22. EXH 12-16

  23. Types of Corporate Advertising Image Chevron advertising Advocacy California Avocado advertising Commission Cause-related J.C. Penney-PBS advertising

  24. 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

  25. Advantages and Disadvantages of Corporate Advertising Advantages: • Excellent vehicle for positioning the firm • Takes advantages of benefits of PR • Reaches a select target market Disadvantages: • Questionable effectiveness • Constitutionality and/or ethics

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