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Public Relations Chapter 20
Public Relations is the profitable integration of an organization’s new and continuing relationships with stakeholders, including customers, by managing all communications contacts with the organization that create and protect the brand and reputation of the organization. C. L. Caywood, The Handbook of Strategic Public Relations & Integrated Communications, 1997
Public Relations • “Publics” are involved • Marketing Communications with those who have a relationship with the firm • Positive impacts to ensure effective business operations • Corporate image and reputation • Foster goodwill and understanding
Relative Importance of Promotional Tools in Consumer versus Industrial Markets Consumer Goods Industrial Markets Advertising Personal Selling Sales Promotion Sales Promotion Personal Selling Advertising Public Relations Public Relations Relative Importance Relative Importance
Print and broadcast ads Packaging - outer Packaging - inserts Motion pictures Brochures and booklets Posters and leaflets Directories Reprints of ads Billboards Display signs Point-of-purchase displays Audio-visual materials Symbols & logos Advertising
Contests, games, sweepstakes, lotteries Premiums, gifts Samplings Fairs, trade shows Exhibits Demonstrations Couponing Rebates Low-interest financing Entertainment Trade-in allowance Trading stamps Tie-ins Sales Promotion
Product publicity Corporate communications Issues management Investor relations Financial communications Lobbying Public affairs Media relations Community affairs Crisis management Events management Sponsorship A range of services feeding into these... Public relations: An umbrella term...
Job of PR • Decide how activities link to others -- individuals or organizations • Find groups, define exact nature of opportunity/problem and select PR solution
Types of Public Relations • Publicity - News Release - Press Conference - Press Kit • Publications- Annual Reports - Corporate Histories • Company Sponsorship • Fundraising • Corporate Advertising • Videos and Film - Product Placement • Lobbying • Meetings • Organized Social Activities
Tools • Written material • Audio-visual material • Corporate identity media • News • Events • Speeches • Telephone information service • Internet
How MPR Adds Value • Build marketplace excitement before advertising breaks • Drive communications program when there is no advertising • Make advertising news when there is no advertising • Bring advertising to life • Extend promotion programs
How MPR Adds Value • Build personal relationships with customers • Influence the influentials • Communicate new product benefits • Demonstrate a company’s social responsibility and build consumer trust • Defend products at risk and give consumers permission to buy
Awards Books Contest, competitions, created events Demonstrations Exhibits Expert columns Fan clubs Festivals Grand openings Hot lines Interviews Key issues Luncheons Meetings Museums Newsletters Official endorsements Produce placement Questionnaires Radio contests Support for sports teams, the arts, community projects, etc.. Symbols Tours Weeklies Youth programs Marketing Public Relations Tools
Relationship Building • Key element of IMC • Not just with customers Knowing Responsive Trusting Affinity Consistent Likeable Accessible Committed Constructs determining strength of relationships
Corporate Practices and Images Group Character Traits Images 1. Generate Trust Employees 2. Empower Trustworthiness 3. Instill Pride Investors 4. Show Profitability 5. Maintain Stability Credibility 6. Have Growth Prospects Customers 7. Cultivate Product Quality 8. Provide Customer Service Reliability Community 9. Serve the Community 10.Green the Environment Responsibility
Moral guidelines Truthful Testimonials Children and young people Exploitation of goodwill Comparisons Imitation Safety Denigration Responsibility Ethics
Coorientational Model Organization’s Definition and Evaluation of Issue Public A’s Definition and Evaluation of Issue Agreement Congruency Accuracy Congruency Organization’s Perception of Public A’s Views Public A’s Perception of Organization’s Views
The Multiple Publics of Public Relations INTERNAL STAKEHOLDERS Employees Shareholders MPR Public: Suppliers, distributors, brokers, wholesalers, retailers, dealers Regular or loyal customers EXTERNAL STAKEHOLDERS The media Local community neighbors Local, regional, state and federal government bodies and regulators The financial community Special-interest groups Prospective customers, employees and shareholders
Public Relations • STRENGTHS • Reaches stakeholders other than consumers • Reaches hard-to-reach targets, such as upscale opinion leaders • Can advise company/client on image issues • Establishes corporate-citizen role • Proactive-can plan for crises • More message flexibility due to fewer legal restrictions • Adds credibility/believability • Can break through “ad clutter” • Low costs • WEAKNESSES • Lack of control over how the story gets covered • Subject to other’s approval for news story to run • Bottom-line impact is difficult to measure
Planning Public Relations • The Development Plan Consists of Six Steps • 1.) Assessment of the current situation • 2.) Statement of objectives • 3.) Selection of target audiences • 4.) Selection of implementation methods • 5.) A determination of costs • 6.) Evaluation of results