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CHAPTER 19

CHAPTER 19. CONSUMERS & INVESTORS. FOR STARTERS:. Consumers & Investors. Why has dealing with consumers and investors become so important for public relations?. Competition. Advertising “Noise”. Savvy Consumers. Knowledgeable Investors. Tyco Toys, Inc. Toy Fair Breakfast

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CHAPTER 19

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  1. CHAPTER 19 CONSUMERS & INVESTORS

  2. FOR STARTERS: Consumers & Investors Why has dealing with consumers and investors become so important for public relations? Competition Advertising “Noise” Savvy Consumers Knowledgeable Investors

  3. Tyco Toys, Inc. • Toy Fair Breakfast • Media Day at Sesame Place Theme Park • Elmo sent to Rosie O’Donnell • 15,000 media mentions SUCCESS! Source of Elmo character: http://www.geocities.com/~chicky-ma-ma/elmo.htm [accessed 6/16/2000]

  4. Consumer Movement History Let’s Discuss 1872 – Criminal Fraud Statute 1887 – Interstate Commerce Commission • 1900s – Muckrakers • The Jungle • Food and Drug Act • Food, Drug, and Cosmetic Act

  5. JFK’s Consumer Bill of Rights Right to Choose Right to Be Heard Right to Safety Right to Be Informed

  6. QUICK QUIZ Federal Consumer Agencies What does each of the following federal agencies do? • Regulates television and radio advertising • Covers areas not included in national advertising (general litigation division) • Enforces consumer credit program (fair credit reporting, truth in packaging) Federal Trade Commission

  7. QUICK QUIZ Federal Consumer Agencies What does each of the following federal agencies do? • Enforces consumer protection measures such as the Truth in Lending Act and Product Safety Act • Runs anti-trust division (Microsoft suit) Justice Department

  8. QUICK QUIZ Federal Consumer Agencies What does each of the following federal agencies do? • Protects consumers from hazardous items: foods, drugs, cosmetics, therapeutic and radiological devices, food additives, serums, and vaccines Food & Drug Administration

  9. QUICK QUIZ Federal Consumer Agencies EDUCATION What does each of the following federal agencies do? • Publishes literature informing the public of recent developments in consumer affairs • Oversees product safety (seatbelts, strollers, etc.) Office of Consumer Affairs Consumer Product Safety Commission

  10. QUICK QUIZ Name some consumer watchdog vehicles or groups. • Consumers Union (publishes Consumer Reports) • The Consumer Federation of America • The Internet

  11. Business’s Consumer RelationsDivision Duties Handling Complaints Developing Guidelines to Evaluate Products & Services Developing Consumer Programs Developing Field-Training Programs Evaluating Service Approaches Evaluating Company Effectiveness in Showing Concern for Customers

  12. Chrysler Corporation’s“Customer’s Bill of Rights” Every customer has the following rights: Long-term Protection Quality Service with a Smile Satisfaction Safe Vehicles Grievance Opportunities

  13. Consumerist Objectives Let’s Discuss Explain how each would benefit a company: Keeping Old Customers Attracting New Customers Marketing New Items / Services Reducing Costs Handling Complaints

  14. Ombuds Officers • Investigate complaints made against the firm • Provide a central location for customers who seek redress • Monitor difficulties customers have with products • Influence organizations to improve service

  15. DEFINE: Timely and valuable communications that gain and maintain shareholder support Investor Relations

  16. What is a company’s CURRENCY? Q. A. Its STOCK PRICE

  17. DEFINE: Any fact that would be important to an investor making an investment decision "Material" Information

  18. Examples of Material Information: • Proposed mergers or acquisitions • Changed dividend policy • Determination of earnings • Acquisition or loss of significant business contract • Major management changes • Significant change in capital investment plans

  19. Examples of Material Information: • Purchase or sale of a major asset • Incurring a major debt or selling a significant amount of equity annuities • Pending significant legislation • A major discovery or innovation • Marketing a new product

  20. OVERVIEW: Investor Relations Activities • Company description • Letter to shareholders • Financial review • Explanation/analysis • Management/marketing discussions • Graphics Annual Reports:

  21. OVERVIEW: Investor Relations Activities Comparison of current performance with previous year’s quarter performance Quarterly Reports: Annual Meetings: • In-person meetings • Q&A sessions • Speeches • Stockholder voting

  22. OVERVIEW: Investor Relations Activities Follow-up quarterly reports to answer questions Conference Calls: Media Contact & Monitoring: • In-person meetings • Q&A sessions • Speeches • Stockholder voting

  23. OVERVIEW: Investor Relations Activities • Homepage / Web site • SEC documents online • FAQs • Links to financial data Internet Investor Relations:

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