MODELS OF THE RESPONSE PROCESS

1. Stage “AIDA” Model “Hierarchy of Effects” Model “Innovation-Adoption” Model “Communication” Model Cognitive Stage Attention Awareness Knowledge Awareness Exposure Reception Cognitive Response Affective Stage Interest Desire Liking Preference Conviction Interest Evaluation Attitude Intention Behavior Stage Action Purchase Trial Adoption Behavior MODELS OF THE RESPONSE PROCESS

2. The Differences between Advertising and PR Advertising is the wind, PR is the sun Advertising is spatial, PR is linear Advertising uses the big bang, PR uses the slow buildup Advertising is visual, PR is verbal Advertising reaches everybody, PR Reaches somebody Advertising is self-directed, PR is other-directed Advertising dies, PR lives Source: The Fall of Advertising and The Rise of PR, Al Ries & Laura Ries

3. (cont.) The Differences between Advertising and PR Advertising is expensive, PR is inexpensive Advertising favors line extensions, PR favors new brands Advertising likes old names, PR likes new names Advertising is funny, PR is serious Advertising is uncreative, PR is creative Advertising is incredible, PR is credible Advertising is brand maintenance, PR is brand building Source: The Fall of Advertising and The Rise of PR, Al Ries & Laura Ries

4. Out of Side out of Mind You and PR • A brief resume: • who you are, • what did you do, • why are you here. • Contacting each others, email. • Mailing list. • Your opinion about “PR” : as far as you know, what do PR practitioner does?

5. Public Relations - definitions • The PR organization intelligently evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and plans and executes a program of action to earn public understanding and acceptance. • PR is the management function that establishes and maintains mutually beneficial relationships between an organization and the publics on whom its success or failure depends. Session 1

6. Organizational Aspects of PR An Overview • Creation of a corporate or executive image • Support for executive presentations • Media relations • Integrated marketing • Consumer relations in the marketplace • Issue & crisis management • Reading assignment: • “Managing for Reputation,” in “Running a PR Department,” p.11 • History & Place of PR: between Western and Indonesian societies • “Development of Public Relations,” Fig.1.2 in “Strategic Program Planning for Effective Public Relations Campaigns,” p.4. Session 1

7. Several Main Sectors • PR is synonymous with ‘REPUTATION’. It is the result of: • what you do, • what you say and • what other say about you. • No universal agreement on terminology and divisions, but most practitioners look at the discipline in several main sectors comprising: • Financial and Corporate Communication • Government Affairs • Marketing Communication • Internal Communication • Community Relations Session 1

8. Outline of Planning Factors • We don’t provide guidance on the planning of PR programs, but simply to outline some of the specific characteristics of each main sector which will impact upon departmental management. In each case, you need to look at: • The PURPOSE of the activity • The target PUBLICS or AUDIENCES • Typical Program Content • The Principal Interface (Working Partnership) • Skills Needed Session 1

9. SKILLS Effective Writing Persuasive Speaking KNOWLEDGE In-depth knowledge of various media Understanding of management process Business, financial acumen ABILITIES Problem solver Decision maker Deft in handling people, generates confidence Assumes responsibility QUALITIES Stability and Common sense Drive and enthusiasm Wide-range interest and intellectual curiosity Good listener Tolerance for frustration Style Requirements for Success Session 1 Source: Cutlip, Center and Broom, Effective Public Relations, 8th Ed. .p53

10. Next Activities -- prepare • Opening Bank Account -- What are the reasons of your choice? • Creating a short PR campaign for gas company in NTT (near East Timor). • The Gladiator: compare the following, and who – among these characters, is the most successful ‘PR practitioner’, and why? • Commodus • Maximus • The Roman Senate • Lucilla • Marcus Aurelius • Senator Falco • Senator Gracchus • Proximo Session 1

11. Adding Value – Protecting the Image • Justifying the Place of PR in Business Today • How does PR serve Indonesian business, government, and industry today? • How might it add value, raise the image or improve the share price of Indonesian businesses? Session 2

12. Can a Major Corp/Organ Afford to Ignore PR realities? • Think of examples of ‘unpopular’ organizations that have relied on PR in recent times: • Exxon • ABRI • Nestle • Union Carbide • Ajinomoto Compare with: BreadTalk, Starbucks, Bintang Zero (vs MUI fatwa?) • What companies can you think of today that would benefit from better more intelligent PR? Session 2

13. PR and Crisis Management • Reading & Discussion: Problem 9 – ‘ When associates disagree in handling an emergency,’ in “Public Relations Practices,” p. 474. • What would be a typical Indonesian public relations response to this kind of situation, where a decision making executive is not available? Session 2

14. There is no golden rule. • Management experts recommend plenty of guidelines but very few rules. • The reason is that management is more about getting the right results than about applying the right rules. • What works is what matters. • Management is not an all-purpose solutions and foolproof formula (rigid, inflexible, immensely strong under some situations but most brittle under other situations). • Some guidelines work frequently under various situations and for so many people that they are known as golden guidelines. • There are not such things as golden rules.

15. Objectives: do we have to solve this problem? • The road to successful PR management is littered with unnecessary data that justify considerations for solution. • Subsequently, the PR question in most cases is not “can we solve this problem” but rather “Do we have to solve this problem?”

16. The guidelines • There are no rules for management, however, there are systematic approach, and some are known as guidelines. • These guidelines are: • The Pareto Principle (may be modified) • The systematic approach involving 8 stages

17. PARETO PRINCIPLE • Vilfredo Pareto (Italian sociologist, economist and engineer): provides a respectable academic basis for the study of unequal distribution of incomes. • Society is made up of an elite minority and a large mass. • A small minority hold most of the power and own an overwhelming percentage of the wealth.

18. PARETO PRINCIPLE • The value of the Pareto Principle to a manager is that: it focuses attention on separating the ‘vital few’ from the ‘trivial many’. • One company finds that a small number of establishments accounts for a high proportion of total purchase. • Another observes that the majority of sales derives from a minority of customers. • Identifying these vital few and concentrating effort upon them is seen as the key to success.

19. PARETO PRINCIPLE • These unequal patterns are traditionally described as the 20/80 distribution rule. • Depending on the situations: • It may vary to 10/90, or 5/95. • Thomas Alva Edison asserted that genius is 1% inspiration and 99% perspiration (1/99).

20. PARETO PRINCIPLE • U.K.: a more characteristic relationship: 1/3 or thereabouts. • Stone *): 25/75 ratio • 25% of the customers place 75% of the orders. • A writer: 75% of the script is structure and 25% is words. • A PR team: 25% of the staff thought up 75% of the ideas. • 25% of what business did was responsible for 75% of the earnings. • Conversely in many firms, 75% of what the business costs accounts for 25% of what it earns. • *) Norman Stone, “How to Manage Public Relations – practical guidelines for effective PR management.”

21. PENTING • It must not be understood, however, that once the vital 25% is identified then we can totally forget about the rest. • What is true is that the more management’s work can be done in the triangular area of the 25/75 golden guideline, the more effective it will be.

22. ANALYSIS and AUDIT • A communications audit is “A broad scale, loosely structured research exercise, which examines the effectiveness of communications within organizations and between organizations and groups outside.” • A survey approach determines how well communication being implemented with its members: • Do members understand the objectives? • Do they understand their role to achieve the objectives? • How could communication be improved? • A new manager may prompt the need of an audit to learn how well the organization is communicating with its members and to evaluate problems, such as high turnover of staff or high rates of absenteeism.

23. ANALYSIS and AUDIT • Understanding an audit is not without risk. Questions on how improvement in communication can be made will cause expectation for improvement. Failure to act on findings that need changes will damage credibility of management. • An audit may also be necessary when existing communication programs – newsletters, etc. – need to be checked.

24. ANALYSIS and AUDIT • It is essential. • It is a professional opinion, based on judgment applied to information (or evidential matter as the accountants call it). • The judgment is not only on how this evidential matter is to be interpreted, but what information should be amazed. • More useful when a new managing director runs the company, during an acquisition or merger.

25. ANALYSIS and AUDIT:3 stages process • Information gathering: identifying and collecting data and information on attitudes and trends, by means of internal and external interviews against a common topic menu. • Strategic analysis: weighing all options and choosing the most appropriate alternative strategies to be articulated in a “preferred strategy matrix”. • Communications program: putting the chosen option(s) into effect after spelling out a communication strategy, program, action plan and timetable. •  See PR Toolkit!!

26. ANALYSIS and AUDIT • This structured approach makes effective use of a classic management technique known as SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). • Other variant: ADOPTS. • ADOPTS: taken to imply the idea of choice, of picking up or taking over something that already exists, and making it one’s own.

27. AUDIT: ADOPTS • Advantages • Disadvantages • Opportunities • Problems • Time Factor • Stakeholders • 1,2 : inward looking. • 3,4 : outward looking. • 5 : applies no matter which way you are looking. • 6 : is the reason for the other five.

28. STAKEHOLDERS • Whatever other purposes an organization may have, it must also have the purpose of serving the interest of all its stakeholders – that is, all the people affecting the organization and affected by it. Stakeholders are not necessarily all of equal importance. Before an ADOPTS analysis, it is first of all necessary to identify and rank the stakeholders. • Who and where they are will depend on who and where you are. There can be no standard list, although some stakeholders – e.g. customers – are bound to occur on pretty well every list. Only you can decide who your stakeholders are, but mote that your organization cannot choose its own competitors. • ADOPTS analysis is not about program targeting or getting coverage. It is about meeting the needs of stakeholders.

29. Academics Agents Analysts Consumers Distributors Finance provider Government (central) Government (local) INVESTOR LOOBYISTS MANAGEMENT NEIGHBORING COMMUNITY CUSTOMERS POLICY COMMUNITY PRESSURE GROUPS SHARE HOLDERS SHOPFLOOR WORKERS SUPPLIERS STAKEHOLDERS