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The Role of Public Relations

To manage relationship with the public. The Role of Public Relations. General Public. Employees. Customers. CLIENT. Suppliers. Stockholders. Public Relations Management Process. Determination and evaluation of public Identification of policies and procedures

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The Role of Public Relations

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  1. To manage relationship with the public The Role of Public Relations General Public Employees Customers CLIENT Suppliers Stockholders

  2. Public Relations Management Process • Determination and evaluation of public • Identification of policies and procedures • Development and execution of the program

  3. Weak MARKETING Strong Weak Strong PUBLIC RELATIONS Four Classes of Marketingand Public Relations Example: Small social service agencies Example: Hospitals, colleges and universities Example: Small manufacturing companies Example: Large, Fortune five-hundred companies

  4. Marketing Public Relations(MPR) Functions • Building marketplace excitement before media advertising breaks • Creating advertising news where there is no product news • Introducint a product with little or no advertising • Providing a value-added customer service • Building brand-to-customer bonds • Influencing the influentials (i.e., providing information to opinion leaders) • Defending products at risk and giving customers a reason to buy

  5. Evaluating Public Relations Plans 1. Does the plan reflect a thorough understanding of the company’s business situation? 2. Has the PR program made good use of research and background sources? 3. Does the plan include full analysis of recent editorial coverage? 4. Do the PR people fully understand the product’s strengths and weaknesses? 5. Does the PR program describe several cogent, relevant conclusions from the research? 6. Are the program objectives specific and measurable? 7. Does the program clearly describe what the PR activity will be and how it will benefit the company? 8. Does the program describe how its results will be measured? 9. Do the research, objectives, activities, and evaluations tie together? 10. Has the PR department communicated with marketing throughout the development of the program?

  6. Research on Public Attitudes • Provides input for the planning process • Serves as an “early warning system” • Secures internal cooperation, support • Increases communications effectiveness

  7. Public Relations Audiences • Employees of the firm • Stockholders and investors • Community members • Suppliers and customers • Print and broadcast media • Educators • Civic and business organizations • Governments • Financial groups

  8. Public Relations Tools • Press releases • Press conferences • Exclusives • Interviews • Community involvement • The internet

  9. Telling the PR Story • Technical methods make it easier for the press • They increase the likelihood media will use the story • Telephone press conferences • In-studio media tours • Multicomponent video news releases (VNR) • Targeted wire stories

  10. Inserts Enclosures Annual reports Posters Bulletin boards Exhibits Audiovisuals Position papers Speeches News releases Media kits Booklets Leaflets Pamphlets Brochures Manuals Books Letters Promotional Publications

  11. Advantages of Public Relations • Credibility • Cost • Avoidance of clutter • Lead generation • Selectivity • Image building

  12. Criteria for Measuring PR Effectiveness • Total number of impressions . . . • Over time • On the target audience • On specific target audiences • Percentage of . . . • Positive articles over time • Negative articles over time • Ratio of positive to negative articles • Percentage of positive and negative articles by . . . • Subject • Publication • Reporter • Target audience

  13. Corporate Advertising • Types • Image advertising • Event sponsorship • Advocacy advertising • Cause-related advertising • Objectives • Boost employee morale • Smooth labor relations • Help newly deregulated industries • Ease consumer uncertainty • Answer investor questions • Help diversified companies • Establish identity for parent • Decrease reliance solely on brand

  14. 1 Johnson & Johnson 83.4 2 Coca-Cola 81.6 3 Hewlett-Packard 81.2 4 Intel 81.0 5 Ben &Jerry’s 81.0 6 Wal-Mart 80.5 7 Xerox 79.9 8 Home Depot 79.7 9 Gateway 78.8 10 Disney 78.7 11 Dell 78.4 12 General Electric 78.1 13 Lucent 78.0 14 Anheuser-Busch 78.0 15 Microsoft 77.9 16 Amazon.com 77.8 17 IBM 77.6 18 Sony 77.4 19 Yahoo! 76.9 20 AT&T 75.7 21 FedEx 75.7 22 Procter & Gamble 71.9 23 Nike 71.3 24 McDonald’s 71.2 25 Southwest Airlines 70.6 26 America Online 69.2 27 Daimler Chrysler 69.1 28 Toyota 68.6 29 Sears 67.6 30 Boeing 67.3 To 30 Companies Based on RQ(Reputation Quotient)

  15. Emotional Appeal How much the company is liked, admired, and respected Top 5 Companies for Each of 6 Elements of Reputation Social Responsibility Perceptions of the company as a good citizen in its dealings with communities, employees, and the environment 1 Johnson & Johnson 2 Coca-Cola 3 Hewlett-Packard 4 Ben & Jerry’s 5 Xerox 1 Ben & Jerry’s 2 Amazon.com 3 Johnson & Johnson 4 Wal-Mart 5 Xerox

  16. Products & Services Perceptions of the quality, innovation, value, and reliability of its products and services Top 5 Companies for Each of 6 Elements of Reputation Workplace Environ. Perception of how well the company is managed, how it is to work for, and the quality of its employees 1 Johnson & Johnson 2 Intel 3 Hewlett-Packard 4 Xerox 5 Ben & Jerry’s 1 Johnson & Johnson 2 Lucent 3 Ben & Jerry’s 4 Hewlett-Packard 5 Intel

  17. Vision & Leadership How much the company demonstrates a clear vision and strong leadership Top 5 Companies for Each of 6 Elements of Reputation Financial Performance Perceptions of its profitability, prospects, and risk 1 Microsoft 2 Intel 3 Anheuser-Busch 4 Coca-Cola 5 Dell 1 Microsoft 2 Wal-Mart 3 Coca-Cola 4 Johnson & Johnson 5 Intel

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