chap17 public relations, publicity, and corporate advertising

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  • 1. 17 Public Relations, Publicity, and Corporate Advertising McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

2. The Role of Public RelationsTo manage relationships with the public General PublicEmployeesCustomers CLIENTSuppliers Stockholders 3. Public Relations Management ProcessDetermination and evaluation of public attitudes Identification of policies and procedures of an organization Development and execution of the program 4. Marketing Public Relations (MPR) FunctionsBuilding marketplace excitement before mediaadvertising breaksCreating advertising news where there is noproduct newsIntroducing a product with little or noadvertisingProviding a value-added customer serviceBuilding brand-to-customer bondsInfluencing the influentials/opinion leadersDefending products at risk and givingcustomers a reason to buy 5. Segway: An Example of MPRs at Work 6. The Process of Public RelationsDetermining and evaluating public attitudesEstablishing a PR planDeveloping and executing the PR program 7. Research on Public Attitudes Provides input for the planning process Serves as an early warning system Secures internal cooperation, support Increases communications effectiveness 8. Evaluating Public Relations Plans1. Does the plan reflect a thorough understanding of thecompanys business situation?2. Has the PR program made good use of research andbackground sources?3. Does the plan include full analysis of recent editorialcoverage?4. Do the PR people fully understand the productsstrengths and weaknesses?5. Does the PR program describe several cogent, relevantconclusions from the research? 9. Evaluating Public Relations Plans6.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? 10. Public Relations Audiences Employees of the firm Stockholders and investors Community members Suppliers and customers The media Educators Civic and business organizations Governments Financial groups 11. Public Relations ToolsPress releasesPress conferencesExclusivesInterviewsCommunity involvementThe internet 12. Example of a Press Release 13. Reebok Used a Press Conference to Announce the Sponsorship of Shakira 14. Telling the StoryTechnological 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 15. PR PublicationsInserts News releasesEnclosuresMedia kitsAnnual reportsBookletsPosters LeafletsBulletin boards PamphletsExhibitsBrochuresAudiovisualsManualsPosition papers BooksSpeechesLetters 16. Advantages of Public RelationsCredibility Cost Avoidance of clutter Lead generation Selectivity Image building 17. Criteria for Measuring PR EffectivenessTotal 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 18. Publicity Publicity involves the generation of news about acompany, product, service, brand or person in variousmedia. It is a subset of the public relations effort. Key points regarding publicity:Publicity is generally short-termfocusedPublicity is not always under thecontrol of the firmPublicity can be negative as well aspositive 19. The Power of Publicity Perceived as more credible Often perceived as endorsed by the medium in which it appears Often has high news value Often generates high frequency of exposure 20. Publicity Vehicles FeatureSpecial Articles Events Captioned PhotosNewsPress Releases Conferences 21. Responding to Publicity 22. Using Positive Publicity 23. Advertising Versus Publicity Factor AdvertisingPublicity Control Great LittleCredibilityLowerHigher Reach AchievableUndeterminedFrequency SchedulableUndeterminedCostSpecific/High Unspecified/LowFlexibility High Low TimingSpecifiable Tentative 24. Corporate Advertising Advertising done to promote the interests of the firmby enhancing its image, assuming a position on aparticular issue or promoting a certain causeTypes of Corporate Advertising Image AdvertisingEvent sponsorshipAdvocacy advertisingCause-related advertising 25. Objectives of Corporate AdvertisingCreate a positive image for the firmCommunicate the organizationsviewpoint on various issuesBoost employee moraleSmooth labor relationsHelp newly deregulated industriesHelp diversified companies establish anidentity 26. Chevron Engages in Image Advertising 27. Event Sponsorship a form of marketing communicationswhereby an organization becomes involved with a particular event by developing sponsorship relations.Events used for sponsorship: Sporting events Music/entertainment Festivals Arts/cultural events Causes 28. Advocacy AdvertisingAdvocacy advertising is the propagation of ideas and elucidation of controversial socialissues of public importance in a manner thatsupports the interests of the sponsor 29. The San Diego Zoological Society uses advocacy advertising 30. Cause Related MarketingCause related marketing is a form of marketing whereby companies link withcharities or nonprofit organizations as contributing sponsors 31. KitchenAid uses cause-related marketing