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Page 1: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Public Relations, Publicity, and Corporate AdvertisingPublic Relations, Publicity, and Corporate Advertising

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 2: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

A management functionA management function

evaluates public attitudesevaluates public attitudeswhichwhich

identifies the policies and proceduresidentifies the policies and proceduresandand

an organization with the public interestan organization with the public interestofof

executes a program of action (and communication)executes a program of action (and communication)andand executes a program of action (and communication)executes a program of action (and communication)

an organization with the public interestan organization with the public interest

identifies the policies and proceduresidentifies the policies and procedures

evaluates public attitudesevaluates public attitudes

A management functionA management function

1. Public Relations Defined

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 3: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CustomersCustomers

EmployeesEmployees

InvestorsInvestors

GovernmentGovernmentSuppliersSuppliersSuppliersSuppliers

EmployeesEmployees

GovernmentGovernment

InvestorsInvestors

CustomersCustomers

2. Traditional PR Perspective

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Public Relations

Department

Public Relations

Department

Page 4: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3. Integration of PR into the IMC Process

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

MarketingDepartment

PublicRelations

SeparateSeparate

MarketingDepartment

PublicRelations

CoordinatedCoordinated

MarketingDepartment

PublicRelations

IntegratedIntegrated

Page 5: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

4. Marketing Public Relations (MPR) Functions

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Building marketplace excitement before media advertising breaksBuilding marketplace excitement before media advertising breaks

Creating advertising news where there is no product newsCreating advertising news where there is no product news

Introducing a product with little or no advertisingIntroducing a product with little or no advertising

Providing a value-added customer serviceProviding a value-added customer service

Building brand-to-customer bondsBuilding brand-to-customer bonds

Influencing influentials, providing information to opinion leadersInfluencing influentials, providing information to opinion leaders

Improving ROI Improving ROI

Defending products at risk, giving consumers a reason to buyDefending products at risk, giving consumers a reason to buy

Building marketplace excitement before media advertising breaksBuilding marketplace excitement before media advertising breaks

Creating advertising news where there is no product newsCreating advertising news where there is no product news

Introducing a product with little or no advertisingIntroducing a product with little or no advertising

Providing a value-added customer serviceProviding a value-added customer service

Building brand-to-customer bondsBuilding brand-to-customer bonds

Influencing influentials, providing information to opinion leadersInfluencing influentials, providing information to opinion leaders

Improving ROI Improving ROI

Page 6: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Measuring Program EffectivenessMeasuring Program Effectiveness

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Establishing a PR PlanEstablishing a PR Plan

Determining and Evaluating Public AttitudesDetermining and Evaluating Public Attitudes

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Determining and Evaluating Public AttitudesDetermining and Evaluating Public Attitudes

Page 7: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Provides input for the planning processProvides input for

the planning processServes as an “early

warning system”Serves as an “early

warning system”

Secures internal cooperation, support

Secures internal cooperation, support

Secures internal cooperation, support

Secures internal cooperation, support

Serves as an “early warning system”

Serves as an “early warning system”

Provides input for the planning processProvides input for

the planning process

Research on Public Attitudes

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Increases communications

effectiveness

Increases communications

effectiveness

Page 8: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Measuring Program EffectivenessMeasuring Program Effectiveness

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Establishing a PR PlanEstablishing a PR Plan

Determining and Evaluating Public AttitudesDetermining and Evaluating Public Attitudes

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Determining and Evaluating Public AttitudesDetermining and Evaluating Public Attitudes

Page 9: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10 Questions for Evaluating Public Relations Plans

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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?

Page 10: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10 Questions for Evaluating Public Relations Plans

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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?

Page 11: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Measuring Program EffectivenessMeasuring Program Effectiveness

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Establishing a PR PlanEstablishing a PR Plan

Determining and Evaluating Public AttitudesDetermining and Evaluating Public Attitudes

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Establishing a PR PlanEstablishing a PR Plan

Determining and Evaluating Public AttitudesDetermining and Evaluating Public Attitudes

Page 12: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Determining Public Relations Audiences

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The MediaThe Media

GovernmentsGovernments

Financial GroupsFinancial GroupsThe MediaThe Media

GovernmentsGovernments

External or IndependentExternal or Independent

EducatorsEducators

Civic and Business Organizations

Civic and Business Organizations

EducatorsEducators

Civic and Business Organizations

Civic and Business Organizations

Customers and Clients

Customers and Clients

Employees of the Firm

Employees of the Firm

Vendors and Suppliers

Vendors and Suppliers

Community Members

Community Members

Stockholders and Investors

Stockholders and Investors

Stockholders and Investors

Stockholders and Investors

Customers and Clients

Customers and Clients

Employees of the Firm

Employees of the Firm

Vendors and Suppliers

Vendors and Suppliers

Community Members

Community Members

Internal or AssociatedInternal or Associated

Page 13: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Implementing the PR Program

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Press Releases

Press Releases

Community Involvement Community Involvement

Press Conferences

Press Conferences

ExclusivesExclusives

Interviews Interviews

The Internet The Internet

PR ToolsPR Tools

Press Releases

Press Releases

Community Involvement Community Involvement

Press Conferences

Press Conferences

ExclusivesExclusives The Internet The Internet

Page 14: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR

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Measuring Program EffectivenessMeasuring Program Effectiveness

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Establishing a PR PlanEstablishing a PR Plan

Determining and Evaluating Public AttitudesDetermining and Evaluating Public Attitudes

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Establishing a PR PlanEstablishing a PR Plan

Determining and Evaluating Public AttitudesDetermining and Evaluating Public Attitudes

Page 15: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Positive articles over

time

Positive articles over

time

Negative articles over

time

Negative articles over

time

Negative articles over

time

Negative articles over

time

Positive articles over

time

Positive articles over

time

Over timeOver timeOn the target

audience

On the target

audience

On specific target

audiences

On specific target

audiences

SubjectSubject Publica-tion

Publica-tion ReporterReporter Target

audienceTarget

audience

Over timeOver timeOn the target

audience

On the target

audience

On specific target

audiences

On specific target

audiences

SubjectSubject Publica-tion

Publica-tion ReporterReporter

Criteria for Measuring PR Effectiveness

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Percentage of positive and

negative articles by . . .

Percentage of positive and

negative articles by . . .

Ratio of positive to negative

articles

Ratio of positive to negative

articles

Percentage of . . Percentage of . .

Total number of impressions . . .Total number of impressions . . .

Page 16: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CredibilityCredibility

Lead Generation

Lead Generation

Cost SavingsCost Savings

Avoidance of Clutter

Avoidance of Clutter

Image Building Image Building

SelectivitySelectivitySelectivitySelectivity

Lead Generation

Lead Generation

Avoidance of Clutter

Avoidance of Clutter

Cost SavingsCost Savings

CredibilityCredibility

6. Advantages of Public Relations

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PRProvides

PRProvides

Page 17: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

May Be Out of the Marketer’s ControlMay Be Out of the Marketer’s Control

Part of the PR ProcessPart of the PR Process

The Generation of News About a Person, Product, or Service That Appears in the Media

The Generation of News About a Person, Product, or Service That Appears in the Media

Part of the PR ProcessPart of the PR Process

The Generation of News About a Person, Product, or Service That Appears in the Media

The Generation of News About a Person, Product, or Service That Appears in the Media

7. Publicity

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Page 18: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Inaccuracy, omission, or distortion may

result

Inaccuracy, omission, or distortion may

result

Timing difficult or impossible to control

Timing difficult or impossible to controlSubstantial credibilitySubstantial credibility

News valueNews value

Significant word-of-mouth

Significant word-of-mouth

Perception of endorsement by

media

Perception of endorsement by

media

Advantages and Disadvantages of Publicity

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AdvantagesAdvantages DisadvantagesDisadvantages

Timing difficult or impossible to control

Timing difficult or impossible to controlSubstantial credibilitySubstantial credibility

News valueNews value

Significant word-of-mouth

Significant word-of-mouth

Perception of endorsement by

media

Perception of endorsement by

media

Page 19: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

8. Corporate Advertising

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

An extension of the PR function

An extension of the PR function

Does not promote a specific product or service

Does not promote a specific product or service

An extension of the PR function

An extension of the PR function

Does not promote a specific product or service

Does not promote a specific product or service

Page 20: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Corporate advertising Is a waste of money

Corporate advertising Is a waste of money

Consumers aren’t interested in this

form of advertising

Consumers aren’t interested in this

form of advertising

The firm’s finances or image must be in

trouble

The firm’s finances or image must be in

trouble

This is a costly form of corporate self-

indulgence

This is a costly form of corporate self-

indulgence

Why Is Corporate Advertising Controversial?

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Claims of Opponents to

Corporate Advertising

Claims of Opponents to

Corporate Advertising

Corporate advertising Is a waste of money

Corporate advertising Is a waste of money

Consumers aren’t interested in this

form of advertising

Consumers aren’t interested in this

form of advertising

The firm’s finances or image must be in

trouble

The firm’s finances or image must be in

trouble

Page 21: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Create a positive image for the

firm

Create a positive image for the

firm

Smooth labor relations

Smooth labor relations

Communicate the

organization’s viewpoint

Communicate the

organization’s viewpoint

Boost employee morale

Boost employee morale

Establish diversified company’s

identity

Establish diversified company’s

identity

Help newly deregulated industries

Help newly deregulated industries

Help newly deregulated industries

Help newly deregulated industries

Smooth labor relations

Smooth labor relations

Boost employee morale

Boost employee morale

Communicate the

organization’s viewpoint

Communicate the

organization’s viewpoint

Create a positive image for the

firm

Create a positive image for the

firm

Objectives of Corporate Advertising

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ObjectivesObjectives

Page 22: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Positioning AdsPositioning Ads

SponsorshipSponsorship

RecruitmentRecruitment

General Image AdsGeneral Image AdsGeneral Image AdsGeneral Image Ads

Positioning AdsPositioning Ads

SponsorshipSponsorship

RecruitmentRecruitment

Types of Corporate Advertising

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Image Advertising

Image Advertising

Event Sponsorship

Event Sponsorship

Advocacy AdvertisingAdvocacy

Advertising

Cause-related Advertising

Cause-related Advertising

Page 23: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

SportingEvents

SportingEvents

Music, Entertainment

Music, Entertainment

CausesCauses FestivalsFestivals

Cultural EventsCultural Events

SportingEvents

SportingEvents

Music, Entertainment

Music, Entertainment

CausesCauses FestivalsFestivals

Cultural EventsCultural Events

Event Sponsorship

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Corporate SponsorCorporate Sponsor

Page 24: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advocacy Advertising

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Advocacy advertising:is the propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor.

Advocacy advertising:is the propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor.

Page 25: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

An American Gas Association Advocacy Ad

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Page 26: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Cause Related Marketing

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Cause related marketing:is a form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.

Cause related marketing:is a form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.

Page 27: Public Relations, Publicity, and Corporate Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Relating to Stock PricesRelating to Stock Prices

Attitude SurveysAttitude Surveys

Relating to Stock PricesRelating to Stock Prices

Attitude SurveysAttitude Surveys

Measuring Corporate Advertising Effectiveness

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Focus Group ResearchFocus Group Research

Effective?Effective?


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