public relations, publicity, and corporate advertising

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Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed McGraw-Hill/Irwin 17 Public Relations, Publicity, and Corporate Advertising

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17. Public Relations, Publicity, and Corporate Advertising. Negative Publicity. Ends it’s decades long relationship with Planned Parenthood Had not voiced reasons adequately Received thousands of threats via social media - PowerPoint PPT Presentation

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Page 1: Public Relations, Publicity, and Corporate Advertising

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversedMcGraw-Hill/Irwin

17

Public Relations, Publicity, and Corporate Advertising

Page 2: Public Relations, Publicity, and Corporate Advertising

Negative Publicity

17-2

• Ends it’s decades long relationship with Planned Parenthood• Had not voiced reasons adequately• Received thousands of threats via social media• Resignation of Komen’s VP / decreases in contributions /

black mark on it’s positive image

Page 3: Public Relations, Publicity, and Corporate Advertising

The Power of Publicity

• Can be positive or negative

• Directly affects companies• financially / trust / image

• Impacted by far and fast reaching Internet / social media sites

• Element to be managed as part of IMC

17-3

Page 4: Public Relations, Publicity, and Corporate Advertising

Public Relations Defined

A management function

And identifies the policies and procedures

Of an organization with the public interest

And executes a program of action (& communication)

To earn public understanding and acceptance

Which evaluates public attitudes

17-4

Page 5: Public Relations, Publicity, and Corporate Advertising

Public Relations Management Stages

Identification of policies and procedures

Determination and evaluation of public

attitudes

Development and execution of the

program

PR

17-5

Effective PR program continues over months / years

Page 6: Public Relations, Publicity, and Corporate Advertising

Role of PR

CustomersCustomers

EmployeesEmployees

InvestorsInvestors

GovernmentGovernment

CommunityCommunity

SuppliersSuppliers

Public Relations

Department

Public Relations

Department

17-6

To maintain mutually beneficial

relationships

Communicate thru company newsletters

Page 7: Public Relations, Publicity, and Corporate Advertising

What Does PR Do?

Build market excitement before media ads break

Create ad news where there is no product news

Introduce a product with little or no advertising

Provide a value-added customer service

Build brand-to-customer bonds

Improve ROI

17-7

Apple

Super Bowl ads

Apple

Butterball

Free publicity

Page 8: Public Relations, Publicity, and Corporate Advertising

Value Added Customer Service

17-8

Butterballprovideshelp duringtheThanksgivingHolidays

Page 9: Public Relations, Publicity, and Corporate Advertising

The Process of Public Relations

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

17-9

Page 10: Public Relations, Publicity, and Corporate Advertising

Research on Public Attitudes

Provides input for the planning process

Serves as an “early warning system”

Secures internal cooperation, support

Increases communications

effectiveness

17-10

Page 11: Public Relations, Publicity, and Corporate Advertising

Determining Public Relations Audiences

Stockholders and Investors

Community Members

Suppliers & Customers

Employees

Internal Internal

Financial Groups

Governments

External External

The Media

Public

17-11

connected with company not connected with company

PR efforts are targeted to more than one group

Page 12: Public Relations, Publicity, and Corporate Advertising

Test Your Knowledge

In public relations targeting, external audiences include:

A) Customers

B) The public at large

C) Suppliers

D) Stockholders

E) All of the above

17-12

Page 13: Public Relations, Publicity, and Corporate Advertising

Implementing the PR Program

Press Releases

Community Involvement

Press Conferences

Exclusives

Interviews

The Internet /

Social Networks

PR Tools

17-13

Page 14: Public Relations, Publicity, and Corporate Advertising

Advantages of PR

Credibility

Lead Generation

Cost Savings

Avoidance of Clutter

Image Building

Reach Specific Groups

PRProvides

17-14

Blogs

Page 15: Public Relations, Publicity, and Corporate Advertising

Potential Problems of Public Relations

PotentialProblemsPotentialProblems

Receiver not making connection to the source

Lack of coordination with marketing dept.

Inconsistent, redundant communications

17-15

Page 16: Public Relations, Publicity, and Corporate Advertising

Criteria for Measuring PR Effectiveness

17-16

Page 17: Public Relations, Publicity, and Corporate Advertising

Publicity versus Public Relations

A short-term strategy

Publicity: The generation of news about a person,

product, or service that appears in the media

A subset of public relations

Not always positive

Not under control of firm

17-17

Page 18: Public Relations, Publicity, and Corporate Advertising

A Response to Negative Publicity

17-18

News report:Alar, chemical to grow apples, causes cancer

TreeTopproduced print ads

and video

news releases

Page 19: Public Relations, Publicity, and Corporate Advertising

Video News Release (VNR)

• Publicity piece produced by publicists so that stations can air it as a news story

• Used by marketers to have control over the time and place where information is released

Page 20: Public Relations, Publicity, and Corporate Advertising

Pros and Cons of Publicity

Substantial credibility

News value

Significant

word-of-mouth

Perception of media endorsement

Advantages

Timing

Lack of control

Disadvantages

17-20

Inaccuracy

Page 21: Public Relations, Publicity, and Corporate Advertising

Publicity = Credibility

17-21

Page 22: Public Relations, Publicity, and Corporate Advertising

Corporate Advertising

An extension of the PR function

An extension of the PR function

Promotes the organizationPromotes the organization

Does not promote a specific product or service

Does not promote a specific product or service

Image enhancement

Assuming a position on an issue or cause

Seeks involvement

17-22

Page 23: Public Relations, Publicity, and Corporate Advertising

Why is Corporate Advertising Controversial?

Opponents to Corporate

Advertising

Opponents to Corporate

Advertising

Consumers aren’t interested in this form of

advertising

This is a costly form of corporate self-indulgence

The firm must bein trouble

Corporate advertising isa waste of money

17-23

Page 24: Public Relations, Publicity, and Corporate Advertising

Objectives of Corporate Advertising

Create a positive image for the

firm

Smooth labor relations

Communicate the

organization’s viewpoint

Boost employee

morale

Establish diversified company identity

Help newly deregulated industries

Objectives

17-24

Solar power

Page 25: Public Relations, Publicity, and Corporate Advertising

Types of Corporate Advertising

Positioning Ads

Sponsorships

Recruitment

General Image Ads

Financial Support

Image Advertising

Event Sponsorship

Advocacy Advertising

Cause-related Advertising

17-25

Page 26: Public Relations, Publicity, and Corporate Advertising

Corporate Advertising

17-26

• Creates an image of the company in the public mind

Page 27: Public Relations, Publicity, and Corporate Advertising

Event Sponsorship

SportingEvents

Music, Entertainment

Causes Festivals

Cultural Events Arts

Corporate Sponsor

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Page 28: Public Relations, Publicity, and Corporate Advertising

Corporate Sponsorship

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• McDonald’s associates with sponsorship of the Olympics

• Excellent platform to build equity and gain affinity with target audience

Page 29: Public Relations, Publicity, and Corporate Advertising

Test Your Knowledge

Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing circuit?

A) To build equity and gain affinity with its target market

B) To show its position on sports marketing

C) To create a generic positioning strategy

D) To further segment its target market

E) To reduce its overall promotional expenses

17-29

Page 30: Public Relations, Publicity, and Corporate Advertising

Advocacy Advertising

Propagating ideas andelucidating

Controversial social issues of public importance

in a manner that supports the interests of the sponsor

17-30

Page 31: Public Relations, Publicity, and Corporate Advertising

Advocacy Ad

17-31

GE promotes its concern for the environment

Page 32: Public Relations, Publicity, and Corporate Advertising

Cause Related Marketing

A form of marketing

whereby companies link with charities

or nonprofit organizations as contributing sponsors

17-32

Page 33: Public Relations, Publicity, and Corporate Advertising

Cause Related Marketing

17-33

New Balance promotes it’s support for breast cancer awareness