public relations two - comsci.uzulu.ac.za city campus... · basic definitions: advertising,...

Program Module Name Code

ACPCT1 Public Relations

ACOM162 ACPDP1 Public Relations

ACOM222 ABDEG1 Public Relations

ACOM312

Public Relations Two

Faculty of Arts

Department of Communication

Science

Developed By GM Naidoo

This study guide belongs to

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Name

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Year

Developed by GM Naidoo

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Note to the student

Welcome to the Communication Science department - Public Relations Class 2009. It is important for you to understand that you are now in a Higher Education institution and your success is determined by yourself. Therefore you must not become distracted but be focused in all your public relations classes together with every other course. You will be exposed to the various skills/ tools that will equip and empower you to become a valuable person in the market place. This study guide has been developed with conjunction with Public Relations Southern Perspective, secondly Handbook for Public Relations and other sources were consulted, however you are encouraged to use the library and the internet to research and read further on public relations. In order for you to gain this experience you must ensure the following:

You must ATTEND ALL my classes/ lectures,

Ensure that you SIGN the class REGISTER

Submit all ASSIGNMENTS and PROJECTS on the due dates and ensure that you keep copies of them.

Ensure that you insert your STUDENT NUMBER & NAME on each page.

Your PRESENTATION must be of a high quality embracing EXCELLENCE.

PARTICIPATE in class sessions.

Ensure that you are a PERSON OF INTEGRITY and every piece of work you submit MUST be your OWN.

Follow MY INSTRUCTIONS.

Submit PROOF of ILLNESS such as a doctor‟s certificate or a death certificate in case of one of your family members pass away. This will be required especially if you miss a scheduled PRACTICAL SESSION, TEST or Exam.

If you encounter any problems or if you need to see me in regards to the course you are requested to make an APPOINTMENT with me. Don‟t hesitate, to ask for help.

Weekly course outline and other information can be accessed online: www.comsci.uzulu.ac.za

Best wishes and every success! GM Naidoo Communication Science ARTS Block Office 608 Email: [email protected]

Prescribed Text books

Primary: Public Relations African Perspectives by

Edited by R Rensburg & M Cant. Second Edition.

ISBN 978 0 7962 2352 4 Publishers: Heinemann

Secondary: Handbook for Public Relations by

Skinner, Von Essen, Mersham and Motau. 8th

Edition. ISBN 978 019 5980226. Publishers: Oxford,

Southern Africa.

http://www.comsci.uzulu.ac.za/

mailto:[email protected]


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Purpose of the module This module provides students with the skills to understand media relations, analyse Public Relations

problems, plan, implement and evaluate public relations campaigns, and to distinguish between public

relations practice in business, government and non-profit organisations.

Specific learning outcomes for the module

The Learner will be able to:

Demonstrate an understanding of the development of public relations;

Demonstrate an understanding of the various models of public relations;

Implement public relations as a management function;

Manage a public relations department;

Plan the development of a corporate image;

Demonstrate an understanding of crisis communication;

Manage the finances of a Public Relations Department;

Conduct research with respect to public relations;

Demonstrate an understanding of corporate social responsibility;

Demonstrate an understanding of the functions of a public relations practitioner up to middle

management level and

Demonstrate an understanding of media management and special events.


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Contents PUBLIC RELATIONS PLACEMENT WITHIN THE ORGANISATION .............................................................. 8

Introduction ............................................................................................................................................ 8

Definition of Public Relations ................................................................................................................... 8

PUBLIC RELATIONS AND RELATIONSHIPS ............................................................................................ 10

Development of the Relational View of Public Relations ........................................................................... 10

Characteristics of Effective Relationships ............................................................................................... 11

BASIC DEFINITIONS: ADVERTISING, MARKETING, PROMOTION, PUBLIC RELATIONS AND PUBLICITY,

AND SALES ............................................................................................................................................ 12

One Definition of Advertising ................................................................................................................. 12

One Definition of Promotion .................................................................................................................. 13

One Definition of Marketing ................................................................................................................... 13

One Definition of Public relations ........................................................................................................... 13

One Definition of Publicity ..................................................................................................................... 13

One Definition of Sales ......................................................................................................................... 13

An Example of the Definitions ................................................................................................................ 14

PUBLIC RELATIONS RESEARCH AND PLANNING ................................................................................... 15

IMPORTANCE OF RESEARCH ............................................................................................................ 15

RESEARCH TYPES ............................................................................................................................. 15

RESEARCH METHODS ....................................................................................................................... 16

Data Collecting Approaches .................................................................................................................. 20

Data Collection Instruments .................................................................................................................. 21

Data Collecting Methods ....................................................................................................................... 22

Design the sampling plan .......................................................................................................................... 23

Random Sampling ................................................................................................................................ 24

Non-random sampling .......................................................................................................................... 25

Sample Size ........................................................................................................................................ 25

Preventing Bias.................................................................................................................................... 26

Data preparation .................................................................................................................................. 27

Data entry ........................................................................................................................................... 28

PR research on the Internet .................................................................................................................. 29

THE PROCESS OF PUBLIC RELATIONS PLANNING, BUDGETING & PROGRAMMING ............................. 32

PLANNING STARTS WITH A MISSION STATEMENT ............................................................................ 35


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TARGET AUDIENCES ......................................................................................................................... 35

COMMUNICATION OBJECTIVES FOR AN EVENT ................................................................................ 35

OBJECTIVES FOR A CAMPAIGN ......................................................................................................... 35

OBJECTIVES FOR A PROGRAMME .................................................................................................... 36

TYPES OF CAMPAIGN ........................................................................................................................ 36

SELECTING CHANNELS AND MEDIA .................................................................................................. 38

OTHER TYPES OF PLANS .................................................................................................................. 38

SETTING A PUBLIC RELATIONS BUDGET........................................................................................... 39

TEN THINGS YOU SHOULD DO .......................................................................................................... 39

FIVE THINGS YOU SHOULD NOT DO .................................................................................................. 40

CASE STUDY: ..................................................................................................................................... 40

WHAT DOES IT COST? HOW TO BUDGET YOUR PR PROGRAMME BY THE NUMBERS ...................... 40

BUDGETING IN PR ................................................................................................................................. 42

CASE STUDY .......................................................................................................................................... 48

MEDIA RELATIONS & BUDGETING ......................................................................................................... 48

PRESS RELEASES ............................................................................................................................. 49

CASE STUDIES AND FEATURE ARTICLES .......................................................................................... 49

MEDIA TOURS .................................................................................................................................... 49

TRADE SHOW PR ............................................................................................................................... 50

NEWSLETTERS .................................................................................................................................. 50

ONLINE MONITORING ........................................................................................................................ 50

WEBSITE ARCHIVING PROCESS ........................................................................................................ 50

FAX-ON-DEMAND SERVER ................................................................................................................ 51

MARKET EVALUATION ....................................................................................................................... 51

MESSAGE AND IMAGE COACHING..................................................................................................... 51

A LEAP OF FAITH ............................................................................................................................... 51

PUBLIC AND MEDIA RELATIONS ............................................................................................................ 53

EXTERNAL PUBLICS .......................................................................................................................... 53

TO COMMUNICATE ............................................................................................................................ 54

THE COMMUNITY ............................................................................................................................... 54

COMMUNITY CHANGE ....................................................................................................................... 54

Media Relations for External Publics .......................................................................................................... 54

MEDIA RELATIONS AND COMMUNICATION STRATEGIES .................................................................. 56

PREPARING FOR A PUBLIC RELATIONS MEDIA CRISIS ..................................................................... 56

PR - BUSINESS AND INDUSTRY ............................................................................................................. 58


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INTRODUCTION ..................................................................................................................................... 58

New Legislation ................................................................................................................................... 58

Industrial Relations Practice .................................................................................................................. 58

Workplace forums ................................................................................................................................ 59

PR and Labour unrest .......................................................................................................................... 59

FINANCIAL AND CORPORATE RELATIONS............................................................................................. 60

Business and Industry .......................................................................................................................... 60

PR AND GOVERNMENT .......................................................................................................................... 62

BUSINESS PLAN .................................................................................................................................... 64

WHAT IS A BUSINESS PLAN? ................................................................................................................. 64

WHY PREPARE A BUSINESS PLAN? .................................................................................................... 64

WHAT TO AVOID IN YOUR BUSINESS PLAN ....................................................................................... 65

BUSINESS PLAN FORMAT .................................................................................................................. 65

STEPS TO A GREAT BUSINESS PLAN ................................................................................................ 66

Top Ten Do's and Don'ts .......................................................................................................................... 67

TOP TEN DO'S .................................................................................................................................... 67

TOP TEN DON'TS ............................................................................................................................... 67

SOCIAL RESPONSIBILITY ....................................................................................................................... 69

DEFINING CORPORATE SOCIAL RESPONSIBILITY................................................................................. 69

BRIEF HISTORY ON CORPORATE SOCIAL INVESTMENT ................................................................... 69

CHARACTERISTICS OF CSR .................................................................................................................. 70

CSR AND PUBLIC RELATIONS ................................................................................................................ 70

CORPORATE SOCIAL INVESTMENT (CSI) ............................................................................................... 71

Public Relations and CSI ........................................................................................................................ 71

WHAT IS CORPORATE SOCIAL INVESTMENT ......................................................................................... 72

Employee involvement in CSI activities .................................................................................................. 74

TERMS THAT IS ASSOCIATED WITH CSI ................................................................................................. 74

o BLACK ECONOMIC EMPOWERMENT (BEE) ................................................................... 74

o BROAD BASED BLACK ECONOMIC EMPOWERMENT (BBBEE) ................................. 75

o CORPORATE CITIZENSHIP .................................................................................................. 75

o CORPORATE SOCIAL RESPONSIBILITY (CSR) ............................................................... 75

o CORPORATE GOVERNANCE .............................................................................................. 75

o COMMUNITY ......................................................................................................................... 76

o COMMUNITY DEVELOPMENT ........................................................................................... 76

o SOCIALLY RESPONSIBLE INVESTMENT ......................................................................... 76


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o TRIPLE BOTTOM LINE ......................................................................................................... 76

o THE ROLE OF SOCIAL CAPITAL ........................................................................................ 77

Managing public relations in Non-Profit Organizations ................................................................................. 84

The following write up by Karen Nelson highlights the development on Non-Profit Partnership ........................ 85

PUBLIC RELATIONS WITH NEW ECONOMY & NEW MEDIA OUTLETS ..................................................... 93

Organisations communicating in the New Economy ........................................................................ 93

Defining the Internet ......................................................................................................................... 94

Internet-based public relations tools ................................................................................................. 95

Social Media Manager .......................................................................................................................... 98

PUBLIC RELATIONS SPONSORSHIPS, ENTERTAINMENT, SPORT&TRAVEL .......................................... 100

Introduction ........................................................................................................................................ 100

Characteristics of a sponsorship .......................................................................................................... 100

Guidelines ......................................................................................................................................... 101

Articles of Interest............................................................................................................................... 102

PUBLIC RELATIONS EDUCATION ......................................................................................................... 105

INTRODUCTION ................................................................................................................................... 105

A theoretical perspective of the globalisation model ............................................................................... 105

Outline of the generic globalisation model ............................................................................................ 106

General recommendations .................................................................................................................. 107

Experiential Learning .......................................................................................................................... 107

Experiential Learning Characteristics ................................................................................................... 108

Experiential Learning Techniques ........................................................................................................ 108

Best practice guidelines ...................................................................................................................... 108


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PUBLIC RELATIONS PLACEMENT WITHIN THE ORGANISATION

Introduction

According to Rensburg and Cant (2009:25) „people establish and maintain relationships with

others. These relationships require various degrees of interaction and interdependence and,

therefore, different levels of social, political and economic exchanges. Modern society consists

of increasingly interdependent, complex, and often conflict-laden relationships.‟

Further, Rensburg and Cant (2009:26) states that every organisation is made up of in

stakeholders in the form of investors, customers, shareholders, intermediaries, employees,

government and local communities. The role of Public Relations is to communicate to the

organisations image and products to these publics. Public relations can be both proactive and a

reactive activity. PR proactively seeks to improve the image of an organisation. When an

organisation receives bad publicity, the PR function attempts to minimise the damage caused

by this negative publicity.

Definition of Public Relations

1. ‘Public Relations are the management through communication of perceptions and strategic

relations between an organisation and its internal and external stakeholders’.

2. The Public Relations Institute of Southern Africa (PRISA) adopted this definition for ‘public

relations is deliberate, planned and sustained effort to establish and maintain mutual

understanding between an organization and its various publics - both internally and

externally’ (Skinner & Von Essen 1998:4-6).

Rensburg and Cant (2009:27) states that in 2002 PRISA also looked at the following:

The first definition is outlined below:

Deliberate: All public relations efforts are deliberate efforts at achieving the specific

aims of an organisation. The areas in which these aims are to be achieving are clearly

defined, as are the publics at which they are aimed. The messages are carefully

evaluated in terms of the overall aims of the organisation. PR is a process of

communicating deliberately with target publics or stakeholders. It seeks to receive

feedback from its target publics and creates the relationships deliberately.


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Planned: The nature of PR ensures that activities are meticulously planned to address

all relevant problems or issues. Many organisations have grave consequences if not

properly addressed. The plans, as well as any other plans, must involve a conscious

evaluation of all spheres of the organisation‟s activities that may have a bearing on its

reputation. These plans must consider the short-medium and long–term objectives of

the organisations.

Sustained: for PR to be meaningful and effective a continuous analysis of the

environment and the ways to communicate with market is required. Once

communication process has been initiated and established between an organisation

and its publics, it must be maintained. This necessitates a sustained effort by the

organisation. First contacts are seldom successful, which emphasises the need for

sustainability.

Establish: the primary aim of PR is to establish a climate of mutual understanding

between an organisation and its publics or stakeholders – new or existing.

Maintain: it is essential that, once a positive relationship has been established, it is

maintained. As the environment in which business and organisations operate is

constantly changing, any positive perception that exists must be nurtured and is

constantly changing, any positive perception that exists must be nurtured and

maintained over time. Maintaining this relationship implies that the organisation must

listen to the feedback received from target publics and other stakeholders, and act on

it.

Mutual understanding: for communication to be effective between an organisation

and its target publics, it is essential that they have a mutual understanding. In this way

agreement and harmony can be reached and a positive relationship can be built.

Publics/ Stakeholders: any group that influences an organisation or its operations or

that is important to an organisation is regarded as a public - or in a term more recently

used – stakeholder group. These groups can be internal, external or both.

Internally and external: The internal publics are groups inside the organisation are

usually its employees and the external publics are groups outside the organisation

such as unions, financial institutions, the media, shareholders and the community.


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PUBLIC RELATIONS AND RELATIONSHIPS

Heath in Rensburg and Cant (2009:51) states that many agree that a greater focus should be placed on

the study and understanding of organisational relationships. Most of the latest research in public

relations has focused on organisation-public relationships. This is a clear indication of future

development of the field (Grunig in Rensburg and Cant 2009:51). The relational perspective of PR

proposes that the primary purpose of PR professionals in the organisation is to build sustainable and a

long term relationships with key stakeholders in the organisation‟s environment. These relationships

should be managed so that the public and the organisation‟s interests are balanced and a mutual

benefit is gained from this relationship.

Relationships also give organisations a competitive advantage. Organisations that are able to

accumulate resources and capabilities that are rare, valuable, non-substitutable, and difficult to imitate

will achieve a competitive advantage over competing firms [organisations] (Dyer & Singh in Rensburg

and Cant (2009:52). Strategic relationships in the organisation‟s environment act as an intangible asset

towards a competitive advantage.

Development of the Relational View of Public Relations

Ledingham in Rensburg and Cant (2009:51) states that there are four pivotal developments that

spurred the emergence of the relational perspective of PR.

1. Recognition of the central role of relationship in public relations. A major shift occurred in

the focus of public relations research. The focus moved away from the organisation, the

stakeholder (or public) or the communication as the unit of analysis, to the relationships that

exist between and because of these key constructs.

2. The re-conceptualisation of PR as a management function. The notion of managing

organisation-public relationships introduced management concepts and processes to the

management of this organisation function.

3. The identification of components and types of relationship that link to various aspects

of public relations as well as relationship management. These two constructs are linked to

public attitudes, perceptions, knowledge and behaviour and relationship measurement

strategies. These construct and the relationship between these constructs were tested and

used for predicting various aspects related to stakeholders, organisational behaviour and

performance.


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4. The construction of relationship models. These models conceptualised the formation,

maintenance and outcomes of organisation-public relationship.

Relationships are distinct phenomena that are separate from the characteristics of the relationship

partners and should be measured as such. On page 55 of your text book you will find various aspects

on relationships defined relationships. Please read through this and familiarise yourself with it.

Characteristics of Effective Relationships

Successful relationships are characterised by mutual benefit. It is where organisations employ tactics to

increase the awareness of stakeholders and then in decision-making. Based on shared meaning – that

results in which enlightened choices being made (Heath in Rensburg and Cant, 2009:57).

Relationships are established by PR practitioners by the use of symmetrical communication to align the

organisation with the stakeholder, include them in decision and balance the power relations in the

relationship. The outcome of this successful relationship includes trust, commitment, and satisfaction

and control mutuality.

Morgan & Hunt in Rensburg and Cant, (2009:58) focused on the trust and commitment from a

relationship marketing perspective and stated that there are five major precursors of relationship

commitment and trust:

Relationship termination costs. When the expected termination cost of the relationship is

high, the ongoing relationship will be viewed as important. Consequently, commitment will be

generated in the relationship. Conversely, when the total cost associated with terminating the

relationship is considered low, a relationship partner may fear being terminated and therefore

explicitly develop commitment in the relationship. As a result, the expectation of total cost in a

relationship produces commitment.

Relationship benefits. Competition in a global market place necessitates an organisation to

continuously seek out products, processes and technologies that add value to their own

offerings. Partner selection is consequently critical in competitive strategy. When relationship

partners deliver highly valued benefits to an organisation, the organisation consequently

commits itself to establishing, developing and maintaining a relationship with such a partner.

Shared values. Shared values are precursors for both relationship commitment and trust, and

refer to the extent which partners have ‘beliefs in common about what behaviours, goals, and

polices are important or unimportant, appropriate or inappropriate, and right or wrong’.

Communication. Communication is a major precursor of trust by assisting in resolving

disputes and aligning the perceptions and expectations of relationship parties.

Opportunistic behaviour. If a party believes that the relationship partner could revert to

opportunistic behaviour or behaviour that is counterproductive and harmful to the partnering

organisation, the trust and commitment in a relationship will decrease.


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Dyer & Singh in Rensburg and Cant, (2009:59) states that there are four specific benefits which can be

generated from relationships that render relational rents including:

Relation-specific assets

Knowledge-sharing routines

Complementary resources/ capabilities and

Effective governance.

Arms-length relationship Relationships where relational rents are generated

Non-specific asset investments Investments in relation-specific assets

Minimal information exchange Substantial knowledge exchange, including the exchange of knowledge that results in joint learning

Separable technological and functional systems in each organisation that characterised by low levels of interdependence.

The combining of complementary, but scarce, resources and capabilities

Low transaction costs and minimal investment in governance mechanisms

Lower transactions costs that competitor alliances (relationships), owing to more effective governance mechanisms

Source: Differences of Arms-length relationship& Relationships where relational rents

BASIC DEFINITIONS: ADVERTISING, MARKETING, PROMOTION, PUBLIC RELATIONS AND

PUBLICITY, AND SALES

(Carter McNamara, MBA, PhD)

It's easy to become confused about these terms: advertising, marketing, promotion, public relations and

publicity, and sales. The terms are often used interchangeably. However, they refer to different -- but

similar activities. Some basic definitions are provided below. A short example is also provided hopefully

to help make the terms more clearly to the reader.

One Definition of Advertising

Advertising is bringing a product (or service) to the attention of potential and current customers.

Advertising is focused on one particular product or service. Thus, an advertising plan for one product

might be very different than that for another product. Advertising is typically done with signs, brochures,

commercials, direct mailings or e-mail messages, personal contact, etc.


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One Definition of Promotion

Promotion keeps the product in the minds of the customer and helps stimulate demand for the product.

Promotion involves ongoing advertising and publicity (mention in the press). The ongoing activities of

advertising, sales and public relations are often considered aspects of promotions.

One Definition of Marketing

Marketing is the wide range of activities involved in making sure that you're continuing to meet the

needs of your customers and getting value in return. Marketing is usually focused on one product or

service. Thus, a marketing plan for one product might be very different than that for another product.

Marketing activities include "inbound marketing," such as market research to find out, for example, what

groups of potential customers exist, what their needs are, which of those needs you can meet, how you

should meet them, etc. Inbound marketing also includes analysing the competition, positioning your

new product or service (finding your market niche), and pricing your products and services. "Outbound

marketing" includes promoting a product through continued advertising, promotions, public relations

and sales.

One Definition of Public relations

Public relations include ongoing activities to ensure the overall company has a strong public image.

Public relations activities include helping the public to understand the company and its products. Often,

public relations are conducted through the media that is, newspapers, television, magazines, etc. As

noted above, public relations are often considered as one of the primary activities included in

promotions.

One Definition of Publicity

Publicity is mention in the media. Organizations usually have little control over the message in the

media, at least, not as they do in advertising. Regarding publicity, reporters and writers decide what will

be said.

One Definition of Sales

Sales involves most or many of the following activities, including cultivating prospective buyers (or

leads) in a market segment; conveying the features, advantages and benefits of a product or service to

the lead; and closing the sale (or coming to agreement on pricing and services). A sales plan for one

product might be very different than that for another product.


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An Example of the Definitions

The following example may help to make the above five concepts more clear. The story comes from the

Reader's Digest, a quote found in "Promoting Issues and Ideas" by M. Booth and Associates, Inc.

(Jennifer M. Seher):

"... If the circus is coming to town and you paint a sign saying 'Circus coming to the Fairground Saturday', that's advertising. If you put the sign on the back of an elephant and walk it into town, that's promotion. If the elephant walks through the mayor's flower bed, that's publicity. And if you get the mayor to laugh about it, that's public relations." If the town's citizens go the circus, you show them the many entertainment booths, explain how much fun they'll have spending money at the booths, answer their questions and ultimately, they spend a lot at the circus, that's sales.

Activity

1. Define Public Relations:

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

…………………………………………………………………………………………………………

2. Explain the role of relationships in organisations?

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………


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PUBLIC RELATIONS RESEARCH AND PLANNING

Research plays and important part in PR. It is for this reason that students of PR must understand the

usefulness of research. Lindenmann in Rensburg and Cant, (2009:67) provides the following definition

for PR research:

“Public relations, as the name imply focuses on the entire public relations

process and examines the communications relationships that exist among and

between institutions and their key target audience groups. For the public

relations practitioner or public affairs officer, a useful definition of public

relations research is that it is an essential tool for fact and opinion gathering-a

systematic effort aimed at discovering, confirming and/ or understanding

through objective appraisal the facts or opinions pertaining to a specified

problem, situation, or opportunity”.

IMPORTANCE OF RESEARCH

According to Skinner et al. (2007:31) information and data must be gathered and compiled the facts. It

is also necessary to have knowledge of target audiences. A PR practitioner who understands his or her

audiences – their attitudes, hopes, and fears – will be better formulated messages that appeal

specifically to them.

RESEARCH TYPES

Informal PR research: is not necessarily aimed at the solution of a business problem and is basically

conducted to broaden the knowledge of the researcher. Some of the techniques used in informal

research are ordinary measures, opinion and communication audits, and analysis of publicity broken

down by audience, medium, message, and frequency.

Formal PR research: clearly follows a methodological step-by-step approach, which should result in

reliable information for decision-making. It must also be emphasised that PR, media performance and

better understanding of the target publics. Formal research can be divided into the following two

aspects:

Qualitative research: includes historical and legal research, in-depth interviews, focus

groups, and panels. This category is descriptive and informative but not measurable.

Quantitative research: this type can be conducted in the laboratory or in the field. It may

include content analysis and survey analysis. Quantitative research results in a mathematical

analysis because it produces measurable results.


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RESEARCH METHODS

METHODS CHARACTERISTICS

Individual questionnaires

Questionnaires is read to respondent and he or she answers personally Suitable for limited investigations Takes time to complete and its therefore expensive

Group questionnaires Respondent meet in groups and complete questionnaire If groups co-operates, one of the cheapest methods of collecting data May be difficult to find suitable group representing target market

Telephone questionnaire Trained tele-research telephone respondents. Questionnaire is read & answers are indicated on answer sheet

Suitable for large investigations, regionally or nationally Expensive, but can prove to be a method of collecting accurate data from

specific camps

Competitions Contents are complied in such away that individuals who take the trouble to fill in the questionnaires stand a good chance of winning something

Depends on distribution to specific readers through newspapers and magazines

Advertising costs can be high and response may be no better than postal questionnaire

Focus groups Involves groups of between 10-15 representative of selected target market

Meets in a special venue for about two hours with a discussion leader focusing on specific topic and answering certain prescribed questions

All discussion is recorded and responses analysed. However, focus groups are not always practicable and time consuming

Individual questionnaires

Key role players can be identified & in-depth discussion can be carried out on specific topics. Same agenda is used for all discussion

Can prove expensive and time consuming

Content analysis The nature and number of reports, news flashes, and so on are determined according to specific categories

Able to quantify positive and negative reports in the mass media Easy method of gathering information if media is available for evaluation

Informal discussions May be used initially to determine content interview of a questionnaire or structured interview

Researcher can determine attitudes, levels of knowledge, and behaviour patterns of proposed sample

Validity of results questionable

observations Researchers is positioned so that he or she is able to observe the behaviour target market

Method is quick, cheap but unfortunately has little credibility Subjective and no feedback from audience

Source: Research Methods, Skinner et al. (2007:31)

The following outline is taken from your prescribed text book pages 68 to 88. To gain a more in-

depth understanding it will be advisable for your read through these sections on research.

Step one- Describe the research problem & objectives: Identification & formulation of the

problem to be researched. PR managers have a responsibility to researchers to communicate


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clearly the nature of the opportunity or threat that is relevant to the decision-maker. The

researcher should only consider whether the management problem can be formulated into a

research problem; in other words, determine whether the management problem is

researchable.

o Management questions

o Research questions

o Investigative questions

o Measurement questions

An important part of the problem formulation is SITUATION ANALYSIS. A situation analysis can be

described as the informal gathering of background information to familiarise researchers with research

problem. The essence of the situation analysis is to take stock of your current situation, where the

business organisation is and where it is likely to end up if the current problem continues. Situation

analysis involves an overview of the following environments and factors:

o Secondary data analysis (where existing information and forecasts are investigated)

o Analysis of publics (internal and external publics)

o Public relations strategies (advertising, pricing, intermediaries, products)

o Resources and constraints of the organisation and

o Technologies skills of the organisation.

A PR research objective refers to the specific information that is needed to solve a PR research

programme. Research should consider three basic aspects while stating the research objective:

o The research question: which specifics the exact information that the decision-maker

needs. When referring to case study, the research question could be: „is internal

communication the cause of the decline in employee morale?‟

o The hypothesis: which defined as unproven statement or proposition about the

relationship between two or more variables that is of interest to the researcher?

Therefore it gives a possible solution for the research problem or opportunity. For

example HI: A decrease in advertising expenditure has a negative correlation to sales

of the specific potato chip brand.

o The scope: of the research, this refers to the extent which it is possible to conduct the

research. Researchers should keep in mind who the subjects of the research studies

are (target public) and whether it is possible to reach these subjects. Researchers

should determine whether it is possible to reach the areas under investigation, and

whether the desired level of accuracy can be obtained from the research. The available

resources should also be established and the researcher should determine whether

the value of the gathered information is greater than the costs incurred gathered the

information.


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Source: Steps in the public relations research process, Rensburg and Cant (2009:71)

Research

purpose

Research

questions

Hypothesis

Research

design

Research

Objectives


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Step Two- Research Design

A research describes the plan to be followed to answer the public relations research objectives and

provides the structure or framework to solve a specific problem.

Source: Steps in the public relations research process, Rensburg and Cant (2009:71)

The classification of all available research designs in the PR research methodology is very broad and

includes the following types of research design.

On pages 72 & 73 of your prescribed text book the following is listed, you are required to familiarise

yourself with each research design.

Exploratory research

Descriptive research

Qualitative research

Quantitative research

Post hoc research

Ex post facto research

Longitudinal research

Causal research

Predictive research

Types of designs Exploratory Descriptive Quantitative Post hoc Ex post facto Casual Predictive

Activity 1 Determine the data source

Activity 2

Determine the data collection approaches

Activity 3 Determine the data collection instruments

Activity 4 Determine the data collection methods

Activity 5 Design the sampling plan


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Step Three- Preparing a specific Research Design

The two categories: primary data and the secondary data. The primary data sources are use

to collect information specifically needed for the research problem at hand, while secondary

data exist as historical data which has been collected before, either by the organisation or by

outsiders. Researchers should always begin their research by doing an in-depth analysis of

secondary data.

Primary Data Secondary Data

Internal sources External sources Internal sources External sources

Employees Consumers

Clients

Wholesalers

Competitors

Organisation

records

Libraries

Industry associations

Chambers of industry

and commerce

Government bodies

Marketing research

organisations

Universities

Source: Rensburg and Cant (2009:74) Example of primary and secondary data sources

Data Collecting Approaches

Data collection approaches can be classified into three main categories:

The observation approach: this deals with the monitoring of respondents actions with any

direct interaction from the researcher. Observation is simply the process of recognising and

nothing what is going on rather than asking for the information. There is no interaction by

researcher to the respondent to obtain information, and bias that normally occurs in the

questioning process can be eliminated. Observation takes place through human or artificial

methods. Human observation is conducted when an observer personally monitors the data on

observation sheets. Artificial observation is done by way of mechanical or electronic equipment.


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The survey approach: this involves the collection of problem-specific data from selected

individuals (respondents) by way of direct or indirect questioning. This form of data collection is

most commonly used by PR research. This approach uses structured questionnaires and

response categories that allow the results to be quantified. There are various methods of

administering this, example mail, telephone, or personal interviews. Face-to-face interviews

can be take place at the respondent‟s home, at a shopping mall, or at the respondent‟s

business.

Experimentation: this approach is used in casual research design; in other words, when you

want to prove that one variable causes the other variable to occur. Since PR research

questions cannot be answered in a laboratory and since the test subjects are human beings,

experimentation is more difficult and seldom used in PR research. The value of

experimentation is often underestimated and it should be used more often.

Data Collection Instruments

There are two types of research instrument from which the researcher can choose to collect primary

data: the questionnaire and mechanical or electronic equipment.

1. The Questionnaire

The questionnaire is most common instrument used for collecting primary data for survey purposes.

The type of questions used in the design, their format, wording and sequence. The criteria for a good

questionnaire include the following:

Does it provide the necessary decision-making information? The primary role of any

questionnaire is to provide the required information necessary for the management decision-

making.

Does it fit the respondent‟s requirements? One of the most important tasks in designing

questionnaire is to „fit‟ the questions to the prospective respondents by taking out any

unnecessary jargon and business terminology that respondents may misunderstand. Therefore

simple, everyday language should be used.

Does the questionnaire consider editing and data-processing requirements? Editing refers to going

through the questionnaire to ensure that all questions were filled out and that questionnaire instructions

were followed. The questionnaire must be developed so that data can be entered into the necessary

software effectively and efficiently.


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2. Mechanical or electronic equipment

Mechanical or electronic equipment involves the use of instruments such as galvanometers, eye

cameras and electronic and mechanical meters to measure respondents‟ reactions, behaviours and

opinions. These instruments range from simple counting meters (for example the number of people

passing through a turnstile) to sophisticated reaction measurement instruments (for example, emotional

reaction to a specific public relations advertisement is measured with a galvanometer or eye camera).

Data Collecting Methods

Personal interviews: are administered when respondents are selected and interviewed face-

to-face by a trained interviewer. Personal interview can be conducted in the respondent‟s home

or elsewhere, normally at a public venue such as a shopping centre.

On pages 77 of your prescribed text book read the advantages and disadvantages of

conducting personal interviews.

Telephone interviews: involve a trained interview who completes a questionnaire through

interviewing the respondent over the telephone. This survey method is growing in popularity as

technology provides solutions to the problems experienced with this method in the past.


using the telephonic method.

Self-administered surveys: are conducted when questionnaires are mailed or faxed to

respondents; computered-delivered to respondents via the internet and other online services;

or respondents are intercepted and asked to complete a questionnaire in their own time,

without interviewer assistance. There are many advantages and disadvantages associated with

this surveyed method.


using the telephonic method.


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Design the sampling plan

A crucial step in the research process is the development of a sampling plan, which greatly influences

the value of the information obtained by the researcher. Valuable information is information obtained

from a sample, which problems of validity and reliability. The process for developing a sampling plan

can be divided into seven steps:

Source: Rensburg and Cant (2009:80) Steps in sampling plan

Step 1: Define the population of interest

:

Step 2: Choose a data collection method

:

Step 3: Choose a sampling frame

Step 4: Selecting a sampling method

:

Step 5: Determine the sample size

Step 6: Determine the sample size

Step 7: Execute operational sampling plan


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Sampling Methods

Source: Rensburg and Cant (2009:81) Classification of sampling methods

Random Sampling

Random sampling, also known as probability sampling is a best way to ensure a representative sample.

The following random sampling methods can be used:

Simple random sampling. This method involves the same principle as taking numbers at

random from a hat. Tables of random numbers or computer random number generators are

used for this purpose. A detailed listing of the population is needed as the sampling units are

identified by number. For example, to draw a simple random sample of ten flats from a block of

flats, the researcher should incorporate the flat numbers into a list of the total population (all the

flats). Flats numbers will then be drawn at random until the prescribed sample size has been

reached.

Stratified random sampling. This can be used in cases where the total population can be

divided into distinct, exclusive groups and the researcher wants to ensure better representation

of each group. Stratified sampling entails the proportional (relative to size) allocation of sample

size to reach identified group, called a stratum, and is possible without a detailed population

frame (list of population). Any sampling procedure (such as simple random sampling) can now

be used to draw the different sampling units from each respective stratum. An example of this

is a market with three distinct segments that can be used as different strata to ensure equal

representation in the total sample.

Cluster sampling. Simple random sampling treats with population elements individually, while

stratified sampling treats elements in groups of the population individually. In the case of cluster

sampling, the population is grouped into clusters and only some of the groups are randomly

Probability sampling Non-probability sampling

Systematic

Simple random

Cluster

Stratified

Convenience

Snowball

Judgement

Quota


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selected for study. The grouping of clusters is done according to ease or availability and should

be heterogeneous within subgroups and externally homogeneous.

Systematic sampling. Systematic sampling is known to deliver the most representative

samples of all sampling methods. It involves randomly selecting a starting point in a list of the

population and then systematically selecting respondents in a fixed interval of random

numbers. If, for example, the starting point of the sample has randomly been selected as room

number 8 of a hotel, every tenth room could then be selected for the total sample.

Non-random sampling

PR research is often based on non-random sampling (or non-probability sampling), primarily because of

the high cost and difficulty in obtaining a truly random sample. Non-random sampling does give every

member of the population a known and equal chance to be included in the sample and is not

representative of the population. The following non-probability sampling methods:

Convenience sampling is an unrestricted non-probability sampling method, which is the least

reliable, but usually the cheapest and easiest to conduct. When using this method researchers

choose who they want to participate in the survey.

Judgement sampling is when researchers choose respondents that fit a certain profile. For

example, when a sample of overweight respondents are chosen to complete a questionnaire

on the Atkins diet, where the researcher wants to determine the perceptions of specific

segment in the population regarding the research question. (do you think that the Atkins diet is

effective).

Quota sampling. Is the based on the premise that certain relevant characteristics describing

population dimensions. Therefore, if a sample distribution of a sample has these specified

characteristics, then it is presumed to representative of the population.

Snowball sampling entails researchers having to select a small group of respondents who

participate in the survey and who in turn identify other respondents with similar characteristics.

These respondents identified a next group of respondents, and so the process continues.

Sample Size

The sample size involves the number of sampling units that are included in the investigation. There are

some general norms and guidelines used for choosing the sample size. Statistical confidence is one of

the best forms for determining the sample size. Statistical confidence is one of the norms for

determining the sample size of a known population. It must be remembered that possibility of unreliable


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and invalid research results increases with smaller sample sizes, while the possibility of research errors

and bias increase with larger sample sizes.

Step 4- Fieldwork

Fieldwork refers to the actual data collection with the aid of data collection instrument. To ensure the

reliability and validity of research results, it is important to prevent bias as far as possible. Bias is

usually, though not exclusively, the results of badly executed fieldwork.

Preventing Bias

Researchers should be aware of the following sources of bias, as these can cause serious

measurement errors:

The respondent. Bias is likely to occur whenever we are dealing with people. Since people

(consumers) are the prime concern of public relations research, they are a potential source of

error. The characteristics of respondents will have an effect on the results as there are real

difference in gender, social class, ethnic groups, age, income and status of respondents. Other

aspects such as respondent figure, boredom, anxiety and literacy can also affect measurement

validity.

Situational factors. External situational factors such as the research environment, interview

situation and the presence of other respondents can influence the results of the research.

The fieldworker. Rewording, misinterpretation, non-verbal or verbal cues, incorrect recording

and many other factors in the control of the fieldworker are other potential sources of

measurement error. It is possible that the data analysis can lead to errors in coding,

inappropriate statistical procedures and faulty tabulation. The implementation of data collection

does have its specific sources of error. They are:

Errors in selecting respondents

Non-response errors, caused by refusals or not-at-home respondents

Errors in encouraging questionnaire completion

Errors in misinterpretation or mis-recording

Interviewer dishonesty.

The data collections instrument. The fourth source of measurement error comes from the

type of data collection instrument used in the research. Deficiencies in the design, wording and

layout of the questionnaire can lead to confusing, ambiguous or leading questions being

included. The sampling procedure is another example of error in the data collection instrument.


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On pages 84 of your prescribed text book read the section on the important

considerations in fieldwork.

The use of interviewers and fieldworkers

Administrative procedures

Quality and cost control

Evaluation of interviewers

Step 5- Processing, tabulation and analysis

The data collected has to be edited, verified and coded to facilitate data capturing on computer. This

can be done through various data analysing software such as SPSS, MoonStat, MS Excel, etc.

Data preparation

First comes the editing of the raw data. Editing refers to the detection of errors in the data, detecting of

commissions and the correction of these where possible, lastly the certification that the minimal data

quality standards have been achieved. The following stated by McDaniel & Gates in Rensburg and

Cant (2009:85):

Accurate

Consistent

Uniformly and

Arranged to simplify coding and tabulation.

Coding involves assigning numbers to answer in the questionnaire to enable the researcher to group

the answers into a limited number of categories or classes. This is necessary for the efficient analysis of

data. There are four coding rules to be followed (Dillon et al in Rensburg and Cant (2009:85):

The categories must be appropriate to the research problem.

The categories must be exhaustive as „other‟ classification of categories may not fulfil the

research objectives sufficiently.

The category components should be mutually exclusive and should therefore not overlap in

meaning.

The categories should be derived from a single classification principle; each category should be

defined in terms of one concept.


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Data entry

Data entry deals with conversion of information gathered to a medium that is suitable for viewing and

manipulation. What this simply means that data is placed into a spreadsheet or into statistical software to allow

for statistical analysis of the data. This will enable researchers to determine whether the relevant hypothesis can

be rejected or accepted so that the research question can be answered.

Data capturing should be audited for possible typing errors or misinterpretation of coding instructions. The

following can be executed:

Double capture

Data file comparisons

Field code restrictions and

Skip patterns.

This process is called data cleaning, which entails a check of internal inconsistencies and all possible allowable

and non-allowable codes.

On pages 86-87 of your prescribed text book read the section on Tabulation and

Analysis.

Step 6- Reporting the research results

This marks the final step in PR research process, the interpretation of PR information for decision-

making purposes and reporting of the results of the research to the PR decision-maker. The decision-

making context is thoroughly grasped and that the communication of the PR information takes place in

the appropriate format. In presenting the report accurately the following criteria should be considered:

Understandability,

Relevance,

Clarity,

Consciences,

Organisation,

Timeousness,

Accuracy,

Comprehensiveness is applied.


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PR research on the Internet

Rensburg and Cant (2009:89) states that the growth of the internet does promise vast opportunities for

creative applications in PR research. There are various advantages and disadvantages when t comes

to the utilisation of the internet.

Advantages

The speed in which a questionnaire can be created and can be distributed to large numbers of

respondents.

Data is electronic and collecting of data is easy.

The cost for PR research: the development, distribution and interviewer costs are almost totally

eliminated or reduced to a fraction.

Large number of people can be reached and it crosses the usual communication barriers

experienced in international research.

The visual enhancement of web-based surveys with attractive fonts, graphic, audio, video,

professionally formatted page layouts. This makes it enjoyable for one to respond to internet

surveys.

Disadvantages

The lack of representativeness of internet users causes a distinct bias. Not every household as

internet access.

Security is another problem. Factors such as spamming (mass-distributed e-mail messages or

junk email) and the invasion of privacy through the use of cookie files are a cause of great

concern to many internet respondents.

Internet survey techniques

Two basic methods are currently being used on the internet:

Conventional website-based surveys. Respondents are invited (by e-mail, telephone or fax)

to visit a specific URL where the website survey is located. The designing of these pages can

be done through FrontPage etc.

E-mail Based questionnaires. Questionnaires can be developed using software that can self-

executable email attachment. Another approach is e-mail speciality software that will enable

the automatic distribution and return e-mail questionnaires to targeted list of e-mail

respondents.


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Forms of PR research

PR research is usually rather simple. It can be used to investigate people‟s opinions about an

organisation environment, to determine public views and opinions, to plan and develop new strategies,

and much more. There are different ways of conducting research in PR.

On pages 90-91 of your prescribed text book read the following forms of PR research:

Public opinion research

Image surveys

Needs and perception surveys

Focus-group research

Media clipping services

Content analysis

Information systems for PR

Information Systems assist PR managers in the process of decision making. This provides a planned

combination of ways and methods for continuous gathering, filtering, storing and flow of relevant

information for purposes of PR decision making. IS have various characteristics which include the

following:

An IS can be complex, since it can address a wide range of PR issues.

It can draw on a wide variety of data sources.

The contents of an IS are subject to cost-benefit considerations.

There are three broad types of information that PR managers can obtain through the IS:

Recurrent information. This is information that is provided to managers on a continuous basis

and includes information from regular image polls or opinion surveys.

Monitoring information. This refers to information that is derived from the regular scanning of

certain sources such as trade association publications.

Requested information. This information is developed in response to specific request by PR

managers. A manager might request the size of a specific market that is not currently served by

the organisation, or reach of a new medium that has been used before.


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Activity

1. Explain why PR is important to PR practitioners………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

2. Explain the PR research process………………………………………………………………………

……………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………

3. Describe in detail the various forms of PR research………………………………………………….

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

4. Read the case study on How PR was used to boost the census”

……………………………………..………………………………………………………………………

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………………………………………………………………………………………………………………


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THE PROCESS OF PUBLIC RELATIONS PLANNING, BUDGETING &

PROGRAMMING

"Like Columbus, you can sail west and reach new land by accident. But if you have charts, you can do

better; you can arrive at a destination decided upon in advance. ... It is careful planning more than

anything else that distinguishes modern public relations from old-time hit or miss publicity and

propaganda."

Planning is good for you!

At one time or another, probably from your mother, you've heard: "You should eat more

vegetables. They're good for you; they'll make you healthy." You probably even believe it, or at

least accept it as reasonable conventional wisdom, but that doesn't mean you eat as many

vegetables as you should. Nor does it make you to like them.

A similar observation can be made about public relations planning. At one time or another,

probably at a conference or workshop, most public relations practitioners have heard: "You

should do more planning.

It's good for you; it will make you more successful." Most practitioners probably believe it.

Some even regret not having more time to devote to planning, but that doesn't mean they do as

much planning as they should. Nor does it mean they like planning.

The fact is: public relations planning is a lot like vegetables

It's generally viewed as one of those things that should be done rather than something people

want to do.

It's like eating broccoli instead of a hot fudge sundae.

But, all public relations planning are not the same.

Some require very little preparation and is easy to take advantage of if you simply notice it.

Other approaches to planning require much more time and effort to prepare.

And some planning methods are easily overdone and often become unpleasant.

Because planning is such an important part of public relations, it is useful to understand the

different requirements of an event, a campaign, and a programme.


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An event is a one-shot occurrence. It happens in one time frame-an hour, a day, or perhaps as

long as a week-and it serves one prime purpose with one or more selected publics.

Planning is good for public relations people, and it can contribute to the success of public

relations activities. But, it takes time and effort. It can be tedious, and it's neither glamorous nor

exciting.

It lacks the appeal and the challenge of media relations or crisis communication and, for most

practitioners, falls short of providing the satisfaction and sense of accomplishment that

completing a publication or a special event does.

A campaign has at least one thing in common with an event: a specific beginning and ending

point. But because those two points are separated by weeks or even months, and because

several different events will be part of the process, we call it a campaign.

A programme is like a campaign in that it consists of several events. But it differs from a

campaign in that it has no pre-set and point.

A programme is put in place because of an anticipated need for continued dissemination of

information.

The program is reviewed periodically to determine whether its objectives are being met. All or

parts of it will be continued as long as there is a need for more communication with target

publics

Drug education, driving safety, blood donation, adoption, nutrition is all social situations that call

for a continuing program since complete resolution is out of question.

In defining the situation and beginning the planning process, temporary chaos can result if no

one defines whether an event, a campaign or a program is in order. The deciding factor may be

the types of objectives desired by the client:

- Communication,

- accuracy,

- understanding,

- agreement, and

- complementary objectives.


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Planning helps clarify your intentions.

In simplest terms planning is figuring out the best way to accomplish whatever you want to do

or to get wherever you want to be.

The basic concept is clear, simple, and straight-forward.

Over time planning has become a speciality field in its own right and has developed its own

special jargon.

Traditional planners set goals, identify objectives, and define action steps to reach their goals

and objectives.

Contemporary planners have added buzz words like strategic, visioning, and organizational

advancement to the planning lexicon.

Jargon aside, public relations planning is simply identifying with whom you want to have a

relationship, what you want from that relationship, and what you can do to achieve it.

A public relations plan helps maintain self-discipline as well as being an excellent informational

tool. This is especially true for public relations practitioners who have recently changed jobs or

taken on new clients.

Planning forces them to ask questions and review their underlying assumptions.

Each successive step in the planning process sharpens their focus on how the organization

operates and where it's going, as well as clarifying public relations' role in that operation.

Despite its current overuse, the term "strategic" still has important meaning for planning,

especially when it's used in the traditional sense to distinguish strategic planning from tactical

planning.

Strategic planning defines an overall framework, focus, and goals for a long-term or indefinitely

on-going process or operation.

Tactical planning is an outgrowth of strategic planning that often focuses on a specific time

period, e.g., a five year plan, an annual plan, or a monthly plan, rather than the entire life of the

organization.

The best public relations practitioners are equally comfortable doing both types of planning.

Think of an organization's strategic plan as its global view of the world and its tactical plan as

its local street map.


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The tactical plan converts the broad brush strokes and goals of the strategic plan into a series

of objectives which are practical, do-able tasks involving specific campaigns, audiences,

programs, or activities.

"Tomorrow's communicators will be people who can think strategically and deliver

tactically. A well-written annual report or brochure is of no strategic value if it does not

contribute to meeting corporate goals and objectives."

PLANNING STARTS WITH A MISSION STATEMENT

The best starting point for public relations planning is to review the organization's mission

statement and goals. These documents summarize what the organization is and what it's trying

to accomplish, and they should provide the focus for every decision the organization -- or any

sub-unit within it -- makes and for every action it takes. This should be especially true of public

relations efforts.

Consequently, many public relations plans start with a copy of the organization's mission and

goals. The next element these plans include is a mission statement for the public relations unit

which spells out what that unit does and how it assists and supports the organization in

carrying out its mission.

TARGET AUDIENCES

Beyond this point different planners structure their plans in various ways to reflect their views of

what public relations are and what it does.

Some put primary emphasis on policy research and issues management.

Others put their emphasis on activities like publications, special events, speech writing, and

media relations.

And, those who see relationship-building as the essence of public relations often build their

strategic plans around their organization's most important publics and target audiences.

COMMUNICATION OBJECTIVES FOR AN EVENT

Attendance by a certain number of people.

One-time dissemination of information to a target public.

Putting something “on the record” for an organization and its publics

Gaining press attention.

OBJECTIVES FOR A CAMPAIGN

Delivering a positive vote or reaction at the proper time (behaviour).

Building support for an issue that will be resolved in due courses (agreement).

Raising funds for an organization so that it can proceed with growth (behaviour).


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Attracting enough support to guarantee continuance or survival of an organization at critical

time (understanding).

OBJECTIVES FOR A PROGRAMME

Creating and maintaining a level of support for an ongoing program (understanding).

Opening and maintaining contact with other organizations that enable your organization to

continue its functions (communication).

TYPES OF CAMPAIGN

There are three kinds of movement, programme or campaign Larson in Rensburg and Cant (2009:200).

The politically oriented campaign

The product- or service-oriented campaign

The ideological, issue- or cause-oriented campaign

Types of PR campaign:

The public awareness campaign makes people aware of something.

The information along with awareness campaign includes not only awareness, but also

information about something.

The public education campaign educates or teaches the stakeholders about something.

Campaigns that reinforce the attitudes and behaviour of those who are in agreement with the

organisation‟s position. All these stakeholders may need is a reminder of shared values.

Campaigns that have to charge or attempt to change the attitudes of those who do not agree

with the organisation‟s position. All these stakeholders may need is a reminder of shared

values.

Campaigns that have to change or attempt to change the attitudes of those who do not agree

with the organisation‟s position, for example activist groups that disagree with how the

organisation conducts its business in the environment.

Behaviour modifications campaigns convince stakeholders, for example, that they ought to

wear their seatbelts or that drunk driving is not in their or society‟s best interests.

Each of these campaigns attempts to motivate different levels of behaviour, which is the sole reason for

conducting campaigns. Behaviour is the outcome that campaigns seek – not necessarily the thinking or

feeling or even social interaction that precedes the behaviour. These are merely the means to an end.


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Stages of effective campaigns

On pages 201 - 202 of your prescribed text book the following is listed, you are required to

fimilarise yourself with each of them.

Identification

Legitimacy

Participation

Penetration

Distribution

Activity

1. The PRISA Model identifies seven key stages in planning a PR programme or campaign. Read through

the following seven areas found on pages 211-213.

……………………………………………………………………………………………………………………………………………………………

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2. Refer to the case study on page 213-220 entailed A non-profit PR campaign – Sefin Marketing

Communications Consultants. Read through and identify with the style and format in which the

campaign was conducted.

……………………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………………

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SELECTING CHANNELS AND MEDIA

During the planning of a campaign or a program, part of the analysis of each key public should

include such questions as:

Where do members of our key publics get their information?

Which media do they rely upon to make decisions about what is important and how to

behave?

Which channels provide the two-way communication that enables key publics to provide

information to our organization about their needs and concerns?

Another level of analysis focuses on the characteristics of each medium and their relationship

to the campaign or programme:

Which media allows us to get our point of view across most effectively?

Which media are best suited to the information requirements of our campaign, such as

the presenting of visual images, the need for two-way communication, or the ability to

tell a story in depth?

Which media are most cost-effective for this type of information?

OTHER TYPES OF PLANS

BUDGETS

Operating budget: Forecast the goods and services the organization expects to consumer.

Financial budget: A detailed estimate for the amount and organisation expects to spend

during the budget period and where the funds come from.

PR budget: Administrative costs (salaries, benefits) and programme costs (event,

publications), production costs, suppliers.

Standing Plans: (Policies, Procedures and Rules) Programmable decisions call for standard

and consistent response.

Policies: Guidelines for decision making Procedures: Detailed guidelines for implementing

policy decisions.

Rules: Specify action to be taken in a particular situation


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SETTING A PUBLIC RELATIONS BUDGET

According to Maguire an online PR specialist, (2009: http//:www.CLICKintoPR.com state that

budgets are never big enough. The following straight forward tips provide one a more

effective programme. The following outlines ten things you should do and ten things not to do:

TEN THINGS YOU SHOULD DO

1. Plan. Every business needs a plan, but so often this is a rushed annual task, grudgingly undertaken while enmeshed in day to day activities. This results in this year‟s plan being just like last year‟s, but plus (or often minus) X per cent, with fingers crossed. 2. Take time out to plan properly. Take time to look at the business, look at the trading environment, understand the threats and opportunities and what resources you need to counter them and take the business forward. (SWAT Analysis) 3. Use a proven methodology. Paul Smith, has devised a useful planning tool SOSTAC®, standing for Situation Analysis, Objectives, Strategy, Tactics, Activity and Control. The communication plan, after all, needs to nest into the overall business plan and link to plans for marketing, operations, finance, and so on. 4. Focus on activity not history. List the key activities arising from the current business plan - new products, investments, acquisitions, market development, and so on. Now decide what communications will support these. Specify the required PR activities - how many releases, case studies, features, press conferences, facility visits, events, road shows, exhibitions, product placements - and when these will happen. 5. Integration and balance. PR is the most potent (and cost effective) marketing tool you have, but it cannot support the whole communications programme alone. It needs to be integrated with advertising, web promotion, sales and other activities, respecting what each of these channels can contribute. 6. Prioritise. The good old two dimensional matrixes are useful here. Plot each of the activities against a cost and benefit axis. Use the four quadrants to determine the must do (high benefit, low cost), should do (high benefit, higher cost), like to do (lower benefit, lower cost) and marginal activities (high cost, low benefit). 7. Slaughter a few sacred cows. Somewhere in the programme there are almost certain to be sponsorships, exhibition attendances, long standing advertising commitments that have outlived their usefulness – kill these off and recycle the cash. 8. Decide what resources are required. Now, do you have a full and rich programme of activities or is it more a series of projects? In house resources may meet some of your needs but for others you will need outside help. Draw a clear boundary between in-house and outside tasks.

http://www.clickintopr.com/


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9. Brief your PR Company. At this stage you are able to give a full brief to your PR Company, telling them what you want to achieve, what you are planning to do and the services you expect them to provide. Any decent PR company should be able to give you a firm cost and suggest alternatives that will be more effective or save your money. 10. Build in feedback. Based on the objectives you set at the start, decide on the most appropriate form of evaluation to help you measure effectiveness and improve performance.

FIVE THINGS YOU SHOULD NOT DO

1. Don’t forget to be flexible. Circumstances change, new opportunities arise. Build contingencies into the budget to allow for this and be prepared to drop more marginal activity to fund new projects. 2. Don’t change the goals. Tactical changes to reflect changes in circumstances are fine, but reorientation of effort to achieve different goals sends mixed messages, creates confusion and undermines confidence. 3. Don’t let history dictate your plan. Change is so rapid in marketing and media that every activity must be carefully evaluated for continuing relevance. 4. Don’t let anyone tell you that you “must have” a capital city agency. The capital has no monopoly on talent. Skilled specialist practitioners operate throughout the world, are accessible via modern technology, have equal access to media and do not carry huge capital city overheads. 5. Don’t accept retainer arrangements. This is an old fashioned payment system where you buy a block of the PR‟s time, usually in day units, to do unspecified tasks. This unfocussed, unprofessional way of working belongs to the days of gin and tonics, bow ties and mysterious “media contacts”. It has no place in modern communication.

CASE STUDY:

WHAT DOES IT COST? HOW TO BUDGET YOUR PR PROGRAMME BY THE NUMBERS

A PR personal it is important that you know how to plan a budget for the PR programme regardless

whether you are working for the company or the company as engaged your PR consultancy. According

to Mike Nikolich, CEO Tech Image Ltd outlines the following guidelines which will no doubt provide

insights how they provide PR service for their clients: (http://www.techimage.com/).

A client‟s goal is to select a public relations agency which can handle a new product launch. The

proposed budgets range from $50,000 to $200,000 (USD). The following questions provide some vital

information:

http://www.techimage.com/


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How do you evaluate their plans?

While it's true that you usually get what you pay for, should you automatically discount the lowest budget (or the highest for that matter)?

Wouldn't it be helpful to have a tool to determine which proposals are priced fairly?

To help compare agencies, you need a benchmark to determine what firms charge for various tasks.

Although hourly rates for agency talent may range from $75 to $350, rates alone don't tell you the full

story. The key to establishing a reasonable public relations budget is to determine what an agency

charges for typical projects and how many hours of creative time it takes to complete these projects.

The following steps are further highlighted by Mike Nikolich, CEO:

When an organization is interested in hiring Tech Image Ltd., our

First step is to send them our brochure and a copy of our pricing guidelines. If the

prospect is comfortable with our prices, we'll work with them to establish a realistic

budget. Once we've determined the budget, we'll develop a comprehensive program.

Our clients appreciate this no-nonsense budgeting approach. After all, you wouldn't

buy a new car without knowing what you'll be charged for cruise control, air

conditioning and other features. Why would you hire an agency without knowing what

you should expect to pay for their services? (You must provide a detail for each cost).

Not all agencies share this philosophy, so don't be surprised if some discussing prices with you before

they submit proposals. Our pricing guidelines are based on 20 years of experience serving clients in the

computer products, digital video, Internet, IT, technology training and telecommunications industries.

These guidelines will help you establish accurate baseline budgets that cover creative fees, plus out-of-

pocket expenses.

The guidelines cover seven traditional public relations program elements:

Press release writing and distribution; Media relations; Case study and feature writing; Media Tours; Press kit development; Trade show PR; and Newsletters.


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In addition, we provide estimated hours for three electronic public relations activities:

Online monitoring; Web Site audits and content updates; and Fax-on-demand servers.

There are two additional services that Tech Image offers: the TIMEÔ (Tech Image Market Evaluation)

audit, a review of a company's messages and its competitive landscapes, and the MICÔ (Message and

Image Coaching) workshop, designed to focus a corporate message for key spokespersons. Ask the

PR firm that is preparing a budget for you what they charge for similar services.

BUDGETING IN PR

Nothing goes for free, so also effective PR does not come cheaply. Certainty of programmes and

sellable ideas invariably ease the task of costing campaigns. An adequate budget is essential to

achieving optimal results. The organisation must, therefore, benefit and get maximum returns from its

spending. Whether the PR Unit is given a particular budget to work with or asked to submit a proposal,

a reasonable, reliable and achievable cost should be made.

Once the objective of the programme, the audience, message, channels of communication and

activities are identified, it is easier to make a realistic budget.

A realistic plan of action must be presented together with the cost of each activity. Unless a budget was

once presented and succeeded, the need to maintain, increase or decrease it should be related to the

financial position and projects of the organisation.

The major areas of costing in PR include:

Prints and production,

Exhibition,

Workshops and seminars,

Media briefings

Conferences,

Advertising,

Transportation,

Sponsorship,

Supplements and media coverage.

Most activities can have fixed costs of expenses, including taxes and services but a mandatory

contingency not exceeding 15% of total cost must be added for any unexpected eventualities. This

may be necessary because there is a clear distinction between direct cost and indirect cost. For

instance, a hall booked for an hour for press briefing may extend to three or more hours, while an

entertainment provision for the briefing of a number of journalists may witness additional attendance of

some of them coming with their crews.


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A good budgeting plan may address the problems, objective, public, strategy, media, message

and anticipated result. There should also be a time frame for each budgeted activity.

But it must always be known that the budget estimate by in-house PR departments must be slightly

different from that of outside consultants‟. This may be so, since in-house practitioners will not consider

such expenses on salaries and equipment, which may be at their disposal.

Sometimes, some programmes are better handled by the in-house or consultation on the demand of

the non-specific aspects of the programme. For instance, while a consultant may demand for a

consultancy fee and hiring of equipment, the in-house may only request for cost of maintenance of such

equipment where available.

It is expected that a well equipped in-house PR Unit must have such facilities as video, photo camera,

public address system, TV and Video Machine for viewing and editing, computer, Tel/Fax, E-mail

and other relevant tools. But the consultants may need to charge for the hiring or the use of such

equipment, which may be an additional burden to an ill-equipped PR department.

Consultancy fees may vary from one firm to the other, depending on their reputation and size. Their

charges could be based on hourly charges for executive time. Monthly or yearly retainership could be

charged for a programme that runs for a year. Some specific programmes, which are done on an ad-

hoc basis, also attract special fees based purely on the volume of work covered.

Whether it is in-house or consultancy, an acceptable and accountable mechanism should be put in

place to monitor cost-effectiveness of the programme which may allow adjustment for total success. An

intelligent resource should be allocated by the management to implement the PR advice.

Consultancy Budget

The charges for consultancy services vary from one organisation to the other. But specifically for a

long-time PR campaign, the considerations for the budget include advisory fees which are charged after

the firm has accepted the service. The consultants charge the expenses to cover the days or hours of

attending meetings, its research and the submission of the report.

Another area is the implementation of the plan. Some in-house staff may take up this stage unless if the

consultant is given the responsibility of implementing the plan as it is recommended in the report

submitted.

Operational costs for the real aspect of the programmes are stated and carried out. These may include

the core PR activities such as issuance of press release, media tour, photography and the use of

equipment (fax, telephone, IT and courier services)

Evaluation level is also important for the consultant to monitor the success of the programme. It carries

out secretariat assignment by opening file for press clips and sending media review to the clients.

The budgets for all the activities above are measured on man-hours or daily activities basis. A typical

annual budget is illustrated below.


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Press Release Feature Articles Press Briefing Photo albums Video Recording In-house publication Meetings Reports Contingencies

3 x 12month x cost value 2 x 12month x cost value 2 x 4quaters x cost value 2 x 4quaters x cost value

2 x 4quarters x cost value 1 x 4quarters x cost value

1x 12month x cost value 1 x 4quarter x cost value

10% of the total

R X XXX R X XXX R X XXX R X XXX R X XXX R X XXX R X XXX R X XXX R X XXX

The cost value may come in different forms. It may be the cost of single or combination of:

Production cost,

Travel expenses,

Hotel accommodation,

Refreshments, Man-hour

Unit price of items

Materials to be used.

Some activities may be undertaken as often as required on a:

Daily,

Weekly,

Fortnightly,

Monthly,

Quarterly,

Biannually,

Yearly basis.

To convince the client in understanding the significance of the programme, technical jargons should be

avoided. Where necessary to disclose some technicalities, it should be attached as appendixes and or

as an annexure.

In-house Budget

The in-house PR practitioner submits annual budget which, after consideration, the fund involved is

released quarterly or monthly to the office to carry out its activities. Some programmes which are

periodical or exceptional and extraordinary are funded at the appropriate time. On the need, request

may be made from the approved budget estimate to take care of events and programmes as they

unfold.

The illustration below is a typical annual budget for a big organisation that has large audiences. The

proposals are in two parts. The first part is the budget defence, while the second part is the breakdown

of the request for consideration and approval.


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Budget Defence

Publications

This is to cover the cost of production/publication of monthly bulletin, yearly handbook, quarterly

magazine, seasonal cards and complimentary cards.

Corporate Items

This is required for the production/procurement of corporate items such as pocket diaries, executive

diaries, calendars and address books. These items will be used as presents or gifts to individuals

and organisations as a form of reciprocation for promoting the organisational statues, as well as seek

goodwill from the recipients.

Media Activities

The amount is needed for extensive media campaign and image building. These are in the areas of

media chat/courtesy calls, press conference hosting/entertainment, research, editing,

publications of articles, video coverage editing & dubbing, photo coverage/album and

entertainment for media reception. It will also include exhibitions and sponsorships.

Equipment

The sum is required for the purchase of relevant equipment for the office such as photocopiers,

cameras, consumables (video cassettes, DVD‟s, films, albums, inks, etc.) and maintenance and

services of media equipment. The essence is to enhance the output of the PR Unit.

Advertisement

The amount is to cover expenses for the placement of adverts on issues that concern the organisation

in the print and electronic media, and to also cover the cost of documentaries and live events in the

electronic media, including interviews, among others.

Editorial Board Meeting

The fund is for providing the entertainment, materials and incidental expenses for the meetings of

the editorial board.

Information Technology

In its drive to show a high level of integrity and commitment to the public, the unit should introduce a

timely and efficient way of information dissemination through modern and advance technology. To

achieve this crucial goal, the development of a website is imperative, where enquiries all over the

world are promptly responded to, through special media technique of a super highway. All publications

and activities will be displayed in the web site for the public to access. These will include press

releases, feature articles and profiles of the management. It will also contain handbooks,

magazines and pictures of activities in specified pages on the Internet. The amount would therefore

cover Website Development, E-mail Installation/Internet Connection, Web Hosting, Domain Name

Registration, Internet Usage Training and Technical Support/maintenance.


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Human Resources Management

The amount is needed to keep personnel in the Unit up-to-date in the field of Public Relations and

Information Technology. The areas include Training in Financial Public Relations & Modern Media

Techniques, Professional Seminars, and Conferences & Workshops in media management and

Annual Dues & Membership of Professional bodies, i.e., PRISA, etc.

Budget Breakdown

Publications

a. Monthly Bulletin Unit Cost x 100 copies x12month = R

b. Quarterly Magazine Unit Cost x 100copie x 4quaters = R

c. Hand book Unit Cost x 1000copies x 1year = R

d. Seasonal Cards Unit Cost x 100copies x 4seasons = R

Subtotal = R

Corporate Items

a. Pocket Diary Unit Cost X 100copies x 1year = R

b. Executive Diary Unit Cost X 100copies x 1year = R

c. Calendars Unit Cost X 100copies x 1year = R

d. Address Book Unit Cost X 100copies x 1year = R

Subtotal = R

Media Activities

a. Media Chats/Courtesy calls Gen. Expenses X 12month = R

b. Press Conferences Gen. Expenses X 2annualy = R

c. Research/Publication of Articles Gen. Expenses X 12month = R

d. Video Coverage (editing/dubbing) Gen. Expenses X 12month = R

e. Photo Coverage Album /Media Gen. Expenses X 12month = R

f. Entertainment/Media Reception Gen. Expenses X 12month = R

Subtotal = R


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Equipment

a. Procurement of Media Equipment = R

b. Consumables (Cassettes, Films, Albums, Inks etc.) = R

c. Maintenance & Services of Media Equipments = R

Subtotal = R

Advertisements/Supplements

a. Newspaper Adverts/supplements Rate X Pages X 12month = R

b. Electronic Media Commercial Rate x Slot X12months = R

Subtotal = R

Information Technology (IT)

a. Web Site Development = R

b. Email Installation/Internet Connection = R

c. Web Hosting = R

d. Domain Name Registration = R

e. Internet Usage Training = R

f. Technical Support/ Maintenance = R

Subtotal = R

Human Resources Management

a Advance Training in Financial Public Relations & Modern Media Techniques = R

b. Professional Seminars, Conferences & Workshops in media management = R

c. Annual Dues & Membership of Professional bodies, i.e., PRISA, etc. = R

Subtotal = R

Contingency

Miscellaneous/ Incidental Expenses 10% of the Total

Subtotal = R

GRAND TOTAL = R


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CASE STUDY

MEDIA RELATIONS & BUDGETING

The following case study provides a particle guide on PR budgeting is conducted for media relations.

This is taken from (http://www.techimage.com/).

Media relations will have the biggest impact on the success or failure of your public relations program.

Despite advances in distribution technology (such as email, WWW servers, search engines and portals,

push technology and fax-on-demand servers), public relations is, and always will be, a relationship

business. Your agency (or Company) must have strong media relations capabilities; their relationships

with editors and reporters will go a long way toward determining the success or failure of your public

relations campaign.

Even the smallest PR programmes should budget at least 25 hours per month for basic media relations.

Larger companies often budget hundreds of hours per month for this activity. A good rule of thumb is to

add up your universe of publications and assign an equal number of hours for media relations activities.

For example, if your company needs to be in regular contact with 100 key reporters, reviewers and

analysts, consider budgeting approximately 100 hours per month. The core media relations budget

should include such tasks as:

Monitoring editorial calendars; Pitching stories to editors; Following up on press releases; Maintaining ongoing contact with key industry analysts; Placing all feature articles and case studies; Tracking product reviews and interview opportunities; and Monitoring key publications, media outlets and online media to create feature

placement opportunities.

Out-of-pocket expenses (for postage, photo and slide duplications, long-distance phone charges,

Federal Express, etc.) should range from $750 to $2,000 per month).

By the way, one of the best ways to evaluate a new agency relationship is by regularly auditing the

monthly long distance phone charges. Have the agency provide you with copies of the long distance

bills for the first four months. If you have budgeted 50 hours per month for media relations and your

long distance phone charges are not averaging $150 to $250 per month, there's a good chance those

media relations calls aren't being made!

http://www.techimage.com/


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PRESS RELEASES

Press releases are the building blocks of any PR programme and a typical two-page release requires

between five and 10 hours of creative time to write and distribute to appropriate media. Distribution

costs, assuming the release will be mailed to 100 media outlets, should not exceed $500.

To keep mailing costs as low as possible, Tech Image normally distributes 50 to75 percent of its

releases via e-mail or fax to a customer list of reporters and editors. We also recommend using the

regional circuits of PR Newswire or Business Wire, rather than the more expensive national circuits.

This will save you money, but still ensure that your releases are posted on all of the major search

engines, portals and online services.

CASE STUDIES AND FEATURE ARTICLES

PR programmes are only as effective as the quality of the material you provide news media and

analysis. Great customer stories are always in demand, particularly ones that show how a product or

service helped a company solve a mission-critical business issue. A typical 1,500-word case study or

feature article will require between 20 and 30 hours of creative time to research and write, including a

minimum of two revisions. Placement costs should be absorbed by the media relations budget.

Photography and travel are additional charges.

Unless the case studies and feature articles will also be used as collateral, you may want to have the

agency boil the stories into shorter 500-word briefs and pitch these to the news media. Once a reporter

expresses interest in the brief, it can be developed into a full-blown feature, or the PR firm can link the

reporter with the customer to create a custom story. By working this way, companies can get much

more mileage out of their PR budgets.

MEDIA TOURS

Few public relations techniques have more impact than face-to-face meetings with key national media.

Every PR programme should have a budget for at least one national media tour per year. A media tour

of four major U.S. cities (such as Boston, New York, Washington, D.C. and San Francisco) requires

about 50 hours of creative time to schedule interviews, develop advance material and briefing books.

Since your account executive will be the person to maintain an on-going relationship with the news

media, it makes sense to have them accompany your spokespersons on a media tour. However, this

will add extra hours of creative time to your media tour budget, plus the related travel and out-of-pocket


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expenses. Tech Image has a flat daily rate for out-of-town activities like tours and trade show support,

to make this item easy to budget.

TRADE SHOW PR

Due to the noise level at most trade shows, we urge our clients to shy away from press conferences at

trade shows. However, we do believe trade shows provide an excellent opportunity for you to meet

face-to-face with key editors. We recommend scheduling interviews with between 15 and 20 reporters

per trade show. The meetings can take place at a quiet corner of the booth or in a nearby conference

room. Budget 50 hours of creative time for the agency to book these appointments, and remember to

factor in the daily rate if an agency representative attends the show.

NEWSLETTERS

An increasing number of high-tech companies are opting for Web-based and email-distributed

newsletters to communicate with their customers and prospects. A typical four-page, 8-1/2 by 11 sized

newsletters requires about 35 hours of copywriting time, plus another 10 hours of desktop publishing

time. Printing, graphics, photography, etc. are additional. Be sure to have a PDF version of the

newsletter available to post to your web site.

ONLINE MONITORING

Internet news groups, chat rooms, search engines, websites, portals and E-zines will provide a

wealth of rumours and news about your company and its competition. Many companies look to public

relations firms to monitor these outlets and provide a weekly executive summary to upper management,

with hotlinks back to key stories. Budget 15 to 35 hours per month for online monitoring.

WEBSITE ARCHIVING PROCESS

You may have a great-looking web site, but when was the last time anyone audited all of your on-line

content for accuracy? We recommend allocating 50 hours to perform a website audit and then

assigning 10 hours per month to track the site and be sure the latest links are posted to relevant search

engines. All releases in the pressroom should be monitored to ensure they feature the latest company

boilerplate. Since the average technology company has a turnover rate of 25 percent or higher, it's also

important to regularly monitor news releases and white papers to determine if the correct

spokespersons are listed. Releases older than 12 months should be archived.


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FAX-ON-DEMAND SERVER

Like the Internet, fax-on-demand servers are streamlining the way companies communicate with editors

and customers. If you're interested in a fax-on-demand server but are discouraged by the high

hardware and programming costs, some PR firms offer turnkey, 800-number, fax-on-demand servers.

Budget for approximately 10 hours of creative time for programming the server, plus $250 in out-of-

pocket expenses. The costs of uploading additional documents should be billed at the agency's hourly

rate.

MARKET EVALUATION

You might know your place in your market, but do you clearly communicate that position throughout

your efforts? A market evaluation audit can help determine if your message is still appropriate for your

current market situation, by comparing a number of factors, including: company message and sales

support materials (collateral, trade show booths, and advertising), press materials and website

messaging. Messages and themes from competitors are also reviewed for a complete evaluation.

This data will be analysed with an eye towards defining differentiation, clarifying cluttered or muddy

themes and recognizing message opportunities (benefit vs. feature, customer focus, etc.). This

becomes the platform for all communications going forward.

MESSAGE AND IMAGE COACHING

Technologists often rely upon their anagram shorthand to explain themselves, which can leave editors

and the general public confused. But many marketers know how powerful an interview can be for

delivering their story to key customers. By fine-tuning company messages before product launches,

media tours, or other significant activities, clients are better able to gain control of an interview and

direct a reporter to the appropriate angle. Message and image coaching workshops are day-long

seminars that force executives to focus their messages, improve their listening and speaking skills,

and reinforce the power of the interview for everything from stock valuations to sales presentations.

A LEAP OF FAITH

Entering a new relationship with a public relations firm should be a very positive experience for both

parties. If an agency is willing to work with you as a team to establish a realistic budget at the beginning

of the relationship, the odds are very good that the two companies will work well together. When

business partners respect and trust each other, everyone benefits. Isn't that what building a relationship

is all about?


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The following are some of the services offered by Tech Image Ltd., "The Media Relations Experts for

Emerging Technologies," provides Intelligence Reports on a variety of public relations topics, including:

Developing Budgets for Public Relations Programs; Product Review Tracking; Sales Lead Tracking; Trade Show Public Relations; and Global Publicity Campaigns.

The above has provides the nuts and bolts that for a PR firm or if you need to engage a PR firm then

these are basically the areas will be covered.

Activity

1. Review the guidelines for traditional PR programme elements:

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

Review the section on Ten things you should do and five things you should

not do.

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………


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PUBLIC AND MEDIA RELATIONS

The following is outline is provided by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC

PR includes ongoing activities to ensure the organization has a strong public image. Public relations

activities include helping the public to understand the organization and its products. Similar to effective

advertising and promotions, effective public relations often depends on designing and implementing a

well-designed public relations plan. The plan often includes description of what you want to convey to

whom, how you plan to convey it, which is responsible for various activities and by when, and how

much money is budgeted to fund these activities. Similar to advertising and promotions, a media plan

and calendar can be very useful, which specifies what media methods that are used and when.

Often, public relations are conducted through the media that is, newspapers, television, magazines,

etc. Publicity is mention in the media. Organizations usually have little control over the message in the

media, at least, not as much as they do in advertising. Regarding publicity, reporters and writers decide

what will be said.

Regarding public relations, consider:

What groups of stakeholders do we want to appeal to and how?

What impressions do you want each of your stakeholders to have?

What communications media do they see or prefer the most?

Consider advertising, collaborations, annual reports, networking, TV, radio, newsletters, classifieds,

displays/signs, posters, word of mouth, direct mail, special events, brochures, neighbourhood

newsletters, etc.

What media is most practical for you to use in terms of access and affordability?

What messages are most appealing to each stakeholder group?

EXTERNAL PUBLICS

Influencing an organization‟s constituent publics through a pone-systems approach of

interaction and communication is a complex task.

The persons who comprise these several external publics are usually remote and thus

removed from face-to-face communication.

http://www.authenticityconsulting.com/#_blank


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TO COMMUNICATE

To communication effectively with members of thee diverse publics, communicators must

identify those groups with a common interest; those who are affected by, or who can affect, the

functioning of a company or institution.

THE COMMUNITY

An institution‟s relationship with its neighbours in its community are crucial because these

neighbours supply the organization‟s work force, provide and environment that attracts or fails

to attract talented personnel, set taxes, provide essential services, and can, if angered, impose

restraints on the institution or industry.

The community might best be seen a web of social structures all closely interrelated.

The best hope for harmonizing the “web of social structures” for the future generations is by

coupling research knowledge with long range interest planning.

COMMUNITY CHANGE

Attitudes and practices of interdependence, cooperation, collaboration, and unification are not

automatic.

They need to be stimulated.

Conditions in metropolitan areas or smaller cities are not conducive to cooperation and

collaboration.

Media Relations for External Publics

MEDIA FOR EXTERNAL PUBLICS

The economical effective method of communicating with large and widely dispersed publics is

through the mass media.

But mass media is not always read.

NEWSPAPERS

Newspapers remain the workhorse of the public information system.

Newspapers are a moving force in society.

„Public Opinion‟ is shaped by the kind, the volume, and the quality of the news columns.

WIRE SERVICES

Offer the most economical and effective outlet.

Major wires operate with national trunk wires and regional wires.

MAGAZINES

Various titles cover broad array of variety – specialization

More durable


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RADIO

Useful and persuasive

Mobile

Can be person to person communication

TELEVISION

No other medium matches television‟s ability to provide a window on the world

Immediate potency in delivery

Dominant force in the evolution of culture.

Cable TV – Broadband homes can receive content that used to come only though cable

subscription.

WORKING WITH THE MEDIA

Need to know how to work with each medium.

Need to know how to produce content for each.

Need to meet deadlines.

Must appeal to the audience.

Must adhere to style requirements.

THE PERSON IN THE MIDDLE

Practitioners must have the confidence of both their organization and the media.

PR Professionals often encounter outright hostility.

Some hostility directed at “spin” put on issues.

GOOD MEDIA RELATIONS

The underlying conflict of interest creates an adversarial relationship.

But adversarial relationships often serve the public interest.

Accuracy and fairness does not result from reporters working alone.

GUIDELINES

Shoot squarely

Give Service

Do not beg or carp

Do not ask for kills

Do not flood the media


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PRESS GUIDELINES

Do not repeat offensive language.

Give direct answers when asked direct questions.

Say you don't know if you don't know.

Tell the truth, even if it hurts.

Do not call a press conference unless you have news to convey.

Talk from the viewpoint of the public‟s interest.

Make the news easy to read.

Do not say things you do not want to be quoted.

Lead with the most important item.

Stay cool with difficult reporters.

MEDIA RELATIONS AND COMMUNICATION STRATEGIES

It is important to take media relations and communication strategies seriously. A company or

organisation must be prepared for managing a media crisis, during litigation, a political campaign,

or a corporate embarrassment or other media and public relations predicament issues. The key to a

successful media strategy is to be prepared before a crisis hits, or at least know who to call when it

does!

PREPARING FOR A PUBLIC RELATIONS MEDIA CRISIS

Develop relationships with reporters in all the major markets, or work with a company such as

MLS Communication that already has those relationships or can establish them with you.

Develop the story that presents your company, industry, issue, or candidate in a compelling

light.

Get the message to the media in a manner that puts you in charge of the solution.

Get the message online everywhere and anywhere someone would be searching for

information that affects your company, business or industry.

Be highly visible online by buying cost effective, target market online ads so that every search

leads to you!

The Media Training Centre‟s communications specialists believe the press is becoming more

intrusive in the rush to get stories. Often, businesses and organizations get caught in crossfire

of sloppy reporting, misleading information and inaccuracies.


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The following common-sense "rules of engagement" for dealing with the media have been

tested and proven in our 60-plus years of experience with the press:

1. Don't ever lie.

2. You don't have to answer every question you're asked.

3. Think. Think before you answer anything. A corollary: Have a clear goal in mind before you answer anything.

4. Don't lose your cool. If you do, the media won't forget - it will show a video clip or photo of how you lost your cool over and over and over.

5. If you're wrong, admit it. If you're happy, be it. If you're hurt, show it.

6. Answer only the question that you want.

7. Assume everything is "on the record."

8. Stick to your story. Don't improvise.

9. Don't run your mouth. Be concise and to-the-point. Often, less is more.

10. Always think of the future. Don't burn your bridges with reporters.


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PR - BUSINESS AND INDUSTRY

INTRODUCTION

The times of socio-political change, no company can afford to exclude themselves from industrial

relations problems. Skinner et al (2007:298) states that companies that are able to cope with labour

unrest and strike action are those that are prepared for it. It is essential to ensure that each situation is

handled with flexibility, taking into account of personalities, and to deal with circumstances as they

arise. Action should only be engaged when you have consulted with all stakeholders and careful

reflection on all possible consequences.

New Legislation

The enactment of Labour Relations Act in 1995 signified the beginning of major changes within labour

relations. The Basic Conditions of Employment Act of 1997 and Employment Equity Act of 1998 and

skills Development Act of 1999 followed the Labour Relations Act of 1995. It vital that every employer in

South Africa to keep abreast with the various laws and changers that occur, failure to do so could land

employers on the wrong side of the law.

The Act created the Commission for Consultation, Mediation, and Arbitration (CCMA). This body is and

independent body that is financed by the State, the CCMA has the right to administer mediation and

arbitration. There is no appeal against arbitration awards; non-compliance is equivalent to contempt of

court (Skinner et al 2007:298).

Industrial Relations Practice

Industrial relations practice aims to establish formalised structures for the regulation of relationships

between management and employees.

It is essential for formalised upward and downward communication structures to be in place. Typically

there are employee communities and grievance procedures for upward communication and disciplinary

procedure and briefing for formal downward communication.

In a unionized environment, management and the union enter into a negotiated recognition agreement

which lays down the rules and procedures for handling the relationship, that is, election and

appointment of shop stewards and management; disciplinary, grievance, and retrenchment procedures

(Skinner et al 2007:298).

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According to Skinner et al (2007:298-299) PR practitioner should attempt to inform the company‟s

customers and other publics who may be affected, of impending disruptions. Managing the media is an

important part of maintaining the moral high ground. An ably led media campaign can reduce negative

impact on the corporate image and put pressure on employees to accept the offer and return to work.

Employer representatives should use every opportunity to advance the company‟s case in the

appropriate media. Refusing to comment to the press immediately raises questions regarding the

management‟s bona fides.

Unions have generally been proactive using the media to support their case. A carefully orchestrated

media plan on the part of the company, with press releases giving maximum disclosure, is

advantageous provided that the company‟s stance is defensible and reasonable.

Workplace forums

The objectives of both voluntary and statutory workplace forums are:

To promote the efficiency of the enterprise;

To meet the needs of all the people in the enterprise;

To shift away from adversarial industrial action indulged in each year in the past during protracted

negotiating.

The operating principles of workplace forums are:

Representatives from all levels of employees have equal votes.

Meetings must be on a regular basis. There should be a general meeting with senior management at

least once a year for company disclosure on the financial state and future prospects of the enterprise.

Facilities are to be provided for representatives to be able to hold report back and feedback sessions for

employees after forum meetings.

Union officials can be invited to attend forum meetings.

Disputes on forum procedures or issues are to be referred to the commission for Conciliation,

Mediation, and Arbitration for advisory awards or statutory decisions.

PR and Labour unrest

Objectives: in dealing with potential labour unrest or a strike are the following.

To ensure that employees remain at work or return to work at the earliest possible opportunity.

To ensure that management retains the initiative in dealing with labour unrest;

To prevent injury to persons and damage to property;

To get to the root of the problems causing dissatisfaction and to gain a full picture of the

situation;


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To negotiate with employers once the exact nature of the problems is known;

To arrive at a settlement which is acceptable which conclusively settles all issues that gave rise

to the unrest or strike.

On pages 301 & 302 of the your Hand book for PR, you are required to read and understand

the following:

Guidelines for action before labour unrest occurs.

Guidelines for dealing with serious unrest where a strike has not yet occured.

What Mass meeting are

Guidelines for dealing with strike action

FINANCIAL AND CORPORATE RELATIONS

Business and Industry

The public relation function has had its most extensive development in business and industry.

The client lists of counselling firms are dominated by business and industrial corporations.

Because of this dominance, both employment opportunities and public perceptions of the

calling depend heavily on the practice in business and industry.

Newspapers and TV coverage headline the sins of corporate America, while its

accomplishments get attention primarily in the specialized media serving business and

industry.

Most business leaders are portrayed as greedy, foolish or criminal and almost half of all

business activities are portrayed as illegal.

Social issues often become government mandates and regulations directed to business and

industry.

It is this turbulent environment that the function has achieved increased status and influence

and attracted talent and resources.

Distinguishing Features

Every institution has an employee public and community public.

Just like how hospitals have their patients and doctors, businesses also has its customers and

prospects as a special public.

If owners withdraw their capital, the business ceases to exist.

If customers are not satisfied and prospective ones will not buy the products or services, the

business withers.


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For PR to survive in a business, it must do more than help satisfy the wants and needs of

employees and neighbours.

It must help the business create an environment in which owners or investors are satisfied with

the return on their invested capital.

It must help the business attract new customers and keep present customers satisfied with the

products or services.

PR in any organization that is dependent on a profit must be cost-effective and part of the

formula for successful competition.

Thus the competitive nature and the profit necessity of business make public relations work

extremely demanding.


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PR AND GOVERNMENT

Lobbying and Public Affairs

Government public relations

Governments were among the first organizations to need, and to practice, public relations as a

way of maintaining appropriate relationships with their citizens.

By definition, democratic governments should reflect public opinion and work best when the

citizens are well-informed. Thus, public relations should have a natural and welcome role in

U.S. government. And, for a number of years it did.

Publicity, promotional, and informational campaigns were launched by various departments.

These government efforts paralleled what many businesses were doing at the time, and the

government employees who performed these tasks had the same titles as their business

counterparts. They were known by such terms as publicity agent, promoter, press agent, press

secretary, and public relations specialist.

Define Lobbying

Lobbying is a concerted effort designed to achieve some result, typically from government

authorities and elected officials.

It can consist of the outreach of legislative members, public actions (e.g. mass

demonstrations), or combinations of both public and private actions.

As a professional occupation it is also known as "government affairs" or "public affairs".

Practitioners may work in specialist organizations or as part of government relations or as

public relations consultancies.

Lobbying

Lobbying depends on experience and research. Well-connected individuals exploit their

political contacts on behalf of clients, providing access to key individuals.

Nowadays lobbying companies maintain extensive files on politicians and other influential

people so as to know who best to approach and in what way, in order to further a campaign.

As with other areas of PR lobbying has become a more challenging discipline. According to a

Hill and Knowlton executive, "You can't just show up with a bottle of Wild Turkey and get your

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topic on the hearing schedule anymore. You have to work with staffers, and you have to be

more aware of alliances and petty fights on the Hill. It's just not easy."

One of the more sophisticated methods for influencing legislators is a practice known as

'grasstops' communications.

In this, the PR agency will carefully identify the peer group of the target legislator or 'opinion

former'.

They will then hire one or more members of that group, friends or acquaintances of the target,

to informally promote the PR message within the group - a 'district liaison'.

In this way the agency aims to create for the target the artificial impression that 'everyone is

talking about it' and that there is strong community support for the issue.

With this method, legislators may not even realise that they are being lobbied.

Lobbying is used in influencing legislation and all kinds of government decisions.


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BUSINESS PLAN

WHAT IS A BUSINESS PLAN?

The following is taken from My Own Business Website: http://www.mybusiness.org

The primary value of your business plan will be to create a written

outline that evaluates all aspects of the economic viability of your

business venture including a description and analysis of your

business prospects.

Keep in mind that creating a business plan is an essential step for

any prudent entrepreneur to take, regardless of the size of the

business. This step is too often skipped, but we have made it easy

for you by providing this ready format to build your plan as you

progress through this course.

Business plans can vary enormously. Libraries and bookstores have

books devoted to business plan formats. You can then go on to

design one that would be ideal for your particular enterprise.

Your business plan will become your roadmap to chart the course of

your business. But at the outset you cannot predict all of changing

conditions that will surface. So after you have opened for business, it

is important that you periodically review and update you plan.

WHY PREPARE A BUSINESS PLAN?

Your business plan is going to be useful in a number of ways

First and foremost, it will define and focus your objective using appropriate information and

analysis.

You can use it as a selling tool in dealing with important relationships including your lenders,

investors and banks.

Your business plan can uncover omissions and/or weaknesses in your planning process.

You can use the plan to solicit opinions and advice from people, including those in your

intended field of business, who will freely give you invaluable advice. Too often, entrepreneurs

forge ahead ("My Way!") without the benefit of input from experts who could save them a great

deal of wear and tear. "My Way" is a great song, but in practice can result in unnecessary

hardships.

http://www.mybusiness.org/

http://www.mybusiness.org/


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Names include your investors, family members, banker, lawyer, attorney, business mentors, trusted

business friends, potential customers, competitors (distant ones), potential landlords etc.

WHAT TO AVOID IN YOUR BUSINESS PLAN

Place some reasonable limits on long-term, future projections. (Long-term means over one year.)

Better to stick with short-term objectives and modify the plan as your business progresses. Too often,

long-range planning becomes meaningless because the reality of your business can be different from

your initial concept.

Avoid optimism. In fact, to offset optimism, be extremely conservative in predicting capital

requirements, timelines, sales and profits. Few business plans correctly anticipate how much money

and time will be required.

Do not ignore spelling out what your strategies will be in the event of business adversities.

Use simple language in explaining the issues. Make it easy to read and understand.

Don't depend entirely on the uniqueness of your business or even a patented invention. Success

comes to those who start businesses with great economics and not necessarily great inventions.

BUSINESS PLAN FORMAT

The Business Plan format is a systematic assessment of all the factors critical to your business purpose

and goals. Here are some suggested topics you can tailor into your plan:

Vision Statement: This will be a concise outline of your business purpose and goals.

The People: By far, the most important ingredient for your success will be yourself. Focus on

how your prior experiences will be applicable to your new business. Prepare a résumé of

yourself and one for each person who will be involved with you in starting the business. Be

factual and avoid hype. This part of your Business Plan will be read very carefully by those with

whom you will be having relationships, including lenders, investors and vendors.

However, you cannot be someone who you are not. If you lack the ability to perform a key function,

include this in your business plan. For example, if you lack the ability to train staff, include an

explanation how you will compensate for this deficiency.


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Your Business Profile: Define and describe your intended business and exactly how you plan to go about it. Try to stay focused on the specialized market you intend to serve.

Economic Assessment: Provide a complete assessment of the economic environment

in which your business will become a part. Explain how your business will be

appropriate for the regulatory agencies and demographics with which you will be

dealing. If appropriate, provide demographic studies and traffic flow data normally

available from local planning departments.

Cash flow assessment: Include a one-year cash flow that will incorporate your capital

requirements. Include your assessment of what could go wrong and how you would

plan to handle problems.

STEPS TO A GREAT BUSINESS PLAN

1. A Sound Business Concept: The most common mistake made by entrepreneurs is not

selecting the right business initially. The best way to learn about your prospective business is to

work for someone else in that business before beginning your own. There can be a huge gap

between your concept of a fine business and reality.

2. Understanding of Your Market: A good way to test your understanding is to test market your

product or service before your start. You think you have a great kite that will capture the

imagination of kite fliers throughout the world? Then craft some of them and try selling them

first.

3. A Healthy, Growing and Stable Industry: Remember that some of the great inventions of all

time, like airplanes and cars, did not result in economic benefit for many of those who tried to

exploit these great advances. For example, the cumulative earnings of all airlines since Wilber

Wright flew that first plane are less than zero. (Airline losses have been greater than their

profits.) Success comes to those who find businesses with great economics and not

necessarily great inventions or advances to mankind.

4. Capable Management: Look for people you like and admire who have good ethical values,

have complementary skills and are smarter than you. Plan to hire people who have the skills

that you lack. Define your unique ability and seek out others who turn your weaknesses into

strengths.

5. Able Financial Control: You will learn later the importance of becoming qualified in

accounting, computer software and cash flow management. Most entrepreneurs do not come

from accounting backgrounds and must go back to school to learn these skills. Would you bet


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your savings in a game where you don't know how to keep score? People mistakenly do it in

business all the time.

6. A Consistent Business Focus: As a rule, people who specialize in a product or service will do

better than people who do not specialize. Focus your efforts on something that you can do so

well that you will not be competing solely on the basis of price.

7. A Mindset to Anticipate Change: Don't commit yourself too early. Your first plan should be

written in pencil, not in ink. Keep a fluid mindset and be aggressive in making revisions as

warranted by changing circumstances and expanding knowledge.

Top Ten Do's and Don'ts

TOP TEN DO'S

1. Prepare a complete business plan for any business you are considering.

2. Use the business plan templates furnished in each session.

3. Complete sections of your business plan as you proceed through the course.

4. Research (use search engines) to find business plans that are available on the Internet.

5. Package your business plan in an attractive kit as a selling tool.

6. Submit your business plan to experts in your intended business for their advice.

7. Spell out your strategies on how you intend to handle adversities.

8. Spell out the strengths and weaknesses of your management team.

9. Include a monthly one-year cash flow projection.

10. Freely and frequently modify your business plans to account for changing conditions.

TOP TEN DON'TS

1. Be optimistic (on the high side) in estimating future sales.

2. Be optimistic (on the low side) in estimating future costs.

3. Disregard or discount weaknesses in your plan. Spell them out.

4. Stress long-term projections. Better to focus on projections for your first year.

5. Depend entirely on the uniqueness of your business or the success of an invention.

6. Project yourself as someone you're not. Be brutally realistic.

7. Be everything to everybody. Highly focused specialists usually do best.

8. Proceed without adequate financial and accounting know-how.

9. Base your business plan on a wonderful concept. Test it first.

10. Skip the step of preparing a business plan before starting.


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Activity

1. What is a business plan?

……………………………………………………………………………………………………………………

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……………………………………………………………………………………………………………………

2. What are the important areas that one should consider when developing a business plan?

……………………………………………………………………………………………………………………………………

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SOCIAL RESPONSIBILITY

According to Rensburg and Cant (2009:236) the theory of CSR is a recurring theme in business today.

CSR in business agenda suggest that it is a multilevel concept; its meaning depends on various

perspectives and relationships and it changes in response to social trends. CSR is a well-known

expression for what, in the past, has been a collection of different, and yet related, terms: corporate

philanthropy, citizenship, triple bottom line and corporate social performance.

DEFINING CORPORATE SOCIAL RESPONSIBILITY

Whether the term is corporate social responsibility, corporate social investment, sustainable

development or corporate citizenship, these activities are motivated and underpinned by

organisation‟s vision, mission, policies and values. Many ingredients are part of this recipe; inter alia,

visionary leadership and solid communication. Public relations is clearly the function best positioned to

play a key in the formulation of any strategy to facilitate, coordinate and implement the activities

necessaries to realise an organisation‟s CSR responsibility.

BRIEF HISTORY ON CORPORATE SOCIAL INVESTMENT

According to Skinner et al. (2006:276) CSI in South Africa has had a short dynamic history. Very little

was recorded before 1972:

However, since the Sullivan Principles in 1977 more focus and interest was given in the 1990‟s to assist the new Government. Employee involvement, formally, informally or on a voluntary basis was encouraged and even rewarded. The ad hoc donations have moved away into more specified sectors within expressed criteria.

The hand-out philosophy is being moved into more of a developmental approach and sustainability.

This necessitates a new approach to corporate social investment. In order for this to be become

effective, it requires partnership building with communities and other role-players, and increased

networking and communicating between corporate donors in order to maximize the impact on the CSI

development.

In recent times the corporate sector began to publish more information about their CSI activities. More

articles are noticed in main stream press. However, some of these articles are viewed as public

relations announcements and trumpeting projects that companies have funded. In 1991 the weekly Mail

& Guardian launched a supplemented titled Investing in the Future which analysed the trends in CSI.


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CHARACTERISTICS OF CSR

Voluntary – voluntary activities that go beyond those prescribed by law. Going the extra mile.

Internalising or managing externalities – much CSR activity deals with managing

externalities: calculating the social and economic impacts, reducing the health impacts of

materials.

Multiple stakeholder orientation – considers a range of interests and impacts among a

variety of different stakeholders other than just shareholders.

Alignment of social and economic responsibilities – the business case for CSR: how can

firms benefit from being socially responsible?

Practices and values – underpinned by a philosophy or set of values; this dimension is the

reason why the subject raises so much disagreement.

CSR AND PUBLIC RELATIONS

There are literally hundreds of definitions of PR, perhaps owing to the rapid evolvement of the disciple

in recent history. CSR has increasingly become (and has been seen as) a management function. One

definition of PR summaries the activity as planned, deliberate communication directed towards

targeted stakeholders with the purpose of achieving an understanding.

According to Rensburg and Cant (2009:236) CSR has become important to public relations because

such programme offer stakeholders. CSR communication falls within the PR practitioner‟s portfolio

because it affects an organisation‟s image and reputation. PR practitioners are increasingly waking up

to these realities and are capitalising on the opportunity, because it highlights to stakeholders exactly

what type of organisation they are dealing with.

PR facilitates both the activity and the process of communication and understanding to the benefit to all

stakeholders. This emphasises the importance of two way communication and the requirements to

advocate for the public interest while also counselling management. These obligations for both

management and public sometimes are conflict and creates internal and incompatibility between the

organisations‟ strategic intent and CSR programmes (Rensburg and Cant 2009:236).

They further state that CSR programmes may be symmetrical, which are subsequent publicity-driven

initiatives are directed towards influential stakeholders for the purpose of enhancing reputation. In

wealthier countries CSR programmes has to make greater contributions to corporate reputation than

brand image. It is said that in developed countries, CSR-related activities account for 49% of


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organisation image compared to the 35% for human resources management and 10% for financial

management.

According to Rensburg and Cant (2009:237) CSR can and does, bring brand enhancement benefits to

business and it is an investment against the day when a crisis occurs and the organisation needs all the

goodwill it can muster. An organisation that is seen as having a genuine, long-term relationship with its

stakeholders and the community is less likely to be regarded as simply indulging in the „exercise of

public relations‟.

CORPORATE SOCIAL INVESTMENT (CSI)

Corporate South Africa has embarked on CSI to advance governance and responsibility towards their

environs. As ethical standards change and commitments to corporate social investment grow, the role

of PR in business has become more clearly defined as helping corporations to do the right thing - as

well as to say the right thing. Corporate South Africa has taken CSI beyond a just charitable exercise

and has established CSI as an integral part of their operational policy. Mersham et al. (1995:86) state

that social investment deals with the allocation of finance to advance peoples‟ lives socially and

economically. De Wet (2006:32) states that a host of South African companies are moving swiftly

across the continent of Africa. Africa requires assistance in the social backlog, with education,

HIV/Aids and the development of infrastructure. This requires the combined efforts of government,

business and civil society to implement sustainable initiatives that improve the well-being of all

sectors of society.

Public Relations and CSI

PR is a conscious effort in providing information and creating goodwill, influence, gaining

understanding and propagating the message to the audience. Public Relations is a process that

entails an organization‟s ability to strategically listen to, appreciate, and respond to those persons

whose mutually beneficial relationships with the organization are necessary if it is to achieve its

missions and values (2008: http://en.wikipedia.org/wiki/Public_relations). Skinner et al. (2006:4) defines

PR as the management, through communication, of perceptions and developing strategic

relationships between an organization‟s internal and external stakeholders.

Cutlip et al. (2002:235) state in the past, many business leaders resisted the notion that their

corporations should seek to fulfil social responsibilities beyond their work situations, earning a profit

http://en.wikipedia.org/wiki/Public_relations


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with which to pay investors and underwrite growth, paying taxes and voluntarily supporting non-profit

health, welfare and education activities.

CSI forms a part of public relations. A public relations department established in any organization,

either in a corporate environment or in a Community Based Organization (CBO) will be of tremendous

advantage. CSI is one of the areas that falls within the ambit of Public Relations. Communication plays

an important role in public relations and therefore the public relations practitioner must be able to utilize

the different methods of communication such as mass communication and public communication.

WHAT IS CORPORATE SOCIAL INVESTMENT

May (2006:1) state that South African businesses‟ contribution to community development is termed

Corporate Social Investment.

According to Naidoo (2002:126) the philosophy of CSR does not imply that companies abandon their

profit-making to become philanthropic leaning. Hood in May (2006:6) states that CSR was a late

twentieth-century American movement where modern demonstrations are often debated by many from

all countries and cultures, when questioning the morality of the business world. According Wikipedia

(2007:http://en.wikipedia.org/wiki/ Corporate) organizations begin showing interest in society by taking

responsibility for the impact of their activities on customers, employees, shareholders, communities and

the environment in all aspects of their operations. The organization‟s obligation is considered to extend

beyond the statutory obligation to comply with legislation and ensures that organizations voluntarily

taking further steps to improve the quality of life for employees and their families as well as for the local

community at large. Sunday Times (2007:12) notes that corporate social responsibility is no longer a

way of doing business; it is the only way to do business by blending business with values.

This is a multi-faceted subject and is an important theme in the arena of corporate governance which

deals with issues of accountability and fiduciary duty; this is an implementation of policies and

mechanisms to ensure that there is accountability and protection for shareholders. Focus is placed on

the economic efficiency to optimizing economic results and a strong emphasis on shareholders welfare.

However, there are other areas were corporate governance must place focus on such as their

employees and environment (2007:http://en.wikipedia.org/wiki/Corporate).

http://en.wikipedia.org/wiki/%20Corporate_social_responsibility

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The following good practice guidelines are recorded by the De Wet (2006:12):

o Align CSI with the business.

o Select Focus areas.

o Understand the development context.

o Consolidate the CSI functions.

o Integrate CSI into the business.

o Encourage employee volunteerism.

o Engage stakeholders.

o Forge working partnerships.

o Monitor and evaluate projects.

o Replicate and scale up successful model.

o Build knowledge-sharing mechanisms.

o Reports on CSI practice.

The above guidelines will assist a company‟s CSI scorecard. It will also form a basis for the company to

engage with the community. Naidoo (2002:126) states that corporate and social responsibility is about

the integration of social and environmental strategies into the core business of a company. Naidoo

further states that the existence of those companies will be sustainable in more than financial terms.

CSI implementations are becoming more strategic in approach. Willard in Naidoo (2002:129) states that

the concept of sustainability has been adapted in business context to mean the achievement of

balance, integrity, economic, social and environmental performance. Naidoo (2002:129) lists the

three legs of sustainability:

o Economic prosperity is based on long-term economic health of global, local and corporate

economics, not simply individual corporate companies and not simply individual corporations

being profitable in the short term.

o Environmental stewardship is a dimension of sustainable development that requires

companies to ensure that no harm to the environment is caused. They are required to help

restore the environment from harm already done. This requires the company to reduce the

amount of energy, water and material consumed in the manufacturing of the products,

reducing waste and rehabilitating contaminated sites.

o Social responsibility is development which is based on the welfare of human beings.


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Naidoo (2002:129) states that the concept of sustainability has been adapted in a business context

towards the achievement of balance. Rocky in May (2006:1) states that CSI is a relatively new concept

to some companies.

Employee involvement in CSI activities

Skinner et al. (2006:281) state although many of the corporate sector claims to have employee

programmes in place, however very few have established policy that entrenches these programmes.

De Wet (2007:23) state that company employees have also become important partners in CSI

programmes. In recent years there was a vast interest in using employee volunteerism programmes to

extend the impact of CSI strategy. Employee volunteerism describes any developmental activity

by employees, either during or after working hours that carries sanction and supports the

employer. There are various approaches to employee volunteerism, such as matching staff donations

with corporate funds, or allowing company time for staff development activities in their communities.

The involvement of employees brings a great amount of expertise from professionalism to provide

mentoring services. These employees act like ambassadors for their companies; they also strengthen

the corporate reputation at community level.

It is important for staff to have a participation programme to be incorporated into the organization‟s

vision and culture, and linked with the company‟s core business. CSI practitioners must formalize

recognition procedures for employee involvement in community efforts. By doing this it will further

motivate them to show interest in community projects.

TERMS THAT IS ASSOCIATED WITH CSI

o BLACK ECONOMIC EMPOWERMENT (BEE)

This is a policy which the South African Government introduced to address the wrongs of the past. The

Apartheid Government systematically excluded African, Indian and Coloured people which were

collectively known as Black People from meaningful sharing in the country's economy. This led to

much poverty and suffering for the underprivileged (2007:http://www.southafrica.info/doing_business/

trends/empowerment/bee.htm).

The BEE Commission defined BEE as a strategy directed at substantially increasing black participation

at all levels in the economy. The strategy attempts to redress the imbalances of the past by transferring

more ownership, management and control of South Africa's financial and economic resources to

http://www.southafrica.info/doing_business/%20trends/empowerment/bee.htm

http://www.southafrica.info/doing_business/%20trends/empowerment/bee.htm


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majority of its citizens i.e. the Black population group. It also aims to ensure broader and meaningful

participation in the economy by Black people. (2007: http://www.seda.org.za/content.asp?subID=39).

o BROAD BASED BLACK ECONOMIC EMPOWERMENT (BBBEE)

According to the Wikipedia website (2007:http://en.wikipedia.org/wiki/Broad_Based_Black_

Economic_Empowerment) BBBEE is a form of Black Economic Empowerment that is initiated by the

South African Government to address the marginalizing of the past government‟s Narrow Based

Empowerment instituted in the country during 2003/2004. Wikipedia (2007) further state that NBBEE

only enriched a few Black (African, Coloured or Indian) individuals, and when one looks at the goal of

Broad Based Empowerment its goal is to distribute wealth across a broad spectrum of the South

African society.

o CORPORATE CITIZENSHIP

Naidoo (2002:126) states that corporate and social responsibility relates to the integration of social and

environmental strategies into the core business of a company. The existence and sustainability of these

companies will be more than in financial terms. Niyonzima (2003:13) states that the term corporate

citizenship in the corporate sector is becoming widely accepted and that there is no agreed-upon

definition. Niyonzima (2003) asserts that South Africa relates corporate citizenship as corporate social

investment (CSI).

o CORPORATE SOCIAL RESPONSIBILITY (CSR)

According to Naidoo (2002:126) the philosophy of CSR does not imply that companies abandon their

profit-making to become charitable organisations. Hood in May (2006:6) stated that CSR was a late

twentieth-century American movement where modern demonstrations are often debated by many from

all countries and cultures that question the morality of the business world. According Wikipedia

(2007:http://en.wikipedia.org/wiki/ Corporate) organizations display interest in society by assuming

responsibility for the impact of their activities on customers, employees, shareholders, communities and

the environment in all aspects of their operations. The organization‟s obligation is seen to extend

beyond the statutory obligation to comply with legislation and ensures organizations voluntarily taking

further steps to improve the quality of life for employees and their families as well as for the local

community and society at large.

o CORPORATE GOVERNANCE

This is a multi-faceted subject and is an important theme in the arena of corporate governance that

deals with issues of accountability and fiduciary duty; it is an implementation of policies and

http://www.seda.org.za/content.asp?subID=39

http://en.wikipedia.org/wiki/Broad_Based_Black_%20Economic_Empowerment

http://en.wikipedia.org/wiki/Broad_Based_Black_%20Economic_Empowerment

http://en.wikipedia.org/wiki/%20Corporate_social_responsibility


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mechanisms to ensure that there is good behaviour and protection for shareholders. Focus is placed on

the economic efficiency to optimize economic results with a strong emphasis on shareholders welfare.

However, there are other areas where corporate governance must place focus on, such as their

employees and environment (Wikipedia 2007:http://en.wikipedia.org/wiki/Corporate).

o COMMUNITY

According to Wikipedia (2007:http://en.wikipedia.org/wiki/Community), a community is regarded as a

social group of organisms sharing an environment, normally with similar or shared interests. In human

communities the following are present: intent, belief, resources, preferences, needs, risks and a number

of other conditions that may be present and common, affecting the identity of the participants and their

degree of cohesiveness.

o COMMUNITY DEVELOPMENT

There are various facets that deal with community development such as education, employment, safety

and security. Community development deals with the building of active and sustainable communities,

based on social justice and mutual respect. It is about changing power structures to remove the barriers

that prevent people from participating in the issues that affect their lives as noted on the following

website (2007: http://www.cdx.org.uk/what-is-community-development).

o SOCIALLY RESPONSIBLE INVESTMENT

According to Wikipedia (2007:http://en.wikipedia.org/wiki/Socially_responsible_investing) socially

responsible ideals with the investment strategy that benefits concerns to maximize both financial return

and social good. The general outlook is that socially responsible investors place their favour on

corporate practices which are environmentally responsible, support workplace diversity, and increase

product safety and quality.

o TRIPLE BOTTOM LINE

According to Naidoo (2002:131), triple bottom line was first introduced by John Elkington in a book

entitled Cannibals with Forks where he stated that companies must present their financial statements

alongside their social and environmental performances. Naidoo (2002) furthers states that the King II

report focuses on how accountability ranges from a single need to a triple bottom line which places its

approach at achieving a balance between the needs of the organization‟s prosperity; the human needs

associated with the companies business and of the environment in which it is established. King in

Naidoo (2002:132).

http://en.wikipedia.org/wiki/Corporate_governance

http://en.wikipedia.org/wiki/Community

http://www.cdx.org.uk/what-is-community-development

http://en.wikipedia.org/wiki/Socially_responsible_investing

http://en.wikipedia.org/wiki/Investment

http://en.wikipedia.org/wiki/Strategy

http://en.wikipedia.org/wiki/Financial_return

http://en.wikipedia.org/wiki/Social_good

http://en.wikipedia.org/wiki/Corporation

http://en.wikipedia.org/wiki/Environmental_science

http://en.wikipedia.org/wiki/Workplace_diversity

http://en.wikipedia.org/wiki/Consumer_Product_Safety_Commission


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Henriques and Richardson (2005:28) state that in relation to the nature of corporate activity,

accountability is an integral part of the process of implementing all aspects of sustainability. The same

is true when accountability may be discharged, whatever the sphere of accountability. Accountability is

itself a social value and a complex picture emerges, in which accountability relates to all aspects of

sustainability as illustrated below:

Figure 1: Accountability and Sustainability Source: Henriques and Richardson (2005:28)

Accountability is vital to the triple bottom line. The above diagram depicts the three areas of focus:

social, environmental and economic sustainability. Henriques and Richardson (2005:28) further state

that all of this suggests that in order for organizations to have the greatest confidence, no relevant

sustainability issues can be overlooked. It is crucial for them to work with the full range of their

stakeholders. However, it is also possible to state that at this stage the great majority of sustainability

issues can fit reasonably well into the three dimensions of the triple bottom line.

o THE ROLE OF SOCIAL CAPITAL

According Wikipedia (2008:http://en.wikipedia.org/wiki/Social_capital) Social Capital refers to

connections within and between social networks; it is a core concept in business, economics,

organizational behaviour, political science, public health and sociology. There are a variety of

inter-related definitions for this term, which has been described as something of a cure-all for the

problems of modern society; they tend to share the core idea that social networks have a value. To

illustrate this point, a screwdriver is regarded as physical capital and a college education regarded as

Social

Sustainability

Economic

Sustainability

Environmental

Sustainability

http://en.wikipedia.org/wiki/Social_capital


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human capital can increase productivity (both individual and collective), so too does social capital

affects the productivity of individuals and groups (Wikipedia

2008:http://en.wikipedia.org/wiki/Social_capital).

Social capital has a number of different definitions; many of them refer to manifestations of social

capital rather than to social capital itself. Social capital is an instantiated informal norm that promotes

cooperation between two or more individuals. The norms that constitute social capital can range from

a norm of reciprocity between two friends, all the way up to complex and elaborately articulated

doctrines like Christianity or Confucianism (2007:

http://www.imf.org/external/pubs/ft/seminar/1999/reforms/ fukuyama.htm).

According to Henriques and Richardson (2005:122) social capital or creative thrust is the glue that

binds together the individual skills and intelligence of the workforce with the organisation‟s collective

memory and ability to innovate. This also cements these assets to the goodwill of the surrounding

community, suppliers, customers, regulators and other stakeholders. The role of social capital as glue

binding employees, the company and external stakeholders together is shown in diagram below:

De Wet (2007:15) states that one of the most significant discursive shifts was the notion of the triple-

bottom-line, which entered mainstream thinking in 2002, through the King Report on Corporate

Governance for South Africa. This was an important development for CSI, because its status as a vital

The role of social capital Source: Henriques and Richardson (2005:122)

Employees

Company Society

http://en.wikipedia.org/wiki/Social_capital

http://www.imf.org/external/pubs/ft/seminar/1999/reforms/%20fukuyama.htm


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business function was no longer in question. The King II report recommended integrated and strategic

approaches to social investment spending, stressing the importance of inter-dependent relationships.

Henriques and Richardson (2005:124) illustrates various meanings of social capital:

The set of resources, tangible or virtual, that accrue to a corporate player through the player‟s social

relationships, facilitating the attainment of goals. Leenders and Gabbay (1999)

As business evolves, increasingly, what sets companies apart and how they will manage their intangible assets –

their people and their people‟s skills, knowledge, energy and creativity. And that, in turn, depends upon how well

these people work together. Those relations – the processes by which information and ideas are exchanged –

are a firm‟s social capital. Huppi and Seerman (2000)

Social capital life – networks, norms and trust – that enable participants to act together more effectively to pursue

shared objectives. Cohen and Prusak (2001)

Features of social consist of the stock of connections among people: the trust, mutual understanding and shared

values and behaviour that bind the members of human networks and communities and make cooperative action

possible. Putnam (2001)

The value added to any activity or economic process by human relationships and cooperation. Social capital

takes the form of structures or institutions which enable individuals to maintain and develop their human capital in

partnerships with others, and includes families, communities, businesses, trade unions, schools and voluntary

organizations. SIGMA (2001)

Innovative partnerships with stakeholders around environmental or social aspects of products or markets can

lead to product differentiation and brand enhancement. Indeed, some view strong stakeholder relationships as

intangible asset in its own right. Global Reporting Imitative (2002)

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is a concept that organizations, especially (but not only)

corporations, have an obligation to consider the interests of customers, employees,

shareholders, communities, and ecological considerations in all aspects of their operations.

This obligation is seen to extend beyond their statutory obligation to comply with legislation.

CSR is closely linked with the principles of Sustainable Development, which argues that

enterprises should make decisions based not only on financial factors such as profits or

dividends, but also based on the immediate and long-term social and environmental

consequences of their activities.


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Development and analysis

Today‟s heightened interest in the role of businesses in society has been promoted by

increased sensitivity to and awareness of environmental and ethical issues.

Issues like environmental damage, improper treatment of workers, and faulty production that

inconveniences or endangers customers are highlighted in the media. In some countries

government regulation regarding environmental and social issues has increased.

Also, standards and laws are often set at a super national level (e.g., by the European Union).

Some investors and investment fund managers have begun to take account of a corporation‟s

CSR policy in making investment decisions, a practice known as socially responsible

investment.

Many advocates would distinguish CSR from charitable donations and "good works" (i.e.,

philanthropy, e.g., Habitat for Humanity or Ronald McDonald House). Corporations have often,

in the past, spent money on community projects, the endowment of scholarships, and the

establishment of foundations.

They have also often encouraged their employees to volunteer to take part in community work

and thereby create goodwill in the community, which will directly enhance the reputation of the

company and strengthen its brand.

CSR goes beyond charity and requires that a responsible company take into full account its

impact on all stakeholders and on the environment when making decisions. This requires the

company to balance the needs of all stakeholders with its need to make a profit and reward

shareholders adequately.

A widely quoted definition by the World Business Council for Sustainable Development states

that: "Corporate social responsibility is the continuing commitment by business to behave

ethically and contribute to economic development while improving the quality of life of the

workforce and their families as well as of the local community and society at large."

The Business case for CSR

The definition of CSR used within an organisation can vary from the strict "stakeholder impacts"

definition used by many CSR advocates and will often include charitable efforts and

volunteering.

CSR may be based within the human resources, business development or PR departments of

an organisation, or may be given a separate unit reporting to the CEO or in some cases directly

to the board.


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Some companies may implement CSR-type values without a clearly defined team or

programme.

The business case for CSR within a company will likely rest on one or more of these

arguments:

Human resources

A CSR programme can be seen as an aid to recruitment and retention, particularly within the

competitive graduate student market.

Potential recruits are increasingly likely to ask about a firm's CSR policy during an interview

and having a comprehensive policy can give an advantage. CSR can also help to build a "feel

good" atmosphere among existing staff, particularly when they can become involved through

payroll giving, fundraising activities or community volunteering.

Risk management

Managing risk is a central part of many corporate strategies.

Reputations that take decades to build up can be ruined in hours through incidents such as

corruption scandals or environmental accidents.

These events can also draw unwanted attention from regulators, courts, governments and

media.

Building a genuine culture of 'doing the right thing' within a corporation can offset these risks

Brand Differentiation

In crowded marketplaces companies strive for a unique selling proposition which can separate

them from the competition in the minds of consumers. CSR can play a role in building customer

loyalty based on distinctive ethical values.

Several major brands, such as The Co-operative Group and The Body Shop are built on ethical

values. Business service organisations can benefit too from building a reputation for integrity

and best practice.

License to operate

Corporations are keen to avoid interference in their business through taxation or regulations.

By taking substantive voluntary steps they can persuade governments and the wider public that

they are taking current issues like health and safety, diversity or the environment seriously and

so avoid intervention.

This also applies to firms seeking to justify eye-catching profits and high levels of boardroom

pay.


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Those operating away from their home country can make sure they stay welcome by being

good corporate citizens with respect to labour standards and impacts on the environment.

Disputed business motives

Critics of CSR will attribute other business motives, which the companies would dispute.

For example, some believe that CSR programmes are often undertaken in an effort to distract

the public from the ethical questions posed by their core operations.

Some that have been accused of this motivation include British American Tobacco (BAT) which

produces major CSR reports and the petroleum giant BP which is well known for its high profile

advertising campaigns on environmental aspects of their operations.

Investors and Financial Relations

One aspect of financial affairs that increasingly affects the national mood is investor‟s

evaluations of the corporations in which they have invested.

The major measurements are Euros sales volume, profit, the increase or decrease in interest

or dividends paid, and whether the price of the stock or bond has increased or decreased from

the original purchase price.

Other factors include the rank of the company among competitors in its field and what

percentage of dividends is paid in comparison with the purchase price.

Experts in the financial world who make a living, and sometimes a fortune, by analysing and

trading equities for themselves and for customers have to be aware of changing conditions in

the money supply, raw materials prices, international monetary affairs, national economies

around the world, and much more.

They use sophisticated measurement tools such as stock market trend lines, a company's

management capabilities, debt to asset ratio, and several others.

Today, with stock market news and international monetary or economic status constantly

reported and talked about, public relations practitioners also must keep abreast of these topics.

The role of the corporate financial relations specialist or consultant tends to be that of

interpreter and mediator between the prime audiences.

He or she usually comes on as a moderate or neutral in economic and political philosophy.

The position requires skill and objectivity in representing the average investor, the middle-class

unsophisticated citizen, while representing private enterprise and conservative views publicly.

The Specifics of the Functions

The financial public relations role can be summarized as:

Communications strategy appropriate to management goals in investor relations.

Preparation of public literature, including reports required by law and establishing press

contacts.

Managing relationships with the financial community, including analyst meetings, tours or visits,

and so on.


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Investors and Financial Relations

Among the specific situations posing communications problems and requirements

are:

1. Α company goes public, splits its stock, or arranges added financing.

2. Α corporation wishes to make a tender offer to acquire another corporation, to merge with

another corporation, or to head off or oppose an unwanted offer. An acquisition or merger may

result in a change of identity such as name, logo, headquarters location, or ownership.

3. Α timely announcement is needed for significant new products, services, expansion, or

acquisition, which might affect the price of the company's stock.

4. Periodic reports of financial results are issued, including an annual report.

5. Arrangements are required for meetings with shareholders and analysts and for public reports

of proceedings, including the annual meeting-and, in some enlightened corporations, an

employee annual meeting.

6. Special literature is required, dealing with a corporation's philosophy, policies, and objectives;

its history or anniversary; its scope, "identity," or "culture. “ ANY of these, however, may also be

the subject of advertising.

Activity

1. What is CSI or CSR?

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………


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Managing public relations in Non-Profit Organizations

Non-profit organizations play a significant role society. Like any other organization, non-profit

organizations have public relations whether they know it or not. But the role of public relations in non-

profit organizations is not well developed.

What are non-profit organizations doing for their public relations?

Several themes emerged from this analysis and this included public information model, segmentation, a

job with many hats, focused on fundraising, and volunteers.

Public Information Model: Getting the word out.

"[Public relations is] the organization and the public mutually adapting to each other." "Public relations

are the management function of an organization that helps that organization get and maintain good

relations with all the public that it depends upon for survival."

It could be expected that large non-profit organizations would have well developed notions of public

relations. The reality, however, of non-profit organizations meeting important social needs at the

community level is a small staff, usually one person, with the whole responsibility for public relations.

The public information model may be all the organizations can afford to practice. "Getting the word out,"

was the general theme. Practitioners explained how their efforts centred on communicating to

stakeholders what exactly their particular organization does for the public. Study participants explained

the reality of their public relations approach saying that, if the public does not know what the

organization is and what it does, then the public does not donate money. PR was variously defined:

"...the ability of people involved to provide information in the community so there is an

assurance that all persons who need our service know it exists and are aware of how to access

the services."

"...your visibility in the community."

"...community awareness."

"...taking your organization's mission and positioning your organization in the community...

"...getting your name out, even by cold calling." "Our image and people's perception of us. Our

job is to do a good job in getting that information out there through everyone."


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The following write up by Karen Nelson highlights the development on Non-Profit

Partnership

1. Introduction

The following insert was taken from the website www.icnl.org. On 19 July 2000 nearly a decade of

lobbying for a more enabling environment for non-profit organisations (NPOs) in South Africa, resulted

in the promulgation of an Income Tax Laws Amendment Act (“the Amendment Act”)[1] which introduces

a new tax framework for NPOs in South Africa. Undoubtedly, the outcome of this phase of the NPO Tax

Lobbying Campaign will have far-reaching effects on the non-profit sector.

The Campaign was, and continues to be, driven by an unwavering belief that tax incentives can

influence charitable giving. This, coupled with an even stronger conviction that the tax framework within

which the South African non-profit sector has had to operate in the past was archaic and restrictive,

resulted in what seemed an impossible task of convincing those in government charged with controlling

state coffers to effectively part with a portion of the revenue pie!

The good news is that this has to a certain extent been achieved subject to the content of the

schedules referred to below. As a result of the Campaign a much broader category of NPOs may enjoy

tax exempt status; and more NPOs should be able to issue receipts for the deduction of donations from

income tax. Thus, in theory, these organisations should be able to attract larger donations on the basis

of the deductibility of such donations.

This paper focuses on the legislative history of the Amendment Act [2] and will highlight certain

pertinent provisions and the impact thereof on NPOs in South Africa. [3]

2. The History of the Amendment Act

2.1 The Historical Context of the NPO Tax Campaign

During the past few years NPOs have been hard hit by funding constraints. A contributory factor is the

decrease in foreign funding directly to the sector. It seems as if NPOs in post-apartheid South Africa are

regarded as less deserving of international donor funding than their pre-1994 counterparts. Many have

had to scale down their activities and some have been forced to close down. Never before has it been

more critical for the Sector to lobby for an enabling environment, particularly one that promotes and

encourages financial sustainability. A more comprehensive package of tax benefits - exemptions for a

broader cross-section of organisations and more attractive incentives for donors - would be a positive

step towards creating this enabling environment.

http://www.icnl.org/

http://www.icnl.org/KNOWLEDGE/ijnl/vol3iss1/art_4.htm#_ftn1




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It became increasingly obvious that if the Sector is to survive this financial crisis, innovative funding

strategies would have to be devised. Historically, such innovation was restricted by the parameters of

the out-dated and restrictive legislative tax framework. It was within this context that the NPO Tax

Lobbying Campaign needed to gain momentum and claw its way up the priority list of both the Sector

and the Government.

2.2 An Overview of the Campaign

The Tax Campaign has its origins in The Independent Study into an Enabling Environment for NGOs.

The Development Resources Centre commissioned this project in 1992 to help create an enabling

environment for NPOs. The Independent Study covered four areas of concern of which the taxation of

NGOs was one. This exercise brought lawyers and many different kinds of NGOs together for the first

time in local NGO history to examine the legal and fiscal framework within which the non-profit sector

operated. There is no doubt that it represented “the birth” of the Tax Campaign.

The next significant event in the life-cycle of the Campaign was the commissioning of the 9th Interim

Report of the Katz Commission of Inquiry. The Katz Commission was convened to investigate certain

aspects of the South African tax structure; its 9th Report focused specifically on the taxation of NPOs.

The Report was informed by written submissions to the Katz Commission Sub-Committee by NPOs and

other interested parties, and also drew extensively on international experience. The Report was

released in May 1999.

With the release of the Report it became crucial for the non-profit sector to organise itself in such a way

so as to take advantage of this ideal lobbying opportunity. It was at this stage that the Non-Profit

Partnership (the Partnership), with the necessary mandate from the Sector, took over the reigns of the

Campaign from the South African National NGO Coalition (SANGOCO).

This marked the beginning of a new phase in the Campaign. A phase that would require focused

lobbying efforts - aimed at both the Sector, to garner support for the Campaign, and the relevant

Government role players, to achieve the desired policy change: a more favourable fiscal dispensation

for NPOs.

In October 1999 the Partnership, together with the Development and Legal Resources Centres

presented a collated submission, supported by more than 40 letters of endorsement, to the Portfolio

Committee on Finance at the public hearings in Parliament of the Katz Commission Report. In February

2000 the Portfolio Committee released its Draft Report on the Katz Commission Report in which it to a

http://www.icnl.org/journal/vol2iss2/southafrica.PDF


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large extent supported the recommendations of the Katz Report and the Non-Profit Partnership‟s

submission.

2.3 Impact of the Campaign

Perhaps the first sign of a real policy breakthrough came with the announcement of certain budgetary

proposals affecting NPOs. Following the recommendations of the Katz Commission, the Minister of

Finance proposed the incorporation into the Income Tax Act of a generic definition of “public benefit

organisations”, to replace the previous category of tax exempt entities limited to “religious, educational

and charitable organisations” and funds providing funds to such organisations. The intention being that

such a definition would extend the benefit of exemption to a broader range of organisations.

Furthermore, it was proposed that the benefit of deductibility of donations should also be extended to a

broader range of entities, and the limits applied to the deductibility of donations by individuals be raised

to match the limits applied to companies.

The proposed tax concessions were widely welcomed as a first step towards assisting NPOs in

becoming financially sustainable. However, these policy proposals were just that - proposals. To have

any impact on the Sector they needed to be translated into good practical law. At that stage of the

Campaign it was decided that consultation and negotiation with the South African Revenue Service

(SARS) would be the appropriate strategy to drive the process forward.

Recognition should be given to the political support from within the Ministries of Finance and of Welfare,

which under the apartheid Government had been far less receptive to the role of civil society and the

importance of creating a tax-friendly environment for their operations. Initial contact with SARS revealed

a willingness on their behalf to involve the non-profit sector in the drafting of the legislation which would

give effect to the budgetary proposals. This presented the Sector with a hereto unheard of opportunity

to directly impact fiscal policy and facilitate positive change!

What followed was an intense period of negotiations between SARS and the Partnership in

collaboration with the Legal Resources Centre which provided the necessary technical expertise for the

negotiation process.

The outcome of this phase of the Campaign was a Bill tabled in Parliament on 14 June, promulgated on

19 July as an Act of Parliament, with which we are substantially satisfied.

In terms of the new law, yet to come into effect, a basic framework has been established that should

reflect the needs of the contemporary non-profit sector. This new law repeals the previously archaic tax


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framework which failed to recognise the shift in emphasis of activity from charity to upliftment and

development.

When the outstanding schedules to the Amendment Act are finalised the provisions of the Act will come

into effect, and the new law should result in a much broader category of NPOs qualifying for exemption

from a range of taxes and duties, the most important being exemption from Income Tax.

Furthermore, the benefit of the deductibility of donations which previously applied only to donations to

formal educational institutions and funds should be extended to a limited number of other categories of

activities. Although initially limited, these will be incrementally increased. The limits of deductibility were

also increased so as to make donations to the approved categories of organisations even more

attractive for the donor.

Undoubtedly, further refinement of the law will be necessary as and when the provisions become

subject to judicial interpretation and perhaps even before. The new framework however, represents a

definite improvement in the fiscal policy as it applies to the non-profit sector in South Africa and should

assist the sector in becoming more financially viable.

3. Key Provisions Highlighted [4]

3.1 Tax Exempt Status [5]

The General Framework

The new law introduces a generic definition of “public benefit organisation” (PBO) which replaces the

previous formulation in terms of which only religious, educational and charitable organisations, and

funds providing funding to such organisations, qualified for tax exemption. The definition provides that

eligibility for exempt status depends on a PBO carrying on a “public benefit activity”; a defined term

which does away with the historical distinction between “funds” and “institutions”. A schedule of

activities “which is of a philanthropic or benevolent nature”, will be determined by the Minister of

Finance with reference to “the needs, interests and well-being of the general public”. [6]

A PBO, apart from engaging in an approved public benefit activity, must furthermore comply with

several procedural requirements. Some may argue that these requirements place too onerous a burden

on PBOs, but for now, the codification of requirements is to be preferred over the former arbitrary

imposition thereof. In the past, conditions and requirements which by law were imposed on funds were

in practice applied to institutions seeking exemption. The decision to grant tax exemption fell entirely

within the discretion of the Commissioner for Inland Revenue and in practice such exemption was





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granted on a case-by-case basis. Within the new framework, if all the requirements are met, the

Commissioner is obliged to approve the PBO for tax exemption; in accordance with the Katz

Commission recommendations, objective eligibility criteria imposed by statute have replaced the

subjectivity of the old system.

Specific Provisions Highlighted - Important Improvements

Distinction between Institutions and Funds

The old law drew an artificial distinction between “institutions” qualifying for exemption and “funds”.

Several legislative restrictions were imposed on funds, which in practice were arbitrarily applied to

institutions as well.

The Amendment Act abolishes this artificial distinction and the definition of “public benefit activity” now

covers the provision of funds to approved PBOs and associations of persons carrying on public benefit

activities, whether approved for tax exemption or not.

Trading Activities

In the past income tax exempt funds were by law prohibited from trading, but as was the practice with

many of these fund-specific requirements, this prohibition was imposed on exempt institutions as well.

[7] The new allows for tax exempt trading activity, within certain stipulated parameters provided for in

the Amendment Act. Accordingly, the new law exempts from tax, income derived from economic

activities conducted by a PBO within the ambit of one or more of the following tests:

A de minimus rule/”mechanical test”: Gross income from trade, up to a maximum of the greater of 15 per cent of gross receipts or R25 000

The “relatedness test”: Income derived from “related” trading activities, mainly directed at cost recovery and which do not cause unfair competition in relation to taxable entities.

Certain “Unrelated trading activities”: these are permitted if of an occasional nature and substantially carried out with voluntary assistance without remuneration.

Specifically exempted activities: Income derived from certain trading activities or business undertakings approved by the Minister.

In the context of the funding crisis, the self-financing capability of the non-profit sector is of critical

importance to its long-term viability. The taxation of the business/ trading activities of PBOs plays a

crucial role in the development of financial sustainability. The extent to which PBOs are taxed on their

income from economic activities in many cases makes the difference between closure and continued

existence of the organisation.[8] Therefore, whilst the new formulation of trading rules may not be ideal,

they do to the extent that trading income is exempted from tax, encourage a move amongst PBOs




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towards financial sustainability; something which under the old law was impossible for most PBOs to

achieve.

Provision of Funds to Non-Exempt PBOs

The old law prohibited funds from making donations to non-exempt organisations. This restriction

severely hampered the activities of NPOs operating at grass- root level; which in turn caused real

problems within the Sector as community based organisations are key role players in development.[9]

The Amendment Act permits tax exempt PBOs to donate funds to “non-approved”[10] PBOs which

carry on a public benefit activity, provided the funding PBO takes reasonable steps to ensure that these

funds are used for the purpose for which they were provided.

This amendment is a definite improvement on the old system and should assist community based

projects to gain access to both funding and other support, perhaps affording such projects a chance to

become financially viable at some point in the future.

3.2 Tax Treatment of Donations to PBOs

It has long been argued that the tax deductibility of donations is an important incentive for donors. The

argument is not that tax incentives alone will convert the taxpayer from miser to philanthropist, but

rather that it encourages continued support and influences the amount of the gift.

So, whilst the liberalisation of tax incentives will hardly guarantee an upsurge in private giving, some

commentators [11] argue that it does impact then non-profit sector‟s ability to retain a meaningful

degree of independence while co-operating with government in the pursuit of joint objectives, for

example poverty relief, job creation and community development.

It is in this context that the broadening of the provisions dealing with the deduction of donations is

regarded as a significant improvement and is expected to have a definite impact on the Sector.

General Framework

The old law provided that only donations made to certain types of educational institutions [12] and

educational funds qualified for deduction from income tax; under the new law these institutions and

funds will continue to enjoy this benefit. The new law is intended to broaden the ambit of this benefit to

approved PBOs which carry on particular public benefit activities determined by the Minister of Finance

for the purposes of this provision. [13] In his Budget Speech, the Minister announced that the old

provisions would be initially extended to:







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pre-primary schools that offer an approved educare programme;

primary schools;

organisations mainly involved in preventing HIV infection or providing care to those

whose livelihoods have been impoverished by AIDS;

children’s homes providing care to abandoned, abused or orphaned children;

organisations mainly involved in caring for destitute aged persons.

The new provisions admittedly do not live up to the expectations of the Sector, neither do they go as far

as the Katz Commission Report recommended. Therefore the sector will continue to argue for a

broader application of this benefit. However it acknowledges the danger, identified by Parliament‟s

Finance Committee, in pursuing “too broad a category too early [as this] could result in the withdrawal

of such privileges at a later stage once fiscal effects are determined. Such uncertainty can only damage

the sector.”

The Limits of Deduction

The Amendment Act also introduces an increase in the limit of the deduction that applies to individuals.

The old law permitted individuals to deduct donations up to a limit of R500 or 2 per cent of net taxable

income, while companies were allowed to deduct up to 5 per cent. As from 1 March 2000, both

individuals and companies qualify for the increased limit of the greater R1 000 or 5 per cent of net

taxable income.

Donations to “Funding PBOs” and the 75% Distribution Rule

The old law required all funds to distribute 75 per cent of net revenue. The Amendment Act does away

with this requirement except insofar as it applies to that amount of donations received by funding PBOs

which have qualified for tax deductibility.

4. Transitional Measures

The Act makes provision for transitional measures which should ease the administrative burden on both

PBOs and SARS. Where the constitution of a PBO applying for exempt status does not strictly comply

with the requirements of the Act, the person acting in a fiduciary capacity may give the Commissioner a

written undertaking that the PBO will comply with the relevant provisions. This undertaking is valid for 5

years during which period the PBO will be deemed to comply with the requirements of the Act. After 5

years all PBOs must ensure that their constitutions in fact comply with all the relevant provisions.

5. Conclusion- The Way Forward

We have by no stretch of the imagination reached the end of the Campaign; what we have now is a

basic foundation onto which we must continue to build good law and sound practices. This, we believe,


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will be best achieved by ongoing consultation and working together with the key role players as

identified; and, perhaps more importantly, the education of our constituency with regard to the changes

in the law and the resultant responsibility of compliance with the requirements introduced by these

changes.

We are encouraged by an initiative of SARS, still in its discussion phase, to forge closer ties with the

Department of Welfare (NPO Directorate) and the establishment of a specialised unit within SARS

which will deal with exemptions as well as the handling of assessments and other fiscal matters

affecting PBOs. The ultimate goal is to facilitate a process of change which will result in a tax structure

which encourages rather than inhibits the development of the non-profit sector and for South Africa to

become an international model of tax reform in NPO circles.

Activity

1. The above insert explains the role of NGOs in the South Africa. Read and review how

SARS guides this industry?

2. What role does the NGOs play within social arena of PR?


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PUBLIC RELATIONS WITH NEW ECONOMY & NEW MEDIA OUTLETS

Introduction

Technology is rapidly changing the way PR specialists are embarking on PR activities. Rensburg and

Cant (2009:170) states that Information and communication technology (ICT) plays a vital role in the

New Economy. Dearnley & Feather in Rensburg and Cant (2009) „ICT‟s have become so common-

place in the twenty-first century that users tend to forget that the internet was less than a decade old in

2000.‟

Loewen in Rensburg and Cant (2009:170) state that the role of ICT‟s within the business arena has

caused much hype and to survive in the information age, organisations need to make the leveraging of

the Internet in the business model a business priority.

Marketers need to examine how rocketing cyberspace development will affect their current and

future brand methodologies and determine how and when to adjust them to the ever-growing

speed of technological advances (Gertsman & Meyer 2001:8).

Organisations communicating in the New Economy

The new economic order has brought about a shift in the focus from and the application thereof within a

specific context. Lewis & Bridger in Rensburg and Cant (2009:171) the new economic order is referred

to as the New Economy, also called the information economy, digital economy or information age.

Computers and communication networks are the two components that have contributed significantly to

the growth to the growth of the New Economy. The New Economy is also spoken about as Internet

Economy as low-cost ever-present global network that supports rich multimedia exchanges of digital

information.

Welfens in Rensburg and Cant (2009:171) lists the following basic elements of New Economy:

The New Economy is an economic order reliant on networked computers and advanced

telecommunications services. The digitalisation of communication that has taken place in this

economic order has led to the delivery of services that aim to add value.

One of the most significant changes that the use of technology has brought about is the shift

from market place to market space.

Refer to your prescribed text book on pages 171 -172 and read the reminding points on how

organisations are communicating using New Economy.


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The New Economy is referred to as a type of economic model that forms part of the stakeholder‟s

century. It is characterised by organisations that interact with various stakeholders that have been

influenced by changers that the New Economy has brought about. Taking these various stakeholders

into considerations, it is imperative that organisations utilise and integrated communication when

interacting with these various groups. An integrated communication approach is a more holistic

approach which includes stakeholders rather than just consumers. Stakeholders refer to groups of

people that are affected by decision of an organisation and/ or have an impact on an organisation as

these groups‟ decisions affect and organisation.

Defining the Internet

Internet means „network of network‟ and referred to as worldwide system of linked computer networks.

Many use the terms „Internet‟ and the „World Wide Web‟ interchangeably, while they are, in fact, not

even synonymous. Internet and the Web are two separate, yet related, entities. It can be said that the

Internet is a large networks; in other works, the maze of phones and cable lines, satellites and network

cables that connect computers around the world, creating a global network through which any computer

could communicate with any other computer, as long as they are both connected to the internet. The

Web presents us with a way in which to represent information on the internet. Information resources are

located by using a Uniform Resource Locator (URL). This is an information-sharing model that is built

on top of the Internet. The Web, therefore, needs the Internet, and not vice versa.

Every customer contact needs to place emphasis on personalisation as this a key concept in the New

Economy and a central component of any e-communication. E-communication enables the organisation

to add value to the consumer‟s life by offering relevant products or services at the right time and the

right place. The importance of this is highlighted as it becomes more difficult to maintain the competitive

advantage for long periods in the electronic business (e-business) world: commoditisation places

pressure on organisations to deliver value and customers continually use knowledge and technology to

empower themselves against organisations in the New Economy.

The new consumer has access to a variety of tools and techniques that can be used to empower

him/her with knowledge when dealing with organisations. As depicted in the table below, these tools

and techniques include multifaceted documents with sounds pictures and videos, digital versatile disk

(DVDs), wireless Internet connections, the World Wide Web, mailing lists and bloging.


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Traditional paradigms New online trends

Individual documents with only texts Multifaceted documents with sounds, pictures and

videos integrated

Broad interest service to wide variety of audiences Special interest service aimed at a target market

Multimedia capabilities, moving from CD-ROM To more advanced methods the DVD (digital

versatile disk)

From normal desktop computers with dial-up

connections`

To laptop with wireless Internet

Hardcopy information Internet libraries with data, the World Wide Web,

mailing lists and blog groups.

Internet-based public relations tools

There are a number of internet-based PR tools that can be utilised and integrated within the larger

communication strategy of the brand. These include website websites, emails, e-newsletters, media

relations, list serves, discussion forums, bulletin boards, text message (sms) and instant messaging,

bogs and frequently asked questions (FAQ).

World Wide Web

The Web is only of the tools that can be used as an online PR tool with the structure of the internet and

essence refers to the realm where business, individuals and the government can post web pages with

information, news and entertainment for the perusal of the internet. The web is commonly referred to as

a superhighway.

Within the New Economy Websites have become crucial communications tools for the organisations

that enable communication o build with their stakeholders. „A brand is built or damages your brand.

Branding online is even more important where the interaction takes place through your website. An

online PR strategy can help to build a website that gets great search engine visibility and builds your

brand click-by-click’. (Anonymous 2008b).


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Email

Email is a method through which an electronic message (audio, video and/ or HTML) can be written,

sent and received. It usually takes the form of text and uses a computer that functions on a network. E-

mails offer consumer communication at a low cost and enable rapid feedback mechanisms, as this

medium is based on instantaneous two-way communication. E-mail can be used as a PR tool as it

allows the organisation to be in constant communication with its stakeholders on a daily basis. It allows

two-communication between the organisation and its various stakeholders.

Spam

Spam, also referred to as junk mail or unsolicited bulk mail, is the posting of e-mails to large volumes of

addresses, advertising a product or service that the recipient has not requested. Spam has a major

disadvantage, and is that the recipient has not requested and the recipient of spam pays the

transmission costs, either in the form of Internet access fees and/ or telephone call charges.

E-newsletters

An e-newsletter is another cost-effective tool that an organisation can utilise to reach a wide range of

stakeholders. And e-newsletter is usually emailed to the recipient and supplies new information or

supplies and/or updates existing news and current information. It is imperative that the organisation

does not just paste the existing paper-based newsletter of the organisation on the website. E-

newsletters should be condensed and adapted visually for the online environment.

Refer to your prescribed text book on pages 180 -186 and read the reminding points on how

organisations are communicating using New Economy.

New Media or digital Channels

This one of the most exciting and challenging developments for PR practitioners is the explosion in technological

driven media and channels, most derived from the accelerating technological developments in terms of

telecommunications and the internet. One of the channels provides the means of engaging with these under-

served publics in ways that are novel and powerful. The third point is that this is, however, a two-way street, in

that these channels are largely uncontrollable and shaped by consumer-generated content. This means that care

must be taken in the decision as to the channels to use and the content to place in these channels. The

practitioner will have to be clear about the objectives of the activities that they engage in t make informed

decisions regarding the use of new media. Some of these tools include:


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Blogs. They are websites created and maintained by a person who is passionate about a topic and who

wants to tell the world about the specific area of expertise. Most are individual blogs, but there are group

blogs (written by several people) and even corporate blogs produced by a department or organisation.

Vlogs. These are video blogs. The video content is often shot with a mobile phone and vlogs are often

called mologs.

Social Network Sites (SNS). These websites built around people with similar needs or interests. Users

create profiles for themselves and can join or create groups and can choose who can view their profiles

or contact them. Examples of these are facebook, MySpace and Linkedin. Real simple syndication

(RSS). This is a set of web feed formats that allow frequently updated mat rials, such as blogs and

podcasts, to be distributed over the Internet. The consumer chooses to subscribe to feeds of headlines

or summaries in which they are interest, and they are interested, and they get information without

having to go to the site.

Widgets. These are small pieces of portable web parts that can be easily cut and pasted into any

webpage, blog or social networking site to allow that page to display the content. Nestlé‟s Purina

Petcare Organisation had a weather widget for pet owners to check the weather before walking their

dogs. It got 15 000 downloads in its first two months.

Podcasts. A podcast is audio content connected to a RSS feed that allows on to efficiently create and

deliver audio content to those who choose to receive it. Many educational sites such as Wharton or

Harvard provide many interesting podcasts on a range of topics.

Wikis. These are websites that allow users to update, delete, or edit the content on the site. The best

known example of this is wikipedia.

Online forums. These websites that allow people to express their opinions online and include chat

rooms, message boards, list serves wikis and blogs.

Online media rooms. This is part of an organisation‟s website created specifically for media and should

contain information in many different formats: audio, video, photos, new releases, background

information, etc.


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Social Media Manager

The following Blog is from www.bluebirdpublicrelations.com Abel Ruiz is a fellow entrepreneur and

founder of RCS-Austin, a company that provides cost-effective solutions for developing and

implementing comprehensive social media campaigns to increase fan base and bring about new business

opportunities. Abel poses this question that is more relevant than ever before:

Does Your Public Relations Company Need a Social Media Manager?

The simple answer is - YES! Traditional public relations companies are essential, but most are not up-

to-date on social media as added value to their customers/clients.

What is social media? Some think of it in narrow terms and only include social networking sites such as

MySpace, Facebook and Twitter. The use of the sites in a strategic manner can be beneficial for any

company. But, I have also seen responses from business people that say, "I am on Facebook and

Twitter, but it's not doing anything for me." These are the folks that just don't get it. Social networking

sites are used to interact with others in a social, fun environment. The implementation of social media

campaigns can enhance your social interaction with a sharing of information and ideas to your

customer base as well as others within similar industries. To be honest, I used to think that social

networking was all that was needed in a social media campaign. Well, I was wrong!

The "media" in social media adds even more impact to a company, brand, product, event, etc. This

involves multimedia techniques to further enhance the company/client relationship. Use of media sites

such as YouTube, Ustream and others take social media to another level. It allows you "to put a face

with the name".

How does a social media campaign relate to public relations? Many people believe social media

campaigns are customer service/relations tools. Others believe social media campaigns are internet

marketing/personal branding campaigns. Well, they are all right and are essential to public relations in

today's interactive society. I have been known to say a great social media campaign is a preventive

measure for any negative press that may or may not be true. An effective campaign will essentially

develop a loyalty within its base and can be used to project confidence in the face of negative press,

rumors or scandals.

Adding a Social Media Manager on staff would be ideal for any public relations firm wanting to

capitalize on the fast-growing/developing social media industry. A Social Media Manager can properly

work 2-5 campaigns simultaneously depending on the aggressiveness of the campaigns. But,

outsourcing to individuals or companies that have experience in the development and implementation

of social media campaigns could be a fiscally responsible choice too. Public Relations firms should start

looking at providing social media campaigns for all their clients as an added service.

http://www.bluebirdpublicrelations.com/

http://en.wikipedia.org/wiki/Social_media

http://www.myspace.com/

http://www.facebook.com/

http://twitter.com/

http://www.youtube.com/

http://www.ustream.tv/

http://www.briansolis.com/2008/10/social-media-customer-service-20.html

http://www.emarketed.com/social-media-internet-marketing.htm

http://www.emarketed.com/social-media-internet-marketing.htm

http://www.chrisbrogan.com/personal-branding-and-social-media/


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Exec now an E and I will result

Touche, Abel. Looking forward to everyone's feedback, as usual! Be sure to check out Abel's company

at http://rcs-austin.com/ and follow him on Twitter www.Twitter.com/RCSAustin, we are!

Want to be a guest blogger revealing your take on today's public relations and communications issues?

Just Holler.

http://rcs-austin.com/

http://www.twitter.com/RCSAustin

http://www.bluebirdpublicrelations.com/holler.html


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0

PUBLIC RELATIONS SPONSORSHIPS, ENTERTAINMENT,

SPORT&TRAVEL

Introduction

According to Skinner at el (2007:235) many companies have invested in the lucrative sponsorship

market. This is an investment and like every investment a return is required. In recent years there has

been an interest in sports sponsorship, that a special South Africa Sports Sponsors‟ Association

(SASSA) was established. SASSA seeks to encourage and develop the sponsorship of sport to the

satisfaction of the sponsors and the sponsored. Its aim is to protect sport through its members‟

sponsorship, to co-operate with everyone who has the interest of sports at heart, and to disseminate

information both in and outside the association.

Further Skinner at el (2007:235) sponsorship is not restricted to sport, but is also put to effect use in the

promotion of cultural events, for example the National Arts Festival held every year in Grahamstown,

partly sponsored by Standard Bank and FNB.

The essential elements of sponsorship are the following:

A sponsor makes a contribution in cash or kind to an activity which is in some measure a

leisure pursuit, wither sport or within the broad definition of the arts.

The sponsored activity does not form part of the main commercial function of the sponsoring

body

The sponsor expects a return in terms of publicity

The difference between a sponsorship and a donation

The third element mentioned the sponsors and sponsored. Above, that the sponsor expects a return in

terms of publicity, distinguishes between sponsorship and donations.

Sponsorship is essentially a business deal which is intended to be the advantage of both the sponsor

and the sponsored.

Characteristics of a sponsorship

Sponsorship can be effectively used to achieve specific objectives. Characteristics of a sponsorship

include it being:

A supplement to but not a substitute for already operative direct advertising.


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1

A means of reaching certain specialized markets directly or indirectly associated with the

activity.

A novel promotional and marketing medium

A means of influencing public corporate image and of increasing awareness of product and

corporate identity, logos, and symbols.

An association for fostering relationships. Through entertainment with business associates and

the press

A beneficial influence on staff relations and moral

A means of involving industry in its surrounding community for specific reasons, such as

attracting staff and forestalling adverse criticism

A vehicle for hard sell promotions, for example personal appearances by sports people in their

sporting gear selling the sponsor‟s product.

Guidelines

There are 10 elements listed by Skinner at el (2007:237) which form the framework on which a

company can build a systematic approach:

1. The sponsoring company‟s aims and objectives;

2. The direct and indirect costs of the sponsorship;

3. The type and character of the sponsorship and its arrangements;

4. The structure, both nationally and provincially, of the administrative controlling body;

5. The participants in the sponsorship;

6. The officials in charge of the sponsored event;

7. The venue controllers, where the sponsored even is staged;

8. The degree of interest by the media in the sponsored event;

9. The audience attracted by the sponsored event, both live and through the media;

10. The government‟s involvement.

Activity

Please study read pages 237 – 239 of Handbook for PR on the following:

1. Why companies sponsor?

2. Evaluation and selection criteria

3. Sponsorship checklist


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Articles of Interest

The following articles are on website: http://web236.s112.typo3server.com/index_en.html

Sports marketing and sponsoring has become a key tool in brand communication. The MC team of

experienced communication experts conceives and realises successful brand presentations in sports,

as well as conducting efficiency analyses and market observations. In an increasingly experience-

oriented society, the consumer has particularly emotional associations with sport and is more receptive

to advertising messages in a sports context. Virtually all messages to be transported within the sporting

domain can be expressed in a concise, emotional and striking form. Sports sponsoring is used to

pursue the core goals of the sponsor such as increasing familiarity, establishing an image for the brand,

long-term customer loyalty, corporate social responsibility and ultimately the desired increase in sales.

European Cup, World Cup, Formula 1, Tennis, Bundesliga – there isn‟t a

leading sporting event without a sports publication by MEDIA CONSULTA

Sport & Entertainment! In co-operations with TV broadcasting companies

such as DSF, RTL and SAT.1 we have published large-circulation brochures

which are sold at bookshops and newsagents. They are a powerful medium

which brands can use in two ways: either with an innovative media

appearance in the market place or as an attractive advertising tool to

reinforce their sports involvement – complete with individualised cover, PR

and product advertisements, and an introduction by the managing director.

And if you‟re favourite sport is not yet part of our program, simply call us and

our own editorial and production teams will take care of it.

Even two years after the World Cup in Germany, it all comes down to football

as the UEFA EURO 2008 in Austria / Switzerland gets closer. This European

top sport event will be - beside the Olympic Games in Beijing – the highlight

for companies who are involved with sponsoring. As a full service agency

specialising in the conception and implementation of integrated communication solutions, MEDIA CONSULTA

Sport & Entertainment can offer you all the services you require in relation to the EURO 2008 - from a single

source. We will take care of the planning, organisation and implementation of your communication measures,

ensure high-interest promotions and unique give-aways, develop impressive incentives, produce TV

http://web236.s112.typo3server.com/index_en.html


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commercials, films and multimedia – as well as being your partner for PR. Profit from more than 15 years

experience in sports marketing for the realisation of purposeful measures at the European Championship 2008:

event orientated public relations in support of established measures

Multilevel events / event series in the context of the European championship (e. g. customer event, road shows, football cups etc.

Individual incentive journey to the EURO (incl. travel, accommodation, tickets and supporting programme)

Eye-catching special advertising formats partly with editorial bonding in TV-, print and online section

Effective give-always for your clients, business partner, sale person, external worker, as prize at a lottery, in line with events (e. g. special publication as a EURO 2008 Timer in corporate design

Event focused micro site on the internet (e. g. live ticker, schedule format, lottery etc.) Creative attendance of a euro engagement with pr clips, trailer, video new releases etc.

With individual coordinated and purposive measures we widen and extend the impression of your EURO engagement. For consulting we are at your disposal any time.

Creating exciting and unforgettable moments - this is what MC achieves with

national and international events and incentives. We will take care of the

entire logistic operation, giving you access to a contractually secured hotel

contingent of 20,000 hotel rooms in over 600 hotels, not to mention a wide

range of event locations throughout Germany! Benefit from our years of experience and let us plan and

implement your events – beginning with sport incentives at top sport events as the EURO 2008, the Olympic

Games and Formula 1 and continue with individual events like sailing regatta, football match series, road shows

etc.

For this, MEDIA CONSULTA organised and implemented in the summer of 2007, the market introducing of the

new Vodafone service “Vodafone live! – the real internet” media workshops in Hamburg and Munich.

Furthermore there has been press event at the Formula 1 Grand Prix at the Nürburgring involving Formula 1

shooting star Lewis Hamilton, host Kai Ebel and ten ambitious offspring racer kids at the age of 10 to 13.


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Another of our key assets is youth and music marketing. Here, MC produces

individually tailored youth marketing concepts for companies and brands –

whether above-the-line or below-the-line. This includes organising shows for

sales promotion, developing and producing music videos and sponsoring

bands. Young people are open to new trends and brands and are important

sources of advice within their social environment when it comes to purchase

decisions. Due to their know-how in many product areas such as electronics,

music, travel and clothing, they often have an important part to play in

purchase decisions within the family and household context. Judgement and

taste are formed at an early age: approx. 50% of teenagers decide on their

own appearance and preferred products by the time they are 14 years old.

Two years later this increases to 80%. Brands and products which are not known or have not been “learned” by

the age of 16 require five times as much advertising to achieve a similar degree of familiarity among the over 25-

year-olds. Young people aged between 14 and 25 have some 25 billion euros a year to spend on their favourite

products. The 16–19-year-olds alone have around 190 euros to spend per month. MC is happy to provide sound

expertise in the field of youth marketing which is based on representative and regularly conducted market

research.

Young people are an important source of advice to their parents in making purchasing decisions and they have

considerable purchasing power themselves. This is why youth and music marketing are two of the central pillars

of MEDIA CONSULTA Sport & Entertainment. We create tailor-made youth marketing concepts which are

precisely geared towards the target group. We have extensive experience in organising shows for sales

promotion, developing and producing music videos and sponsoring bands. This allows us to confront two major

challenges of the brand industry: brand loyalties which are formed early on in life and appealing consistently to

the 14 – 25 target groups.


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PUBLIC RELATIONS EDUCATION

INTRODUCTION

Communication management and PR as a qualification in the competitive and global market of the

twenty-first century demands a thorough understanding and knowledge of disciplines such as

communication, research, psychology and business practices. The framework takes the form of an

education model and an approach to experiential learning in PR education and training, which

originated in Africa. The education model, developed by Ferreira (2004), is generic globalisation model,

which sets out prescriptions regarding communication management and PR curricula and the

functioning of departments offering those curricula. A discussion of the role of experiential learning is a

learning approach and its application on the education and training of communication management and

PR practitioners.

Experiential Learning is an essential component on the education and training process aimed at

ensuring that students are able to combined theory and practice, are capable of solving problems in a

needed to contribute to positive change.

The shifting role of the profession calls changes in communication management and PR education to

prepare future practitioners for the strategic skills and paradigm shift needed in a globalising context.

Added to this are recent developments in information and communication technology that demand new

competencies. To provide communication management and PR educations that is future- orientated

and globally relevant, institutions offering this education need to base their curricula on investigation of

not only the local, but also the global environment and PR field. This implies that international

benchmarking should be built into the curricula of communication management and PR programmes.

A theoretical perspective of the globalisation model

The generic-globalisation model is based on the assumption that globalisation is an inevitable force,

and that tertiary institutions need to adopt a global mindset to remain competitive in the global arena.

The model is based on an approach to globalisation relating to that of the so-called Global Sceptic.

The generic globalisation mode model is based on a holistic and normative conceptualisation of the

concept globalisation as reflected in Ferreira‟s definition as vision for the management of globalisation

towards a constructive end:


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‘ Globalisation refers to a movement towards greater global integration in all spheres of society

– political, economic, technological, socio-cultural, educational, spiritual and recreational – with

the ultimate aim of uniting the world community in enhanced mutual understanding,

cooperation and respect for diversity, facilitating effective communication and other

transactions for the benefits of all’.

This perspective implies that, rather than resisting its influence, tertiary institutions should implement

proactive measures to integrate existing local systems globally, while they strive to preserve local

diversity and nation building. The model is based on the following assumptions with regard to

globalisation:

Each of the elements of the new context of globalisation – including a socially distributed

knowledge production system and dynamic competition – influences higher education.

A reciprocal influence exists between globalisation and higher education. While the latter is

influenced by the forces of globalisation, it also plays a pivotal role in managing the process of

globalisation and preparing society to adapt to it, by assisting in the evolution of global

economic activity, knowledge distribution and democratisation of political system, and by

reflecting how the process affects society.

Tertiary institutions need to implement change management and pursue entrepreneurship,

form strategic alliances, keep up with technological changes, adopt a global mindset and

renewed education programmes to prepare the community for new global and technological

demands.

The model views communication management and PR education departments and programmes as

dynamic, open systems functioning within larger complex, dynamic, sometimes chaotic systems. It is

based on the assumption that communication management and PR education departments should

function as learning organisations to ensure constant adaptation to the larger systems in which they

operate.

Outline of the generic globalisation model

It is not purpose of the globalisation model to provide a communication management and PR curriculum

in terms of the modular and outcomes formal required for courses, such be regarded as a general

framework. It is accepted that variation is possible within this general framework, and that different

institutions could adapt the recommended curriculum to the specific demands of their individual regions.

In terms of educational levels, the globalisation model as a whole, therefore, reflects the range of

competencies that a communication management and PR practitioner qualified at the highest level- for


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example a further research degree- would have attained. As far as depth is concerned, other than the

latter specification, the globalisation model does not attempt to recommend which particular

competencies should be mastered at which particular level of education.

On pages 125 of the your prescribed book study the diagram on the Wheel of Education which

illustrates the great scope for PR

General recommendations

On pages 126/7 of your prescribed book there are a list of general recommendations. Look at

each one of these and ensure you understand this in light to PR education.

Experiential Learning

Experiential learning can be defined as follows:

‘… a holistic approach to learning that includes the learner, learner context and the

methodology used to create knowledge … a process whereby knowledge is created through

the transformation of experience.’

Experiential learning is an important component in the education and training of communication and PR

practitioners the value of internships have been valuable form of experiential learning. Its assist

students with integrating theory and practice, it helps them to acquire skills such as problem-solving

and critical thinking. It also enhances personal growth; it leads to self-awareness and contributes to

student‟s effectiveness in groups. Internships also act as a stepping stone into the industry for students

who meet an organisation‟s requirements. Knowledge and skills together with attitudes lead to

competencies required by students upon qualifying from a higher education institution. All of these

competencies contribute to a student being able to contribute positively to an organisation and to

society.


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Experiential Learning Characteristics

On pages 130/1 of your prescribed book you find the various characteristics for experiential learning

listed. Read through to gain a good understanding on this.

Experiential Learning Techniques

On pages 132/3 of your prescribed book you find the various techniques for experiential learning

listed below. Read and summarise the following:

Simulations

Experiential exercise and practical assignments

Internships

Work integrated learning (WIL)

Cooperative education

Stakeholders involved

The educator, facilitator and mentors

The community

The communication management and public relations industry

Best practice guidelines

Best practice guidelines are offered to assist educators, students and experiential learning partners to

optimise the value of experiential learning activities. These guidelines deal with aspects such as a

student-centred approach, the role of educators, the curriculum, and the impact of the educational

environment and the importance of experiential learning partners.

On pages 135/6 of your prescribed book you find the best practice guidelines are listed. Read and

summarise the following:

a student-centred approach

curriculum,

educational development


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Activity

1. What is the value of experiential learning for PR education?

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

2. Explain the importance of experiential learning partnerships?

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

3. Review the generic globalisation model on page 128/130.

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