What they confronted with PR today

©Ilchul Kim, 2011

Ilchul Kim, Ph.D

Professor

Dongeui University, Korea

7th international PR Conference in IRAN

©Ilchul Kim, 2011

Location Longitude 53º00″West 32º00”

Area 1,648,295 ㎢ 

Population 65.88(m)

Language Persian

Capital Tehran

Flag

Location Longitude 127º30

Area 100,210 ㎢

Population 48.75(m)

Language Korean

Capital Seoul

Flag

KoreaIran

8,000km12hours

©Ilchul Kim, 2011

military demarcation line

Seoul

Mt.Seorak

Busan

Jeju

Seoul

Mt. Seorak

Busan

Jeju

Mt. Geumgang

Mt. Geumgang

CONTENTS

I. PROLOGUEII. PR in KOREAIII. CULTURE, MEDIA and PRIV. EPILOGUE

©Ilchul Kim, 2011

I. PROLUGUE

©Ilchul Kim, 2011

Teheran Street in downtown SeoulJune17, 1977 Mayer of Teheran visit In memory of sister city between Teheran and Seoul,

Iran & Korea

0.1 Million U$/m²

II. PR in Korea

©Ilchul Kim, 2011

Brief History of PR

1945- PR, with its word and meaning first has been brought by the GHQ just after the independence from the Japanese colony.

1953- While the dictatorship transferred to Korean government regime, The English ‘PR’ interpreted as Gongbo (means Public Affairs)

1980- Then extended to Hongbo (means Publicity)2003- Named Public Affairs

©Ilchul Kim, 2011

History (Continued)

1974- First Advertising curriculum in the College – Joongang University

1981- First PR Agency - Communications Korea

1986- Seoul Olympic nominates Burson-Mastellar as the Official PR Agency

©Ilchul Kim, 2011

PR Market Place

Major companies have in-house PR function

Major Ad. Agencies also provide PR services

There are about 80 PR agencies with 300 million U$ annual turnover approximately

©Ilchul Kim, 2011

PR in Asia

©Ilchul Kim, 2011

Top 10 Companies

©Ilchul Kim, 2011

Rank(2009) Company Sales Volume(unit: million US)

Business

1( - ) Samsung Electronics

112,024.94 Electronics

2(2↑) SK Innovation 43,863.50 Telecom

3(3↑) Korea Electric 39,189.60 Energy

4(3↑) Hyundai Motors 36,769.40 Automobile

5(6↑) GS Caltex 33,039.50 Energy

6(4↑) POSCO 32,582 Iron

7(1↑) LG Electronics 29,238.50 Electronics

8(6↑) Wori Bank 25,853.50 Finance

9(3↑) Samsung Insurance 25,696.20 Insurance

10(7↑) LG Display 25,004.20

Top 10 Ad. Agencies

©Ilchul Kim, 2011

Company Billing (unit: million US)

Mother Company

Cheil Communication

346 Samsung

Innocean 250.2 HyundaiHS Ad 141 LG

SK M&C 129.7 SKDaehong 95 Lotte

TBWA Korea 63.1 -IWT Adventure 56.6 -Korea Press Foundation

46.7 Government

Oricom 46.1 DoosanGrape

Communication43.9 -

Top 10 PR Agencies

©Ilchul Kim, 2011

No

Agency Established

No. of Employee

s

Sales Volume

Affiliates Major Clients

1 KPR&Associates

1989 120 12 Independent Sunkist, Shell, Lexus, 3M, CISCO

2 Prain 2000 160 Independent Samsung, HP Consumer, Outback, NikeKorea,

Apple, Intel, SKT, Pizza Hut

3 Fleishman Korea

2001 80 Fleishman-Hillard Samsung, Pepsi, Philips, kellog, Pfizer, AMD

4 IncommKorea

1993 75 Incomm-broadeur

AIG 보험 , IBM, ARM, Cialis, Nissan Korea, Pulmuwon, Daesung

5 Korcom 1995 60 Porter Novelli MrPizza ,Woongji, SKC, NHN, HP, YBM

6 Burson- Mastellar

1989 40 Burson- Mastellar Philip Morris, Schering, VISA, FedEx, CDMA,

MSD Korea7 IPR 1998 30 Independent LIG Insurance, KFC, ,

Honeywell, ELCA 8 Communi

cation Korea

1987 20 Independent Ministry of Information, Thai Tourism , TGI, BT

AMD, 9 Edelman

Korea1996 60 Edelman Worldwide S&P’s, California

Diamond, BASF, BMS Pharmacy, DHL

10

Ogilvy PR 1999 30Ogilvy & Mather

Korea

Nokia, DuPont, UPS, Gillette, ASURION,

Samsung Automation

Unit: Million U$

Government & NGO

©Ilchul Kim, 2011

Government &NPO

membership website

Ministry of Culture, Sport and Tourism

Improving popular feeling for the national performance with mutual communication and sympathy

http://www.mcst.go.kr

Presidential Committee for Nation Brand

To pursue differentiated branding strategies according to the awareness of Korea by continent/country as part of a plan to achieve systematic management of the national reputation.

http://www.koreabrand.go.kr

Korea PR Assoc. Branch of IPRA http://www.koreapr.org

Korea PR Company Assoc.

KPRCA adopted promotion businesses such as business for rights and interests of PR industry

http://www.kprca.or.kr

Academy & NPO

©Ilchul Kim, 2011

Academy membership website

Korea Advertising

Society(KAS)

• Research on theory and practice of advertisement• Alliance with domestic and international academia

http://www.koads.or.kr

Korea Ad & PR Assoc,(PAAK)

•Practical study for advertising and PR http://www.kadpr.or.kr

Korea Academy of PR

(KASPR)

• PR Theory and PracticeResearch, Seminar and Journals

http://www.kaspr.or.kr

Korea Comm. Academy(KSJCS)

• to provide a forum for the development,conduct, and evaluation of journalism andcommunication research

http://www.comm.or.kr

Korea Academy of IMC

IMC Specialists in Academy and PracticePresident: Dr. Ilchul Kim

http://cafe.naver.com/kaimc

III. Culture, Media and PR

Digital culture & social media are the two most important factors which would affect to the new concept of PR

Korea is very fast moving to multi- races country in 30 years

Korea is the fastest smart/mobile device developing and expansion country

©Ilchul Kim, 2011

Culture

The more SNS accelerates the internationalization of the world, the more ethnic and/or cultural differences become important issues.

Though language seems to be unified by English globally, local communication heavily depends on the mother tongue.

Culture supported by language should be the final identification on earth.

©Ilchul Kim, 2011

Categories vs. Relationships

Study conducted among American and Chinese children, as well as among students from America and China/Taiwan.

They were asked to indicate which two were most closely related.

©Ilchul Kim, 2011

AABB

What goes with this? A or BWhat goes with this? A or B

East vs. West

©Ilchul Kim, 2011

Categories vs. Relationships (…contd.)

Americans preferred to group objects because they belonged to the same category.

The cow and chicken are both animals. Panda and monkey both fit into the animal category as well.

Chinese preferred to group objects on the basis of relationships.

The cow eats the grass. Monkeys eat bananas.

©Ilchul Kim, 2011

Group 1Group 1 Group 2Group 2

Is this target objectIs this target object

similar to Group 1 orsimilar to Group 1 or

Group 2?Group 2?©Ilchul Kim, 2011

Categories vs. Relationships (…contd.)

60% of Koreans thought the object was more similar to the group on the left. There is a family resemblance.

67% of Americans thought the object was more similar to the group on the right. They share the same rule of having “a straight (as opposed to curved) stem.”

©Ilchul Kim, 2011

Categories vs. Relationships (…contd.)

Westerners perceptions of similarity between objects is influenced by the degree to which the objects can be categorized by applying a set of rules.

Easterners perceptions of similarity is based more on the family resemblance among objects.

©Ilchul Kim, 2011

Cultural Difference by Country

Power Distance Individualism vs. Collectivism Masculinity vs. Femininity Uncertainty avoidance Long-term orientation

Source: www.geert-hofstede.com

©Ilchul Kim, 2011

©Ilchul Kim, 2011

©Ilchul Kim, 2011

©Ilchul Kim, 2011

Spain

Korea

Foreigners Increasing Ratio

Source: OECD, UN

2000~2008 annual average

(UNIT: %)

Italy

Greece

Portugal

Slovakia

England

Hungary

Norway

Finland

Japan

Luxemburg

Denmark

Australia

SwitzerLand

Sweden

Netherlands

Germany

Czech

©Ilchul Kim, 2011

(Estimate)

Annual Registered ForeignersPer 1000(Unit: person)

147,914

437,954

854,007

1,676,100

Source: Korea Ministry of Law

©Ilchul Kim, 2011

FEATURE NOMAL ECONOMYNEW NORMALITY

ECONOMY

Economic Cycles Predictable Absent

Upturns/BoomsDefinable(Avg. 7years)

Unpredictable, Erratic

Downturns/RecessionsDefinable(Avg. 10 months)

Unpredictable, Erratic

Potential Impact of Issues

Low High

Overall Investment Profile

Expansive, Broad Cautious, Focused

Market Risk Tolerance Acceptance Avoidance

Customer Attitudes Confident Insecure

Customer Preferences Steady, EvolvingApprehensive, Flight to Safety

Normal vs. New Normality Economies

Source: Chaotics, P.16©Ilchul Kim, 2011

Market vs Community

MARKET COMMUNITY

Initiative Marketer Consumer

Status Tangible Intangible

Communication S-M-C-R O-C-R

Stuff products Information

©Ilchul Kim, 2011

Marketing 1.0Product-centricMarketing

Marketing 2.0Consumer-orientedMarketing

Marketing 3.0Values-drivenMarketing

Objective Sell productsSatisfy and retain the consumers

Make the world a better place

Enabling forcesIndustrial Revolution

Information technology

New wave technology

How companies see the market

Mass buyers with physical needs

Smarter consumer with mind and heart

Whole human with mind, heart, and spirit

Key marketing concept

Product development

Differentiation Values

Company marketing guidelines

Product specification

Corporate and product positioning

Corporate mission, vision, and value

Value propositions FunctionalFunctional and emotional

Functional, emotional, and spiritual

Interaction with consumers

One-to-many transaction

One-to-one relationship

Many-to-many collaboration

Comparison of Marketing 1.0, 2.0, and 3.0

Source: Marketion3.0, P.9©Ilchul Kim, 2011

Marketing Evolution

Marketing1.04 P

Marketing2.04C

Marketing3.0SIVA

Mix

Product Consumer Solution

PromotionCommunicatio

nInformation

Price Cost Value

Place Convenience Access

Market Physical On/off line Community

Media Mass Demass Social

Message Manual Information Story

Direction One-way Two-way Interactivity

©Ilchul Kim, 2011

Media

©Ilchul Kim, 2011

Newspaper declining worldwidely

©Ilchul Kim, 2011

No. of N.P.

Circulation

©Ilchul Kim, 2011

Sales Volumeunit: Bill.

U$

N P Tele Com

T V Cable

Media2008 2009 2010(e) 2011(e)

volume

share

Volume

share volume

share volume

share

TV 180,550

38.0% 166,931 39.2% 177,679

40.3% 187,368

40.7%

NewsPaper

118,980

25.1% 98,079 23.0% 95,166 21.6% 93,743 20.3%

Magazine 55,063 11.6% 44,143 10.4% 43,229 9.8% 42,733 9.3%

Radio 36,511 7.7% 32,453 7.6% 32,005 7.3% 32,651 7.1%

Outdoor 31,877 6.7% 28,292 6.6% 29,415 6.7% 30,745 6.7%

Theater 2,213 0.5% 2,082 0.5% 2,215 0.5% 2,344 0.5%

Internet 49,767 10.5% 54,244 12.7% 61,312 13.9% 71,114 15.%

Total 474,961

100.0%

426,224 100.0%

441,020

100.0% 460,698

100.0%

Media in Korea (Unit: million)

Source : ZenithOptimedia, 2010.7 ©Ilchul Kim, 2011

SNS Development 출처 : Boyd & Ellison(2008)

©Ilchul Kim, 2011

Worldwide SNS Users unit: Million

©Ilchul Kim, 2011

Facebook Users

Facebook 유저수 증가율©Ilchul Kim, 2011

SNS in Netizens

인터넷 이용자 중  SNS 계정을 가진 사람의 비중

©Ilchul Kim, 2011

OECD Wireless Internet SupplyUnit: %

Korea

Finland

Sweden

Norway

Japan

Portugal

Denmark

Australia

U.S.A.

Poland

OECD average

Source: OECD©Ilchul Kim, 2011

Advertising Budget by Media

OutdoorProductionIPTVDMBSatelliteOnlineCableMagazineNewspaperRadioTV

Source : Cheil communications (2010), unit : %©Ilchul Kim, 2011

World Smart Phone Market

Total Mobile phone salesSmart phone sales

1.5 b

1.0b

0.5b

0.122b

0.648 b

1.568 b

1.151 b

Source : Samsung Economy Institute ©Ilchul Kim, 2011

Mobile & Smart Phone in Korea

©Ilchul Kim, 2011

Unit : million

Source : Korea Communication committee (Mar. 2011)

Smart phone (unit : person)

Rethink the PR2.0

Social Media Driven PR -D. Breakenridge

Mehdi Bagherian (5th IPRA)

Personal Reciprocity - I. Kim

©Ilchul Kim, 2011

©Ilchul Kim, 2011

Traditional PR in Brief

Communication management to keep the mutually desirable Relationship between the Organization and its Publics.

Organization

Traditional Structure of PR

©Ilchul Kim, 2011

PR2.0 Circumstances

Information Revolution-Demassification

Web 2.0 - Open, Share and Peer Computer Mediated Communication -> Computer Generated Media Social Media ->Owned Media From Market to Community

©Ilchul Kim, 2011

Why discrepancy?

Is this culture problem, market problem or something else?

More seriously, we’re passing through the marcom turbulences derived from the media revolution.

Most of the marketing activities become global, so we have to share the consensus as far as PR concerned.

©Ilchul Kim, 2011

Then, do we share the same meaning on PR internationally?

If not, how we can approach to consensus?

“The new PR concept of which generally accepted should imply the broad understanding of Digital Culture and Social Media ingredients for more productive and efficient global PR campaign.”

©Ilchul Kim, 2011

How to Imply the Culture and Media Change into PR

©Ilchul Kim, 2011

Environment of PR

©Ilchul Kim, 2011

PR1.0 vs. PR2.0

PR1.0 PR2.0

Target Public Community

Media Mass Social

Initiative Marketer Consumer

Communication S-M-C-R O-C-R

EconomyScale of Economy

Zero Sum Web2.0

Society Industry Information

Philosophy Reductionism Holism

OpenSharePeer

©Ilchul Kim, 2011

*Significantly higher for Xers/Boomers

Source: The Net Generation: A Strategoc Investigation, ©nGenera, 2008©Ilchul Kim, 2011

©Ilchul Kim, 2011

©Ilchul Kim, 2011

Product-DrivenProduct-DrivenMarketerMarketer

CustomerCustomer

MediaMedia

ChannelChannel

Brand

Information

Distribution-DrivenDistribution-DrivenMarketerMarketer

CustomerCustomer

Information

Channel

Brand

MediaMedia

Brand Brand

Customer-DrivenCustomer-DrivenMarketerMarketer

CustomerCustomer

ChannelChannel

Information

ChannelChannel

MediaMedia MediaMedia

Brand Brand Brand

MediaMedia

58

Sender’s Field of Experience

Receiver’s Field of Experience

Source/Sender

Encoding M E S S A G E Decoding Receiver

F E

E D

B A

C K

R E

S P

O N

S E

N O I S E

Traditional Communication Model

O-C-R Model

C

R

O

O

O

O

C

C

R

R

R

RCC

O

R

CR O

C

O

O

marketers

marketers

marketers

21st Century O-C-R Marketplace

O= Customer and Consumer ObservationsC= Customer and Consumer ConversationsR= Customer and Consumer Recommendations

©Ilchul Kim, 2011

Complex Adaptive System

host

Intermediate host

Frequency

Frequency

Frequency

Frequency

Frequency

©Ilchul Kim, 2011

Simplicity(Reductionism)

Complexity (Holism)

BuyerSeller

OpennessSharenessPeerness

Zero SumScale of Economy3S for Mass

©Ilchul Kim, 2011

From News to Story Telling

From Mass to Social Media

Prosumer

M A R K E T --------------- C O M M U N I T Y

National CultureWestCategory Internation

alWestRelationship

Mass Media

Owned Media

Pu

blic

On

e-w

ay

Pers

on

al

Netw

ork

ing

Integrity

Division

Executive Summary The market, media and message surrounding

PR are totally changing. Under these circumstances, we should

reconsider the concept and role of PR. Culture and Media are two major coordinates

for the discussion. Culture could be an X axis as it diversified country by country horizontally.

The Y axis should be the Media. While it has been developing from mass to social to owned media, the initiative is transferring from authority to person vertically.

©Ilchul Kim, 2011

Cont’d…

Traditional PR understood as the relationship management between the organization and her groups. Though Grunig & Hunt (1984) categorized 4 types of PR, all are considered from the organization’s perspective. And even more seriously does not reflect any ICT based changes.

Re conceptualization and definition should imply this recent revolutionary change.

©Ilchul Kim, 2011

Cont’d…

We should consider PR 2.0 from O’Reilly’s Web 2.0 idea represented as Openness, Shareness, and Peerness.

I argued PR as personal reciprocity (pr) instead of Public Relations (PR) to reflect the demassfied changing conditions at the 5th Iran International PR Conference in 2008

Compromise the distance between ‘PR’ and ‘pr’, I bring Community to replace the Public and Networking for Relations.

©Ilchul Kim, 2011

Cont’d…

Public->Community-> Personal Relation->Networking->Reciprocity. I propose discussion based on the

Culture(X) and Media(Y) coordinates to re-modify the concept or definition of PR.

©Ilchul Kim, 2011

Thank you !

©Ilchul Kim, 2011

ickim@deu.ac.kr www.ickim.pe.kr www.cafe.naver.com/kaimc Twitter, Facebook =>ilchulkim 82-010-9803-1911

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