MARKETING COMMUNICATION AND PUBLIC RELATIONS IN THE

CZECH REPUBLIC

PhDr. Denisa Kasl Kollmannová, Ph.D.

Charles University in Prague

Structure of the lecture

1. Short introduction to the Czech development after 1989

2. Who do the Czechs trust the most?

3. The current state of Public Relations

4. Some specifical trends in the Czech market: Innovative companies, Retro, Anti-corruption, Outdoor, Nuclear Energy

More Marketing than Marketing Communication

• Overall market: stabilized, market economy, transition completed after the systém change in 1989

• Besides global and international companies strong domestic brands

• Practice: Sales department rule in the overall strategy of the company (55%), marketing dep. 22%, financial 14%

• Globalization: strong influence of global companies

• 40% of all companies is following the rules of headquarters, however 24% of them say they are very independent

• Marketing Education: Economics-based marketing

Communication after Propaganda

Strong censorship between 1948-89

- Selfcensorship DNA

Communistic propaganda and persuasion

- Grown through the society since early age

After 1989: Freedom of speech, press…

- But what does it actually mean?

Press freedom index by

Reporters without

borders 2012

Development of PR after 1989

Before 1989 – Rapid and Merkur: two leading state-operated PR and Advertising agencies

Changing structure of media market

Development of PR services – local agencies dominate the market

Since 1995 – Association of PR Agencies (APRA.cz)

Since 2004 – Department of Marketing Communication and PR at the Charles University in Prague

Since 2006 – Czech PR Award Contest by APRA(CenaPR.cz)

Public trust in institutions Companies

EU

NGO´s Media

+18 +18 +18

+18 +18

Global

CZ

Slovakia

Source: Edelman Trust Barometer and survey AMI Communications, 2012, informed publics

Trust in industry „Czechs believe in cars, technology and alcohol“

Zdroj: Edelman Trust Barometer a průzkum AMI Communications, 2012 Source: Edelman Trust Barometer and survey AMI Communications, 2012, informed publics

Trustworthiness of information sources

Source: Edelman Trust Barometer and survey AMI Communications, 2012, informed publics

Repetition enhances trustworthiness: Czechs need more reassurance

Zdroj:Edelman Trust Barometer a průzkum AMI Communications, 2012

How many times do you need to hear an information to believe it? EU: majority 3-5x, 25% of Czechs more than 6x

Source: Edelman Trust Barometer and survey AMI Communications, 2012, informed publics

Public Relations in the Czech Republic: Current position

• Aim of the research: to analyze the current state of communication professionals´ position, roles, opinions about PR, usage of PR services and agencies

• Put the outcomes to the socio-historical context of CR

• First academic research on PR in the Czech Republic

• Focusing on the role of PR agencies

• Respondents: 200 Communication professionals (no agency employees)

• Commercial and non-commercial sector

Research questions

• RQ1. What role does PR play in Czech companies? Is it significant or rather irrelevant?

• RQ2. What position does PR hold in the company structure and what is the role of a PR/Communication manager? Does PR influence the decision-making process inside the company?

• RQ3. What kind of fields is the PR department responsible for? Is it merely media communication, or other fields as well, e.g. internal communication, issues management, online communication, public affairs etc.?

• RQ4. Do the companies work with PR agencies (and to which extent) or do they establish their own in-house PR departments?

• RQ5. Which PR agency do the companies work with and why?

Perception of PR by Communication Professionals

Frequency of usage of PR in Czech companies and organizations

Competence and hierarchy or communication managers in CR

Responsibility of PR managers for different fields

Most-used PR services

Online communication solutions: who would the communication managers ask for help?

1

1

1

1

2

1

3

2

3

3

3

2

2

2

4

3

1

5

5

9

4

10

1

2

4

5

5

6

7

9

8

5

8

20

21

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24

26

22

27

33

45

45

78

75

73

73

68

67

65

58

48

44

36

0% 25% 50% 75% 100%

Fleischman Hillard

EMC

PR Konektor

Native PR

Ewing PR

AC&C

Botticelli

Bison & Rose

AMI Communications

Medea

Ogilvy PR

We are cooperating We cooperated in the past We were in contactI know them by name I don´t know them

Knowledge or experience with Czech PR agencies

Traits of the best PR agency

Current Czech PR and marcomm trends

Some specifical trends in the Czech market

1. Anti-corruption movement

2. Innovative companies

3. Retro marketing

4. Outdoor lifestyle

5. Nuclear Energy boost

Anti-corruption movement

Anti-corruption movement: Companies and NGO´s against corruption (after 2009)

1. NGO´s: Transparency International, Janeček´s National Fund Against Corruption, Z-Index, etc.

2. Companies which declare their anti-corruption statement in image-making, PR and marketing communication: Student Agency, Bernard, Linet, Unicorn, etc.

3. Anti-corruption as business plan: Corrupt Tour

NGO´s case: Karel Janeček´s Positive Evolution

Image case:

Bernard Brewery

Business case: Corrupt Tour

Retro marketing • Local succesful brands

• Continuity from the socialist Czechoslovakia

• Kofola, Prim, Botas, Granko, Melta

• Míša, Eta, Sunar etc.

Case: Kofola – 1960´s brand

Growth of Kofola´s portfolio

„If you love her, there´s nothing else“ Christmas ad

New success stories: Innovative companies

• IT – AVG, Avast, 2K, SocialBakers, Seznam

• Apart from Seznam, no local branding

Seznam – the Czech Google Localization as the key concept for search engine

Outdoor: Czech Lifestyle Passion

Outdoor equipment & fashion: Bushman, Loop, Direct Alpine, Hannah, Warmpiece, Pingiun – over 50 local outdoor producers

Czech anomalia: Nuclear energy support

Temelín: completion or new reactors?

Czech media framing

Conclusions Sriramesh and Verčič (Sriramesh & Verčič, 2012: 9) state the three most significant

factors that shape the public relations practice and theory in each culture

1) Globalization

- Apart from global Ogilvy PR, predominantly local agencies win and knowledge of local context is highly appreciated by professionals

2) Changes in PR practice and pedagogy

- Most of communication professionals are not educated in the PR field, they value highly PR asset to the company, but have difficulties explaining it

3) Growing influence and realization of the importance of PR to contemporary societies

- PR faces a big challenge in communicating and explaining its own relevance. PR agencies do not possess well-known (and presumably trusted) brands. Public knowledge of PR is low, and so is marketing-literacy

Discussion

Thank you for your comments!

Denisa Kasl Kollmannová

kollmannova@fsv.cuni.cz