14

Public Relations

© 2005 McGraw-Hill Ryerson Limited

Chapter Objectives

• To recognize the role of public relations in the promotional mix.

• To understand public relations and its strengths and limitations.

• To understand the reasons for corporate advertising and its strengths and limitations.

• To know how to compile a public relations plan.

• To understand how public relations is obtained partly through publicity generated through news media.

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Public Relations Defined

A Management FunctionA Management Function

Evaluates Public AttitudesEvaluates Public Attitudeswhichwhich

Identifies the Policies and ProceduresIdentifies the Policies and Proceduresandand

An organization with the Public InterestAn organization with the Public Interestforfor

Executes a Program of Action (and Communication)Executes a Program of Action (and Communication)thenthen

Earn Public Understanding and AcceptanceEarn Public Understanding and Acceptancetoto

Executes a Program of Action (and Communication)Executes a Program of Action (and Communication)

An organization with the Public InterestAn organization with the Public Interest

Identifies the Policies and ProceduresIdentifies the Policies and Procedures

Evaluates Public AttitudesEvaluates Public Attitudes

A Management FunctionA Management Function

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Public Relations Management Process

Identification of Policies and Procedures

Identification of Policies and Procedures

Determination and Evaluation of Public

Attitudes

Determination and Evaluation of Public

Attitudes

Identification of Policies and Procedures

Identification of Policies and Procedures

Determination and Evaluation of Public

Attitudes

Determination and Evaluation of Public

Attitudes

Development and Execution of the

Program

Development and Execution of the

Program

PRPR

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Traditional PR Perspective

CustomersCustomers

EmployeesEmployees

InvestorsInvestors

GovernmentGovernment

CommunityCommunity

SuppliersSuppliersSuppliersSuppliers

EmployeesEmployees

GovernmentGovernment

InvestorsInvestors

CustomersCustomers

Public Relations

Department

Public Relations

Department

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Integration of PR into the IMC Process

MarketingDepartment

PublicRelations

SeparateSeparate

MarketingDepartment

PublicRelations

CoordinatedCoordinated

MarketingDepartment

PublicRelations

IntegratedIntegrated

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Strengths of Public Relations

CredibilityCredibility

Lead Generation

Lead Generation

Cost SavingsCost Savings

Avoidance of Clutter

Avoidance of Clutter

Image Building Image Building

SelectivitySelectivitySelectivitySelectivity

Lead Generation

Lead Generation

Avoidance of Clutter

Avoidance of Clutter

Cost SavingsCost Savings

CredibilityCredibility

PRProvides

PRProvides

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Limitations of Public Relations

Weakens Brand or Corporate Identification Effect

Weakens Brand or Corporate Identification Effect

May Deliver Inconsistent Message

May Deliver Inconsistent Message

Weakens Brand or Corporate Identification Effect

Weakens Brand or Corporate Identification Effect

Public Relations

Public Relations

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

Can Occur at the Same Time as Public RelationsCan Occur at the Same Time as Public Relations

Publicity

Part of the PR ProcessPart of the PR Process

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

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

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Strengths and Complications of Publicity

Unplanned by Organization

Unplanned by Organization

Lasts for a Short Period of Time

Lasts for a Short Period of TimeSubstantial CredibilitySubstantial Credibility

News ValueNews Value

Significant Word-of-mouth

Significant Word-of-mouth

Perception of Endorsement by

Media

Perception of Endorsement by

Media

StrengthsStrengths ComplicationsComplications

Lasts for a Short Period of Time

Lasts for a Short Period of TimeSubstantial CredibilitySubstantial Credibility

News ValueNews Value

Significant Word-of-mouth

Significant Word-of-mouth

Perception of Endorsement by

Media

Perception of Endorsement by

Media

Not Always PositiveNot Always PositiveNot Always PositiveNot Always Positive

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Public Relations Plan

1. Situation Analysisa. IMC Plan Reviewb. Current assessment of people’s

attitudes toward the firm

2. Determine Relevant Target Audiences3. Objectives4. Strategy5. Tactics

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Determine Public Attitudes

Provides Input for the Planning ProcessProvides Input for

the Planning ProcessServes As an “Early Warning System”

Serves As an “Early Warning System”

Secures Internal Cooperation,

Support

Secures Internal Cooperation,

Support

Secures Internal Cooperation,

Support

Secures Internal Cooperation,

Support

Serves As an “Early Warning System”

Serves As an “Early Warning System”

Provides Input for the Planning ProcessProvides Input for

the Planning Process

Increases Communications

Effectiveness

Increases Communications

Effectiveness

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Questions for Evaluating Public Relations Plans

1. Does the plan reflect a thorough understanding of the company’s business situation?

2. Has the PR program made good use of research and background sources?

3. Does the plan include full analysis of recent editorial coverage?

4. Do the PR people fully understand the product’s strengths and weaknesses?

5. Does the PR program describe several cogent, relevant conclusions from the research?

© 2005 McGraw-Hill Ryerson Limited

Questions for Evaluating Public Relations Plans

6. Are the program objectives specific and measurable?

7. Does the program clearly describe what the PR activity will be and how it will benefit the company?

8. Does the program describe how its results will be measured?

9. Do the research, objectives, activities, and evaluations tie together?

10. Has the PR department communicated with marketing throughout the development of the program?

© 2005 McGraw-Hill Ryerson Limited

Determine Relevant Target Audiences

Customers and Clients

Customers and Clients

Employees of the Firm

Employees of the Firm

Vendors and Suppliers

Vendors and Suppliers

Community Members

Community Members

The MediaThe Media

GovernmentsGovernments

Financial GroupsFinancial Groups

Stockholders and Investors

Stockholders and Investors

Stockholders and Investors

Stockholders and Investors

Customers and Clients

Customers and Clients

Employees of the Firm

Employees of the Firm

Vendors and Suppliers

Vendors and Suppliers

Community Members

Community Members

The MediaThe Media

GovernmentsGovernments

Internal or AssociatedInternal or Associated

External or IndependentExternal or Independent

EducatorsEducators

Civic and Business Organizations

Civic and Business Organizations

EducatorsEducators

Civic and Business Organizations

Civic and Business Organizations

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Objectives

BehaviouralBehavioural

CommunicationCommunication

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Strategy

• Focus of the message• Creative of the message• Delivery of the message

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Tactics

Vary depending on whether the PR is generated via news media or corporate advertising.

Vary depending on whether the PR is generated via news media or corporate advertising.

© 2005 McGraw-Hill Ryerson Limited

News Media Tactics

Press Releases

Press Releases

Community Involvement Community Involvement

Press Conferences

Press Conferences

ExclusivesExclusives

Interviews Interviews

The Internet The Internet

PR ToolsPR Tools

Press Releases

Press Releases

Community Involvement Community Involvement

Press Conferences

Press Conferences

ExclusivesExclusives The Internet The Internet

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Strengths and Limitations of News Media

TimingTimingHighly CredibleHighly Credible

EndorsementEndorsement

Frequency PotentialFrequency Potential

TimingTimingHighly CredibleHighly Credible

EndorsementEndorsement

Frequency PotentialFrequency Potential

AccuracyAccuracy

StrengthsStrengths LimitationsLimitations

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Corporate Advertising

Image Enhancement

Image Enhancement

Assuming a Position on an Issue or Cause

Assuming a Position on an Issue or Cause

Image Enhancement

Image Enhancement

Assuming a Position on an Issue or Cause

Assuming a Position on an Issue or Cause

An Extension of the PR Function

An Extension of the PR Function

Promotes the OrganizationPromotes the Organization

Does Not Promote a Specific Product or Service

Does Not Promote a Specific Product or Service

An Extension of the PR Function

An Extension of the PR Function

Does Not Promote a Specific Product or Service

Does Not Promote a Specific Product or Service

Seeks Involvement

Seeks Involvement

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Types of Corporate Advertising

Positioning AdsPositioning Ads

SponsorshipSponsorship

RecruitmentRecruitment

AdvocacyAdvocacy

Financial SupportFinancial Support

AdvocacyAdvocacy

Positioning AdsPositioning Ads

SponsorshipSponsorship

RecruitmentRecruitment

Image Advertising

Image Advertising

Event Sponsorship

Event Sponsorship

Advocacy AdvertisingAdvocacy

Advertising

Cause-related Advertising

Cause-related Advertising

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San Diego Zoo Protects Endangered Species

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Boeing Advertises to Enhance its Image

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Sponsorship

SportingEvents

SportingEvents

Music, Entertainment

Music, Entertainment

CausesCauses FestivalsFestivals

Cultural EventsCultural Events ArtsArts

SportingEvents

SportingEvents

Music, Entertainment

Music, Entertainment

CausesCauses FestivalsFestivals

Cultural EventsCultural Events

SponsorshipSponsorship

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Why Use Sponsorship?

Brand PositioningBrand Positioning

Target Audience Fit

Target Audience Fit

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Measuring Sponsorship Effectiveness

• Exposure Methods• Tracking Methods

Figure 14-7

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Cause-Related Marketing

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

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

© 2005 McGraw-Hill Ryerson Limited

KitchenAid Uses Cause-Related Marketing

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Strengths and Limitations of Corporate Advertising

Raises Questions of Constitutionality and

Ethics

Raises Questions of Constitutionality and

Ethics

May Have Questionable Effectiveness

May Have Questionable Effectiveness

Excellent Vehicle for Positioning the FirmExcellent Vehicle for Positioning the Firm

Takes Advantage of Benefits Derived From

Public Relations

Takes Advantage of Benefits Derived From

Public Relations

Reaches a Selected Target Market

Reaches a Selected Target Market

May Have Questionable Effectiveness

May Have Questionable Effectiveness

Reaches a Selected Target Market

Reaches a Selected Target Market

Takes Advantage of Benefits Derived From

Public Relations

Takes Advantage of Benefits Derived From

Public Relations

Excellent Vehicle for Positioning the FirmExcellent Vehicle for Positioning the Firm

StrengthsStrengths LimitationsLimitations