1. Promotional Strategy MKT4230 Public Relations, Publicity, and Corporate Advertising Patricia Knowles, Ph.D. Associate Professor Clemson University 1

2. 2 Promotional Strategy MKT4230 2 Public Relations Defined This is the definition of public relations: Textbook Page 572 - 573 A management function And identifies the policies and procedures Of an organization with the public interest And executes a program of action (& communication) To earn public understanding and acceptance Which evaluates public attitudes 3. 3 Promotional Strategy MKT4230 3 Public Relations Management Stages These are the three stages of the public relations management process: Textbook Page 573 Identification of policies and procedures Determination and evaluation of public attitudes Development and execution of the program PR 4. 4 Promotional Strategy MKT4230 4 Traditional PR Perspective This is the traditional view of public relations: Textbook Pages 573 - 574 Customers Employees Investors Government Community Suppliers Public Relations Department 5. 5 Promotional Strategy MKT4230 5 Integration of PR into the Promotional Mix This visual shows the integration of public relations into the IMC process: Textbook Pages 573 - 574 Marketing Department Public Relations Separate Functions Marketing Department Public Relations Coordinated and Equal Marketing Department Public Relations Integrated 6. 6 Promotional Strategy MKT4230 6 Marketing Public Relations Functions This is a list of public relations activities deigned to support marketing objectives: Textbook Pages 574 - 575 Build market excitement before media ads break Create ad news where there is no product news Introduce a product with little or no advertising Provide a value-added customer service Build brand-to-customer bonds Influence the influentials Improve ROI Defend products at risk, give consumers reason to buy 7. 7 Promotional Strategy MKT4230 7 MPR in Practice This visual presents a real-world example of marketing public relations at work, specifically, building a brand-to-customer bond. Textbook Page 575 / Exhibit 17 - 1 8. 8 Promotional Strategy MKT4230 8 Benefits of MPR These are the advantages of using marketing public relations: Textbook Pages 576 / Figure 17 - 2 A cost-effective way to reach the market Highly targeted way to conduct public relations Endorsements by independent third parties Achievement of credibility Makes advertising messages more credible Breaks though the clutter Circumvents resistance to sales efforts Improved ROI Creates influence among opinion leaders Improved media involvement w/customers 9. 9 Promotional Strategy MKT4230 9 Disadvantages of MPR These are the disadvantages of using marketing public relations: Textbook Page 576 / Figure 17 - 2 Difficult to tie in slogans or other advertising devices No standards for effective measurement Lack of control over media Media time and space arent guaranteed 10. 10 Promotional Strategy MKT4230 10 The Process of Public Relations This chart outlines the various activities of the public relations process. Textbook Pages 576 - 584 Measuring Program Effectiveness Developing and Executing a PR Program Establishing a PR Plan Determining and Evaluating Public Attitudes 11. 11 Promotional Strategy MKT4230 11 Test Your Knowledge In public relations targeting, external audiences include: A. Customers B. The public at large C. Suppliers D. Stockholders E. All of the above 12. 12 Promotional Strategy MKT4230 12 Research on Public Attitudes These are some of the reasons why companies regularly survey public attitudes: Textbook Page 576 - 577 Provides input for the planning process Serves as an early warning system Secures internal cooperation, support Increases communications effectiveness 13. 13 Promotional Strategy MKT4230 13 10 Evaluation Questions These are the ten key questions for evaluating public relations plans: 1. Does the plan reflect a thorough understanding of the companys 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 products strengths and weaknesses? 5. Does the PR program describe several cogent, relevant conclusions from the research? 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? Textbook Page 577 578 / Figure 17 - 3 14. 14 Promotional Strategy MKT4230 14 Determining Public Relations Audiences The target audience for public relations activities can be broken into two main categories, internal audiences and external audiences. Textbook Pages 578 - 580 Stockholders and Investors Community Members Suppliers & Customers Employees Internal or Associated Financial Groups Educators Civic & Business Organizations External or Independent The Media Governments 15. 15 Promotional Strategy MKT4230 15 Implementing the PR Program These are the various methods by which organizations keep in touch with target audiences: Textbook Pages 580 - 582 Press Releases Community Involvement Press Conferences Exclusives Interviews The Internet PR Tools 16. 16 Promotional Strategy MKT4230 16 Advantages of Public Relations This chart outlines the advantages of using public relations in the IMC program. Textbook Pages 582 - 583 Credibility Lead Generation Cost Savings Avoidance of Clutter Image Building Selectivity PR Provides 17. These are the potential problems that may arise when using public relations in the IMC program: 17 Promotional Strategy MKT4230 17 Potential Problems of Public Relations Textbook Page 583 Potential Problems Potential for incomplete communication process Receiver not making connection to the source Lack of coordination with marketing dept. Inconsistent, redundant communications 18. 18 Promotional Strategy MKT4230 18 Test Your Knowledge Which of the following communications is most likely to have more credibility among its receivers? A. Vogue's layout introducing its latest models B. Volvo's television ad promoting new standard safety features C. Motor Trend's announcement of the "Car of the Year" D. The CEO of Ford Motor Company appearing in its ads E. The appearance of American Idol participants in Old Navy ads 19. 19 Promotional Strategy MKT4230 19 General Mills Capitalizes on Publicity This visual shows an ad for General Mills cereals, and demonstrates how General Mills uses publicity from a variety of sources to promote the importance of whole grain in a healthy diet. Textbook Pages 582 / Exhibit 17 - 11 20. 20 Promotional Strategy MKT4230 20 Measuring PR Effectiveness These are the questions that are answered by measuring the effectiveness of PR: Textbook Page 584 Contributions made? What was achieved? Quantitative measures? Quality? 21. 21 Promotional Strategy MKT4230 21 Criteria for Measuring PR Effectiveness This is a system for measuring the effectiveness of a public relations program that was developed by Lotus HAL. Textbook Page 584 / Figure 17 - 4 22. 22 Promotional Strategy MKT4230 22 Additional Measures of PR Effectiveness These are some additional ways to evaluate the effectiveness of a PR campaign: Walter Lindenmann recommendations Did the audience receive the message? Did they pay attention to them? Were the messages understood? Where the messages retained? Mark Weiner suggests Media content analysis Survey research Marketing-mix modeling Textbook Page 584 23. 23 Promotional Strategy MKT4230 23 Publicity vs. Public Relations This is the definition of publicity: Textbook Pages 584 - 586 A short-term strategy Publicity The generation of news about a person, product, or service that appears in the media A subset of public relations Not always positive Often originates outside the firm 24. 24 Promotional Strategy MKT4230 24 A Response to Negative Publicity This visual shows an ad that was used by Tree Top to respond to negative publicity the company received from the media regarding the safety of its apple juice. Textbook Pages 586 587 / Exhibit 17 - 13 25. 25 Promotional Strategy MKT4230 25 Pros and Cons of Publicity These are the advantages and disadvantages of publicity: Textbook Pages 587 - 589 Substantial credibility News value Significant word-of-mouth Perception of media endorsement Advantages Inaccuracy, omission, or distortion may result Timing difficult or impossible to control Disadvantages 26. 26 Promotional Strategy MKT4230 26 Corporate Advertising These are the various characteristics of corporate advertising: Textbook Page 589 Does not promote a specific product or service Image enhancement Assuming a position on an issue or cause Seeks involvement An extension of the PR function Promotes the organization 27. 27 Promotional Strategy MKT4230 27 Why is Corporate Advertising Controversial? There are number of reasons why corporate advertising is considered controversial: Textbook Page 589 - 590 Opponents to Corporate Advertising Consumers arent interested in this form of advertising This is a costly form of corporate self- indulgence The firm must be in trouble Corporate advertising is a waste of money 28. 28 Promotional Strategy MKT4230 28 Objectives of Corporate Advertising These are the various objectives of corporate advertising: Textbook Page 590 Create a positive image for the firm Smooth labor relations Communicate the organizations viewpoint Boost employee morale Establish diversified company identity Help newly deregulated industries Objectives 29. 29 Promotional Strategy MKT4230 29 Types of Corporate Advertising These are the various types of corporate advertising with special attention toward image advertising: Textbook Page 590 - 596 Positioning Ads Sponsorships Recruitment General Image Ads Financial Support Image Advertising Event Sponsorship Advocacy Advertising Cause-related Advertising 30. 30 Promotional Strategy MKT4230 30 Employee Recruitment by Grant Thornton This visual shows an example of a recruitment advertisement used by Grant Thornton designed to attract new employees. Textbook Page 591 / Exhibit 17 - 16 31. 31 Promotional Strategy MKT4230 31 Event Sponsorship These are the various types of activities sponsored by corporations. Textbook Page 592 / Figure 17 - 8 Sporting Events Music, Entertainment Causes Festivals Cultural Events Arts Corporate Sponsor 32. 32 Promotional Strategy MKT4230 32 Test Your Knowledge Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing circuit? A. To build equity and gain affinity with its target market B. To show its position on sports marketing C. To create a generic positioning strategy D. To further segment its target market E. To reduce its overall promotional expenses 33. 33 Promotional Strategy MKT4230 33 Advocacy Advertising This is the definition of another form of corporate advertising, known as advocacy advertising: Textbook Page 593 Propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor 34. 34 Promotional Strategy MKT4230 34 Advocacy Ad This visual shows an examples of an advocacy ad. Textbook Page 593 / Exhibit 17 - 18 35. 35 Promotional Strategy MKT4230 35 Cause Related Marketing This is the definition of cause-related advertising: Textbook Pages 595 - 596 A form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors 36. 36 Promotional Strategy MKT4230 36 Cause Related Marketing This is a cause-related ad by New Balance: Textbook Pages 595 - 596 37. 37 Promotional Strategy MKT4230 37 Pros and Cons of Corporate Advertising These are the advantages and disadvantages of corporate advertising. Textbook Pages 596 - 597 Raises questions of constitutionality and ethics May have questionable effectiveness Excellent vehicle for positioning the firm Takes advantage of benefits derived from public relations Reaches a selected target market Advantages Disadvantages 38. 38 Promotional Strategy MKT4230 38 Measuring Corporate Ad Effectiveness These are the various methods that can be used to evaluate the effectiveness of corporate advertising. Textbook Page 597 Stock Prices Attitude Surveys Focus Group Research Effective