Why Public Relations?Why Public Relations?

Kevin M. BrettUniversity of Oregon

April 2, 2013

Why Consider Public Relations?Why Consider Public Relations?

• Financial/IR: $165,620• Crisis Management: $150,000• Reputation Management: $143,000• Public Affairs: $98,500• Community Relations: $59,910

Source: PRSA/Korn Ferry International, 2006

My PR CareerMy PR Career• Eight Years In Politics• Five Years in Trade Assn. PR• 10 Years in Corporate PR• Four Years in Tech Agency PR• Almost DailyBrett Blog• Full-Time PR Instructor

PR Stereotype - The Lobbyist Sleaze-Ball

PR Stereotype – Presidential Press Secretary

Spin Doctors?Spin Doctors?

• Publicity Agents• Snake-Oil Salesmen• Fast-and-Loose with the Truth• Lobbyists• Image Consultants

A Little Less Cynical…A Little Less Cynical…• Participates in Marketplace of Ideas• Provides Clear and Accurate Info• Positions Companies, Non-Profits,

Leaders• Plays in 24/7/365 Digital World• Adept at Crisis Communications• Safeguards Reputations and Brands

Tools of the TradeTools of the Trade• Who, What, When, Where, Why & How• Relationships with Editors, Reporters,

Analysts and Bloggers• Counsel to Executives, Leaders• Develop Facts, Figures and Info for Society• Serve as Spokespersons

Communications ChoreographyCommunications Choreography• Develop Strategic Messaging• Identify Target Audiences• Devise Earned Media Campaign• Execute Public Relations Outreach• Extend Brand Equity• Safeguard Reputations• Measure Results

Government/Political Public RelationsGovernment/Political Public Relations

• Higher Standard• Competitive• Toughest Media• Public Service• Not Private Sector• Lose Election?

Non-Profit Public Relations• Satisfying?• Credible Third Party• Competitive• Compassion Fatigue• Financial Pressures

Corporate vs. AgencyCorporate vs. Agency

Corporate PR• 24/7/365 for the

Company• Reports to CFO, Mktg,

Sales• In-House/Agency/Combo• More Credibility with

Media• ESPP/Stock Options• Higher Regard by Media

Agency PR• Billable Hours Spread

Sheet• Client Teams; Multiple

Bosses• Hired Gun• Deep Rolodex• Salary, Benefits and

Bonus• Lower Regard by Media

Two Primary Methods of Two Primary Methods of EngagementEngagement

• Project: Specific task, aimed at a specific audience at a specific time for specific price + OOPS.

• Retainer: Contractual Engagement Based Upon a Monthly Fee + OOPS; Monthly Reports; Periodic Agency Review ($15,000 or more per month in Silicon Valley)

Distributed Global OfficesDistributed Global Offices Seattle – Microsoft Portland – Nike SF – Charles Schwab Silicon Valley – HP Los Angeles – Disney New York – Samsung Chicago – Wal-Mart Tokyo – Toyota Munich -- Siemens

Balance Sheet/Up EconomyBalance Sheet/Up Economy

Revenues from Clients– $25,000 per month from

Client A– $20,000 per month from

Client B– $15,000 per month from

Client C– $20,000 project$80,000 in total revenues;

$60,000 monthlyTotal Annual Revenues:

$720,000 + $20,000

Client Team Salaries SVP, $150,000 SAS, $100,000 SAE, $75,000 AE, $50,000 AE, $50,000 AAE, $35,000 AAE, $35,000 Total Team Salaries:

$495,000

Balance Sheet/Down EconomyBalance Sheet/Down Economy

Revenues from Clients– 25,000 per month from

Client A– $20,000 per month from

Client B– $15,000 per month from

Client C– $20,000 project$40,000 in total monthly

revenuesTotal Annual Revenues:

$480,000

Client Team Salaries SVP, $150,000 SAS, $100,000 SAE, $75,000 AE, $50,000 AE, $50,000 AAE, $35,000 AAE, $35,000 Total Team Salaries:

$495,000

Balance Sheet/Down EconomyBalance Sheet/Down Economy

Revenue from Clients– 25,000 per month from

Client A– $20,000 per month from

Client B– $15,000 per month from

Client C– $20,000 project$40,000 in total revenues;

$40,000 monthlyTotal Annual Revenues:

$480,000

Client Team Salaries SVP, $150,000 SAS, $100,000 SAE, $75,000 AE, $50,000 AE, $50,000 AAE, $35,000 AAE, $35,000 Total Team Salaries:

$420,000

PR: What’s New?PR: What’s New?• Digital Self-Publishing• Facebook, Twitter, LinkedIn, Blogs,

Podcasts, Webcasts, Pinterest• Loss of Control• Reputations/Brand in Play 24/7/365• Crisis Communications More Important• Need to Tell The Story Better Than Ever

Appendix

““The Smartest Guys in the Room”The Smartest Guys in the Room”

Someone’s Client?Someone’s Client?

Tone Deaf CEOs?Tone Deaf CEOs?

Did the Big Three automakers CEOs behave outrageously by traveling in corporate jets to

request taxpayer bailout money?

Full Employment for Reporters?Full Employment for Reporters?

• The Bubble Burst• ENRON• Martha Stewart• $6,000 Shower Curtain• Sarbanes-Oxley• SEC REG FD (Fair Disclosure)• Jon Stewart/Jim Cramer Interview

PR BuzzwordsPR Buzzwords• Brand• Cloud• Corporate Social Responsibility• Organic• Sustainable• Solutions • Thinking Out of the Box• Thought Leadership

The Mother of All Run-On The Mother of All Run-On SentencesSentences

“Today we are thinking out of the box in leveraging a portfolio of organic, sustainable cloud computing solutions that enhance your company brand, while demonstrating thought leadership and exemplifying your dedication to corporate social responsibility.”

Public Relations helps establish and maintain mutual lines of communication, understanding, acceptance and cooperation between an organization and its publics.

• - Rex Harlow

Public Relations is the management of communication between and organization and its publics.

-Todd Hunt and James Grunig

Serving Clients: Telling Their StoryServing Clients: Telling Their Story

Defining Public RelationsDefining Public Relations

• What does an accountant do?

• What does a doctor do?• What does an attorney do?

• So what does a public relations practitioner do?

Two Images of Michael Two Images of Michael PhelpsPhelps