PRESS AGENTS = MEDIA RELATIONS

WHAT ARE THE KEY POINTS IN MEDIA RELATIONS?

Media influence is cumulative and long term. A single report, even if covered by all media in the

country usually causes little change (effect is minimal).

If covered over long period (perhaps with viewpoint on the topic) can influence the whole generation. (Eg. Continuous news /reports on Communism we strongly opposed even most of us have no personal experience - but because all our lives it has been a subject of derision in our media; PKI in Indonesia; Terrorism in these days.)

The main power of the media is to make us aware – of products, services, companies, ideas – and to provide info about them. Awareness don’t move us to action but as a 1st step in decision making it is vital: if we don’t know something exist, we can’t do anything about it. Agenda Setting Role of the Media.

The media concentrate on reporting bad news – errors, scandals, accidents. Researches: we prefer to hear about bad news rather than good news, by a factor of 7 (seven) to one. In their own marketing interest, then, it follows that the media would rather feature bad news. It’s what their customers demand.

RELATIONSHIPS WITH MEDIA

So, the challenge is to create RELATIONSHIPS with Journalists and media figures – that will permit them to rely on our organizations when we are the focus of interest.

Make them learn about us, and that they can trust an organization and its PR staff.

So they are likely to report on the information of which we need to make our publics aware and give us a FAIR chance, or at least balance reportage, when we are on the hot seat.

WORKING WITH MEDIA PEOPLE

Important part of PR job: depends on PR staff providing information that news people like (consider) to be of public interest remember 7 FACTORS of NEWS WORTHINESS.

Small or local organization: easier; media have small staffs and need ‘free’ news gathering help and PR practitioners provide them. personalized and mutually supportive relationships.

Big City (Big News Media) and giant corporates: difficult: both entities tend more to conglomerations and automation (not personalized). Companies tend to expose journalism and Media turns to control advocacy – and animosity grows between the private and public sectors. (eg. Kompas Gramedia Group with TV-7, Kontan, dll; Tempo Group with Koran, Tempo newsroom, etc.)

Most major media have ethics code that prohibit their journalist from accepting favors; relative (family friends) working as editors or news producers is not easy it can be suspected or handicap, particularly as media ethics codes become more common.

THE FUNDAMENTALS. News Media Mission: to inform audience quickly, accurately

and fully (on matters in which audience express an interest and on matters that affect them significantly – whether or not the audience have expressed interest, or are even aware).

PR Function Mission: is to build working relationships with an organization’s public.

For both (Media and PR): obligations of truth and accuracy under the law.

The freedom of News Media to inform without bias is assured by the First Amendment to the Constitution (USA).

If abused: loss of credibility, revenue from advertisers, and public censure.

When interject their own views: label them as ‘editorial’, opinion, analysis, commentary, etc.

PR Functions: comes under the Freedom of Speech Provision in the First Amendment.

PR practitioners have the choice of telling their story: in paid space or time (advertisement), or offering it as news, subject to editing or rejection by the

media. Abuse of free speech rights: loss of supportive

constituents (shareholders), employees, customers, etc. Penalties from PR Society (PR Society of America in USA,

but Perhumas belum ada sanksi?) Penalties from media (for being ‘clever’ in manipulating

facts, being ‘unavalible’, etc): loss of credibility and integrity in the eyes of the media.

Monitoring Bodies: Dewan Pers, Perhumas, dll. Di sini belum banyak berfungsi. Cek di UU Pers lagi.

PR Serves 2 masters

1. The Employer.

2. Public Interest. The Employer wants them best foot put forward in public.

Sometimes dont want publicity; but sometimes media insist over the ‘public’s right to know’.

If a PR is not able to handle the flow of info so that favorable news is covered and adverse news is avoided or at least treated fairly, the practical value of the practitioner to the employer is limited. But practitioners must make it clear to the employer and clients that THEY CANNOT CONTROL THE MEDIA.

GUIDELINES Start with a sound working knowledge of the methods and the

technology involved in gathering potential news, in evaluating it, in processing it editorially, and in putting it into the best format and mode for newsprint, magazine and broadcast electronic media. Be able to fit into the process.

Make a designated spokesperson available. you? Have spokespeople be as good (candid) as possible in response to

inquiries – consider competitors, national security, etc. Play the percentages, as in long successful partnership, taking the

instances of bad news in stride with a record of good news coverage achieved.

Continuously educate and train employers and spokespeople on how to handle (themselves when in contact with the news) media.

Generate good news situations as a track record to offset instances of undesired news. Don’t simply wait defensively for bad news. Proactive.

Advocate an employer’s views on public issues among the organization’s natural constituencies and in the news media receptive of them.

Expect the unexpected and be prepared all the time for it. In particular, have a crisis or disaster plan.

PR & MARKETING Marketing PR

PR (one of the definition) is: the management function which evaluates

public attitudes, identifies the policies and procedures of an organization with the public

interest, and executes a program of action (and communication) to earn public

understanding and acceptance.

(Public Relations News, weekly newsletter of the industry).

In this definition: The term ‘Management’ (function) should be used in its broadest

sense: business management, non profit organization, etc. PR requires a series of stages, including:

The determination and evaluation of public attitudes. The identification of policies and procedures of an organization

with a public interest. The development and execution of a communications program

designed to bring about public understanding and acceptance. This process doesn’t occur all at once. Continues, over months or years. PR involves much more than activities designed to sell a product

or service. May involve promotional program elements eg:

Press release mailed to announce new products or changes in the organization;

Special events organized to create goodwill in the community; Advertising used to state Company’s position on a

controversial issue.

The New Role of PR.

More marketing-oriented companies established new responsibilities for PR.

It takes much broader and more marketing-oriented perspective, designed to promote the organization as well as its products or services.

Four relationships between Marketing & PR in an organization – defined by the degree of each function:

PUBLIC RELATIONS

MARKETING Weak Strong

Weak 1

Small social service agencies, non-profit

organizations.

2

Hospitals, colleges

Strong 3

Small manufacturing companies

4

Fortune 500 companies

1. Minimal use of either function typically have very small marketing and/or PR budgets and devote little time and effort to them. Eg. Small social service agencies, non-profit organizations.

2. Have a well-established PR function but do very little in the way of formal marketing. Eg. Colleges and Hospitals. Now: cases marketing activities are increasing. Both now moved in the direction of Class 4 organizations, though PR activities still dominate.

3. Many small companies: marketing dominant, and PR functions are minimal. Eg. Private companies (without stock holders) and small manufacturers with little or no public to appease tend to employ this design. (Misal, pembuat teralis besi, home industry catering, etc).

4. Have both strong marketing and strong PR. These two departments often operate independently. Eg: PR may be responsible for the more traditional responsibilities, while marketing promotes specific products and/or services. Both groups may work together at times, and both report to top management. Many Fortune 500 companies employ multiple ad agencies and PR firms.

The new role of PR might best be characterized as Class 4, although with a slightly different relationship. The two nor work closely together (not operating independently) – blending their talents to provide the best overall image of the firm and its products/services offerings.

PR departments as a tool to both supplant and support traditional advertising and marketing efforts and as a key part of the IMC (Integrated Marketing Communications) program.

INTEGRATING PR INTO THE PROMOTIONAL MIX

Kotler and William Mindak: suggest some alternative organizational designs:

Either: Marketing or PR can be the dominant function (both

can be equal but separate functions); or both can perform the same roles.

But other experts recommend setting: PR as a promotional program element; this means that its broad role must include traditional

responsibilities.

MARKETING PR FUNCTIONS

Thomas L Harris: PR activities designed to support marketing objectives as MPR functions.

Marketing objectives that may be aided by PR activities include: Raising awareness Informing and educating Gaining understanding Building trust Giving consumers a reason to buy, and Motivating consumer acceptance.

MPR adds value to the integrated marketing (IMC) program in a number of ways

Building marketplace excitement before media advertising breaks. The announcement of a new product, for example, is an opportunity for the marketer to obtain publicity and dramatize the product, thereby increasing the effectiveness of ads.

Creating advertising news where there is no product news. Ads can be the focus of publicity. There seems to be as much hype about the ads on the World Cup (Soccer) or Olympic or Super Bowl as there is for the game itself.

Introducing a product with little or no advertising. Eg. Hewlett Packard, Kinetix and Ty, and Crayola (crayon maker) used this approach to its advantage.

Providing a value added customer service. Butterball (USA) established a hotline where people can call in to receive personal advice on how to prepare their turkeys. (handled 25,000 calls during one holiday season); Many cos provide such services on their Internet sites.

MPR adds value to the integrated marketing (IMC) program in a number of ways (cont)

Building brand-to-customer bonds. The Pillsbury Bake-Off has led to storng brand loyalty among Pillsbury customers, who compete by submitting baked goods. The winner now receives a one-million dollar prize!

Influencing the influentials – that is, providing information to opinion leaders.

Defending products at risk and giving consumers a reason to buy. By taking constructive actions to defend or promote a company’s products, PR can give consumers a reason to buy. Battery Energizer’s national education campaign that urges consumers to change the batteries in their fire alarms when they reset their clocks in the fall has resulted in a strong corporate citizen image and increased sales of batteries.

MPR adds value to the marketing program – some other examples:

Wonderbra: relied heavily on PR coverage and media hype to create awareness and gain attention for the product launch. From 1994, continued for the past 5 years, and Wonderbra has become the number 1 push-up bra in the USA.

Rockport, another shoe company in 1980s. Promoted (by its PR agent) the concept of ‘fitness walking’ through a series of MPR initiatives. Rockport became known as the ‘Walking Shoe Company”, achieving a tenfold (10 x) increase in sales.

California Kiwifruit Commission: established 1935. PR efforts focused on disseminating health and nutritional information about kiwis. Through a more marketing-oriented PR campaign, the commission was able to increase sales by as much as 300 % in stores and achieved a 12 percent increase in new consumers (users).

Advantages of using MPR (by Harris):

A cost-effective way to reach the market. A highly targeted way to conduct public relations. Credibility. It benefits from the endorsement of independent and

objective 3rd parties who have no association with the product.

Supports advertising programs by making messages more credible.

It breaks through the clutter. It circumvents consumer resistance to sales efforts.

Disadvantages (by Harris):

A lack of control over the media. Difficult to tie in slogan and other

advertising devices. Media time and space are not

guaranteed. There are no standard effectiveness

measures.

Major Threat

MPR may lead to public relations’ becoming subservient (passive, meek) to marketing

– a concern expressed by many opponents of MPR. However, if employed properly and used in

conjunction with other traditional PR practices as well as IMC elements, MPR can continue to be used effectively.

Contoh 2: Marketing CommMarketing Comm. interfaces for PR Dept. – perhatikan yg sama & beda

Customers Company Management

Company External Agencies

KOSONG: (Public Officials)

Influencers

Cust Senior Management

CEO Adv. Agencies

Industry Bodies;

Purchasers Product Div. Managing Dir;

Product Managers

PR Consultants; Design Consultants

Journalists;

Pressure Groups

Distributors;

Stockiest

Marketing Dir;

Cust Service Managers.

Other Agencies; etc

Consumer Groups;

Social and Cultural Social and Cultural EnvironmentsEnvironments

Hofstede’s Dimensions

INDIVIDUALISM VS COLLECTIVISM HIGH/LOW POWER DISTANCE MASCULINE VS FEMININE WEAK/STRONG UNCERTAINTY

AVOIDANCE CONFUCIANIST DYNAMICS (LONG RUN ORIENTATION)

Power Distance and Individualism ScalesPower Distance and Individualism Scales

ARG ArgentinaBRA BrazilCHL ChileCOL ColumbiaGRE GreeceHOK Hong KongIND IndiaIRA IranJAP JapanMEX MexicoPAK PakistanPER PeruPHI PhilippinesPOR PortugalSIN SingaporeTAI TaiwanTHA ThailandTUR TurkeyVEN VenezuelaYUG Yugoslavia

Small LargePower Distance

Ind

ivid

ual

ism

Col

lect

ivis

t

12

50

30

Small power distance collectivist

Large power distance collectivist

•PAK •COL •VEN

•TAI •PER

•THA •SIN

•CHL•POR •HOK

•YUG•MEX •PHI

•GRE

•TUR

•BRA•IRA

•ARG •JAP

•IND+11 +28 +44 +64 +77 +94

Power Distance and Individualism ScalesPower Distance and Individualism Scales

AUL AustraliaAUT AustriaBEL BelgiumCAN CanadaDEN DenmarkFIN FinlandFRA FranceGER GermanyGBR Great BritainIRE IrelandISR IsraelITA ItalyNET NetherlandsNZL New ZealandNOR NorwaySAF South AfricaSPA SpainSWE SwedenSWI SwitzerlandUSA United States

Small LargePower DistanceIn

div

idu

alis

mIn

divi

dual

ist

53

91

71

Small power distance individualist

Large power distance individualist

•SPA

•SAF

•FRA

•BEL•ITA

•AUT•ISR

•FIN

•GER•NOR•SWI

•SWE•IRE

•DEN

•NZL •CAN

•NET

•GBR

USA•

AUL•+11 +28 +44 +64 +77 +94

Uncertainty Avoidance and Masculinity ScalesUncertainty Avoidance and Masculinity Scales

Feminine MasculineMasculinity

Un

cert

ain

ty A

void

ance

Str

ong

8

56

32

Weak uncertaintyavoidance/feminine

Weak uncertaintyavoidance /masculine

Wea

k

•SIN

•HOK

•IND

•PHI

AUL AustraliaCAN CanadaDEN DenmarkFIN FinlandGBR Great BritainHOK Hong KongIND IndiaIRE IrelandNET NetherlandsNZL New ZealandNOR NorwayPHI PhilippinesSIN SingaporeSAF South AfricaSWE SwedenSWI SwitzerlandUSA United States

•DEN

•SWE

•NOR

•NET

FIN•

GBR• •IRE

USA•

•SAF

•AUL

•NZL•CAN

+23 +44 +59 +77 +95

Uncertainty Avoidance and Masculinity ScaleUncertainty Avoidance and Masculinity Scale

Feminine MasculineMasculinity

Un

cert

ain

ty A

void

ance

Str

ong

59

112

84

Strong uncertaintyavoidance/feminine

Strong uncertainty avoidance/masculine

Wea

kARG ArgentinaAUT AustriaBEL BelgiumBRA BrazilCHL ChileCOL ColumbiaFRA FranceGER GermanyGRE GreeceIRA IranISR IsraelITA ItalyJAP JapanMEX MexicoPAK PakistanPER PeruPOR PortugalSPA SpainSWI SwitzerlandTAI TaiwanTHA ThailandTUR TurkeyVEN VenezuelaYUG Yugoslavia

JAP•

•GRE

BRA•

THA•

•IRA

•VENCOL•

•MEX•ARG

TUR•

•PER

CHL•

YUG•

•POR

•PAKTAI•

ISR•

•SPAFRA•

•BEL

ITA•

SWI•

•GER

•AUT

•FIN

+23 +44 +59 +77 +95

Cultural Factors Never touch the head of a Thai or pass an object over it –

the head is considered sacred in Thailand Avoid using triangular shapes in Hong Kong, Korea and

Taiwan – the triangle is considered a negative shape The number 7 is considered bad luck in Kenya and good luck

in the Czech Republic. It has a magical connotation in Benin, Africa

The number 10 is bad luck in Korea The number 4 means death in Japan Red represents witchcraft and death in many African

countries but it is a positive colour in Denmark

Cateora & Ghauri, International Marketing, European Edition, © 1999 McGraw-Hill

Doing Business in India: A Cultural Perspective

Trust had become a central issue Aggressiveness can be interpreted as a sign of disrespect. Indians are very good hosts and will therefore, invite you to their

homes and usually in personal talk often. Indians respect people who value their family. They will allow family to take priority over work, whenever

necessary. In a group discussion, only the senior most person might speak,

but that does not mean that the others agree with him. Humor in the work place is something that some Indians are not

used to. Never shake hands, touch or sit close or next to a woman. The Indian wants to know everything at the first meeting don't be

offended

Contextual Background of Various Countries

Japanese

Arabic

Latin American

Spanish

Italian

English (UK)

French

North American (US)

Scandinavian

German

Swiss

High context implicit

Low context explicit

Cateora & Ghauri, International Marketing, European Edition, © 1999 McGraw-Hill

Global Product Planning Strategic Alternative

Same

Same

Different

Different

Product

Com

mu

nic

ati

on

Dual Extension

Product Extension, Communication

Adaptation

Product Adaptation, Communication

Extension

Dual Adaptation

Classical Western Traditional Asian

Nuclear family, self, or immediate family Beliefs in competition, challenge, self-expression Personal responsibility, independence Doing one’s own thing Resentment of authority Primacy given more to youth and change

Extended family, blood/kinship/ workgroups Beliefs in harmony, cooperation, avoiding confrontation Shared responsibility, interdependence Public self and “face” Respect for authority Age and seniority important, value tradition Control by “shame” and “loss of face”

Marketing Values

Brand segmentation; personal choice and self-expression through brand Presenters/testimonials important but more to draw attention to brands Seeding and diffusion from leading edge Belief in “understatement” of wealth Environmentalism

Popular famous brands; confidence in brand and corporate names Imitation, emulation, use of presenters as role models in ads Rapid adoption of successful brands Display of wealth and status Confidence in technology

Cultural Values

Japan

United States

Myth/hero emphasis

Group

Individual

Attitude

Self-denial, dependence

Self-expression, independence

Emphasis

Obligations

Rights

Style

Cooperation

Competition

Assumptions

Interdependence

Independence

View of self

Organization man

Individual with a skill

Cultural attitude 1

We are unique

Everyone is just like us

Cultural attitude 2

Willing to borrow/adopt/adapt

“Not invented here” syndrome

Organizational goal 1 (jobs/employment)

Share of market

Profitability, financial success

Organizational goal 2

World markets

National markets

Organizational goal 3

Quality, customer value

Production, financial returns

Worker identification

Company

Craft, function

Management

Generalists

Specialist

Trust in

Feeling

Thinking

Government business relations

Coperation

Separation

Financial structure (debt;equity)

80:20

40:60

Key stakeholders

Employees

Stockholders

Key values and goals

Perfection, harmony, consensus

Freedom, success, winning

Comparisons and Contrasts in Culture, Tradition, and Behaviour Between Japan and USA

Changes Affecting Strategies Threats to Marketers’ Planning

Management’s Strategic Options

Product Strategies

Harmonization in product standards, testing, and certification process Common patenting and branding Harmonization in packaging, labeling, and processing requirements

Untimeliness of directives Rules of origin Local content rules Differences in marketing research

Consolidate production Obtain marketing economies Shift from brand to benefit segmenation Standardize packaging and labeling where possible

Pricing Strategies

More competitive environment Withdrawal of restrictions to foreign products Antimonopoly measures Widening of the public procurement market

Parallel importing Different taxation of goods Less freedom in setting transfer prices

Exploit different excise and value-added taxes Understand price elasticity of consumer demand High-margin products Introduce visible low-cost brand

Promotion Strategies

Common guidelines on TV broadcasting Deregulation of national broadcasting monopolies Uniform standards for TV commercials

Restrictions on alcohol and tobacco advertising Limits on foreign TV production Differences in permitted promotional techniques

Coordinate components of promotional mix Exploit advantage of pan-European media Position the product according to local markets

Distribution Strategies

Simplification of transit documents and procedures Elimination of customs formalities

Increase in distributors’ margins Lack of direct-marketing infrastructure Restrictions in the use of computer databases

Consolidate manufacturing facilities Centralize distribution Develop nontraditional channels (direct marketing, telemarketing

Marketing Strategies in The European Community

Ethnocentric

Home country is superior; sees similarities

in foreign countries

Polycentric

Each host country is unique; sees differences

in foreign countries

Regiocentric

Sees similarities and differences in a world

region; is ethnocentric or polycentric in its view of

the rest of the world

Geocentric

Worldview; sees similarities and

differences in home and host countries

Orientation of Management and Companies