lecture 22(public relations)

ARE YOU READY?

• Evaluate the various sales promotion tools and decide which promotional tools would you use. Allocate the budget month-wise and tool-wise (Total Budget – 1 crore)

Public Relations, Publicity, and Corporate AdvertisingPublic Relations, Publicity, and Corporate Advertising

At the end of this lecture, you will be able to understand:

Meaning and Scope of Publicity and Public

Relations

Its Relationship and Function with Other IMC

Function of Public Relations

Different Models of Public Relations

Difference Between Advertising and Publicity

Different types of corporate advertising

PUBLIC

• A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.

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 interestofof

executes a program of action (and communication)executes a program of action (and communication)andand

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

Public Relations Defined

Identification of policies and procedures

Determination and evaluation of public

attitudes

Identification of policies and procedures

attitudes

Public Relations Management Process

Development and execution of the

program

Development and execution of the

program

CustomersCustomers

EmployeesEmployees

InvestorsInvestors

GovernmentGovernment

CommunityCommunity

SuppliersSuppliersSuppliersSuppliers

EmployeesEmployees

GovernmentGovernment

InvestorsInvestors

CustomersCustomers

Traditional PR Perspective

Public Relations

Department

Public Relations

Department

Integration of PR into the IMC Process

MarketingDepartment

PublicRelations

SeparateSeparate

MarketingDepartment

PublicRelations

CoordinatedCoordinated

MarketingDepartment

PublicRelations

IntegratedIntegrated

Marketing Public Relations (MPR) Functions

Building marketplace excitement before media advertising breaksBuilding marketplace excitement before media advertising breaks

Creating advertising news where there is no product newsCreating advertising news where there is no product news

Introducing a product with little or no advertisingIntroducing a product with little or no advertising

Providing a value-added customer serviceProviding a value-added customer service

Building brand-to-customer bondsBuilding brand-to-customer bonds

Influencing influentials, providing information to opinion leadersInfluencing influentials, providing information to opinion leaders

Improving ROI Improving ROI

Defending products at risk, giving consumers a reason to buyDefending products at risk, giving consumers a reason to buy

Building marketplace excitement before media advertising breaksBuilding marketplace excitement before media advertising breaks

Creating advertising news where there is no product newsCreating advertising news where there is no product news

Introducing a product with little or no advertisingIntroducing a product with little or no advertising

Providing a value-added customer serviceProviding a value-added customer service

Building brand-to-customer bondsBuilding brand-to-customer bonds

Influencing influentials, providing information to opinion leadersInfluencing influentials, providing information to opinion leaders

Improving ROI Improving ROI

The Process of Public Relations

Measuring Program EffectivenessMeasuring Program Effectiveness

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Establishing a PR PlanEstablishing a PR Plan

Determining and Evaluating Public AttitudesDetermining and Evaluating Public Attitudes

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Establishing a PR PlanEstablishing a PR Plan

Determining and Evaluating Public AttitudesDetermining and Evaluating 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

Serves as an “early warning system”

Provides input for the planning processProvides input for

the planning process

Research on Public Attitudes

Increases communications

effectiveness

Increases communications

effectiveness

Determining Public Relations Audiences

The MediaThe Media

GovernmentsGovernments

Financial GroupsFinancial GroupsThe MediaThe Media

GovernmentsGovernments

External or IndependentExternal or Independent

EducatorsEducators

Civic and Business Organizations

EducatorsEducators

Civic and Business Organizations

Customers and Clients

Employees of the Firm

Vendors and Suppliers

Community Members

Stockholders and Investors

Customers and Clients

Employees of the Firm

Vendors and Suppliers

Community Members

Internal or AssociatedInternal or Associated

Implementing the PR Program

Press Releases

Community Involvement Community Involvement

Press Conferences

ExclusivesExclusives

Interviews Interviews

The Internet The Internet

PR ToolsPR Tools

Press Releases

Community Involvement Community Involvement

Press Conferences

ExclusivesExclusives The Internet The Internet

CredibilityCredibility

Lead Generation

Cost SavingsCost Savings

Avoidance of Clutter

Image Building Image Building

SelectivitySelectivitySelectivitySelectivity

Lead Generation

Avoidance of Clutter

Cost SavingsCost Savings

Advantages of Public Relations

PRProvides

General Mills Capitalizes on Positive Publicity

Positive articles over

Negative articles over

Positive articles over

Over timeOver timeOn the target

audience

On the target

audience

On specific target

audiences

On specific target

audiences

SubjectSubject Publica-tion

Publica-tion ReporterReporter Target

audienceTarget

audience

Over timeOver timeOn the target

audience

On the target

audience

On specific target

audiences

On specific target

audiences

SubjectSubject Publica-tion

Publica-tion ReporterReporter

Criteria for Measuring PR Effectiveness

Percentage of positive and

negative articles by . . .

Percentage of positive and

negative articles by . . .

Ratio of positive to negative

articles

Ratio of positive to negative

articles

Percentage of . . Percentage of . .

Total number of impressions . . .Total number of impressions . . .

Benefits of Marketing Public Relations (MPR)

Difficult to tie in slogans or other advertising devices

No standards for effective measurement

Lack of control over mediaLack of control over media

Media time and space aren’t guaranteed

A cost-effective way to reach the market

A highly targeted way to conduct public relations

Endorsements by independent third parties

Achievement of credibilityAchievement of credibility

Makes advertising messages more credible

Breaks though the clutterBreaks though the clutter

Circumvents resistance to sales efforts

AdvantagesAdvantages DisadvantagesDisadvantages

Difficult to tie in slogans or other advertising devices

Lack of control over mediaLack of control over media

Media time and space aren’t guaranteed

A cost-effective way to reach the market

A highly targeted way to conduct public relations

Endorsements by independent third parties

Achievement of credibilityAchievement of credibility

Makes advertising messages more credible

Breaks though the clutterBreaks though the clutter

Circumvents resistance to sales efforts

Circumvents resistance to sales efforts Improved ROIImproved ROIImproved ROIImproved ROI

Creates influence among opinion leaders

Improved media involvement w/customers

PR in India

• Challenges

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

Part of the PR ProcessPart of the PR Process

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

Part of the PR ProcessPart of the PR Process

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

Publicity

PUBLICITY

• PUBLICITY is any communication about an organization, its products, or policies through the media not paid for by the organization.

• TYPES:– Good Publicity– Bad Publicity

• THREE MEANS – Prepare & distribute a story– Personal communication with a group– One-on-one personal communication (Lobbying)

Advertising Versus Publicity

AdvertisingAdvertising PublicityPublicity

TentativeTentative

LowLow

Low/Unspecified Low/Unspecified

Uncontrollable Uncontrollable

GreatGreat

LowerLower

Measurable Measurable

SchedulableSchedulable

High/Specific High/Specific

HighHigh

SpecifiableSpecifiable

UndeterminedUndetermined

HigherHigher

LittleLittle

FactorFactor

ControlControl

ReachReach

FrequencyFrequency

CostCost

FlexibilityFlexibility

TimingTiming

India's biggest sporting extravaganza, IPL, gets off to a cracking start

InterviewsInterviewsInterviews Interviews

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

PressConferences

NewsReleases

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

NewsReleases

Publicity Vehicles

PublicityVehiclesPublicityVehicles

Coca-Cola in India: Controversy and Comeback

Controversy• In 2003, Coca-cola was accused for

alleged impurities in their drinks.• Found elevated pesticide levels in

carbonated drinks made by Coca-Cola.

Results of Controversy

• Several states banned the drinks from government canteens and schools.

• Immediate 10 per cent plunge in sales.

Suppose you are the brand manager for Coca Cola India, what will you do in such situation

How did Coca-Cola Tackle withTarnished Consumer Trust?

• Carefully-worded statements by industry experts in support of the Coca-Cola.

• Assurance by senior scientists.

• Intensive communication and engagement strategy.

• Use of Aamir Khan and Smriti Irani to regain faith of Indian consumers

• Guided tours of its manufacturing facilities to showcase its commitment to quality

Cadbury manages a crisis with IMC

Inaccuracy, omission, or distortion may

result

Inaccuracy, omission, or distortion may

result

Timing difficult or impossible to control

Timing difficult or impossible to controlSubstantial credibilitySubstantial credibility

News valueNews value

Significant word-of-mouth

Perception of endorsement by

Advantages and Disadvantages of Publicity

Timing difficult or impossible to control

Timing difficult or impossible to controlSubstantial credibilitySubstantial credibility

News valueNews value

Significant word-of-mouth

Perception of endorsement by

Image enhancement

Assuming a position on an issue or cause

Image enhancement

Assuming a position on an issue or cause

Corporate Advertising

An extension of the PR function

Promotes the organizationPromotes the organization

Does not promote a specific product or service

An extension of the PR function

Does not promote a specific product or service

Seeks involvement

ADITYA BIRLA

• Corporate Ad

Corporate advertising Is a waste of money

Consumers aren’t interested in this

form of advertising

The firm’s finances or image must be in

trouble

This is a costly form of corporate self-

indulgence

This is a costly form of corporate self-

indulgence

Why Is Corporate Advertising Controversial?

Claims of Opponents to

Corporate advertising Is a waste of money

form of advertising

trouble

Create a positive image for the

Smooth labor relations

Communicate the

organization’s viewpoint

Communicate the

Boost employee morale

Establish diversified company’s

identity

Establish diversified company’s

identity

Help newly deregulated industries

Smooth labor relations

Boost employee morale

Communicate the

Create a positive image for the

Objectives of Corporate Advertising

ObjectivesObjectives

Positioning AdsPositioning Ads

SponsorshipSponsorship

RecruitmentRecruitment

General Image AdsGeneral Image Ads

Financial SupportFinancial Support

General Image AdsGeneral Image Ads

Positioning AdsPositioning Ads

SponsorshipSponsorship

RecruitmentRecruitment

Types of Corporate Advertising

Image Advertising

Event Sponsorship

Advocacy AdvertisingAdvocacy

Advertising

Cause-related Advertising

Grant Thornton Uses Advertising for Employee Recruitment

SportingEvents

Music, Entertainment

CausesCauses FestivalsFestivals

Cultural EventsCultural Events ArtsArts

SportingEvents

Music, Entertainment

CausesCauses FestivalsFestivals

Cultural EventsCultural Events

Event Sponsorship

Corporate SponsorCorporate Sponsor

IPL SPONSOR

• DLF IPL

Advocacy Advertising

Advocacy advertising:is the propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor.

An American Gas Association Advocacy Ad

Cause Related Marketing

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

RELIANCE FOUNDATION & SATYAMEVA JAYATE

Raises questions of constitutionality and

ethics

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

May have questionable effectiveness

Reaches a selected target market

public relations

Excellent vehicle for positioning the firm

Advantages and Disadvantages of Corporate Advertising

Relating to Stock PricesRelating to Stock Prices

Attitude SurveysAttitude Surveys

Relating to Stock PricesRelating to Stock Prices

Attitude SurveysAttitude Surveys

Measuring Corporate Advertising Effectiveness

Focus Group ResearchFocus Group Research

Effective?Effective?

Hometask- Next week

• Wednesday - Plan events to gain publicity. Mention the brief of an event along with the allocated budget and month-wise schedule (1 crore)

Hometask – Next Week

• Thursday - How will you measure the results of the different campaigns and media

• Friday – Final submission

lecture 22(public relations)

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