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Chapter 13 Public Relations

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Page 1: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13

Public Relations

Page 2: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Chapter Objectives

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

• To understand public relations and its strength and limitations

• To understand the reasons for corporate advertising and its advantage and disadvantage

Page 3: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Chapter Objectives

• To know how to compile a public relations plan

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

Page 4: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Public Relations

• Traditional Definition of PR

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.

( Definition by the Public Relation News)

Page 5: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Public Relations

• Required stages in PR1. The determination and evaluation of public attitudes

2. The identification of policies and procedures of an organization with a public interest

3. The development and execution of a communications program designed to bring about public understanding and acceptance

Page 6: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

The New Role of PR

• It demonstrates four relationships that marketing and public relations can assume in an organization

• Defined by the degree of use of each function– 4 different classes

Page 7: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Four Classes of Marketing and Public Relations

• Class 1– Relationships are characterized by minimal use of

either function

• Class 2– Relationships have a well-established public relation

functions but do very little in the way of formal marketing

Page 8: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Four Classes of Marketing and Public Relations

• Class 3– Organizations, in which marketing dominates and public

relation function is minimal

• Class 4– Enterprises have both strong marketing and strong PR

Page 9: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

The New Role of PR

M

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PUBLIC RELATIONS

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eak

StrongWeak

Example:

Small social service agencies

Example:

Hospitals, colleges and universities

Example:

Small manufacturing companies

Example:

Large, Fortune five-hundred companies

Page 10: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

The New Role of PR

• PR departments position themselves as– a tool to both supplant and support traditional

advertising and marketing efforts– a key part of IMC program

• PR must play an integral role in IMC program

Page 11: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Publicity: One Effect of Public Relations

• Publicity– It refers to the generation of news about a person,

product,service, or organization that appears in broad cast or print media

In some instances…• Publicity and PR are synonymous. (I.e. Tree Top‘s respond to

an adverse publicity)

• Publicity is the end result or effect of PR effort

Page 12: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Publicity: One Effect of Public Relations

• Marketers like to have controls over the time and place where information is released

• They accomplish this by…– Video news release (VNR)

• A Publicity piece produced by publicists

– The effective media use for product launches

Page 13: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Publicity: One Effect of Public Relations

• Publicity complications– The publicity typically lasts for a short time

– The publicity is not always positive and is not always under the control of, or paid for by, the organizations

– Publicity’s sheer power as a form of communication

(I.e. Tylenol, and Johnson & Johnson)

Page 14: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Strength of Public Relations

• Credibility– The public does not realize the organization paid for

public relations

• Cost– In both absolute and relative terms, the cost of public

relations is very low

Page 15: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Strength of Public Relations

• Avoidance of clutter– They are typically perceived as news, PR messages

are not subject to the clutter of ads

• Lead generation– Inquiries generated by Information about technological

innovations, and like may give the firms some quality sales leads

Page 16: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Strength of Public Relations

• Ability to reach specific groups– It can reach small market segments with relatively low

costs

• Image building– Effective PR can helps to develop positive image for

the organization

Page 17: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Limitations of Public Relations

• Weaker brand or corporate identification effect– The major disadvantage of PR is the potential for not

completing the communication process

• Inconsistent message

Page 18: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Limitations of Public Relations

• Timing– It is hard to control a timing of publicity

• Accuracy– Information sometimes gets lost in transaction – it is not

always reported the way the provider wishes it to be

Page 19: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Public Relation Plan

• PR is an ongoing process requiring formalized policies and procedures for dealing with problems and opportunities.

1. Situation analysis2. Determine Relevant Target Audiences3. Behavioral objectives4. Communication objectives5. Strategy6. Tactics

Page 20: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Situation Analysis

1. It provides input into the planning process.

2. It serves as an early warning system.

3. It secures support internally.

4. It increases the effectiveness of the communication

Page 21: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Determine Relevant Target Audiences

Internal Audiences

• Employees of the firm• Stockholders and investors• Community members• Suppliers and customers

Page 22: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Determine Relevant Target Audiences

External audiences

• The Media• Educators• Civic and business organizations• Governments• Financial groups

Page 23: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Behavioral Objectives

• Trial purchase

• Repeat purchase

• Purchase-related action

• Consumption

Page 24: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Communication Objectives

• Category need

• Brand awareness

• Brand attitude

• Purchase intention

• Purchase facilitation

Page 25: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Strategy

• Focus of the message– Marketing public relations – public relations activities

designed to support marketing objectives

– A major threat of marketing public relations is that it may lead to public relations becoming subservient to marketing

• Creative of the Message

Page 26: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Strategy

• Marketing public relations can be used effectively in following ways

– Building marketplace excitement before media advertising breaks

– Creating advertising news where there is no product news

– Introducing a product with little or no advertising

Page 27: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Strategy

• Influencing the influential– providing information to opinion leaders.

• Defending products at risk with a message of reassurance

• Constructively promoting a product

Page 28: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Criteria for Measuring PR Effectiveness

• Total number of impressions . . .– Over time– On the target audience– On specific target audiences

• Percentage of . . .– Positive articles over time– Negative articles over time

Page 29: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Criteria for Measuring PR Effectiveness

• Ratio of positive to negative articles

• Percentage of positive and negative articles by ... – Subject– Publication– Reporter– Target audience

Page 30: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Tactics

• The tactic of public relations partly depend on they type of media or dissemination tool used

Page 31: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Public Relations StrategyNews Media Options

• The press release– Information must be factual, true, and interest to the

medium as well as its audience.

1. Telephone press conference

2. In-studio media tours.

3. Multi-component video news release (VNR)

4. Targeted newswire stories

Page 32: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Public Relations StrategyNews Media Options

• Press conferences– The topic must be a major interest to a specific group

• Exclusives– To offer one particular medium exclusive right to the

story if the medium reaches a substantial number of target customers

Page 33: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Public Relations Strategy News Media Options

• Interviews

• Community involvement– Membership in local organizations– Contributions to or participation in community events

Page 34: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Strength of News Media Options

• News media messages are highly credible• Consumers perceive this information more objective

• Endorsement• Publicity information may be perceived as endorsed

by the medium

• Frequency potential• The frequency of exposure it generates

Page 35: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Limitations of News Media Options

• Timing• Timing of the publicity through news media is not

always completely under the control of the marketer

• Accuracy• The information contained in the press release

sometimes gets lost in translation

Page 36: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Corporate Advertising OptionsCorporate Advertising

– It designed to promote the firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something

– One of the most controversial from of advertising

Page 37: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Corporate Advertising OptionsCorporate Advertising

Why is this controversial?

• Consumers are not interested in this form of advertising.

• It’s a costly form of self-indulgence.

• The firm must be in trouble.

• Corporate advertising is a waste of money

Page 38: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Corporate Advertising Options Image Advertising

• General image or positioning ads• To create an image of firm in the public mind• It is also used when a company changes its name

• Television sponsorship• A firm often runs corporate image advertising on TV

programs or specials ( I.e. Hallmark, IBM)

Page 39: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Corporate Advertising Options Image Advertising

• Recruiting• It is designed to attract new employees

• Generating financial support• It is designed to generate investments in the

corporation• In this instance, corporate image advertising is

almost attempting to make a sale; the product is the firm

Page 40: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

To 30 Companies Based on RQ(Reputation Quotient)

Figure 13-4

Page 41: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Corporate Advertising OptionsAdvocacy Advertising

• It is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interest of the sponsor

• It adopts a position on a particular issue

• Advocacy Advertising has been creasing

Page 42: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Corporate Advertising OptionsCause-related Marketing

• Companies link with charities or nonprofit organizations as contributing sponsors

• 80 percent of consumers say that they have more positive impression of companies that support a cause

Page 43: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Corporate Advertising OptionsEvent Sponsorship

• Sports receive the majority of event sponsorship monies (I.e. golf, tennis, etc)

• Traditionally, tobacco,beer, and car companies have been the largest sports event sponsors

• Event marketing, contests, sampling, and sweep takers are effective promotion tools.

Page 44: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Corporate Advertising OptionsThe Internet

• Differences between traditional media and the Internet:

– The Internet offers a more limited opportunity to gain attention due to short exposure times

– It offers the opportunity to build internal links that provide the media with instant access to additional sources of information on the issue

– It offers the ability to provide much more substantial information

Page 45: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Strength of Corporate Advertising

• It is an excellent vehicle for positioning the firm

• It offers some control that the message will be disseminated

• It reaches a select target audience

Page 46: Chapter 13 Public Relations. Chapter 13 : Public Relations Chapter Objectives To recognize the role of public relations in the promotional mix To understand

Chapter 13 : Public Relations

Limitation of Corporate Advertising

• Questionable effectiveness– There is no strong evidence to support the belief that

corporate advertising works

• Constitutionality and/or ethics– Since large firms have more money, they can control

public opinion unfairly