chapter17a
DESCRIPTION
TRANSCRIPT
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Public Relations, Publicity, and Corporate
Advertising
.
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Public Relations Defined
A management functionA management function
evaluates public attitudesevaluates public attitudeswhich
identifies the policies and proceduresidentifies the policies and proceduresand
an organization with the public interestan organization with the public interestof
executes a program of action (and communication)executes a program of action (and communication)and
earn public understanding and acceptanceearn public understanding and acceptanceto
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Public Relations Management Process
Identification of policies and procedures
Identification of policies and procedures
Determination and evaluation of public
attitudes
Determination and evaluation of public
attitudes
Development and execution of the
program
Development and execution of the
program
PRPR
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Traditional PR Perspective
CustomersCustomers
EmployeesEmployees
InvestorsInvestors
GovernmentGovernment
CommunityCommunity
SuppliersSuppliers
Public Relations
Department
Public Relations
Department
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Integration of PR into the Promotional Mix
MarketingDepartment
PublicRelations
Separate Functions
MarketingDepartment
PublicRelations
Coordinated and Equal
MarketingDepartment
PublicRelations
Integrated
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Marketing Public Relations Functions
Building market excitement before media ads break
Creating news where there is no news
Introducing a product with little or no advertising
Providing a value-added customer service
Building brand-to-customer bonds
Influencing influentials, giving info to opinion leaders
Improving ROI
Defending products at risk, giving consumers reasons to buy
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MPR in Practice
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Benefits of MPR
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
Advantages
Improved ROI
Creates influence among opinion leaders
Improved media involvement w/customers
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Benefits of MPR
Difficult to tie in slogans or other advertising devices
No standards for effective measurement
Lack of control over media
Media time and space aren’t guaranteed
Disadvantages
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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
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Research on 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
Secures internal cooperation, support
Increases communications
effectiveness
Increases communications
effectiveness
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Determining Public Relations Audiences
Customers and Clients
Employees
Vendors and Suppliers
Community Members
Stockholders and Investors
Internal or AssociatedInternal or Associated
The Media
Governments
Financial Groups
External or IndependentExternal or
Independent
Educators
Civic and Business Organizations
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Communicating With Target Audiences
Bulletin boards
Direct mail
Annual reports
Newsletters
Internal or AssociatedInternal or Associated
Press releases
Conferences
External or IndependentExternal or
Independent
Public relations ads
Research reports
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The Media Also Engages in Public Relations
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Implementing the PR Program
Press Releases
Press Releases
Community Involvement Community Involvement
Press Conferences
Press Conferences
ExclusivesExclusives
Interviews Interviews
The Internet
The Internet
PR ToolsPR Tools
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Special Olympics Torch Run
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The Internet as a PR Tool
Allows much more substantial information to be presented
Provides the media with instant access to additional sources of information
Allows information to be presented quickly
The Internet…
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Advantages of Public Relations
CredibilityCredibility
Lead Generation
Lead Generation
Cost Savings
Cost Savings
Avoidance of Clutter
Avoidance of Clutter
Image Building Image Building
SelectivitySelectivity
PRProvides
PRProvides
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Potential Problems of Public Relations
PotentialProblemsPotentialProblems
Potential for incomplete communication process
Receiver not making connection to the source
Lack of coordination with marketing dept.
Inconsistent, redundant communications
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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 the participants in American Idol in Old Navy ads
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General Mills Capitalizes on Publicity
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Measuring PR Effectiveness
Contributions made?
What was achieved?
Quantitative measures?
Quality?
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Criteria for Measuring PR Effectiveness
Subject
Publication
Reporter
Targetaudience
Percentage of positive and
negative articles by . . .
Over time
On the target audience
On specific target audiences
Number of impressions . . .
Ratio of positive to negative articles
Positive articles over time
Negative articles over time
Percentage of . .
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Additional Measures of PR Effectiveness
Personal observation and reaction
Matching objectives and results
The team approach
Management by objectives
Public opinions and surveys
Audits
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Publicity versus Public Relations
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
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A Response to Negative Publicity
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Pros and Cons of Publicity
Substantial credibility
News value
Significant word-of-mouth
Perception of endorsement by
media
Advantages
Inaccuracy, omission, or distortion may
result
Timing difficult or impossible to control
Disadvantages
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Corporate Advertising
An extension of the PR function
An extension of the PR function
Promotes the organizationPromotes the organization
Does not promote a specific product or service
Does not promote a specific product or service
Image enhancement
Assuming a position on an issue or cause
Seeks involvement
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Why is Corporate Advertising Controversial?
Claims of Opponents to
Corporate Advertising
Claims of Opponents to
Corporate Advertising
Consumers aren’t interested in this form of
advertising
Corporate advertising is a waste of money
The firm’s finances or image must be in trouble
This is a costly form of corporate self-
indulgence
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Objectives of Corporate Advertising
Create a positive image for the
firm
Create a positive image for the
firm
Smooth labor relations
Smooth labor relations
Communicate the
organization’s viewpoint
Communicate the
organization’s viewpoint
Boost employee
morale
Boost employee
morale
Establish diversified company identity
Establish diversified company identity
Help newly deregulated industries
Help newly deregulated industries
ObjectivesObjectives
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Types of Corporate Advertising
Positioning AdsPositioning Ads
SponsorshipSponsorship
RecruitmentRecruitment
General Image AdsGeneral Image Ads
Financial SupportFinancial Support
Image Advertising
Image Advertising
Event Sponsorship
Event Sponsorship
Advocacy AdvertisingAdvocacy
Advertising
Cause-related Advertising
Cause-related Advertising
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Boeing Advertises to Enhance Its Image
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Employee Recruitment by Grant Thornton
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Event Sponsorship
SportingEvents
SportingEvents
Music, Entertainme
nt
Music, Entertainme
nt
CausesCauses FestivalsFestivals
Cultural EventsCultural Events ArtsArts
Corporate SponsorCorporate Sponsor
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Advocacy Advertising
Advocacy advertising:
The propagation of ideas andelucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor.
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American Gas Association Advocacy Ad
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Cause Related Marketing
Cause related marketing:
A form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.
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Pros and Cons of Corporate Advertising
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
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Measuring Corporate Ad Effectiveness
Relating to Stock PricesRelating to Stock Prices
Attitude SurveysAttitude Surveys
Focus Group ResearchFocus Group Research
Effective?Effective?