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Copyright 2015 McGraw-Hill Education. All rightsreserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
CHAPTER 17
Public Relations,Publicity, and
CorporateAdvertising
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Public Relations (PR)
Evaluates public attitudes
Identifies the policies and procedures of an
organization with the public interest
Executes a program of action to earn public
understanding and acceptance
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Role of PR
Traditional role
Maintain mutually
beneficialrelationships between
the organization and
its publics
Act as a managementcommunications
function
New role
Work together with
the marketingdepartment
Contribute to the IMC
process in a way that
is consistent withmarketing goals
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Marketing Public Relations (MPR)
Build market excitement before media ads break
Create ad news where there is no product news
Introduce a product with little or no advertising
Provide a value-added customer service
Build brand-to-customer bonds
Influence the influentials
Improve ROI
Defend products at risk, give consumers reason to buy
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Advantages of MPRs
A cost-effective way toreach the market
Highly targeted way toconduct public relations
Endorsements byindependent third parties
Achievement of credibility
Makes advertisingmessages more credible
Breaks though the clutter
Circumvents resistance tosales efforts
Improved ROI
Creates influence amongopinion leaders
Improved mediainvolvement w/customers
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Disadvantages of MPRs
Difficult to tie in slogans or otheradvertising devices
No standards for effectivemeasurement
Lack of control over media
Media time and space arentguaranteed
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Determining and Evaluating Public
Attitudes Reasons
Provides input into the planning process
Serves as an early warning system
Secures support internally
Increases the effectiveness of the communication
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Steps to Develop a PR Plan
Define public relations problems
Plan and program
Take action and communicate
Evaluate the program
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Types of Target Audiences
Internal audiences
People who are connected to
a firm with whom the firm
communicates on a routinebasis
Employees
Stockholders
Investors
Members of the local
community
Suppliers
Current customers
External audiences
People who are not closely
connected with the
organization Media
Educators
Civic and business
organizations
Governments
Financial groups
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Tools Used for Implementing the PR Program
Press Releases
CommunityInvolvement
PressConferences
Exclusives
Interviews
The Internet
PR Tools
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Advantages of PR
Credibility
Lead Generation
Cost Savings
Avoidance of
Clutter
Image Building
Selectivity
PR
Provides
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Disadvantages of PR
Potential
Problems
Potential for incompletecommunication process
Receiver not making
connection to the source
Lack of coordination with
marketing dept.
Inconsistent, redundant
communications
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Publicity
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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Video News Release (VNR)
Publicity piece produced by publicists so that
stations can air it as a news story
Used by marketers to have control over the time
and place where information is released
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Pros and Cons of Publicity
Substantial credibility
News value
Significant word-of-mouth
Perception of mediaendorsement
Advantages
Inaccuracy, omission, ordistortionmay result
Timing difficult orimpossible to control
Disadvantages
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Corporate Advertising
An extension of the PRfunction
Promotes the organization
Does not promote a specific
product or service
Image
enhancement
Assuming a position
on an issue or cause
Seeks
involvement
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Reasons for Corporate Advertising
Being Controversial
Consumers are not interested
Costly form of self-indulgence
Belief that the firm must be in trouble
Perceived as a waste of money
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Objectives of Corporate Advertising
Create a positive
image for the
firm
Smooth labor
relations
Communicate
the
organizations
viewpoint
Boost
employeemorale
Establish
diversified
company
identity
Help newly
deregulatedindustries
Objectives
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Types of Corporate Advertising
Positioning Ads
Sponsorships
Recruitment
General Image Ads
Financial Support
ImageAdvertising
Event
Sponsorship
Advocacy
Advertising
Cause-related
Advertising
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Advantages and Disadvantages of
Corporate Advertising
Raises questions ofconstitutionality and
ethics
May have questionableeffectiveness
Excellent vehicle forpositioning the firm
Takes advantage ofbenefits derived from
public relations
Reaches a selectedtarget market
Advantages Disadvantages