lecture 22(public relations)
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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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
Tools
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Identification of policies and procedures
Identification of policies and procedures
Determination and evaluation of public
attitudes
Determination and evaluation of public
attitudes
Identification of policies and procedures
Identification of policies and procedures
Determination and evaluation of public
attitudes
Determination and evaluation of public
attitudes
Public Relations Management Process
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Development and execution of the
program
Development and execution of the
program
PRPR
CustomersCustomers
EmployeesEmployees
InvestorsInvestors
GovernmentGovernment
CommunityCommunity
SuppliersSuppliersSuppliersSuppliers
EmployeesEmployees
GovernmentGovernment
InvestorsInvestors
CustomersCustomers
Traditional PR Perspective
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Public Relations
Department
Public Relations
Department
Integration of PR into the IMC Process
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MarketingDepartment
PublicRelations
SeparateSeparate
MarketingDepartment
PublicRelations
CoordinatedCoordinated
MarketingDepartment
PublicRelations
IntegratedIntegrated
Marketing Public Relations (MPR) Functions
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
Secures internal cooperation, support
Secures internal cooperation, support
Secures internal cooperation, support
Serves as an “early warning system”
Serves as an “early warning system”
Provides input for the planning processProvides input for
the planning process
Research on Public Attitudes
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Increases communications
effectiveness
Increases communications
effectiveness
Determining Public Relations Audiences
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The MediaThe Media
GovernmentsGovernments
Financial GroupsFinancial GroupsThe MediaThe Media
GovernmentsGovernments
External or IndependentExternal or Independent
EducatorsEducators
Civic and Business Organizations
Civic and Business Organizations
EducatorsEducators
Civic and Business Organizations
Civic and Business Organizations
Customers and Clients
Customers and Clients
Employees of the Firm
Employees of the Firm
Vendors and Suppliers
Vendors and Suppliers
Community Members
Community Members
Stockholders and Investors
Stockholders and Investors
Stockholders and Investors
Stockholders and Investors
Customers and Clients
Customers and Clients
Employees of the Firm
Employees of the Firm
Vendors and Suppliers
Vendors and Suppliers
Community Members
Community Members
Internal or AssociatedInternal or Associated
Implementing the PR Program
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Press Releases
Press Releases
Community Involvement Community Involvement
Press Conferences
Press Conferences
ExclusivesExclusives
Interviews Interviews
The Internet The Internet
PR ToolsPR Tools
Press Releases
Press Releases
Community Involvement Community Involvement
Press Conferences
Press Conferences
ExclusivesExclusives The Internet The Internet
CredibilityCredibility
Lead Generation
Lead Generation
Cost SavingsCost Savings
Avoidance of Clutter
Avoidance of Clutter
Image Building Image Building
SelectivitySelectivitySelectivitySelectivity
Lead Generation
Lead Generation
Avoidance of Clutter
Avoidance of Clutter
Cost SavingsCost Savings
CredibilityCredibility
Advantages of Public Relations
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PRProvides
PRProvides
General Mills Capitalizes on Positive Publicity
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Positive articles over
time
Positive articles over
time
Negative articles over
time
Negative articles over
time
Negative articles over
time
Negative articles over
time
Positive articles over
time
Positive articles over
time
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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)
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Difficult to tie in slogans or other advertising devices
Difficult to tie in slogans or other advertising devices
No standards for effective measurement
No standards for effective measurement
Lack of control over mediaLack of control over media
Media time and space aren’t guaranteed
Media time and space aren’t guaranteed
A cost-effective way to reach the market
A cost-effective way to reach the market
A highly targeted way to conduct public relations
A highly targeted way to conduct public relations
Endorsements by independent third parties
Endorsements by independent third parties
Achievement of credibilityAchievement of credibility
Makes advertising messages more credible
Makes advertising messages more credible
Breaks though the clutterBreaks though the clutter
Circumvents resistance to sales efforts
Circumvents resistance to sales efforts
AdvantagesAdvantages DisadvantagesDisadvantages
Difficult to tie in slogans or other advertising devices
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
Media time and space aren’t guaranteed
A cost-effective way to reach the market
A cost-effective way to reach the market
A highly targeted way to conduct public relations
A highly targeted way to conduct public relations
Endorsements by independent third parties
Endorsements by independent third parties
Achievement of credibilityAchievement of credibility
Makes advertising messages more credible
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
Creates influence among opinion leaders
Creates influence among opinion leaders
Creates influence among opinion leaders
Improved media involvement w/customers
Improved media involvement w/customers
Improved media involvement w/customers
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
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
The Generation of News About a Person, Product, or Service That Appears in the Media
Publicity
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
CredibilityCredibility
ReachReach
FrequencyFrequency
CostCost
FlexibilityFlexibility
TimingTiming
InterviewsInterviewsInterviews Interviews
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
PressConferences
PressConferences
NewsReleases
NewsReleases
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
NewsReleases
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
Significant word-of-mouth
Perception of endorsement by
media
Perception of endorsement by
media
Advantages and Disadvantages of Publicity
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AdvantagesAdvantages DisadvantagesDisadvantages
Timing difficult or impossible to control
Timing difficult or impossible to controlSubstantial credibilitySubstantial credibility
News valueNews value
Significant word-of-mouth
Significant word-of-mouth
Perception of endorsement by
media
Perception of endorsement by
media
Image enhancement
Image enhancement
Assuming a position on an issue or cause
Assuming a position on an issue or cause
Image enhancement
Image enhancement
Assuming a position on an issue or cause
Assuming a position on an issue or cause
Corporate Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
An extension of the PR function
An extension of the PR function
Does not promote a specific product or service
Does not promote a specific product or service
Seeks involvement
Seeks involvement
ADITYA BIRLA
• Corporate Ad
Corporate advertising Is a waste of money
Corporate advertising Is a waste of money
Consumers aren’t interested in this
form of advertising
Consumers aren’t interested in this
form of advertising
The firm’s finances or image must be in
trouble
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?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Claims of Opponents to
Corporate Advertising
Claims of Opponents to
Corporate Advertising
Corporate advertising Is a waste of money
Corporate advertising Is a waste of money
Consumers aren’t interested in this
form of advertising
Consumers aren’t interested in this
form of advertising
The firm’s finances or image must be in
trouble
The firm’s finances or image must be in
trouble
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’s
identity
Establish diversified company’s
identity
Help newly deregulated industries
Help newly deregulated industries
Help newly deregulated industries
Help newly deregulated industries
Smooth labor relations
Smooth labor relations
Boost employee morale
Boost employee morale
Communicate the
organization’s viewpoint
Communicate the
organization’s viewpoint
Create a positive image for the
firm
Create a positive image for the
firm
Objectives of Corporate Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Image Advertising
Image Advertising
Event Sponsorship
Event Sponsorship
Advocacy AdvertisingAdvocacy
Advertising
Cause-related Advertising
Cause-related Advertising
Grant Thornton Uses Advertising for Employee Recruitment
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
SportingEvents
SportingEvents
Music, Entertainment
Music, Entertainment
CausesCauses FestivalsFestivals
Cultural EventsCultural Events ArtsArts
SportingEvents
SportingEvents
Music, Entertainment
Music, Entertainment
CausesCauses FestivalsFestivals
Cultural EventsCultural Events
Event Sponsorship
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Corporate SponsorCorporate Sponsor
IPL SPONSOR
• DLF IPL
Advocacy Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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.
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cause Related Marketing
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cause related marketing:is a form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.
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
May have questionable effectiveness
Excellent vehicle for positioning the firm
Excellent vehicle for positioning the firm
Takes advantage of benefits derived from
public relations
Takes advantage of benefits derived from
public relations
Reaches a selected target market
Reaches a selected target market
May have questionable effectiveness
May have questionable effectiveness
Reaches a selected target market
Reaches a selected target market
Takes advantage of benefits derived from
public relations
Takes advantage of benefits derived from
public relations
Excellent vehicle for positioning the firm
Excellent vehicle for positioning the firm
Advantages and Disadvantages of Corporate Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AdvantagesAdvantages DisadvantagesDisadvantages
Relating to Stock PricesRelating to Stock Prices
Attitude SurveysAttitude Surveys
Relating to Stock PricesRelating to Stock Prices
Attitude SurveysAttitude Surveys
Measuring Corporate Advertising Effectiveness
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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