wilcox ppt chapter04

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Public RelationsStrategies and TacticsTenth EditionDennis L. WilcoxGlen T. CameronThis multimedia product and its contents are protected under copyright law. The following are prohibited by law: any public performance or display, including transmission of any image over a network; preparation of any derivative work, including the extraction, in whole or in part, of any images; any rental, lease, or lending of the program.



Chapter 4Public Relations Departments and Firms



Chapter 4 ObjectivesUnderstand the role and functions of a public relations departmentBe more knowledgeable about the staff function of public relationsUnderstand the structure of a public relations firm and its various activitiesKnow the difference between working in a department and working in a firm



BEFORE: primary objectives were promotion and publicityNOW: complex and dynamic process of negotiation and compromise with a number of key publicsPublic Relations Departments



Corporate Structure Shapes the Public Relations RoleThe role of public relations in an organization often depends on The type of organizationThe perceptions of top managementThe capabilities of the public relations executiveThe differences between large and complex organizations and small-scale organizations



Having Influence is Based on Four FactorsPerception of value by top managementPractitioners taking on the managerial roleReporting to the CEOYears of professional experience



Organization of Departments



Organization of Departments ContMajority of companies are smaller and employ fewer staff in public relations areaPRSA and Bacons Information, Inc. study of the number of individuals employed in public relations departments found 13% had departments with 10 employees45% had departments with 2-5 employeesThe issue of decentralization of public relations employees



Public Relations as Staff FunctionsTraditional management theory divides an organization into line and staff functionsLine managers Can delegate authoritySet production goalsHire employeesDirectly influence the work of othersStaff Have little or no direct authorityIndirectly influence the work through suggestions, recommendations, and adviceAlthough public relations departments can function only with the approval of top management, there are varying levels of influence that departments may exert



Levels of InfluenceAdvisoryCompulsory-AdvisoryConcurring Authority



Cooperation with Other Staff FunctionsIdeally, public relations is part of managerial subsystem and contributing to organizational strategyOther staff functions are required in the communication process with internal and external publics Requires cooperation to avoid possible friction withLegalHuman resourcesAdvertisingMarketing



The Trend Toward OutsourcingFortune 500 companies now spend 25% of public relations budgets on outside firmsCompanies of all sizes spend more than 40% of their public relations budget on services from outside firmsBrings expertise and resources that cannot be found internallyThe most frequently outsourced activities areWriting and communicationsMedia relationsPublicityStrategy and planningEvent planning



Public Relations FirmsPredicted to grow as more countries adopt free-market economies and Internet applications continue to expandServicesMarketing communications Executive speech training Research and evaluation Crisis communication Media analysis Community relationsEvents managementPublic affairsBranding and corporate reputation Financial relations



Global ReachMost major public relations firms generate substantial revenues from international clientsInternational work isnt only for large firmsSmall and medium-sized firms around the world have formed working partnerships with each other to serve client needsFirms form affiliations and cooperate with each other to service clients with international needs



The Rise of Communication Conglomerates60% of the global business in public relations is conducted by firms owned by holding companiesThree major holding companiesOmnicomWPP GroupInterpublic Group



How Public Relations Firms Get BusinessOrganizations will hire public relations firmsFor supplemental staffingHelp with special projectsSpecific expertise



Pros and Cons of Using a Public Relations FirmPROSObjectivityVariety of skills/expertiseExtensive resourcesInternational jobsOffices throughout the countrySpecial problem-solving skillsCredibility

CONSSuperficial grasp of a clients unique problemsLack of full-time commitmentNeed for prolonged briefing periodResentment by internal staffNeed for strong direction by top managementNeed for full information and confidenceCosts



Fees and ChargesA public relations firm charges for its services in several waysBasic hourly fee, plus out-of-pocket expensesRetainer feeFixed project fee


***Instructor notes:According to Julie O'Neil, Texas Christian University research on sources influencing corporate PR practitioners *Instructor notes:Figure 4.1 IBMs Organization Chart Example of how a large, global corporation (with several hundred employees) would be organizedShows the integration of global marketing and communications under senior vice president Jon Iwata 13 divisions

wilcox ppt chapter04

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