Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Managing Public Relations Chapter19

19-2 Ch. 19: Key Learning Objectives  Examining the structure and activities of a public relations department, both domestically and globally  Designing an effective public relations strategy using new technological innovations  Evaluating strategies used by business organizations to influence public opinion  Identifying government regulatory agencies charged with protecting the public from illegal business practices  Assessing effective crisis management plans  Evaluating techniques available for employees to capably manage the organization’s media image

19-3 The General Public  An organizational stakeholder composed of individuals and groups found in society  The general public affects the firm through its opinions of the firm’s activities or performance, which in turn help shape the firm’s public image or reputation  Companies should be aware of public positions on important issues, especially since the public may not always share the same views as the firm  Similarly, the firm can affect the general public’s values, attitudes, and actions through various communication channels

19-4 Public Relations in an Emerging Digital World  An effective public relations program is fundamental to any organization’s relationship with the public  A good public relations program sends a constant stream of information from the company to the public and opens the door to dialogue with stakeholders whose lives are affected by the company’s operations  The role of the public relations department is to manage the firm’s public image and its relationship with the public  It does so through both direct communications (e.g. Web site) and indirect communications (e.g. newspapers)

19-5 Figure 19.1 Public Relations Activities

19-6 Public Relations in an Emerging Digital World  With the emergence of new technologies the variety of available channels of communication for public relations officers have grown dramatically  More and more people are finding their news, marketing, and public relations information through Internet-related vehicles  CEOs and other senior executives are some of the key participants in a new form of business communication – blogging  The Internet-based communication revolution has significantly benefited smaller businesses as well

19-7 Figure 19.2 Top CEO Bloggers and Corporate Blogs

19-8 Global Public Relations  Global businesses have extended their public relations strategies globally  When public relations take on a global perspective, new challenges emerge  Sensitivity to cultural disparities and similarities when crafting messages  Must ensure that sufficient funding is allocated globally for a positive and effective public affairs impact  All of the basic public relations tasks are more complex in an international business environment

19-9 Influencing Public Opinion  Public Service Announcements  Since 1942, the Ad Council has been the leading producer of public service announcements, addressing critical issues for generations of Americans and global citizens  The longest-running PSA in American history, introduced in 1944 and continuing today, features Smokey the Bear’s “Only you can prevent forest fires”  Modeled after the actions taken by the Ad Council, businesses have discovered that public service announcement-like advertisements are an effective means for promoting various social issues or topics that resonate with the public

19-10 Influencing Public Opinion  Image Advertisements  Used by business organizations to enhance their public image, create good will, or announce a major change such as a merger, acquisition, or new product line  These ads promote the image, or general perception, of a product or service, rather than promoting its functional attributes  The target the public’s emotions and seek to influence the consumers’ imaginations  In the 2000s, many companies touted their concern for the planet and the need for sustainability practices through image advertising

19-11 Influencing Public Opinion  Issue Advertisements  Also called advocacy advertisements, influence the public’s opinion of a political or legislative issue of concern to the company  Examples include 1970s and 1980s when Mobil Oil Company regularly placed full-page ads in most of the major newspapers in America to promote its political agenda Mid-1990s the U.S. health insurance industry attempted to thwart President Clinton’s proposed government-backed health care reform plan by introducing the country to two middle-class citizens, Harry and Louise

19-12 Protecting the Public through Government Regulation  Advertising used to promote the organization and its products must meet both ethical expectations  The Federal Trade Commission is entrusted with ensuring that honesty and fairness are found in company advertising  The FTC jurisdiction applies to advertising in any medium, including online advertising  The Federal Communications Commission, created in 1934, is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable

19-13 Crisis Management  A critical function of the public relations manager  Corporate crisis – a significant business disruption that stimulates extensive news media or social networking coverage  A crisis is any event that has the potential to negatively affect the health, reputation, or credibility of the organization  The Institute for Crisis Management breaks down corporate crises into four groups: Act of God Mechanical problems Human errors Management decision or indecision

19-14 Crisis Management  The process organizations use to respond to short-term and immediate corporate crises  An effective crisis management plan must include these steps:  Get ready before the crisis hits  Communicate quickly, but accurately  Use the Internet  Do the right thing  Follow up, and where appropriate, make amends to those affected

19-15 Media Training of Employees  Media training is necessary because communicating with the media is not the same as talking with friends and coworkers  As an organizational representative, the words one speaks take on a special, official meaning  Facial expressions, the tone of one’s voice, and body language can convey positive and negative impressions  Media communication experts generally give their clients the following advice:  Be honest, current, accessible, helpful, understanding and cool, courteous, and professional