15-1 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chapter 15 Public relations

15-2 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Learning objectives 1.To recognise the roles of public relations, publicity and corporate advertising in the integrated marketing communication mix. 2.To know the difference between public relations and publicity and demonstrate the advantages and disadvantages of each. 3.To understand the reasons for corporate advertising and its advantages and disadvantages. 4.To know the methods for measuring the effects of public relations, publicity and corporate advertising.

15-3 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Processes News Value Marketing PR Publics Media choices Sponsorship Publicity Integration Public relations Corporate advertising Advocacy advertising Image advertising Non-marketing PR Planning and evaluation

15-4 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell A media storm

15-5 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Public relations defined Public relations is the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organisation (or individual) and its (or their) publics. It is a management function which evaluates public attitudes, identifies the policies and procedures of an individual or an organisation with the public interest, and plans and executes a program of action to earn public understanding and acceptance. Public Relations Institute of Australia Public relations is the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organisation (or individual) and its (or their) publics. It is a management function which evaluates public attitudes, identifies the policies and procedures of an individual or an organisation with the public interest, and plans and executes a program of action to earn public understanding and acceptance. Public Relations Institute of Australia

15-6 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell PR as a planned process Preplanning Determine and evaluate public attitudes Preplanning Determine and evaluate public attitudes Planning Identify policies and procedures of an individual or organisation with a public interest Planning Identify policies and procedures of an individual or organisation with a public interest Implementation Develop and execute an action program designed to bring about public understanding and acceptance Implementation Develop and execute an action program designed to bring about public understanding and acceptance

15-7 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Marketing public relations (MPR) functions Building marketplace excitement before media advertising breaks Creating advertising news where there is no product news Introducing a product with little or no advertising Providing a value-added customer service Building brand-to-customer bonds Influencing influentials, providing information to opinion leaders Improving ROI Defending products at risk, giving consumers a reason to buy

15-8 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Firestone

15-9 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Research on public attitudes Provides input for the planning process Serves as an 'early warning system' Secures internal cooperation, support Increases communications effectiveness

15-10 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Determining public attitudes Environmental scanning Communications from customers Market intelligence Media monitoring services Market research Techniques

15-11 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Determining public relations audiences The Media Governments Financial groups The media Governments External or independent Educators Civic and business organisations Customers and Clients Employees of the Firm Vendors and Suppliers Community Members Stockholders and Investors Shareholders and investors Customers and clients Employees of the company Suppliers Community members Internal or associated

15-12 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Evaluating the PR plan

15-13 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Internal communications

15-14 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Corporate communications

15-15 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Corporate advertising

15-16 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Implementing the PR program: tools Media releases Media conferences Exclusives Interviews The internet PR tools Community involvement

15-17 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell The media release

15-18 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Westpac supports Surf Lifesaving

15-19 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Westpac takes advantage of the internet

15-20 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Benefits of marketing public relations (MPR) Media time and space are not guaranteed Measurement problems Lack of control over media Difficulty coordinating messages Credibility Cost efficiency Clutter avoidance Lead generation Selectivity Image building AdvantagesDisadvantages

15-21 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Why evaluate PR? Provides management with information about what has been achieved through public relations activities. Provides management with a way to measure public relations achievements quantitatively. Allows managers a means to judge the quality of public relations achievements and activities.

15-22 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Three levels of evaluation Measure audience reception and understanding of message Measure perceptual and behavioural change Measure actual PR activities undertaken Advanced Intermediate Basic

15-23 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Processes News Value Marketing PR Publics Media choices Sponsorship Publicity Integration Public relations Corporate advertising Advocacy advertising Image advertising Non-marketing PR Planning and evaluation

15-24 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Publicity May be out of the marketer’s control A subset of the PR process The generation of news about a person, product or service that appears in the media.

15-25 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Odwalla assures customers of quality

15-26 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell A response to negative publicity

15-27 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Advantages and disadvantages of publicity Inaccuracy, omission or distortion may result Timing difficult or impossible to control Substantial credibility News value Significant word-of-mouth Perception of endorsement by media Advantages Disadvantages

15-28 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Processes News Value Marketing PR Publics Media choices Sponsorship Publicity Integration Public relations Corporate advertising Advocacy advertising Image advertising Non-marketing PR Planning and evaluation

15-29 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Corporate advertising Image enhancement Assuming a position on an issue or cause An extension of the PR function Promotes the organisation Does not promote a specific product or service An extension of the PR function Does not promote a specific product or service Seeks involvement

15-30 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Types of corporate advertising Positioning ads Sponsorship Recruitment General image ads Financial support Image advertising Event sponsorship Advocacy advertising Cause-related advertising

15-31 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Shell promotes its innovation

15-32 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Sponsorship Sporting events Sporting events Music, entertainment Causes Festivals Cultural events Arts Corporate sponsor

15-33 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Advocacy advertising 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.

15-34 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Advocacy advertising (cont.)

15-35 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Cause-related marketing Cause-related marketing: is a form of marketing whereby companies link with charities or non- profit organisations as contributing sponsors.

15-36 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Avon supports a cause

15-37 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Advantages and disadvantages 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

15-38 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measuring corporate advertising effectiveness Studies relating to corporate advertising and share prices Attitude surveys Focus group research Measurement methods

15-39 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Summary and conclusions  Public relations has both marketing and non-marketing roles.  Many large companies engage external PR consultants to manage their PR activities.  Marketers must develop programs to manage positive and negative public attitudes.  Important tools include media relations, publicity, sponsorship, corporate advertising, advocacy and cause-related marketing.  A systematic approach to PR management includes identifying problems, planning programs and evaluating programs.