Public Relations Strategies and Tactics Tenth Edition Dennis L. Wilcox Glen T. Cameron This 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. Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Public Relations Departments and Firms Chapter 4 Public Relations Departments and Firms Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Chapter 4 Objectives Understand the role and functions of a public relations department Be more knowledgeable about the staff function of public relations Understand the structure of a public relations firm and its various activities Know the difference between working in a department and working in a firm Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Public Relations Departments BEFORE: primary objectives were promotion and publicity NOW: complex and dynamic process of negotiation and compromise with a number of key publics Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Corporate Structure Shapes the Public Relations Role The role of public relations in an organization often depends on The type of organization The perceptions of top management The capabilities of the public relations executive The differences between large and complex organizations and small-scale organizations Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Having Influence is Based on Four Factors Perception of value by top management Practitioners taking on the managerial role Reporting to the CEO Years of professional experience Instructor notes: According to Julie O'Neil, Texas Christian University – research on sources influencing corporate PR practitioners Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Organization of Departments Instructor notes: Figure 4.1 IBM’s Organization Chart – Example of how a large, global corporation (with several hundred employees) would be organized Shows the integration of global marketing and communications under senior vice president Jon Iwata – 13 divisions Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Organization of Departments Cont… Majority of companies are smaller and employ fewer staff in public relations area PRSA and Bacon’s Information, Inc. study of the number of individuals employed in public relations departments found 13% had departments with 10 employees 45% had departments with 2-5 employees The issue of decentralization of public relations employees Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Public Relations as Staff Functions Traditional management theory divides an organization into line and staff functions Line managers Can delegate authority Set production goals Hire employees Directly influence the work of others Staff Have little or no direct authority Indirectly influence the work through suggestions, recommendations, and advice Although public relations departments can function only with the approval of top management, there are varying levels of influence that departments may exert Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Levels of Influence Concurring Authority Compulsory-Advisory Advisory Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Cooperation with Other Staff Functions Ideally, public relations is part of managerial subsystem and contributing to organizational strategy Other staff functions are required in the communication process with internal and external publics Requires cooperation to avoid possible friction with Legal Human resources Advertising Marketing Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

The Trend Toward Outsourcing Fortune 500 companies now spend 25% of public relations budgets on outside firms Companies of all sizes spend more than 40% of their public relations budget on services from outside firms Brings expertise and resources that cannot be found internally The most frequently outsourced activities are Writing and communications Media relations Publicity Strategy and planning Event planning Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Public Relations Firms Predicted to grow as more countries adopt free-market economies and Internet applications continue to expand Services Marketing communications Executive speech training Research and evaluation Crisis communication Media analysis Community relations Events management Public affairs Branding and corporate reputation Financial relations Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Global Reach Most major public relations firms generate substantial revenues from international clients International work isn’t only for large firms Small and medium-sized firms around the world have formed working partnerships with each other to serve client needs Firms form affiliations and cooperate with each other to service clients with international needs Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

The Rise of Communication Conglomerates 60% of the global business in public relations is conducted by firms owned by holding companies Three major holding companies Omnicom WPP Group Interpublic Group Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

How Public Relations Firms Get Business Organizations will hire public relations firms For supplemental staffing Help with special projects Specific expertise Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Pros and Cons of Using a Public Relations Firm Objectivity Variety of skills/expertise Extensive resources International jobs Offices throughout the country Special problem-solving skills Credibility CONS Superficial grasp of a client’s unique problems Lack of full-time commitment Need for prolonged briefing period Resentment by internal staff Need for strong direction by top management Need for full information and confidence Costs Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.

Fees and Charges A public relations firm charges for its services in several ways Basic hourly fee, plus out-of-pocket expenses Retainer fee Fixed project fee Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved.