Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. 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. Chapter 17 Corporations

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Chapter 17 Objectives Describe the role of public relations in corporations Explain how media relations contributes to the success of corporations Understand the crucial roles of the customer, the investor, and the employee in the corporate communication program Describe the main supportive functions of public relations for corporate marketing efforts Explain the environmental relations process Define corporate philanthropy and the part public relations plays in corporate giving

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Today’s Modern Corporation Global perspective Large size brings remoteness Ordinary citizens become distrustful Fewer than 3 in 10 Americans feel that most large U.S. corporations are trustworthy Arguing for realism vs. lame excuses

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. The Role of Public Relations Extensive, negative publicity about corporations require companies to make a special effort to regain public credibility Corporate social responsibility (CSR) Adopt ethical principles Pursue transparency and disclosure Make trust a fundamental precept of corporate governance

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Transparency: The Key to Corporate Reputation

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Media Relations Media are a major source of public information and perceptions about the business world and individual companies Executives are defensive about how journalists cover their business Journalists complain about the flow of information, lack of cooperation and other issues PR professionals must Interpret their companies and clients to the media Show their chief executive how open, friendly media relations can serve their interests

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Customer Relations Customer service is the front line of public relations Incident(s) can severely damage a company’s reputation and erode public trust in its products and services Corporations are realizing that customer relations serves as a public relations barometer Many public relations departments now regularly monitor customer feedback in a variety of ways to determine what policies and communication strategies need to be revised

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Customer Relations Cont… Sharing of information is valuable for getting public relations professionals involved in Active listening Strategizing on what steps a company should take to ensure a good reputation among customers Pay attention to consumer surveys A dissatisfied customer can often be mollified by prompt and courteous attention to his complaint Or an offer to replace the item or provide some discount coupons toward future purchases

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Reaching Diverse Markets Public relations practitioners must keep a watchful eye on the mood of the public when building diverse markets Seemingly innocent, positive communication programs may stir controversy

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Consumer Activism DO Work with those interested in solutions Offer transparency Turn suggestions into action DON’T Get emotional Agree to work with anyone making threats Expect immediate results

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Consumer Boycotts A refusal to buy the products or services of an offending company Boycotts don’t have to be 100% effectives in order to change corporate policies

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Employee Relations The organization’s “ambassadors” The public relations and human resources departments concentrate on communicating with employees just as vigorously as it does on delivering the corporate story to the outside world Public relations professionals often are involved in counseling What employee policies should be created How they should be implemented and communicated

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Layoffs and Outsourcing Layoffs and the increasing practice of outsourcing present a major public relations challenge Companies must embrace diversity

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Investor Relations Investor relations (IR) is at the center communicating a company’s health and wealth to shareholders and prospective investors The goal is to combine the disciplines of communications and finance to accurately portray a company’s prospects from an investment standpoint Some key audiences are Financial analysts Individuals and institutional investors Shareholders Prospective shareholders The financial media

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Marketing Communications Many companies use the tools and tactics of public relations to support the marketing and sales objectives In many cases, this is coordinated with a company’s messages in advertising, marketing, direct mail, and promotion This has led to the concept of integrated marketing communications (IMC)

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Marketing Communications cont… Product publicity Product placement Cause-related marketing Corporate sponsorship Viral Marketing

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Environmental Relations Trend toward cooperation between NGOs and corporations Many companies now Issue annual corporate responsibility reports Work with environmental groups to clean up the environment, preserve wilderness areas, and restore exploited natural resources

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Corporate Philanthropy The donation of funds, products, and services to various causes Corporations have long used philanthropy to demonstrate community goodwill and to polish their reputations as a good citizen Despite the possible downsides and controversies, this is a good tool for Enhancing reputation Building relationships with key audiences Increasing employee and customer loyalty

Copyright © 2012, 2009, 2007 Pearson Education, Inc. All Rights Reserved. Corporate Philanthropy Cont… Corporate Philanthropy has a number of benefits for the corporation Strengthened reputation Increased media opportunities Improved community and government relations Employee recruitment and retention Enhanced marketing Research and development Increased profits