1. Public Relations Strategies and Tactics Tenth Edition
Dennis L. Wilcox
Glen T. Cameron
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2. Public Relations Departments and Firms
Chapter 4
Public Relations Departments and Firms
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3. 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
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4. 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
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5. 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
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6. 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
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7. 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
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8. 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
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9. 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
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10. Levels of Influence Concurring Authority Compulsory-Advisory Advisory
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11. 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
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12. 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
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13. 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
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14. 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
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15. 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
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16. How Public Relations Firms Get Business
Organizations will hire public relations firms
For supplemental staffing
Help with special projects
Specific expertise
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17. 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
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18. 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
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