1. 1 Chapter 16 Public Relations

2. 2 The Practice of Public Relations Goal: Achieve effective relationships with various audiences to manage the organization’s image and reputation. Publics may be external (customers, news media, investment community, general public, government), or internal (investors or employees). PR is a growing industry that employs approximately 150,000 people.

3. 3 Advantages and Disadvantages of PR -Credibility - Low cost - Less clutter -Lead generation -Ability to reach specific groups - Image building Advantages - Not completing the communication Process - Redundancies with the marketing effort Disadvantages

4. 4 PR May Not Work in Concert With Other Communication and Promotion Functions. PR May Not Work in Concert With Other Communication and Promotion Functions. Advertising is Primarily Concerned with Enhancing Sales While PR is Concerned With Managing the Organization’s Image. Advertising is Primarily Concerned with Enhancing Sales While PR is Concerned With Managing the Organization’s Image. Physical Tasks PR Operates on Two Levels in Most Firms Advice to Management People in Advertising May be Reluctant to Incorporate PR Into Their Planning Since It is Not a Bottom-Line Profit Producer. People in Advertising May be Reluctant to Incorporate PR Into Their Planning Since It is Not a Bottom-Line Profit Producer. The Practice of Public Relations

5. 5 Media Use Advertising Pays PR Persuades Media Use Advertising Pays PR Persuades Control Advertising – More PR – Less Control Advertising – More PR – Less Public Relations Differs From Advertising in Three Important Ways: Public Relations Differs From Advertising in Three Important Ways: Credibility Advertising- Some PR – Much More Credibility Advertising- Some PR – Much More Comparing Public Relations and Advertising

6. 6 Managing a PR Program Begins With a Plan Crisis Management Crisis Management Relationship Management Relationship Management Public Affairs & Issues Management Public Affairs & Issues Management Image & Reputation Management Image & Reputation Management Types of Public Relations Activities

7. 7 Public Opinion Ask two primary questions about public opinion to design public affairs programs: Which publics are most important to the organization, now and in the future? What do these publics think? Public opinion is what people think, a “belief, based not necessarily on fact but on the conception or evaluation of an event, person, institution, or product”. 8

8. 8 Image and Reputation Management A corporate image reflects how the public views the organization. Image programs try to send the right cues and hope the audience will develop a positive image of a company. Overriding goal of a reputation management program is to strengthen the trust that stakeholders have in an organization. An organization’s policies and actions determine its reputation.

9. 9 From Identity to Reputation

10. 10 Government Communicating with Government Bodies. Financial Relations Communications Aimed At the Financial Community. Media Developing Media Contacts. Employees Programs Designed to Keep Employees Informed. Relationship Management Involved in the Management Of Relationships With Various Types of Stakeholders.

11. 11 Twenty Key Publics of a Typical Multinational Corporation

12. 12 Plan Should Detail Who Does What and Says What to Whom. Develop a Plan for Dealing With the Crisis. Be Prepared By Anticipating the Possibility of a Crisis. Crisis Management

13. 13 Public Relations Tools

14. 14 House Ads Prepared by the Organization for Use in Its Own Publication or One Over Which It Has Some Control. The Sponsoring Organization Pays for Controlled Media so They Maintain Total Control Over How and When the Message is Delivered. Corporate (Institutional) Advertising Corporate (Institutional) Advertising Designed to Promote a Corporate Image or Viewpoint. Public Service Announcements Public Service Announcements Ads Designed by Charitable or Civic Organizations for Broadcast Free of Charge. Public Relations Tools

15. 15 In-House Publications In-House Publications Publications Such as Pamphlets, Booklets, and Annual Reports for an Organization’s Own Employees and Other Publics. Displays, Exhibits, & Staged Events Displays, Exhibits, & Staged Events All Are Used in Both Sales Promotion and PR Programs and Include Open Houses and Plant Tours. Speakers, Photographs, & Films Speakers, Photographs, & Films Maintaining Visual Contact With the Various Publics is a Big Part of PR. Public Relations Tools

16. 16 News Release Primary Medium Used To Deliver PR Messages to Media Editors And Reporters. Video News Releases Contain Video Coverage That Can be Used During a TV Newscast. News Release Primary Medium Used To Deliver PR Messages to Media Editors And Reporters. Video News Releases Contain Video Coverage That Can be Used During a TV Newscast. Press Conference Convening Media Reps To Make a Statement. Risky, Because Media May Not See Company’s Announcement as Being Real News. May Distribute Press Kits. Press Conference Convening Media Reps To Make a Statement. Risky, Because Media May Not See Company’s Announcement as Being Real News. May Distribute Press Kits. Public Relations Tools The Media, Rather Than the Organization, Controls the Use and Placement of Uncontrolled Media.

17. 17 Practical Tips # 2 How to Measure PR Effectiveness The following are common types of evaluation used in public relations: Output(What goes out) Production: number of PR products generated. Distribution: number of media outlets receiving PR products. Coverage: column inches, seconds, or minutes of air time. Impressions: media placements x circulation or broadcast reach. Advertising value: equivalent ad costs for time or space. Systematic content analysis: positive or negative slant, key messages, sources, prominence. Outcome (Effect on the audience) Goals/ objectives achievement: surveys, focus groups, PR product testing.

18. 18 Additional Means for Measuring PR’s Effectiveness Personal observation and reaction Matching objectives and results The team approach Management by objectives Public opinion and surveys Audits

19. 19 Marketing Public Relations (MPR) Advertising and Public Relations Overlap in Marketing Public Relations (MPR), Which is the Process of Planning, Executing, and Evaluating Programs That Encourage Purchase and Consumer Satisfaction Through Credible Communication of Information and Impressions That Identify Companies and Their Products With the Needs, Wants, Concerns, and Interests of Consumers.

20. 20 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 the influential Defending products at risk and giving consumers a reason to buy Marketing Public Relations (MPR) Adds Value:

21. 21 Cause and Mission Marketing Cause Marketing Adopting a good cause and sponsoring its fund- raising and other efforts. Mission Marketing More Long Term and Pervasive Because the Cause is Linked to the Company’s Mission. Customer Attitudes of Disrespect, Disgust, and Distrust Toward Advertising and Marketing Create New Marketplace Challenges and Companies Must Prove They Are Good Corporate Citizens Through:

22. 22 EXH 12-16

23. 23 Types of Corporate Advertising Image Chevron advertising Advocacy California Avocado advertising Commission Cause-related J.C. Penney-PBS advertising

24. 24 Corporate Advertising Corporate image (or identity) advertising To increase a firm’s name recognition or establish goodwill for the firm and its products Ex.:“Think Different” campaign by Apple Computer Corporate issue advertising (advocacy adv.) To take a position on a controversial social issue of public importance in hopes of swaying public opinion Ex.:“We want you to know where we stand” by Philip Morris

25. 25 Advantages and Disadvantages of Corporate Advertising Advantages: Excellent vehicle for positioning the firm Takes advantages of benefits of PR Reaches a select target market Disadvantages: Questionable effectiveness Constitutionality and/or ethics