Peggy Simcic Brønn 1

Informasjon og Samfunnskontakt (Public

Relations)

Høyskole i Stavanger

Norsk Hotellhøgskole

Peggy Simcic Brønn

19.02.01

Peggy Simcic Brønn 2

The Four P’s of the Marketing Mix (Kotler)

MarketingMix

TargetMarket

Place

ChannelsCoverageAssortmentsLocationsInventoryTransport

PromotionSalesAdvertisingSales forcePUBLIC RELATIONSDirect marketing

ProductVarietyQualityDesignFeaturesBrand namePackagingSizesServicesWarrantiesReturns Price

List priceDiscountsAllowancesPayment periodCredit terms

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Marketing-Mix Strategy

Company

Offer MixProductsServicesPrices

Promotion MixSales PromotionAdvertisingSalesforcePublic RelationsDirect mail & Telemarketing

Distributionchannels

TargetCustomers

Relative Importance of Promotional Tools in Consumer versus Industrial

MarketsConsumer Goods Industrial Markets

Relative ImportanceRelative Importance

Advertising

Advertising

Sales PromotionSales Promotion

Public RelationsPublic Relations

Personal Selling

Personal Selling

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Public Relations and Marketing - Differing

Views

Separate but equal functions Equal and overlapping functions Marketing the dominant function Public Relations the dominant

function The same function

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PR AND MARKETING

Public Relations Relationship building is

everything. Relationships with all

groups affecting organization.

Goal - save money by managing threats and finding opportunities.

Marketing Relationship building is

key. Relationships mainly

with customers/clients. Goal - organization’s

economic objectives.

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“PR - A COMMUNICATION FUNCTION OF MANAGEMENT

THROUGH WHICH ORGANIZATIONS ADAPT TO, ALTER, OR MAINTAIN THEIR

ENVIRONMENT FOR THE PURPOSE OF ACHIEVING

ORGANIZATIONAL GOALS.”

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Marketing Communications Mix

Advertising Direct Marketing Sales Promotion Public Relations and Publicity Personal Selling

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Advertising

Print and broadcast ads

Packaging - outer Packaging - inserts Motion pictures Brochures and

booklets Posters and leaflets

Directories Reprints of ads Billboards Display signs Point-of-purchase

displays Audio-visual

materials Symbols & logos

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Sales Promotion

Contests, games, sweepstakes, lotteries

Premiums, gifts Samplings Fairs, trade shows Exhibits Demonstrations

Couponing Rebates Low-interest

financing Entertainment Trade-in allowance Trading stamps Tie-ins

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Personal Selling

Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows

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Direct Marketing

Catalogs Mailings Telemarketing Electronic shopping TV shopping

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Public relations: An umbrella term...

Product publicity Corporate communications Issues management Investor relations Financial communications Lobbying Public affairs

Media relations Community affairs Crisis management Events management Sponsorship A range of services

feeding into these...

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Success Criteria

Skills

Knowledge

Abilities

Qualities

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Public Relations Functions

Publications and communications materials

Conventions, meetings, seminars Interpreting government actions Compiling and publicizing relevant

statistics Preparing and distributing material to

press

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Public Relations Functions

Promoting codes and ethics Institutional advertising Furthering employer-employee relations Crisis coordination Public service activities

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What are We?

Corporate Affairs Corporate

Communications Communications Public Affairs Public Relations Marketing

Communications

Information Government Affairs Community Affairs Employee Relations Publications Press and Media

Relations Marketing

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Tools Written material Audio-visual material Corporate identity media News Events Speeches Telephone information service Internet

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Tools

Written material» Annual reports» Catalogs» Employee newsletter» Magazines» Posters and flyers

Audio-Visual material» Films» Slides» Audio cassettes

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Tools

Events» Attract attention» Develop stories

around» Important for non-

profits» Anniversaries» Art exhibits» Auctions» Fashion shows

Speeches» Effective

spokespersons for organization

» Address topical issues

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Tools

News» Finding, creating,

selling to appropriate media

» 3 qualities– Higher veracity– Catches people off

guard– Potential for

dramatization

Telephone Information Service» Numbers to get

information» Pre-recorded

answers to common questions

» Shows a caring about public

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Tools

Internet» Pluses

– Edit self– Dialog (two-way)– Always updated– Extremely cheap– Global coverage

» Minuses– Boring– Rigid– People must be

looking for information on you

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Ethics

Moral guidelines» Truthful» Testimonials» Children and young

people» Exploitation of

goodwill

» Comparisons» Imitation» Safety» Denigration» Responsibility

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Traditional PR Responses

Circle the Wagons Cosmetic Missionary Interactive Communications Open Door

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CORPORATE IMAGE - WHAT IS IT?

CorporateIdentity

IndividualInterpretation

CorporateImage = $

Lundquist, O. S., Rønning, L., Sandberg, G., ‘Corporate Identityand Corporate Image, En litteraturstudie av begrepenes definisjoner,Diplomoppgave, Siviløkonomstudiet, BI (1997).

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CORPORATE IDENTITY

The way in which an organization presents itself» Symbols» Communication» Behavior

Referred to as Corporate Identity (CI) Mix

Personality manifested through this mix

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CORPORATE IDENTITY MEDIA

Product Price Logos Name Stationery Brochures Signs

Visit cards Buildings Uniforms Sponsorship Packaging Work environment Figure or “character”

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IMPORTANCE OF IDENTITY

Raises motivation among employees Inspires confidence in stakeholder

groups Acknowledges important role of

customers Acknowledges vital role of financial

groups

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TYPES OF CORPORATE IDENTITY

Monolithic -- Shell, Philips, BMW

Endorsed -- GM, L’Oreal

Branded -- Unilever

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Corporate Identity

NamesSelf-Presentations

CustomerImage

CommunityImage

InvestorImage

EmployeeImage

Corporate Reputation

Fombrun, C. J., Reputation, Harvard Business School Press

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Reputation is the most important commercial mechanism for conveying information to consumers. It is a distinctive capability that accrues competitive advantage to an organization.

John KayFoundations of Corporate Success

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WHY DO WE NEED TO CARE ABOUT IMAGE?

Consumers are more sophisticated than ever before

There is more distrust than ever regarding motives of big business

There has been more changes in the last ten years than in the last 80

There is a clear relationship between a positive image and profitability

Image is no longer solely the realm of marketing, but rather a strategic instrument of top management.

De Soet (CEO Dutch KLM)

When having to choose similar products, 9 out of 10 consumers base their decisions on the reputation of the company.

Mackiewicz

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TODAY’S SITUATION

Quality and good service taken as given Programs such as TQM and ISO9000

have worked Organizations need new differentiators,

new USP’s» Advocacy advertising» Green advertising

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REASONS FOR IMAGE ‘MANAGEMENT’

General promotion value

Encourage favorable behavior towards organization

Build sales Attract shareholders Attract and motivate

employees/build morale Reduce cost of capital

Aid in relations with community/

government Serve corporate

objectives Create familiarity and

favorability Create position in industry Can demand premium

prices

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IT HELPS POSITION PRODUCT

Physical product attributes

Distribution

Price

Image

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IMAGE LEVELS

Product class Brand Company Sector Shop Country User

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IMAGE AUDIENCES

Consumers Shareholders Investment community Employees Communities Suppliers

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What are the most important things to know about a company to judge its

reputation?

(percentage) Bus. General City Business

Editors Public Investors Press

- Financial

Performance 42 9 65 80

- Quality of

Management 28 9 91 71

- Quality of Products/

Services 8 47 20 0

- Customer Services 6 18 0 20

Corporate Image

Corporate Identity and Corporate Personality

Super and subordinate images

Personal and nonpersonal communication

Experiences with product/service & staff

Management/employees

Products/Services Ethics/Community Finances

40

Management/Employees

• Quality of Management

•Quality of work conditions (physical and social)

•Quality of strategies

Products/Services

• Quality

• Satisfaction

• Technology

• Value

• Selection

Ethics/Community

• Equal employment

•Socially responsible

•Protect jobs

•Contributes to charity

•Helps the community

•Conserves energy

•Environmentally conscience

•Supports culture

•Responsible citizen

Finances

• Sound investment opportunity

• Pays dividends

• Reporting practices

• Stock price

• Diversified

• Wise use of assets

• Consistent growth

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CORPORATE IMAGE IS THE PERCEIVED SUM OF THE ENTIRE

ORGANIZATION - ITS OBJECTIVES AND PLANS. IT ENCOMPASSES

PRODUCTS, SERVICES, MANAGEMENT STYLE,

COMMUNICATIONS ACTIVITIES AND ACTIONS AROUND THE WORLD.

G.A. Marken

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FACTORS CONTROLLING COMPANY IMAGE

Reality of company Newsworthiness of company Diversity of company Communications effort Time Memory decay

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IMAGE-ORIENTED ADVERTISING OBJECTIVES

Industry - develop and maintain favorable industry image.

Generate primary demand.

Company - develop and maintain a favorable company image.

Generate selective demand.

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BARRIERS TO ACHIEVING ‘DESIRED’ IMAGE

“CEO disease”

Mental models

If it’s not broke don’t fix it

Inability to read environment

Confusion regarding who’s job it is

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OPTIMAL - AN INTEGRATED EFFORT

Unified image Data base management-driven

integration Integrated customer contact points Stakeholder-based integration

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Goal: Credible Image

Believable message Clearly stated Continually and consistently Through appropriate channels At the appropriate level of understanding

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The Three I’s - Mission Oriented

Identity: Who we are

Image: What we are

Ideas: What we stand for and

believe

What you have

How you intend to

use it

The organization Corporate

VisualsCorporate

Identity

AudiencePerceptions

Monitoring

Corporate Identity: Era 1 -- Badging

Source: Bamber Forsyth in White, J. and Mazur, L. Strategic Communications Management, Addison Wesley, London, 1996.

What you have

How you intend to

use it

The organization

CorporateVisuals

CorporateIdentity

AudiencePerceptions

Monitoring

Corporate Identity: Era 2 -- Visuals plus Communication

Source: Bamber Forsyth in White and Mazur

Corporate

Communications

What you have

How you intend to

use it

The organization

CorporateIdentity

AudiencePerceptions

Monitoring

Corporate Identity: Era 3 -- The integrated approach

Source: Bamber Forsyth in White and Mazur

Corporate

Communications

Corporate Behavior

Process

Vehicles

Corporate Values