Copyright © 2012 McGraw-Hill Companies, Inc., All right reversedMcGraw-Hill/Irwin

17

Public Relations, Publicity, and Corporate Advertising

Negative Publicity

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• Ends it’s decades long relationship with Planned Parenthood• Had not voiced reasons adequately• Received thousands of threats via social media• Resignation of Komen’s VP / decreases in contributions /

black mark on it’s positive image

The Power of Publicity

• Can be positive or negative

• Directly affects companies• financially / trust / image

• Impacted by far and fast reaching Internet / social media sites

• Element to be managed as part of IMC

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Public Relations Defined

A management function

And identifies the policies and procedures

Of an organization with the public interest

And executes a program of action (& communication)

To earn public understanding and acceptance

Which evaluates public attitudes

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Public Relations Management Stages

Identification of policies and procedures

Determination and evaluation of public

attitudes

Development and execution of the

program

PR

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Effective PR program continues over months / years

Role of PR

CustomersCustomers

EmployeesEmployees

InvestorsInvestors

GovernmentGovernment

CommunityCommunity

SuppliersSuppliers

Public Relations

Department

Public Relations

Department

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To maintain mutually beneficial

relationships

Communicate thru company newsletters

What Does PR Do?

Build market excitement before media ads break

Create ad news where there is no product news

Introduce a product with little or no advertising

Provide a value-added customer service

Build brand-to-customer bonds

Improve ROI

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Apple

Super Bowl ads

Apple

Butterball

“

Free publicity

Value Added Customer Service

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Butterballprovideshelp duringtheThanksgivingHolidays

The Process of Public Relations

Measuring Program EffectivenessMeasuring Program Effectiveness

Developing and Executing a PR ProgramDeveloping and Executing a PR Program

Establishing a PR PlanEstablishing a PR Plan

Determining and Evaluating Public AttitudesDetermining and Evaluating Public Attitudes

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Research on Public Attitudes

Provides input for the planning process

Serves as an “early warning system”

Secures internal cooperation, support

Increases communications

effectiveness

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Determining Public Relations Audiences

Stockholders and Investors

Community Members

Suppliers & Customers

Employees

Internal Internal

Financial Groups

Governments

External External

The Media

Public

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connected with company not connected with company

PR efforts are targeted to more than one group

Test Your Knowledge

In public relations targeting, external audiences include:

A) Customers

B) The public at large

C) Suppliers

D) Stockholders

E) All of the above

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Implementing the PR Program

Press Releases

Community Involvement

Press Conferences

Exclusives

Interviews

The Internet /

Social Networks

PR Tools

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Advantages of PR

Credibility

Lead Generation

Cost Savings

Avoidance of Clutter

Image Building

Reach Specific Groups

PRProvides

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Blogs

Potential Problems of Public Relations

PotentialProblemsPotentialProblems

Receiver not making connection to the source

Lack of coordination with marketing dept.

Inconsistent, redundant communications

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Criteria for Measuring PR Effectiveness

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Publicity versus Public Relations

A short-term strategy

Publicity: The generation of news about a person,

product, or service that appears in the media

A subset of public relations

Not always positive

Not under control of firm

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A Response to Negative Publicity

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News report:Alar, chemical to grow apples, causes cancer

TreeTopproduced print ads

and video

news releases

Video News Release (VNR)

• Publicity piece produced by publicists so that stations can air it as a news story

• Used by marketers to have control over the time and place where information is released

Pros and Cons of Publicity

Substantial credibility

News value

Significant

word-of-mouth

Perception of media endorsement

Advantages

Timing

Lack of control

Disadvantages

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Inaccuracy

Publicity = Credibility

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Corporate Advertising

An extension of the PR function

An extension of the PR function

Promotes the organizationPromotes the organization

Does not promote a specific product or service

Does not promote a specific product or service

Image enhancement

Assuming a position on an issue or cause

Seeks involvement

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Why is Corporate Advertising Controversial?

Opponents to Corporate

Advertising

Opponents to Corporate

Advertising

Consumers aren’t interested in this form of

advertising

This is a costly form of corporate self-indulgence

The firm must bein trouble

Corporate advertising isa waste of money

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Objectives of Corporate Advertising

Create a positive image for the

firm

Smooth labor relations

Communicate the

organization’s viewpoint

Boost employee

morale

Establish diversified company identity

Help newly deregulated industries

Objectives

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Solar power

Types of Corporate Advertising

Positioning Ads

Sponsorships

Recruitment

General Image Ads

Financial Support

Image Advertising

Event Sponsorship

Advocacy Advertising

Cause-related Advertising

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Corporate Advertising

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• Creates an image of the company in the public mind

Event Sponsorship

SportingEvents

Music, Entertainment

Causes Festivals

Cultural Events Arts

Corporate Sponsor

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Corporate Sponsorship

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• McDonald’s associates with sponsorship of the Olympics

• Excellent platform to build equity and gain affinity with target audience

Test Your Knowledge

Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing circuit?

A) To build equity and gain affinity with its target market

B) To show its position on sports marketing

C) To create a generic positioning strategy

D) To further segment its target market

E) To reduce its overall promotional expenses

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Advocacy Advertising

Propagating ideas andelucidating

Controversial social issues of public importance

in a manner that supports the interests of the sponsor

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Advocacy Ad

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GE promotes its concern for the environment

Cause Related Marketing

A form of marketing

whereby companies link with charities

or nonprofit organizations as contributing sponsors

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Cause Related Marketing

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New Balance promotes it’s support for breast cancer awareness