Copyright Copyright © 2001, Prentice Hall, Inc.© 2001, Prentice Hall, Inc.
CHAPTER 19CHAPTER 19
2Copyright ©2001 Prentice Hall, Inc.
Why has dealing with consumers and Why has dealing with consumers and investors become so important for public investors become so important for public relations?relations?
Consumers & InvestorsConsumers & InvestorsFOR STARTERS:FOR STARTERS:
Advertising
Advertising
““Noise”Noise”
CompetitionCompetition
SavvySavvyConsumers
ConsumersKnowledgeableKnowledgeable
InvestorsInvestors
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Tyco Toys, Inc.Tyco Toys, Inc.
Toy Fair BreakfastToy Fair Breakfast Media Day at Sesame Place Media Day at Sesame Place
Theme ParkTheme Park Elmo sent to Rosie O’DonnellElmo sent to Rosie O’Donnell 15,000 media mentions 15,000 media mentions
Source of Elmo character: http://www.geocities.com/~chicky-ma-ma/elmo.htm [accessed 6/16/2000]Source of Elmo character: http://www.geocities.com/~chicky-ma-ma/elmo.htm [accessed 6/16/2000]
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Consumer Movement HistoryConsumer Movement HistoryLet’s DiscussLet’s Discuss
1872 – Criminal Fraud Statute
1900s – Muckrakers The Jungle Food and Drug Act Food, Drug, and Cosmetic Act
1887 – Interstate Commerce Commission
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JFK’s Consumer Bill of RightsJFK’s Consumer Bill of Rights
Right to ChooseRight to Choose
Right toSafety
Right toSafety Right to Be
InformedRight to BeInformed
Right to Be HeardRight to Be Heard
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What does each of the following federal What does each of the following federal agencies do?agencies do?
Federal Consumer AgenciesFederal Consumer AgenciesQUICK QUIZQUICK QUIZ
Federal TradeCommission
Federal TradeCommission
Regulates television and radio advertisingRegulates television and radio advertising Covers areas not included in national Covers areas not included in national
advertising (general litigation division)advertising (general litigation division) Enforces consumer credit program (fair credit Enforces consumer credit program (fair credit
reporting, truth in packaging)reporting, truth in packaging)
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What does each of the following federal What does each of the following federal agencies do?agencies do?
Federal Consumer AgenciesFederal Consumer AgenciesQUICK QUIZQUICK QUIZ
Justice Department
Justice Department
Enforces consumer protection measures such Enforces consumer protection measures such as the Truth in Lending Act and Product as the Truth in Lending Act and Product Safety ActSafety Act
Runs anti-trust division (Microsoft suit)Runs anti-trust division (Microsoft suit)
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What does each of the following federal What does each of the following federal agencies do?agencies do?
Federal Consumer AgenciesFederal Consumer AgenciesQUICK QUIZQUICK QUIZ
Food & Drug AdministrationFood & Drug
Administration
Protects consumers from hazardous items: Protects consumers from hazardous items: foods, drugs, cosmetics, therapeutic and foods, drugs, cosmetics, therapeutic and radiological devices, food additives, serums, radiological devices, food additives, serums, and vaccinesand vaccines
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What does each of the following federal What does each of the following federal agencies do?agencies do?
Federal Consumer AgenciesFederal Consumer AgenciesQUICK QUIZQUICK QUIZ
Office of Consumer
Affairs
Office of Consumer
Affairs
Publishes literature informing the public of recent Publishes literature informing the public of recent developments in consumer affairsdevelopments in consumer affairs
Oversees product safety (seatbelts, strollers, etc.)Oversees product safety (seatbelts, strollers, etc.)
Consumer Product Safety Commission
Consumer Product Safety Commission
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Name some consumer watchdog Name some consumer watchdog vehicles or groups.vehicles or groups.
QUICK QUIZQUICK QUIZ
Consumers Union Consumers Union (publishes (publishes Consumer ReportsConsumer Reports))
The Consumer Federation of The Consumer Federation of AmericaAmerica
The InternetThe Internet
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Business’s Consumer RelationsBusiness’s Consumer RelationsDivision DutiesDivision Duties
Handling ComplaintsHandling Complaints
Developing Consumer Programs
Developing Consumer Programs
Evaluating Service Approaches
Evaluating Service Approaches
Developing Guidelines to Evaluate Products &
Services
Developing Guidelines to Evaluate Products &
Services
Developing Field-Training Programs
Developing Field-Training Programs
Evaluating Company Effectiveness in Showing Concern for Customers
Evaluating Company Effectiveness in Showing Concern for Customers
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Every customer has the following rights:Every customer has the following rights:
Chrysler Corporation’sChrysler Corporation’s“Customer’s Bill of Rights”“Customer’s Bill of Rights”
Grievance Opportunities
Satisfaction
Quality Long-term Protection Service with
a Smile
Safe Vehicles
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Consumerist ObjectivesConsumerist ObjectivesLet’s DiscussLet’s Discuss
Explain how each would benefit a company:Explain how each would benefit a company:
Marketing NewItems / ServicesMarketing NewItems / Services
Keeping Old Customers
Keeping Old Customers
Attracting New Customers
Attracting New Customers
Reducing CostsReducing Costs Handling ComplaintsHandling Complaints
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Investigate complaints Investigate complaints made against the firmmade against the firm
Provide a central Provide a central location for customers location for customers who seek redresswho seek redress
Monitor difficulties Monitor difficulties customers have with customers have with productsproducts
Influence organizations to improve serviceInfluence organizations to improve service
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Timely and valuable Timely and valuable communications that communications that gain and maintain gain and maintain shareholder supportshareholder support
DEFINE:DEFINE:
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What is a company’s What is a company’s
CURRENCYCURRENCY??
Its Its STOCK PRICESTOCK PRICE
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Any fact that would be Any fact that would be important to an important to an investor making an investor making an investment decisioninvestment decision
DEFINE:DEFINE:
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Examples of Examples of Material InformationMaterial Information:: Proposed mergers or acquisitionsProposed mergers or acquisitions Changed dividend policyChanged dividend policy Determination of earningsDetermination of earnings Acquisition or loss of significant business Acquisition or loss of significant business
contractcontract Major management changesMajor management changes Significant change in capital investment Significant change in capital investment
plansplans
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Examples of Examples of Material InformationMaterial Information:: Purchase or sale of a major assetPurchase or sale of a major asset
Incurring a major debt or selling a Incurring a major debt or selling a significant amount of equity annuitiessignificant amount of equity annuities
Pending significant legislationPending significant legislation
A major discovery or innovationA major discovery or innovation
Marketing a new productMarketing a new product
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OVERVIEW:OVERVIEW:
Company descriptionCompany description
Letter to shareholdersLetter to shareholders
Financial reviewFinancial review
Explanation/analysisExplanation/analysis
Management/marketing discussionsManagement/marketing discussions
GraphicsGraphics
Annual Reports:Annual Reports:
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OVERVIEW:OVERVIEW:
Comparison of current Comparison of current performance with performance with previous year’s quarter previous year’s quarter performanceperformance
Quarterly Reports:Quarterly Reports:
In-person meetingsIn-person meetings
Q&A sessionsQ&A sessions
SpeechesSpeeches
Stockholder votingStockholder voting
Annual Meetings:Annual Meetings:
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OVERVIEW:OVERVIEW:
Follow-up quarterly Follow-up quarterly reports to answer reports to answer questionsquestions
Conference Calls:Conference Calls:
In-person meetingsIn-person meetings Q&A sessionsQ&A sessions SpeechesSpeeches Stockholder votingStockholder voting
Media Contact Media Contact & Monitoring:& Monitoring:
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OVERVIEW:OVERVIEW:
Homepage / Web siteHomepage / Web site
SEC documents onlineSEC documents online
FAQsFAQs
Links to financial dataLinks to financial data
Internet Investor Relations:Internet Investor Relations: