Public Relations Chapter 20 1 Public Relations is

Public Relations Chapter 20 1

Public Relations is the profitable integration of an organization’s new and continuing relationships with stakeholders, including customers, by managing all communications contacts with the organization that create and protect the brand reputation of the organization. C. L. Caywood, The Handbook of Strategic Public Relations & Integrated Communications, 1997 2

Public Relations • “Publics” are involved • Marketing Communications with those who have a relationship with the firm • Positive impacts to ensure effective business operations • Corporate image and reputation • Foster goodwill and understanding 3

Relative Importance of Promotional Tools in Consumer versus Industrial Markets Consumer Goods Industrial Markets Advertising Personal Selling Sales Promotion Personal Selling Advertising Public Relations Relative Importance 4

Advertising z Print and broadcast ads z Packaging - outer z Packaging - inserts z Motion pictures z Brochures and booklets z Posters and leaflets z Directories z Reprints of ads z Billboards z Display signs z Point-of-purchase displays z Audio-visual materials z Symbols & logos 5

Sales Promotion z Contests, games, sweepstakes, lotteries z Premiums, gifts z Samplings z Fairs, trade shows z Exhibits z Demonstrations z Couponing z Rebates z Low-interest financing z Entertainment z Trade-in allowance z Trading stamps z Tie-ins 6

Public relations: An umbrella term. . . z Product publicity z Corporate communications z Issues management z Investor relations z Financial communications z Lobbying z Public affairs z Media relations z Community affairs z Crisis management z Events management z Sponsorship z A range of services feeding into these. . . 7

Job of PR z. Decide how activities link to others -individuals or organizations z. Find groups, define exact nature of opportunity/problem and select PR solution 8

Types of Public Relations • Publicity - News Release • Fundraising - Press Conference • Corporate Advertising - Press Kit • Videos and Film - Product Placement • Publications - Annual Reports - Corporate Histories • Company Sponsorship • Lobbying • Meetings • Organized Social Activities 9

Tools z z z z Written material Audio-visual material Corporate identity media News Events Speeches Telephone information service Internet 10

How MPR Adds Value z Build marketplace excitement before advertising breaks z Drive communications program when there is no advertising z Make advertising news when there is no advertising z Bring advertising to life z Extend promotion programs 11

How MPR Adds Value z Build personal relationships with customers z Influence the influentials z Communicate new product benefits z Demonstrate a company’s social responsibility and build consumer trust z Defend products at risk and give consumers permission to buy 12

Marketing Public Relations Tools z Awards z Books z Contest, competitions, created events z Demonstrations z Exhibits z Expert columns z Fan clubs z Festivals z Grand openings z Hot lines z Interviews z Key issues z Luncheons z z z Meetings Museums Newsletters Official endorsements Produce placement Questionnaires Radio contests Support for sports teams, the arts, community projects, etc. . Symbols Tours Weeklies Youth programs 13

Relationship Building • Key element of IMC • Not just with customers Knowing Trusting Consistent Accessible Responsive Affinity Likeable Committed Constructs determining strength of relationships 14

Corporate Practices and Images Group Employees Investors Customers Community Character Traits Images 1. Generate Trust 2. Empower Trustworthiness 3. Instill Pride 4. Show Profitability 5. Maintain Stability Credibility 6. Have Growth Prospects 7. Cultivate Product Quality 8. Provide Customer Service Reliability 9. Serve the Community 10. Green the Environment Responsibility 15

Ethics z Moral guidelines y. Truthful y. Testimonials y. Children and young people y. Exploitation of goodwill y. Comparisons y. Imitation y. Safety y. Denigration y. Responsibility 16

Coorientational Model Organization’s Definition and Evaluation of Issue Congruency Organization’s Perception of Public A’s Views Agreement Accuracy Public A’s Definition and Evaluation of Issue Congruency Public A’s Perception of Organization’s Views 17

The Multiple Publics of Public Relations INTERNAL STAKEHOLDERS Employees Shareholders MPR Public: Suppliers, distributors, brokers, wholesalers, retailers, dealers Regular or loyal customers EXTERNAL STAKEHOLDERS The media Local community neighbors Local, regional, state and federal government bodies and regulators The financial community Special-interest groups Prospective customers, employees and shareholders 18

Public Relations STRENGTHS WEAKNESSES • Reaches stakeholders other than consumers • Lack of control over how the story gets covered • Reaches hard-to-reach targets, such as upscale opinion leaders • Subject to other’s approval for news story to run • Can advise company/client on image issues • Bottom-line impact is difficult to measure • Establishes corporate-citizen role • Proactive-can plan for crises • More message flexibility due to fewer legal restrictions • Adds credibility/believability • Can break through “ad clutter” • Low costs 19

Planning Public Relations The Development Plan Consists of Six Steps 1. ) Assessment of the current situation 2. ) Statement of objectives 3. ) Selection of target audiences 4. ) Selection of implementation methods 5. ) A determination of costs 6. ) Evaluation of results 20