University of Washington EMBA Program Marketing Management Public

University of Washington EMBA Program Marketing Management “Public Relations ” Instructor: Elizabeth Stearns

Elements in the Communications Process Source (Encodes Message) Message Channel Message Noise Feedback Harcourt, Inc Receiver (Decodes Message)

Marketing Plan Review Analysis of promotional program situation Analysis of the communication process Budget Determination Develop integrated marketing communications program Advertising Direct Marketing • Create Awareness • Generate a Sales Promotion • Create Excitement • Develop Attitudes • Generate a Lead • Stimulate • Change Attitudes • Qualify a Lead demand/sales(short • Inform • Enhance a db term) • Persuade • Relationship • Support sales Building force/trade/customer • (selling and buying) PR/ Publicity Personal Selling • Influence • Fostering Goodwill purchase needs between co. and • Educate consumers publics • Brand Awareness • Provide Product usage/marketing • Build Attitudes assistance/ • Encourage • After sale purchase behavior service and support

Objectives of PR/Publicity • • Fostering Goodwill between co. and publics Brand Awareness Build Attitudes Encourage purchase behavior

Specific Forms of Public Relations • Proactive PR– Is dictated by a company’s marketing objectives; it is offensive rather than defensive and opportunity-seeking rather than problemsolving • Reactive PR– Describes the conduct of public relations in response to outside influences Harcourt, Inc.

Reactive The good, the OK, and the ugly • • Johnson & Johnson Tylenol Alaska Airlines, Swiss Air Odwalla Union Carbide Volvo and “The Monster Mash” (truth in advertising) Microsoft, Hertz TWA, Exxon

PR Activities and Functions • Publications • Advice and Counsel • Publicity • Relations with Various Publics • Corporate Image Advertising • Public Opinion • Miscellaneous The Dryden Press

Various Publics with Which Public Relations Interacts Consumers Employees Suppliers Corporate Public Relations Stockholders Governments General Public Labor Groups Citizen Action Groups

PR Audiences—Internal and External Stockholders PRESS Dealers/Distributers Customers Investment Community Federal, State, Local Legislators Competitors Suppliers Special Interest Groups Regulatory Authorities Multinational Corporation Academic Community Labor Unions Board of Directors Community Neighbors Clerical Employees International Community Bank Insurers Trade Associations Employee Families Managers/ Supervisors

Public Relations Tools Controlled Media Uncontrolled Media (Company Controls the use and placement) (media control the use and placement) • House Ads • Public Service Ads • Corporate or institutional and advocacy advertising • Publications: brochures, flyers, magazines, newsletters • Annual Reports • Speakers • Photographs • Films, videos, CD-ROMs • Displays, exhibits • Staged events • The news release (print, audio, video, email, faxes • Features (pitch letters) • Fillers, historical pieces, profiles • The press conference and media advisory (media kits, fact sheet, background information) • Media tours • Bylined articles, op/ed pieces, letters to the editor • Talk and interview shows • Public service announcements Controlled and Uncontrolled Media • Electronic communication (web sites, chat rooms)

“Managing the Crisis you Tried to Prevent, ” Norman R. Augustine” • Stage One: Avoiding the Crisis – “Next week there can’t be any crisis. My schedule is already full. ” Henry Kissinger • Stage Two: Preparing to Manage the Crisis – “Today my stockbroker tried to get me to buy some ten year bonds. I told him, ‘young man, at this point I don’t even buy green bananas. ’ ” The late congressman Chet Holifield • Stage Three: Recognizing the Crisis – “If you can keep your head when all about you are losing theirs, it’s just possible you haven’t grasped the situation” Humorist Jean Kerr

“Managing the Crisis you Tried to Prevent”, Norman R. Augustine • Stage Four: Containing the Crisis – “When you come to a fork in the road, take it. ” Yogi Berra • Stage Five: Resolving the Crisis – “Even if you’re on the right track, you’ll get run over if you just sit there. ” Will Rogers • Stage Six: Profiting from the Crisis – “Experience is the name everyone gives to their mistakes. ” Oscar Wilde

PR’s Top 6 Firms Worldwide Firm Employees Fees (Millions) 1. Burson-Marsteller 2, 200 $266 2. Hill & Knowlton 1, 478 189 3. Shandwick 1, 742 159 4. Porter Novelli 1, 331 148 5. Fleishman-Hilliard 1, 115 135 6. Edelman 1, 332 134 Inside PR, vol 4(15), March 2, 1998

Forms of Sponsorship Marketing • Cause-Related Marketing (CRM) – Is corporate philanthropy based on profit-motivated giving (e. g. Statue of Liberty & AMEX) • Event Marketing – Is a form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social , or other type of high-interest public activity. Harcourt, Inc.

Corporate Advertising

Corporate Advertising

Response to Environmental Problems Green advertising Packaging response Seal-of-Approval programs Cause-Oriented Programs Point-of-Purchase

Green Advertising • Relationship between product and environment • Promote a green lifestyle • Corporate responsibility

Green Advertising Mercedes-Benz Leo Burnett Company, Inc.

Thank you!