ADVERTISING:
Public Relations
Public Relations and IMC
Originally seen as a way to reach
people more cheaply
+ Efficient
– cheaper
– reaches opinion leaders
- Lack of control
- message
- target audience
Types of Public Relations
Corporate
Product
• Improve image
• Handle crisis situation
• Publicity
• Product placement
Types of Corporate Advertising
• Image advertising
Chevron
• Cause-related advertising
American Express
Corporate Advertising
Advantages:
–Vehicle for positioning the firm
–Takes advantages of benefits of PR
–Reaches a select target market
Disadvantages:
–Questionable effectiveness
–Constitutionality and/or ethics
Corporate Social Responsibility
Firms are moving away from commercial
sponsorships and promotions and toward
supporting socially responsible causes.
The outcomes can be hard to measure, but
indirect and intangible benefits can be
achieved.
Cause-Related Marketing
Cause related marketing:
is a form of marketing whereby
companies link with charities or
nonprofit organizations as
contributing sponsors.
Cause-Related Marketing
Public Relations
• Non-paid, unsponsored,
nonpersonal (media)
communications.
Public Relations can:
• Build marketplace excitement B4 ads break
• Introduce a product with less advertising
• Provide a value-added customer service
• Build brand-to-customer bonds
• Influence the influentials
• Defend companies or products at risk
PR Advantages and Disadvantages
Advantages:
– credible
– lower cost
– less clutter
– builds image of company with opinion leaders
• Disadvantages:
– Lack of control
– Hard to get into news
– Usually doesn’t reach target audience
Public Relations
• Tools used:
• Press Releases
• Events
• Community activity participation
• Fund-raising
• Sponsorship
• Public affairs activities
Events/Community participation
Community activity/protests
Community activity/protests
Community activity/protests
Public affairs and lobbying
EXAMPLE OF A PRESS RELEASE…
FOR IMMEDIATE RELEASE
Contact Information: Jeff Smith, Pfizer, 202-555-1212; fax: 202-555-2345
Stockholm, October 12, 1998
VIGARA INVENTORS WIN NOBEL PRIZE
Three U.S. scientists whose work going back decades led to the use of the wildly popular Viagra
anti-impotence drug won a Nobel Prize on Monday. They discovered that the body uses nitric oxide
to regulate blood vessels, a finding that helped in developing Viagra.
The discovery about nitric oxide -- a colorless gas long considered just an air pollutant -- has
applications for treating conditions ranging from heart disease to shock. The $978,000 prize for the
category "physiology and medicine" is awarded by Sweden's Karolinska Institute. This year's
awards is divided equally among the three pharmacologists:
Robert Furchgott, 82, does his work at the State University of New York in Brooklyn. "I'm very
pleased,“ he said at his Long Island home. "I truly wasn't sure I'd ever get an award like this. I wasn't
sure that I deserved it."
Zouis Ignarro , 57, is a professor at the University of California-Los Angeles. His wife, Dr. Sharon
Williams, said her husband is "thrilled" and "very surprised." Ignarro was traveling in Europe when
he received the news.
Ferid Murad, 62, is a researcher at the University of Texas Medical School in Houston and formerly
did work at the University of Virginia. Having worked independently of the other two winners, he
called the announcement "a delightful surprise."
The Associated Press and Reuters contributed to this report.
Quote of the day
What kills a skunk is the
publicity it gives itself.
• Abraham Lincoln
(President)