Slide 1 Joseph R. Dominick University of Georgia--Athens © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 2 Part III Specific Media Professions © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 3 Chapter 13 Chapter Outline Public Relations Case Study – Qorvis and Saudi Arabia Defining Public Relations A Short History of Public Relations Organization of the Public Relations Industry Departments and Staff The Public Relations Program Economics PR Online Public Relations Careers © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 4 Case Study – Qorvis and Saudi Arabia Saudi Arabia home to 15 of 19 attackers on 9/11 Saudi Arabia hired Qorvis for spin control $200,000/month retainer $20M ad campaign: TV, radio, print Interviews of Saudi diplomat Adel Al-Jubeir Result? American opinion worsened Attention brought out other negative stories © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5 Defining Public Relations Public relations is the art and social science of analyzing trends, predicting their consequences, counseling organization leaders, and implementing planned programs of action which serve both the organization’s and the public’s interests. --- World Assembly of Public Relations © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 6 Defining Public Relations PR compared with Advertising Both persuade Both use mass media Advertising is a marketing function Public relations is a management function Advertising does not use interpersonal communication Public relations uses every communication form Advertising is sponsored (paid for) Public relations messages are usually free © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 7 Defining Public Relations Common practices that are not public relations: Press agentry – staging media events to attract public attention Publicity – attempting to place favorable stories in the media Extensive publicity and bad public relations??? It’s possible! © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 8 Defining Public Relations What PR people actually do: Work with public opinion Explain their organization to various publics Listen to the publics Work with top management to achieve goals © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 9 A Short History of Public Relations American Revolution Boston Tea Party Liberty Tree Samuel Adams, Thomas Paine, Abigail Adams, Benjamin Franklin Industrial Revolution Initially public completely disregarded Muckraking exposés Prototypical press agents © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 10 A Short History of Public Relations Ivy Lee Press representative for anthracite coal mine operators and Pennsylvania RR (late 1900s) Declaration of Principles The “humanizing” of business Woodrow Wilson’s Creel Committee PR tactics in WW I “Save food”; “Buy war bonds” © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 11 A Short History of Public Relations Edward Bernays, Crystallizing Public Opinion, first book on public relations (1923) Carl Byoir opens PR agency (1930) Franklin Roosevelt’s radio “fireside talks” Depression New Deal reform program WW II – creation of Office of War Information © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 12 A Short History of Public Relations Growth in Public Relations late 20th Century Some companies acknowledge social responsibilities Consumerism forces organizations to pay attention Organizational complexity necessitates PR department Public is more complex Population growth Workplace specialization Job mobility © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13 A Short History of Public Relations Public Relations late 20th Century “Era of Public Relations” 19,000 (1950) 300,000 (2003) Public Relations Society of America (1947) Code of Standards (1954) Public Relations Student Society of America (1967) US military operations in Iraq and embedded reporters Enron, Arthur Anderson One of fastest growing professions in USA © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 14 Organization of the Public Relations Industry Internal PR Department More in-depth knowledge about the company Assigned or reassigned on short notice Less costly External PR Agencies Fresh, objective viewpoints More services Purchasable prestige May cause morale problems in company © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 15 Organization of the Public Relations Industry Areas of Public Relations Practice Business Entertainment and sports Government International PR Education Investor relations Hospitals Politics Nonprofit organizations Crisis management Professional associations © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 16 Departments and Staff Internal PR Departments No two are identical PR director always reports directly to top management Three main divisions 1) Corporate communications (internal publics) 2) Community relations (external publics) 3) Press relations (news media) © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 17 Departments and Staff External PR Departments More complex Five typical main divisions 1) 2) 3) 4) 5) Creative services – press releases Research – surveys, focus groups Publicity and marketing – merchandising, promotions Accounts – relations with clients Administration – business aspects of the department © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 18 The Public Relations Program The Four Steps of a Typical PR Program Step Step StepThree Four One Two Evaluation Communication Planning Example: An automobile manufacturing plant is Information Gathering How much will the company save? “How well did it work?” Organization is the source of the communication Strategic closing soon ingeneral Cartown, Midwest USAmedia Works with MBO techniques – measurable goals Organizational records, books, journals Long term, goals How many workers will be transferred? PR requires thorough knowledge of mass make measurement of success possible Formed by top management Letters, email, interviews Challenge: Communicate this to thealso people of Personal communication channels necessary What about the empty buildings? Measure Tacticalaccomplishment of tasks as well as Formal research techniques Cartown Example: news conferences, ads, news releases, achievement of desired effect More specific, often short term Will the people believe the company? public meetings (external publics) Program-specific questions: Tasks that achieve the #strategic goalsdelivered Simple measurements: brochures How will affect the company’s other operations? Example: bulletin boards, newsletters, speeches, Management by Objective Complex measurements: shift of perception letters, memos (internal publics) “Inform >50% of Cartown about reasons fortomove” Example: Change in customer loyalty due move © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 19 Economics $ Weak economy revenues decline 2001+ $ Top 50 USA PR firms: $2B in fee income in 2002 $ Industry domination: giants owned by ad agencies $ (Porter-Novelli, Fleishman-Hillard) of Omnicom $ (Hill & Knowlton, Burson-Marsteller) of WPP $ Independents $ Edelman PR Worldwide $ Ruder Finn $ Fees: fixed, retainer, hourly rate, time+ © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 20 PR Online Email used for press releases and communications Internet used to distribute info to the media PR Newswire Corporate website now first line of communication with: consumers, shareholders, reporters Crisis management uses corporate website Example: www.saudinf.com Online corporate pressroom © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 21 Public Relations Careers Internships at various firms, or in the media Writing and communication skills very important Business, law, public opinion research, social sciences are useful Editing, writing, speech-making, media production © 2005 The McGraw-Hill Companies, Inc. All rights reserved.