ADVERTISING: Public Relations July 17, 2016 Advertising 1 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 July 17, 2016 Advertising 2 Types of Public Relations Corporate Product July 17, 2016 • Improve image • Handle crisis situation • Publicity • Product placement Advertising 3 Types of Corporate Advertising • Image advertising Chevron • Cause-related advertising American Express July 17, 2016 Advertising 4 July 17, 2016 Advertising 5 July 17, 2016 Advertising 6 Corporate Advertising Advantages: • Excellent vehicle for positioning the firm • Takes advantages of benefits of PR • Reaches a select target market Disadvantages: • Questionable effectiveness • Constitutionality and/or ethics July 17, 2016 Advertising 7 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. July 17, 2016 Advertising 8 July 17, 2016 Advertising 9 Cause-Related Marketing Cause related marketing: is a form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors. July 17, 2016 Advertising 10 Cause-Related Marketing July 17, 2016 Advertising 11 Public Relations • Non-paid, unsponsored, nonpersonal (media) communications. July 17, 2016 Advertising 12 Questions for Evaluating Public Relations Plans 1. Does the plan reflect a thorough understanding of the company’s business situation? 2. Has the PR program made good use of research and background sources? 3. Does the plan include full analysis of recent editorial coverage? 4. Do the PR people fully understand the product’s strengths and weaknesses? 5. Does the PR program describe several cogent, relevant conclusions from the research? July 17, 2016 Advertising 13 Questions for Evaluating Public Relations Plans 6. Are the program objectives specific and measurable? 7. Does the program clearly describe what the PR activity will be and how it will benefit the company? 8. Does the program describe how its results will be measured? 9. Do the research, objectives, activities, and evaluations tie together? 10. Has the PR department communicated with marketing throughout the development of the program? July 17, 2016 Advertising 14 Public Relations • Tools used: • Press Releases • Events • Community activity participation • Fund-raising • Sponsorship • Public affairs activities July 17, 2016 Advertising 15 Example of a Press Release October 12, 1998 STOCKHOLM, Sweden (CNN) -- 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 -- also has applications for treating conditions ranging from heart disease to shock. The winners. 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." ( 498 K/ 8 sec. AIFF or WAV sound) Murad discovered in 1977 that nitroglycerin and similar substances releasenitric oxide, which relaxes smooth muscle cells. The Associated Press and Reuters contributed to this report. July 17, 2016 Advertising 16 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 July 17, 2016 Advertising 17 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 July 17, 2016 Advertising 18 Quote of the day What kills a skunk is the publicity it gives itself. • Abraham Lincoln (President) July 17, 2016 Advertising 19