Learning Objectives
1 Explain the role of public relations as part of a firm's overall integrated brand
promotion strategy.
Public relations represents another aspect of an organization's IBP programming that
can play a key role in determining how the organization's many constituents view the
organization and its products. Public relations is a marketing and management
communications function that deals with the public issues encountered by firms across
a wide range of constituents. An important component of public relations is publicity—
news media coverage of events related to a firm's products or activities.
2 Detail the objectives and tools of public relations.
An active public relations effort can serve many objectives, such as building goodwill
and counteracting negative publicity. Public relations activities may also be orchestrated
to support the launch of new products or communicate with employees on matters of
interest to them. The public relations function may also be instrumental to the firm's
lobbying efforts and in preparing executives to meet with the press. The primary tools of
public relations experts are press releases, feature stories, corporate newsletters,
interviews, press conferences, and participation in the firm's event sponsorship
decisions and programs.
3 Describe how firms are using the Internet to assist their public relations
activities.
Firms are using the Internet for a variety of public relations activities. In Chapter 16, we
saw that new media can create a "buzz" through word-of-mouth that is more effective
with certain target segments than any other tactic. In a noisy and crowded competitive
environment, mainstream promotional tools such as advertising, sales promotion, and
sponsorships may get lost in the clutter. Public relations using new media, particularly
Web sites, chat room posts, and Web press releases, can reach targeted audiences in
a different way that carries more credibility than "in your face" company self-promotion.
New Web companies themselves are finding that their needs for public relations are
just as great as, if not greater than, established, non-Web-based firms. Analysts believe
that without the third-party endorsement that public relations provides from the press
and industry analysts, it is doubtful that a startup can be successful.
Finally, there is a major drawback to new media when it comes to public relations.
Because of the speed with which information is disseminated, staying ahead of negative
publicity is indeed challenging. While word-of-mouth can be used to create a positive
buzz, it can also spread bad news or, even worse, misinformation just as fast.
4 Describe two basic strategies motivating an organization's public relations
activities.
When companies perceive public relations as a source of opportunity for shaping public
opinion, they are likely to pursue a proactive public relations strategy. With a proactive
strategy, a firm strives to build goodwill with key constituents via aggressive programs.
The foundation for these proactive programs is a rigorous public relations audit and a
comprehensive public relations plan. The plan should include an explicit statement of
objectives to guide the overall effort. In many instances, however, public relations
activities take the form of damage control, and in these instances the firm is obviously in
a reactive public relations strategy mode. While a reactive strategy may seem a
contradiction in terms, it certainly is the case that organizations can be prepared to react
to bad news. Organizations that understand their inherent vulnerabilities in the eyes of
important constituents will be able to react quickly and effectively in the face of hostile
publicity.
5 Discuss the applications and objectives of corporate advertising.
Corporate advertising is not undertaken to support an organization's specific brands, but
rather to build the general reputation of the organization in the eyes of key constituents.
This form of advertising uses various media—but primarily magazine and television
ads—and serves goals such as image enhancement and building fundamental
credibility for a firm's line of products. Corporate advertising may also serve diverse
objectives, such as improving employee morale, building shareholder confidence, or
denouncing competitors. Corporate ad campaigns generally fall into one of three
categories: image advertising, advocacy advertising, or cause-related advertising.
Corporate advertising may also be orchestrated in such a way to be very newsworthy,
and thus it needs to be carefully coordinated with the organization's ongoing public
relations programs.