17 Public Relations, Publicity, and Corporate Advertising McGraw-Hill/Irwin Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed Public Relations Defined A management function Which evaluates public attitudes And identifies the policies and procedures Of an organization with the public interest And executes a program of action (& communication) To earn public understanding and acceptance 17-2 Public Relations Management Stages Determination and evaluation of public attitudes PR Identification of policies and procedures Development and execution of the program 17-3 Integration of PR into the Promotional Mix Separate Functions Marketing Department Public Relations Coordinated and Equal Marketing Department Public Relations Integrated Marketing Department Public Relations 17-4 Marketing Public Relations Functions Build market excitement before media ads break Defend products at risk, give consumers reason to buy Create ad news where there is no product news Introduce a product with little or no advertising Provide a value-added customer service Build brand-to-customer bonds Influence the influentials Improve ROI 17-5 Benefits of MPR A cost-effective way to reach the market Breaks though the clutter Highly targeted way to conduct public relations Circumvents resistance to sales efforts Endorsements by independent third parties Improved media involvement w/customers Achievement of credibility Creates influence among opinion leaders Makes advertising messages more credible Improved ROI 17-6 Disadvantages of MRP Lack of control over media Difficult to tie in slogans or other advertising devices Media time and space aren’t guaranteed No standards for effective measurement 17-7 The Process of Public Relations Determining and Evaluating Public Attitudes Establishing a PR Plan Developing and Executing a PR Program Measuring Program Effectiveness 17-8 Implementing the PR Program Press Releases Press Conferences Interviews PR Tools The Internet Exclusives Community Involvement 17-9 Advantages of Public Relations Credibility Image Building Cost Savings PR Provides Avoidance of Clutter Selectivity Lead Generation 17-10 Potential Problems of Public Relations Potential for incomplete communication process Potential Problems Receiver not making connection to the source Lack of coordination with marketing dept. Inconsistent, redundant communications 17-11 Publicity versus Public Relations Publicity: The generation of news about a person, product, or service that appears in the media A short-term strategy A subset of public relations Not always positive Often originates outside the firm 17-12 Pros and Cons of Publicity Advantages Disadvantages Substantial credibility Timing difficult or impossible to control News value Inaccuracy, omission, or distortion may result Significant word-ofmouth Perception of media endorsement 17-13 Corporate Advertising An extension of the PR function Does not promote a specific product or service Promotes the organization Image enhancement Assuming a position on an issue or cause Seeks involvement 17-14 Types of Corporate Advertising Image Advertising General Image Ads Positioning Ads Event Sponsorship Sponsorships Recruitment Advocacy Advertising Financial Support Cause-related Advertising 17-15