PUBLIC RELATIONS
DEPARTMENTS & FIRMS
CHAPTER 4
DEPARTMENTS
In the beginning, the primary objectives of a public relations
department were promotion and publicity. Henry Ford used a PR
staff in promoting his cars in early 1900s
https://www.youtube.com/watch?v=iOwUkkE2A4c
Today, public relations has expanded from its traditional
functions and now exercises its influence on the highest levels of
management. Now, this department exists as a way of building
good relationships with strategic publics.
POSITION: Director of Corporate Communications at
Wyndham Worldwide Corporation (international hotel and resort company)
PUBLIC RELATIONS:
-Media outreach for company & programs, pitching to consumer media & trades, writing & distribution of press releases,
work with VP of communications on crisis communications, script writing for company executives, award notifications &
submissions, work with investor Relations when appropriate on media outreach and press inquiries, tracking, media tracking
& reports on monthly basis, year-end reports including key coverage by month, website tracking and conversions.
MARKETING:
-assist with creating & implementing campaigns, social media outreach & management of company sites, policing of
branding & logo use, social media task force lead, assist with and help create and implement strategic plan
ELECTRONIC COMMUNICATIONS:
-oversee the company website, manage content of website & recommend enhancements, drive traffic to website
JOB REQUIREMENTS
7-10 years experience in corporate media relations or PR agency
Travel or hospitality experience
B.A. degree in PR, communications, English, journalism, or related field
Experience in developing & executing strategic media relations plans
Excellent verbal and written communication skills
Experience with electronic press lists and database programs
Excellent computer skills
Excellent interpersonal skills
Ability to be a self-starter and resourceful
Ability to multi-task and adapt quickly to change
Experience managing crisis communications
ACCESS TO MANAGEMENT
The power & influence of a PR department usually result
from access to top management, which uses advice &
recommendations to formulate policy.
This is why PR, as well as other staff functions, is located
high in the organizational chart & is called on by top
management to make reports & recommendations on issues
affecting the entire company.
LEVELS OF INFLUENCE
Advisory
Compulsory-Advisory
Concurring Authority
Advisory
• Lowest level staff function
• When PR is purely advisory, it is often ineffective
• FOR EXAMPLE: Toyota recall; auto company generated a
great deal of public, legislative, and media criticism
because its public relations department was relegated to
a low level and was, for all practical purposes,
nonexistent in the early stages of the crisis that caused
Toyota’s reputation for quality to fall off the charts.
COMPULSORY-ADVISORY
Organization policy requires that line managers (top management) at
least listen to the appropriate staff experts before deciding on a
strategy.
“Although such a procedure does not limit the manager’s decisionmaking discretion, it ensures that the manager has made use of the
specialized talents of the appropriate staff agency.” – Don Hellriegel &
John Slocum
FOR EXAMPLE: Johnson & Johnson; the Tylenol crisis, in which 7 people
died after taking capsules containing cyanide, clearly demonstrated that
the company based much of its reaction and quick recall of the product
on the advice of its public relations staff.
CONCURRING AUTHORITY
This concept places public relations in the position of reviewing and
approving all materials & communications with external audiences.
Many firms use this mode to prevent departments & divisions from
disseminating materials that do not conform to company graphic
standards.
FOR EXAMPLE: An operating division wishing to publish a brochure or
newsletter cannot do so unless the public relations department approves
the key messages and design.
COOPERATION WITH OTHER
STAFF FUNCTIONS
The 4 areas that require cooperation to avoid possible friction and turf battles are:
◊LEGAL
◊HUMAN RESOURCES
◊ADVERTISING
◊MARKETING
Public Relations
Departments
Public Relations Firms
Most organizations have a PR
department, which is often called
corporate communications.
Public relations firms come in all sizes,
are found worldwide, and provide a
variety of services
Organizations, depending on their
culture & management, structure the
public relations function in various ways.
Many large, international firms are part
of a giant communication conglomerates.
PR professionals often serve at the
tactical level, but others are counselors
to the top executive and have a major
role in policy-making.
In management theory, public relations
is a staff function rather than a line
function.
The advantage of using outside firms
include versatility and extensive resources.
Revenues primarily come from charging a
basic hourly fee, plus out-of-pocket
expenses.
https://www.youtube.com/watch?v=
7ptiYPcIeM8
A NUMBER OF VARIABLE ARE CONSIDERED WHEN A
PUBLIC RELATIONS FIRM ESTIMATES COST OF A
PROGRAM/PROJECT
-size of project
-duration of project
-geographic locations involved
- # of personnel assigned to the project
-billing the use of the firm’s personnel to a client at proper hourly rates
***Standard industry practice is to bill clients 3-5 times a person’s salary!
(This is due to having to pay expenses such as office space, equipment, insurance,
supplies, utilities, etc.)
HOW DO FIRMS MAKE THEIR MONEY???
Income is brought in from selling of staff time, but some
additional income results from markups on photocopying,
travel expenses, and materials provided by vendors
such as graphic designs.
** *STANDARD MARKUP in the trade
is between 15 & 20% !!!!
FEES & CHARGES BY A PUBLIC RELATIONS FIRM
Basic hourly rates, plus out-of-pocket expenses---commonly used by attorneys
“Retainer fee” : service of basically being ‘on-call’ for advice & strategic
counseling
Fixed project fee: the firm agrees to a specific project to take on, such as the
firm agreeing to do a quarterly newspaper for $30,000 annually. A set amount
for a service.
***The primary basis of these is to estimate the number of hours that each project will take.
DISADVANTAGES OF A
FIRM
Superficial grasp of a client’s unique problems- when the firm doesn’t fully
understand the client’s business or needs
Lack of full-time commitment- no single firm employee can monopolize its personnel
and other resources
Need for prolonged briefing period- Time & money may be needed to research the
company to better serve the client and their company/business.
Need for full information and confidence- A client must be willing to share its info,
including the skeletons in the closet, with outside counsel
Costs- Outside counsel is expensive. Routine Public relations work can be handled at
lower cost by internal staff.
ADVANTAGES OF A
PUBLIC RELATIONS FIRM
Objectivity- firm can analyze a client’s needs or problems from a new perspective&
offer fresh insights
A variety of skills and expertise- firm has specialists, whether in speech writing,
trade magazine placement, investor relations, or identifying influential bloggers
Extensive resources- firm has abundant media
Offices throughout the country
Special problem-solving skills
credibility- a successful PR firm has a solid reputation for professional, ethical work
A DAY IN THE LIFE OF A
PUBLIC RELATIONS
SPECIALIST
Youtube video
“A day in the life- Public Relations
Specialist”
https://www.youtube.com/watch?v=tUiiNghi
cNM
HOW DO FIRMS GET BUSINESS???
When a company/ business needs
a project done but does not have
the staff, time, or space to do so,
they hire someone from a public
relations firm to do it for them.
SERVICES PROVIDED BY FIRMS
Marketing Communications
Executive Speech Training
Research & Evaluation
Crisis Communication
Media Analysis
Community Relations
Events Management
Public Affairs
Branding & Corporate Reputation
Financial Relations
OUTSOURCING
Outsourcing: Using an outside public relations counsel for services
needed by their company/business
The most frequent reason given for outsourcing is to bring expertise
and resources to the organization that can’t be found internally.
Studies have found that Fortune 500 companies now spend 25% of
their public relations budgets on outside firms. In addition, almost
90% of those companies use outside public relations counsel to
varying degrees.
PUBLIC RELATIONS DEPARTMENT
Usually is divided into specialized sections, each of
which has a coordinator or manager.
Common sections found in a large corporation are
media relations, investor relations, consumer affairs,
governmental relations, community relations,
marketing communications, and employee
communications.
STRUCTURE OF A COUNSELING FIRM
A small PR firm may consist only of the owner (President) and an assistant (vice president), who
are supported by an administrative assistant. Larger firms have a more extended hierarchy.
An account supervisor is in charge of 1 major account or several smaller ones. An account
executive, who reports to the supervisor, is in direct contact with the client and handles most of
the everyday activities.
At the bottom of the list is the assistant account executive, who does routine maintenance work
compiling media lists, gathering info, and writing rough drafts of news releases. ** This is
typically where recent college graduates start. Once they learn the firm’s procedures and show
ability, promotion to account executive may occur within 6-18 months. After 2 or 3 years, it is not
uncommon for an account executive to become an account supervisor.
Executives at or above the vice presidential level usually are heavily involved in selling their
firm’s services. In order to prosper, a firm must continually seek new business and sell additional
services to current clients.
A DAY IN LIFE OF A
PUBLIC RELATIONS
MANAGER
YOUTUBE VIDEO
A DAY IN THE LIFE- PUBLIC RELATIONS MANAGER
https://www.youtube.com/watch?v=BQ6hD5
MiRPc