Chapter 16
Public Relations
1
The Practice of Public
Relations
Goal: Achieve effective relationships with
various audiences to manage the
organization’s image and reputation.
Publics may be external (customers, news
media, investment community, general
public, government), or internal (investors or
employees).
PR is a growing industry that employs
approximately 150,000 people.
2
Advantages and
Disadvantages of PR
Advantages
-Credibility
- Low cost
- Less clutter
-Lead generation
-Ability to reach
specific groups
- Image building
Disadvantages
- Not completing
the
communication
Process
- Redundancies
with the
marketing
effort
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The Practice of Public
Relations
Advertising is Primarily Concerned with Enhancing Sales While
PR is Concerned With Managing the Organization’s Image.
PR May Not Work in Concert With Other Communication
and Promotion Functions.
PR Operates on Two Levels in Most Firms
Physical Tasks
Advice to Management
People in Advertising May be Reluctant to Incorporate PR Into
Their Planning Since It is Not a Bottom-Line Profit Producer.
4
Comparing Public Relations
and Advertising
Public Relations Differs From Advertising in Three
Important Ways:
Media Use
Control
Credibility
Advertising
Pays
PR
Persuades
Advertising –
More
PR – Less
AdvertisingSome
PR – Much
More
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Types of Public Relations
Activities
Public Affairs &
Issues Management
Crisis
Management
Managing
a PR
Program
Begins
With a
Plan
Relationship
Management
Image & Reputation
Management
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Public Opinion
Ask two primary questions about public
opinion to design public affairs programs:
Which publics are most important to the
organization, now and in the future?
 What do these publics think?

Public opinion is what people think, a
“belief, based not necessarily on fact but on
the conception or evaluation of an event,
person, institution, or product”. 8
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Image and Reputation
Management
A corporate image reflects how the public views
the organization.
Image programs try to send the right cues and
hope the audience will develop a positive image of
a company.
Overriding goal of a reputation management
program is to strengthen the trust that
stakeholders have in an organization.
An organization’s policies and actions determine
its reputation.
8
From Identity to Reputation
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Relationship Management
Government
Media
Communicating with
Government Bodies.
Developing Media
Contacts.
Involved in the Management
Of Relationships With
Various Types of
Stakeholders.
Financial Relations
Employees
Communications Aimed
At the Financial
Community.
Programs Designed to
Keep
Employees Informed.
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Twenty Key Publics of a Typical
Multinational Corporation
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Crisis Management
Be Prepared By Anticipating the
Possibility of a Crisis.
Develop a Plan for Dealing With the
Crisis.
Plan Should Detail Who Does What
and Says What to Whom.
12
Public Relations Tools
13
Public Relations Tools
The Sponsoring Organization Pays for Controlled Media so
They Maintain Total Control Over How and When the Message
is Delivered.
House Ads
Prepared by the Organization for Use in
Its Own Publication or One Over Which It
Has Some Control.
Public Service
Announcements
Ads Designed by Charitable or Civic
Organizations for Broadcast Free of
Charge.
Corporate
(Institutional)
Advertising
Designed to Promote a Corporate Image
or Viewpoint.
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Public Relations Tools
In-House
Publications
Publications Such as Pamphlets,
Booklets, and Annual Reports for an
Organization’s Own Employees and Other
Publics.
Speakers,
Photographs,
& Films
Maintaining Visual Contact With the
Various Publics is a Big Part of PR.
Displays,
Exhibits, &
Staged Events
All Are Used in Both Sales Promotion and
PR Programs and Include Open Houses
and Plant Tours.
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Public Relations Tools
The Media, Rather Than the Organization, Controls the Use
and Placement of Uncontrolled Media.
News Release
Press Conference
Primary Medium Used
To Deliver PR Messages
to Media Editors
And Reporters.
Convening Media Reps
To Make a Statement.
Video News Releases
Contain Video Coverage
That Can be Used
During a TV Newscast.
Risky, Because Media
May Not See Company’s
Announcement as Being
Real News.
May Distribute Press
Kits.
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Practical Tips # 2
How to Measure PR Effectiveness
The following are common types of evaluation
used in public relations:

Output (What goes out)







Production: number of PR products generated.
Distribution: number of media outlets receiving PR products.
Coverage: column inches, seconds, or minutes of air time.
Impressions: media placements x circulation or broadcast
reach.
Advertising value: equivalent ad costs for time or space.
Systematic content analysis: positive or negative slant, key
messages, sources, prominence.
Outcome (Effect on the audience)

Goals/ objectives achievement: surveys, focus groups, PR
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product testing.
Additional Means for
Measuring PR’s Effectiveness
Personal observation and reaction
Matching objectives and results
The team approach
Management by objectives
Public opinion and surveys
Audits
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Marketing Public Relations (MPR)
Advertising and Public Relations Overlap in
Marketing Public Relations (MPR), Which is the
Process of Planning, Executing, and Evaluating
Programs That Encourage Purchase and
Consumer Satisfaction Through Credible
Communication of Information and Impressions
That Identify Companies and Their Products With
the Needs, Wants, Concerns, and Interests of
Consumers.
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Marketing Public Relations
(MPR) Adds Value:
Building marketplace excitement before
media advertising breaks
Creating advertising news where there is no
product news
Introducing a product with little or no
advertising
Providing a value-added customer service
Building brand-to-customer bonds
Influencing the influential
Defending products at risk and giving
consumers a reason to buy
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Cause and Mission Marketing
Customer Attitudes of Disrespect, Disgust, and Distrust
Toward Advertising and Marketing Create New Marketplace
Challenges and Companies Must Prove They Are Good
Corporate Citizens Through:
Cause Marketing

Adopting a good
cause and
sponsoring its fundraising and other
efforts.
Mission Marketing

More Long Term and
Pervasive Because
the Cause is Linked
to the Company’s
Mission.
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EXH 12-16
22
Types of Corporate Advertising
Image
advertising
Advocacy
advertising
Cause-related
advertising
Chevron
California Avocado
Commission
J.C. Penney-PBS
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Corporate Advertising
Corporate image (or identity) advertising


To increase a firm’s name recognition or establish
goodwill for the firm and its products
Ex.:“Think Different” campaign by Apple Computer
Corporate issue advertising (advocacy adv.)


To take a position on a controversial social issue
of public importance in hopes of swaying public
opinion
Ex.:“We want you to know where we stand” by
Philip Morris
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Advantages and Disadvantages of
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
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