Public Relations, Publicity, and Corporate Advertising

The Role of Public Relations

To manage relationships with the public

Public Relations Management Process

Marketing Public Relations (MPR) Functions

• 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 influentials/opinion leaders
• Defending products at risk and giving customers a reason to buy

Segway: An Example of MPR's at Work

The Process of Public Relations

Research on Public Attitudes

• Provides input for the planning process
• Serves as an “ early warning system ”
• Secures internal cooperation, support
• Increases communications effectiveness

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?
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?

Public Relations Audiences

• Employees of the firm
• Stockholders and investors
• Community members
• Suppliers and customers
• The media ? Educators
• Civic and business organizations
• Governments ? Financial groups

Public Relations Tools

• Press releases
• Press conferences
• Exclusives
• Interviews
• Community involvement
• The internet

Example of a Press Release

Reebok Used a Press Conference to Announce the Sponsorship of Shakira

Telling the Story

PR Publications

• Inserts
• Enclosures
• Annual reports
• Posters
• Bulletin boards
• Exhibits
• Audiovisuals
• Position papers
• Speeches
• News releases
• Media kits
• Booklets
• Leaflets
• Pamphlets
• Brochures
• Manuals
• Books
• Letters

Advantages of Public Relations

• Credibility
• Cost
• Avoidance of clutter
• Lead generation
• Selectivity
• Image building

Criteria for Measuring PR Effectiveness

Total number of impressions . . .

• Over time
• On the target audience
• On specific target audiences

Percentage of . . .

• Positive articles over time
• Negative articles over time

Ratio of positive to negative articles

Percentage of positive and negative articles by . . .

• Subject
• Publication
• Reporter
• Target audience

Publicity

Key points regarding publicity:

• Publicity is generally short-term focused
• Publicity is not always under the control of the firm
• Publicity can be negative as well as positive

The Power of Publicity

• Perceived as more credible
• Often perceived as endorsed by the medium in which it appears
• Often has high news value
• Often generates high frequency of exposure

Publicity Vehicles

Responding to Publicity

Using Positive Publicity

Advertising Versus Publicity

Corporate Advertising

Types of Corporate Advertising

• Image Advertising
• Event sponsorship
• Advocacy advertising
• Cause-related advertising

Objectives of Corporate Advertising

• Create a positive image for the firm
• Communicate the organization's viewpoint on various issues
• Boost employee morale
• Smooth labor relations
• Help newly deregulated industries
• Help diversified companies establish an identity

Chevron Engages in Image Advertising

Events used for sponsorship:

• Sporting events
• Music/entertainment
• Festivals
• Arts/cultural events
• Causes

Advocacy Advertising

The San Diego Zoological Society uses advocacy advertising

Cause Related Marketing

KitchenAid uses cause-related marketing