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

Identification of policies
PR and procedures

Development and
execution of the
program

17-3
 Traditional PR Perspective

Customers
Customers

Community
Community Investors
Investors

Public
Public
Relations
Relations
Department
Department
Suppliers
Suppliers Government
Government

Employees
Employees

17-4
Integration of PR into the Promotional Mix

Separate Functions
Marketing Public
Department Relations

Coordinated and Equal

Marketing Public
Department Relations

Integrated
Marketing Public
Department Relations

17-5
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

17-6
MPR in Practice

17-7
 Benefits of MPR

A cost-effective way to Breaks though the

reach the market clutter

Highly targeted way to Circumvents resistance

conduct public relations to sales efforts

Endorsements by Improved media

independent third involvement
parties w/customers

Achievement of Creates influence

credibility among opinion leaders

Makes advertising
Improved ROI
messages more credible

17-8
 Disadvantages of MPR

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

17-9
 The Process of Public Relations

Determining
Determining and
and Evaluating
Evaluating Public
Public Attitudes
Attitudes

Establishing
Establishing aa PR
PR Plan
Plan

Developing
Developing and
and Executing
Executing aa PR
PR Program
Program

Measuring
Measuring Program
Program Effectiveness
Effectiveness

17-10
 Test Your Knowledge
In public relations targeting, external audiences
include:
A) Customers
B) The public at large
C) Suppliers
D) Stockholders
E) All of the above

17-11
 Research on Public Attitudes

Provides input for Serves as an “early

the planning process warning system”

Increases
Secures internal
communications
cooperation, support
effectiveness

17-12
 10 Evaluation Questions

• Click to add text

• Second level
1. Does the plan reflect a thorough
understanding of the company’s business
• Third level
situation?
– 2.
Fourth
Haslevel
the PR program made good use of
» Fifth leveland background sources?
research
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?

17-13
10 Evaluation Questions

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?

17-14
Determining Public Relations Audiences

Internal
Internal or
or Associated
Associated External
External or
or Independent
Independent

Employees The Media

Stockholders and Educators

Investors
Civic & Business
Community Members Organizations

Suppliers & Customers Governments

Financial Groups

17-15
 Implementing the PR Program

Press
Releases

Press
Interviews
Conferences

PR Tools

The
Exclusives
Internet
Community
Involvement

17-16
 Advantages of Public Relations

Credibility

Image Cost
Building Savings

PR
Provides
Avoidance
Selectivity
of Clutter
Lead
Generation

17-17
Potential Problems of Public Relations

Potential for incomplete

communication process

Potential
Potential Receiver not making
Problems
Problems connection to the source

Lack of coordination with

marketing dept.

Inconsistent, redundant
communications

17-18
 Test Your Knowledge
Which of the following communications is most likely
to have more credibility among its receivers?
A) Vogue's layout introducing its latest models
B) Volvo's television ad promoting new
standard safety features
C) Motor Trend's announcement of the "Car
of the Year"
D) The CEO of Ford Motor Company
appearing in its ads
E) The appearance of American Idol
participants in Old Navy ads

17-19
General Mills Capitalizes on Publicity

17-20
Measuring PR Effectiveness

Contributions made?

What was achieved?

Quantitative measures?

Quality?

17-21
Criteria for Measuring PR Effectiveness

17-22
Additional Measures of PR Effectiveness

• Walter Lindenmann recommendations

• Did the audience receive the message?
• Did they pay attention to them?
• Were the messages understood?
• Where the messages retained?

• Mark Weiner suggests

• Media content analysis
• Survey research
• Marketing-mix modeling
17-23
 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

17-24
A Response to Negative Publicity

17-25
 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-of-
mouth

Perception of media
endorsement

17-26
 Corporate Advertising

An
An extension
extension of
of the
the PR
PR
function
function

Does
Does not
not promote
promote aa specific
specific
product
product or
or service
service

Promotes
Promotes the
the organization
organization

Assuming a
Image Seeks
position on an
enhancement involvement
issue or cause

17-27
Why is Corporate Advertising Controversial?

Consumers aren’t
interested in this form of
advertising

Opponents
Opponents toto This is a costly form of
Corporate
Corporate corporate self-indulgence
Advertising
Advertising
The firm must be
in trouble

Corporate advertising is
a waste of money

17-28
Objectives of Corporate Advertising

Create a positive
image for the
firm
Establish Communicate
diversified the
company organization’s
identity viewpoint

Objectives

Help newly Boost

deregulated employee
industries morale
Smooth labor
relations

17-29
Types of Corporate Advertising

Image
General Image Ads
Advertising
Positioning Ads
Event
Sponsorships
Sponsorship
Recruitment
Advocacy
Advertising Financial Support

Cause-related
Advertising

17-30
Employee Recruitment by Grant Thornton

17-31
 Event Sponsorship

Corporate Sponsor

Sporting Music,
Events Entertainment

Causes Festivals

Cultural Events Arts

17-32
 Test Your Knowledge

Why would World Wrestling Entertainment (WWE)

sponsor a car on the NASCAR racing circuit?
A) To build equity and gain affinity with its
target market
B) To show its position on sports marketing
C) To create a generic positioning strategy
D) To further segment its target market
E) To reduce its overall promotional expenses

17-33
 Advocacy Advertising

Propagating ideas and

elucidating controversial social
issues of public importance in a
manner that supports the
interests of the sponsor

17-34
Advocacy Ad

17-35
 Cause Related Marketing

A form of marketing whereby

companies link with charities
or nonprofit organizations as
contributing sponsors

17-36
Cause Related Marketing

17-37
Pros and Cons of Corporate Advertising

Advantages Disadvantages

May have
Excellent vehicle for
questionable
positioning the firm
effectiveness

Takes advantage of Raises questions of

benefits derived from constitutionality and
public relations ethics

Reaches a selected
target market

17-38
Measuring Corporate Ad Effectiveness

Attitude Surveys

Stock Prices
Effective?

Focus Group Research

17-39