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7/29/2019 44694909 Advertising and Promotion Belch Ch17
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Public Relations, Publicity,and Corporate Advertising
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A management function
evaluates public attitudeswhich
identifies the policies and proceduresand
an organization with the public interestof
executes a program of action (and communication)and
earn public understanding and acceptanceto
executes a program of action (and communication)
an organization with the public interest
identifies the policies and procedures
evaluates public attitudes
A management function
Public Relations Defined
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Identification of policiesand procedures
Determination andevaluation of public
attitudes
Identification of policiesand procedures
Determination andevaluation of public
attitudes
Public Relations Management Process
Development andexecution of the
program
PR
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Customers
Employees
Investors
Government
Community
Suppliers
Suppliers
Employees
Government
Investors
Customers
Traditional PR Perspective
PublicRelations
Department
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Integration of PR into IMC Process
MarketingDepartment
PublicRelations
Separate
MarketingDepartment
PublicRelations
Coordinated
MarketingDepartment
PublicRelations
Integrated
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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 influentials, providing information to opinion leaders
Improving ROI
Defending products at risk, giving consumers a reason to buy
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 influentials, providing information to opinion leaders
Improving ROI
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Benefits of Marketing Public Relations
Difficult to tie in slogans orother advertising devices
No standards for effectivemeasurement
Lack of control over media
Media time and spacearent guaranteed
A cost-effective way toreach the market
A highly targeted way toconduct public relations
Endorsements byindependent third parties
Achievement of credibility
Makes advertising
messages more credible
Breaks though the clutter
Circumvents resistance to
sales efforts
Advantages Disadvantages
Difficult to tie in slogans orother advertising devices
Lack of control over media
Media time and spacearent guaranteed
A cost-effective way toreach the market
A highly targeted way toconduct public relations
Endorsements byindependent third parties
Achievement of credibility
Makes advertising
messages more credible
Breaks though the clutter
Circumvents resistance to
sales efforts
Improved ROIImproved ROI
Creates influence amongopinion leaders
Creates influence amongopinion leaders
Improved media
involvement w/customers
Improved media
involvement w/customers
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The Process of Public Relations
Measuring Program Effectiveness
Developing and Executing a PR Program
Establishing a PR Plan
Determining and Evaluating Public Attitudes
Developing and Executing a PR Program
Establishing a PR Plan
Determining and Evaluating Public Attitudes
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Provides input forthe planning process
Serves as an earlywarning system
Secures internalcooperation, support
Secures internalcooperation, support
Serves as an earlywarning system
Provides input forthe planning process
Research on Public Attitudes
Increasescommunications
effectiveness
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10 Questions for Evaluating PR Plans
1. Does plan reflect thoroughunderstanding ofcompanys businesssituation?
2. Has the PR program made
good use of research andbackground sources?
3. Does the plan include fullanalysis of recent editorialcoverage?
4. Do the PR people fully
understand the productsstrengths andweaknesses?
5. Does the PR programdescribe several cogent,relevant conclusions fromthe research?
6. Are the program objectivesspecific and measurable?
7. Does the program clearlydescribe what the PRactivity will be and how it
will benefit the company?8. Does the program describehow its results will bemeasured?
9. Do the research, objectives,activities, and evaluations
tie together?10 Has the PR department
communicated withmarketing dept. throughoutthe development of theprogram?
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Determining thePR Audiences
The Media
Governments
Financial GroupsThe Media
Governments
External or Independent
Educators
Civic and BusinessOrganizations
Educators
Civic and BusinessOrganizations
Customers and
Clients
Employees of theFirm
Vendors and
SuppliersCommunityMembers
Stockholders andInvestors
Stockholders andInvestors
Customers and
Clients
Employees of theFirm
Vendors and
Suppliers
Community
Members
Internal or Associated
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Implementing the PR Program
PressReleases
CommunityInvolvement
PressConferences
Exclusives
Interviews
The Internet
PR Tools
PressReleases
CommunityInvolvement
PressConferences
ExclusivesThe Internet
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The Internet offers the ability to providemuch more substantial information
The Internet provides the media with instantaccess to additional sources of information
The Internet allows information to bepresented quickly
The Internet provides the media with instantaccess to additional sources of information
The Internet allows information to bepresented quickly
The Internet as a PR Tool
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Credibility
LeadGeneration
Cost Savings
Avoidance of
Clutter
ImageBuilding
SelectivitySelectivity
LeadGeneration
Avoidance of
Clutter
Cost Savings
Credibility
Advantages of Public Relations
PRProvides
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Positivearticles over
time
Negativearticles over
time
Negativearticles over
time
Positivearticles over
time
Over time
On the
targetaudience
On specific
targetaudiences
SubjectPublica-
tion ReporterTarget
audience
Over time
On the
targetaudience
On specific
targetaudiences
SubjectPublica-
tion Reporter
Criteria for Measuring PR Effectiveness
Percentage ofpositive and
negative articlesby . . .
Ratio of positiveto negative
articles
Percentage of . .
Total number ofimpressions . . .
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May Be Out of the Marketers Control
Part of the PR Process
The Generation of News About a Person,Product, or Service That Appears in the Media
Part of the PR Process
The Generation of News About a Person,Product, or Service That Appears in the Media
Publicity
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Inaccuracy, omission,or distortion may
result
Timing difficult orimpossible to control
Substantial credibility
News value
Significant word-of-
mouth
Perception ofendorsement by
media
Advantages and Disadvantages of PublicityAdvantages Disadvantages
Timing difficult orimpossible to controlSubstantial credibility
News value
Significant word-of-
mouth
Perception ofendorsement by
media
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Imageenhancement
Assuming aposition on anissue or cause
Imageenhancement
Assuming aposition on anissue or cause
Corporate Advertising
An extension of the PRfunction
Promotes the organization
Does not promote a specific
product or service
An extension of the PRfunction
Does not promote a specific
product or service
Seeksinvolvement
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Corporateadvertising Is awaste of money
Consumers arentinterested in thisform of advertising
The firms financesor image must be in
trouble
This is a costly formof corporate self-
indulgence
Why Corporate Advertising is Controversial
Claims ofOpponents to
CorporateAdvertising
Corporateadvertising Is awaste of money
Consumers arentinterested in thisform of advertising
The firms financesor image must be in
trouble
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Create a positive
image for thefirm
Smooth laborrelations
Communicatethe
organizations
viewpoint
Boost employee
morale
Establishdiversifiedcompanys
identity
Help newly
deregulatedindustries
Help newly
deregulatedindustries
Smooth laborrelations
Boost employee
morale
Communicatethe
organizations
viewpoint
Create a positive
image for thefirm
Objectives of Corporate Advertising
Objectives
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Positioning Ads
Sponsorship
Recruitment
General Image Ads
Financial Support
General Image Ads
Positioning Ads
Sponsorship
Recruitment
Types of Corporate Advertising
ImageAdvertising
Event
Sponsorship
AdvocacyAdvertising
Cause-relatedAdvertising
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SportingEvents
Music,Entertainment
Causes Festivals
Cultural Events Arts
SportingEvents
Music,Entertainment
Causes Festivals
Cultural Events
Event Sponsorship
Corporate Sponsor
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Advocacy Advertising
Advocacy advertising:is the propagation of ideas and
elucidation of controversial socialissues of public importance in amanner that supports theinterests of the sponsor.
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Cause Related Marketing
Cause related marketing:is a form of marketing whereby
companies link with charities ornonprofit organizations ascontributing sponsors.
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Raises questions ofconstitutionality and
ethics
May havequestionableeffectiveness
Excellent vehicle forpositioning the firm
Takes advantage ofbenefits derived from
public relations
Reaches a selectedtarget market
May havequestionableeffectiveness
Reaches a selectedtarget market
Takes advantage ofbenefits derived from
public relations
Excellent vehicle forpositioning the firm
Advantages and Disadvantages ofCorporate Advertising
Advantages Disadvantages
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Relating to Stock Prices
Attitude Surveys
Relating to Stock Prices
Attitude Surveys
Measuring Corporate Advertising
Effectiveness
Focus Group Research
Effective?