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?