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McGraw-Hill/Irwin 17 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. To manage relationship with the public General Public Employees Suppliers Stockholders Customers CLIENT The Role of Public Relations

Chapter 17 Public Relations, Publicity, and Corporate Advertising

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Page 1: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-2Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

To manage relationship with the public

GeneralPublic

Employees

Suppliers Stockholders

Customers

CLIENT

The Role of Public Relations

Page 2: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-3Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Public Relations Management Process

•Determination and evaluation of public

• Identification of policies and procedures

•Development and execution of the program

Page 3: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-4Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

MA

RK

ET

ING

PUBLIC RELATIONS

Str

on

gW

eak

StrongWeak

Four Classes of Marketingand Public Relations

Example:Small social service agencies

Example:Large, Fortune five-hundred companies

Example:Small manufacturing companies

Example:Hospitals, colleges and universities

Page 4: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-5Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Marketing Public Relations(MPR) Functions

• Building marketplace excitement before media advertising breaks

• Creating advertising news where there is no product news

• Introducint a product with little or no advertising

• Providing a value-added customer service• Building brand-to-customer bonds• Influencing the influentials (i.e., providing

information to opinion leaders)

• Defending products at risk and giving customers a reason to buy

Page 5: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-6Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Evaluating Public Relations Plans1. 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?

Page 6: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-7Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Research on Public Attitudes

•Provides input for the planning process

•Serves as an “early warning system”

•Secures internal cooperation, support

• Increases communications effectiveness

Page 7: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-8Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Public Relations Audiences

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

Page 8: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-9Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Public Relations Tools

•Press releases

•Press conferences

•Exclusives

• Interviews

•Community involvement

•The internet

Page 9: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-10Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Telling the PR Story

•Technical methods make it easier for the press

•They increase the likelihood media will use the story

• Telephone press conferences• In-studio media tours• Multicomponent video news

releases (VNR)• Targeted wire stories

Page 10: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-11Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Promotional Publications

• Inserts• Enclosures• Annual reports• Posters• Bulletin boards• Exhibits• Audiovisuals• Position papers• Speeches

• News releases• Media kits• Booklets• Leaflets• Pamphlets• Brochures• Manuals• Books• Letters

Page 11: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-12Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Advantages of Public Relations

•Credibility

•Cost

•Avoidance of clutter

•Lead generation

•Selectivity

• Image building

Page 12: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-13Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

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

Page 13: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-14Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Corporate Advertising

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

•Objectives• Boost employee morale• Smooth labor relations• Help newly deregulated industries

• Ease consumer uncertainty• Answer investor questions

• Help diversified companies• Establish identity for parent• Decrease reliance solely on brand

Page 14: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-15Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

To 30 Companies Based on RQ(Reputation Quotient)

1 Johnson & Johnson 83.42 Coca-Cola 81.63 Hewlett-Packard 81.24 Intel 81.05 Ben &Jerry’s 81.06 Wal-Mart 80.57 Xerox 79.98 Home Depot 79.79 Gateway 78.810 Disney 78.711 Dell 78.412 General Electric 78.113 Lucent 78.014 Anheuser-Busch 78.015 Microsoft 77.9

16 Amazon.com 77.817 IBM 77.618 Sony 77.419 Yahoo! 76.920 AT&T 75.721 FedEx 75.722 Procter & Gamble 71.923 Nike 71.324 McDonald’s 71.225 Southwest Airlines 70.626 America Online 69.227 Daimler Chrysler 69.128 Toyota 68.629 Sears 67.630 Boeing 67.3

Page 15: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-16Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Emotional AppealHow much the company is liked, admired, and respected

Social ResponsibilityPerceptions of the company as a good citizen in its dealings with communities, employees, and the environment

1 Johnson & Johnson2 Coca-Cola3 Hewlett-Packard4 Ben & Jerry’s5 Xerox

1 Ben & Jerry’s2 Amazon.com3 Johnson & Johnson4 Wal-Mart5 Xerox

Top 5 Companies for Each of 6 Elements of Reputation

Page 16: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-17Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Top 5 Companies for Each of 6 Elements of Reputation

Products & ServicesPerceptions of the quality, innovation, value, and reliability of its products and services

Workplace Environ.Perception of how well the company is managed, how it is to work for, and the quality of its employees

1 Johnson & Johnson2 Intel3 Hewlett-Packard4 Xerox5 Ben & Jerry’s

1 Johnson & Johnson2 Lucent3 Ben & Jerry’s4 Hewlett-Packard5 Intel

Page 17: Chapter 17 Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin 17-18Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Top 5 Companies for Each of 6 Elements of Reputation

Vision & LeadershipHow much the company demonstrates a clear vision and strong leadership

Financial PerformancePerceptions of its profitability, prospects, and risk

1 Microsoft2 Intel3 Anheuser-Busch4 Coca-Cola5 Dell

1 Microsoft2 Wal-Mart3 Coca-Cola4 Johnson & Johnson5 Intel