Public Relations, Publicity and

Corporate Advertising

Objective of PR Traditional & New role of PR

The management function which evaluates public attitude, identifies policies, and procedures of an organization with the public interest, and executes a program of action and communication to earn public understanding and acceptance

– Traditional Definition – primary responsibility – • Creating and maintain a mutually beneficial relationship

between the organization and various publics • Crisis management

– New Definition – MPR - closer to the marketing function and includes the traditional definition of PR Designed to promote the organisation, as well as products and services

Role of PR

PR has 2 major roles1. Building a strong organizational reputation

By creating and maintaining goodwill and stimulating interest between the organisation and its stakeholders with a view to earn public understanding and acceptance

2. Supporting marketing of the organisations’s products and services By providing credibility and cost efficiency (for both Pull and Push Strategies Used synergistically with Advtg. to create awareness and build brand image and a deliver competitive advantage

Integrating PR into the Marketing Mix- Marketing PR (MPR) Strategies

– Building excitement before the advtg breaks– Creating advertising news where there is no

product news– Introducing product with little or no advtg– Providing value added customer services– Building brand-to-customer bonds– Influencing the influentials of society– Defending products at risk and giving

consumers reasons to buy

Advantages of PR– High degree of credibility

• Seen as endorsement by third party – press (parties other than the management). Perceived as more objective than advtg.

– Cost effective means of carrying a message• Does not require time and space to be purchased

• Absolute costs are minimal – PR agency fees and PR material

– Targeted way to reach small and specific audiences effectively (because of media fragmentation)

– Breaks through clutter and resistance to advertising

– Supports advtg. with credibility – awareness and image building

– Circumvents resistance to sales effort – helps lead generation

Disadvantages of PR

• Control over message is low – the message may be lost / distorted in editing for space and content

• No control over timing of editorial. Difficult to tie in with advertising

• Mismanagement and lack of internal co-ordination if PR and marketing depts. work independently

• No standard effectiveness measures

Disadvantages also result from improper implementation of programs– not completing the communication process– redundancies with the marketing effort

PR Target Audiences

Target audiences may be categorized as internal or external.

• Internal audiences include: a. employeesb. stockholders and investorsc. community membersd. suppliers e. customers

• External audiences may include:a. the mediab. educatorsc. civic and business organizationsd. governmentse. financial groups

Tools used by Public Relations

Tools used by Public Relations Publicity

• Press releases• Press conferences• Exclusives Interviews• Internet

Special publications Community activity participation Fund-raising Special event sponsorship Public affairs activities

Establishing the PR Plan

1. Define the PR problem – through survey

2. Plan and programme

3. Take action and communicate

4. Evaluate the programme

The PR Process

1. Determine and evaluate public attitude as it impacts sales and employee morale - Survey

– Provides inputs for the planning process – Serves as an early warning system– Secures support internally– Increases effectiveness of communication

2. The PR Plan - communication program• Define the public relations problem• Identify policies and procedures that are of interest to the

specific audiences• Plan programme, take action and communicate• Evaluate the programme

The PR Process Implementing the PR programme

Tools used for implementation or delivery include:– press releases

– press conferences

– exclusives

– interviews

The PR Programs. • Creating / finding new stories

• Events and sports marketing

• Cause related marketing

• Product placement

• Contests

The PR Process Measuring the Effectiveness of PR

Effectiveness of Public Relations can be measured by– personal observation and reaction– matching objectives and results– the team approach– public opinions and surveys– management by objectives– audits

Publicity

Publicity is powerful enough to make or break a firm.

Publicity

Advantages of publicity– Credibility is high– Perceived endorsement by the media – News value– Often results in word-of-mouth – Low cost (although not totally free).

Disadvantages of publicity– Not always under control of organization

• Timing • Accuracy

– Can be negative (originating from sources other than the firm)

Nonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.

Nonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.

Minimizing the Effects of Negative Messages

The best way is to have a consistent PR program that has already built the organizational / brand reputation that holds out in times of crisis

Have programs to capitalize on, or control and minimize the effects of negative messages

– press releases, or “leaks” may be used to make sure that the information gets out

– Publicity can also be managed or turned around to be used as an advantage

Publicity VehiclesNews Releases

– Single-page news stories sent to media who might print or broadcast the content

Feature Articles– Larger manuscripts composed and edited for a

particular medium

Captioned Photos– Photographs with content identified and explained

below the picture

Press Conferences– Meetings and presentations to invited reporters and

editors

Special Events– Sponsorship of events, teams, or programs of public

value

Advertising Versus Publicity

FACTOR ADVERTISING PUBLICITYControl Great LittleCredibility Lower HigherReach Achievable UndeterminedFrequency Schedulable UndeterminedCost High & Specific Unspecified/lowFlexibility High LowTiming Specifiable Tentative

PublicityMeasuring Effectiveness

Methods are the same as those used for PR

Corporate Advertising

Corporate Advertising

An extension of PRDesigned to promote the firm by enhancing image

By assuming a position on, or getting involved in a cause / issue

Objective of Corp. Advtg

Targeted at both internal and external audiences 2 primary objectives

– Creating a positive image for the firm– Communicating the firm’s views / values on business,

social, and environmental issues

It also helps:– Establish an unifying image of a firm that has

diversified into many businesses– Boosts employee morale / smoothes labour relations– Eases consumer uncertainty for newly established

products– Answers investor questions / eases uncertainty

Types of Corporate Advtg.

• Image advertising

• Advocacy – taking a position on an issue rather than promoting the firm directly

• Cause related marketing – supporting non-profit organisations

Types of Corporate Advtg. Image Advertising

Image advertising creates a - • A position for the company• Goodwill internally and externally• Generates resources – financial and human –

recruitment ads, IPO ads

– Image advertising methods • General image / positioning ads• Sponsorships ads• Recruitment ads• Generating financial support ads

– Sponsorships – sports, charitable causes etc

Corporate Advertising Advantages & Disadvantages

Advantages– An excellent vehicle for positioning a firm– Takes advantage of the benefit derived from PR– Reaches selected target audiences

Disadvantages– Questionable effectiveness – ‘waste of money’ ‘Firm

must be in trouble’ image– Costly form of self-indulgence ‘Consumers are not

interested in Corp advertising’– Constitutionality / ethics

Corporate Advertising Measuring the Effectiveness

Methods for evaluating– Attitude surveys– Studies relating to corp. advtg. and stock prices– Focus group research