PUBLIC RELATIONSDEPARTMENTS & FIRMS

CHAPTER 4

DEPARTMENTS

In the beginning, the primary objectives of a public relations department were promotion and publicity. Henry Ford used a PR staff in promoting his cars in early 1900s

https://www.youtube.com/watch?v=iOwUkkE2A4c

Today, public relations has expanded from its traditional functions and now exercises its influence on the highest levels of management. Now, this department exists as a way of building good relationships with strategic publics.

Job Responsibilities

PUBLIC RELATIONS:-Media outreach for company & programs, pitching to consumer media & trades, writing & distribution of press releases, work with VP of communications on crisis communications, script writing for company executives, award notifications & submissions, work with investor Relations when appropriate on media outreach and press inquiries, tracking, media tracking & reports on monthly basis, year-end reports including key coverage by month, website tracking and conversions.

MARKETING:-assist with creating & implementing campaigns, social media outreach & management of company sites, policing of branding & logo use, social media task force lead, assist with and help create and implement strategic plan

ELECTRONIC COMMUNICATIONS:-oversee the company website, manage content of website & recommend enhancements, drive traffic to website

POSITION: Director of Corporate Communications at Wyndham Worldwide Corporation (international hotel and resort company)

JOB REQUIREMENTS7-10 years experience in corporate media relations or PR agency

Travel or hospitality experience

B.A. degree in PR, communications, English, journalism, or related field

Experience in developing & executing strategic media relations plans

Excellent verbal and written communication skills

Experience with electronic press lists and database programs

Excellent computer skills

Excellent interpersonal skills

Ability to be a self-starter and resourceful

Ability to multi-task and adapt quickly to change

Experience managing crisis communications

ACCESS TO MANAGEMENT The power & influence of a PR department usually result from access to top management, which uses advice & recommendations to formulate policy.

This is why PR, as well as other staff functions, is located high in the organizational chart & is called on by top management to make reports & recommendations on issues affecting the entire company.

LEVELS OF INFLUENCE

AdvisoryCompulsory-

AdvisoryConcurring Authority

Advisory• Lowest level staff function• When PR is purely advisory, it is often ineffective• FOR EXAMPLE: Toyota recall; auto company generated a great deal of public, legislative, and media criticism because its public relations department was relegated to a low level and was, for all practical purposes, nonexistent in the early stages of the crisis that caused Toyota’s reputation for quality to fall off the charts.

COMPULSORY-ADVISORY

Organization policy requires that line managers (top management) at least listen to the appropriate staff experts before deciding on a strategy.“Although such a procedure does not limit the manager’s decision-making discretion, it ensures that the manager has made use of the specialized talents of the appropriate staff agency.” – Don Hellriegel & John SlocumFOR EXAMPLE: Johnson & Johnson; the Tylenol crisis, in which 7 people died after taking capsules containing cyanide, clearly demonstrated that the company based much of its reaction and quick recall of the product on the advice of its public relations staff.

CONCURRING AUTHORITY

This concept places public relations in the position of reviewing and approving all materials & communications with external audiences.

Many firms use this mode to prevent departments & divisions from disseminating materials that do not conform to company graphic standards.

FOR EXAMPLE: An operating division wishing to publish a brochure or newsletter cannot do so unless the public relations department approves the key messages and design.

COOPERATION WITH OTHER STAFF FUNCTIONS

The 4 areas that require cooperation to avoid possible friction and turf battles are:

◊ LEGAL◊ HUMAN RESOURCES

◊ ADVERTISING◊ MARKETING

Public Relations Departments

Most organizations have a PR department, which is often called corporate communications.

Organizations, depending on their culture & management, structure the public relations function in various ways.

PR professionals often serve at the tactical level, but others are counselors to the top executive and have a major role in policy-making.

In management theory, public relations is a staff function rather than a line function.

Public Relations Firms

Public relations firms come in all sizes, are found worldwide, and provide a variety of services

Many large, international firms are part of a giant communication conglomerates.

The advantage of using outside firms include versatility and extensive resources.

Revenues primarily come from charging a basic hourly fee, plus out-of-pocket expenses. https://www.youtube.com/watch?v=7ptiYPcIeM8

A NUMBER OF VARIABLE ARE CONSIDERED WHEN A PUBLIC RELATIONS FIRM ESTIMATES COST OF A PROGRAM/PROJECT

-size of project

-duration of project

-geographic locations involved

- # of personnel assigned to the project

-billing the use of the firm’s personnel to a client at proper hourly rates

***Standard industry practice is to bill clients 3-5 times a person’s salary!

(This is due to having to pay expenses such as office space, equipment, insurance, supplies, utilities, etc.)

Income is brought in from selling of staff time, but some additional income results from

markups on photocopying, travel expenses, and materials provided by vendors such as

graphic designs.

** *STANDARD MARKUP in the trade is between 15 &

20% !!!!

HOW DO FIRMS MAKE THEIR MONEY???

FEES & CHARGES BY A PUBLIC RELATIONS FIRM Basic hourly rates, plus out-of-pocket expenses---commonly used

by attorneys

“Retainer fee” : service of basically being ‘on-call’ for advice & strategic counseling

Fixed project fee: the firm agrees to a specific project to take on, such as the firm agreeing to do a quarterly newspaper for $30,000 annually. A set amount for a service.

***The primary basis of these is to estimate the number of hours that each project will take.

DISADVANTAGES OF A FIRM

Superficial grasp of a client’s unique problems- when the firm doesn’t fully understand the client’s business or needs

Lack of full-time commitment- no single firm employee can monopolize its personnel and other resources

Need for prolonged briefing period- Time & money may be needed to research the company to better serve the client and their company/business.

Need for full information and confidence- A client must be willing to share its info, including the skeletons in the closet, with outside counsel

Costs- Outside counsel is expensive. Routine Public relations work can be handled at lower cost by internal staff.

ADVANTAGES OF A PUBLIC RELATIONS FIRM Objectivity- firm can analyze a client’s needs or problems from a new perspective& offer fresh insights

A variety of skills and expertise- firm has specialists, whether in speech writing, trade magazine placement, investor relations, or identifying influential bloggers

Extensive resources- firm has abundant media

Offices throughout the country

Special problem-solving skills

credibility- a successful PR firm has a solid reputation for professional, ethical work

A DAY IN THE LIFE OF A PUBLIC RELATIONS SPECIALIST

https://www.youtube.com/watch?v=tUiiNghicNM

Youtube video

“A day in the life- Public Relations Specialist”

HOW DO FIRMS GET BUSINESS???

When a company/ business needs a project done but does

not have the staff, time, or space to do so, they hire someone from a public

relations firm to do it for them.

SERVICES PROVIDED BY FIRMS

Marketing CommunicationsExecutive Speech TrainingResearch & EvaluationCrisis CommunicationMedia AnalysisCommunity RelationsEvents ManagementPublic AffairsBranding & Corporate ReputationFinancial Relations

OUTSOURCING Outsourcing: Using an outside public relations

counsel for services needed by their company/business

The most frequent reason given for outsourcing is to bring expertise and resources to the

organization that can’t be found internally.

Studies have found that Fortune 500 companies now spend 25% of their public relations budgets

on outside firms. In addition, almost 90% of those companies use outside public relations

counsel to varying degrees.

PUBLIC RELATIONS DEPARTMENT

Usually is divided into specialized sections, each of which has a coordinator or manager.

Common sections found in a large corporation are media relations, investor relations,

consumer affairs, governmental relations, community relations, marketing communications, and employee

communications.

STRUCTURE OF A COUNSELING FIRM

A small PR firm may consist only of the owner (President) and an assistant (vice president), who are supported by an administrative assistant. Larger firms have a

more extended hierarchy.

An account supervisor is in charge of 1 major account or several smaller ones. An account executive, who reports to the supervisor, is in direct contact with the client

and handles most of the everyday activities.

At the bottom of the list is the assistant account executive, who does routine maintenance work compiling media lists, gathering info, and writing rough drafts of news releases. ** This is typically where recent college graduates start. Once they learn the firm’s procedures and show ability, promotion to account executive may occur within 6-18 months. After 2 or 3 years, it is not uncommon for an account

executive to become an account supervisor.

Executives at or above the vice presidential level usually are heavily involved in selling their firm’s services. In order to prosper, a firm must continually seek new business

and sell additional services to current clients.

PRESIDENT

ASSISTANT ACCOUNT EXECUTIVE

ACCOUNT EXECUTIVE

ACCOUNT SUPERVISOR

VICE PRESIDENT

A DAY IN LIFE OF A PUBLIC RELATIONS MANAGER

https://www.youtube.com/watch?v=BQ6hD5MiRPc YOUTUBE VIDEO

A DAY IN THE LIFE- PUBLIC RELATIONS MANAGER