17

Public Relations, Publicity, and Corporate Advertising

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Guerilla Marketing

Aqua Teen Hunger Force

Guerilla Marketing
The body of unconventional ways of pursuing conventional goals. A proven method of achieving profits with minimum money.

Guerilla Marketing Gone Apes

To promote the new Aqua Teen Hunger Force Movie, Turner Broadcasting Network teamed up with Guerilla Interference Inc. The Goal: Deploy 400 LED LiteBright displays within 10 major cities. Part of the marketing plan was to promote The Cartoon Networks eccentric, nighttime, college-crowd brand of programming Adult Swim.

Guerilla Marketing Gone Apes

Some of Bostons residents mistook the devices for explosives and contacted authorities. The city quickly reacted and shut down all major public transportation and spent $500,000 deploying police and bomb sniffing dogs. Turner Broadcasting was fined $1,000,000 from the city of Boston and also paid $1,000,000 to goodwill funds to homeland security.

Results
In the days since the event: Made national televised news The average number of American households who viewed Aqua Teen Hunger Force rose 5%, to 1,082,500, from the previous week of 1,030,500 viewers. T-shirts were instantly available for sale portraying the controversial characters. Web site spiked 105.2%, to 790,000 from 385,000 one week before. Total US Gross: $5,520,368 US DVD Sales: $11,084,232 Movie Budget: $750,000

Ethical Breach? Turner Broadcasting failed to notify the major cities about what was going on. The lack of communication cost them unnecessary fines. The Ethics Code published by the Word of Mouth Marketing Association stresses honesty of relationship, honesty of opinion, and honesty of identity.

Sources:
http://www.businessweek.com/innovate/cont ent/feb2007/id20070209_934852_page_2.htm http://youtube.com/watch?v=9yigQGKaf2A www.Google.com

Public Relations Defined

A management function

which and

evaluates public attitudes identifies the policies and procedures an organization with the public interest executes a program of action (and communication) earn public understanding and acceptance

of
and to

Public Relations Management Process

Determination and evaluation of public attitudes

PR

Identification of policies and procedures Development and execution of the program

Traditional PR Perspective

Customers Community Public Relations Department Suppliers Government Investors

Employees

Integration of PR into the Promotional Mix

Separate Functions Marketing Department Public Relations

Coordinated and Equal Marketing Department Integrated Marketing Department Public Relations Public Relations

Marketing Public Relations Functions

Building market excitement before media ads break Improving ROI Creating news where there is no news Introducing a product with little or no advertising

Providing a value-added customer service

Building brand-to-customer bonds Influencing influentials, giving info to opinion leaders Defending products at risk, giving consumers reasons to buy

MPR in Practice

Benefits of MPR

Advantages
A cost-effective way to reach the market Highly targeted way to conduct public relations Endorsements by independent third parties Achievement of credibility Makes advertising messages more credible Breaks though the clutter Circumvents resistance to sales efforts Improved media involvement w/customers Creates influence among opinion leaders Improved ROI

Benefits of MPR

Disadvantages
Lack of control over media Difficult to tie in slogans or other advertising devices Media time and space arent guaranteed

No standards for effective measurement

The Process of Public Relations

Determining and Evaluating Public Attitudes

Establishing a PR Plan

Developing and Executing a PR Program

Measuring Program Effectiveness

Test Your Knowledge

In public relations targeting, external audiences include:

A) Customers
B) The public at large C) Suppliers

D) Stockholders
E) All of the above

Research on Public Attitudes

Provides input for the planning process

Serves as an early warning system

Increases communications effectiveness

Secures internal cooperation, support

10 Evaluation Questions

1. Does the plan reflect a thorough understanding of the companys 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 products strengths and weaknesses? 5. Does the PR program describe several cogent, relevant conclusions from the research?

10 Evaluation Questions

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?

Determining Public Relations Audiences

Internal or Associated
Stockholders and Investors Customers and Clients Employees Community Members Vendors and Suppliers

External or Independent
Educators Governments Financial Groups Civic and Business Organizations The Media

Communicating With Target Audiences

Internal or Associated
Newsletters Bulletin boards Direct mail Annual reports

External or Independent
Public relations ads Press releases Conferences Research reports

The Media Also Engages in Public Relations

Implementing the PR Program

Press Releases
Interviews

Press Conferences

PR Tools
The Internet Exclusives

Community Involvement

Special Olympics Torch Run

*Click outside of the video screen to advance to the next slide

The Internet as a PR Tool

The Internet
Allows information to be presented quickly

Provides the media with instant access to additional sources of information Allows much more substantial information to be presented

Advantages of Public Relations

Credibility Image Building Cost Savings

PR Provides
Selectivity Avoidance of Clutter

Lead Generation

Potential Problems of Public Relations

Potential for incomplete communication process

Potential Problems

Receiver not making connection to the source Lack of coordination with marketing dept.

Inconsistent, redundant communications

Test Your Knowledge

Which of the following communications is most likely to have more credibility among its receivers? A) Vogue's layout introducing its latest models B) Volvo's television ad promoting new standard safety features C) Motor Trend's announcement of the "Car of the Year" D) The CEO of Ford Motor Company appearing in its ads E) The appearance of the participants in American Idol in Old Navy ads

General Mills Capitalizes on Publicity

Measuring PR Effectiveness

Contributions made?
What was achieved? Quantitative measures? Quality?

Criteria for Measuring PR Effectiveness

Ratio of positive to negative articles Percentage of positive and negative articles by . . . Subject Publication Reporter Target audience

Number of impressions . . .
Over time On the target audience On specific target audiences Percentage of . .

Positive articles over time

Negative articles over time

Additional Measures of PR Effectiveness

Personal observation and reaction Matching objectives and results The team approach Management by objectives Public opinions and surveys

Audits

Publicity versus Public Relations

Publicity: The generation of news about a person, product, or service that appears in the media A short-term strategy A subset of public relations Not always positive

Often originates outside the firm

A Response to Negative Publicity

Pros and Cons of Publicity

Advantages Substantial credibility Disadvantages Timing difficult or impossible to control Inaccuracy, omission, or distortion may result

News value Significant word-ofmouth Perception of endorsement by media

Corporate Advertising
An extension of the PR function Does not promote a specific product or service Promotes the organization
Assuming a position on an issue or cause

Image enhancement

Seeks involvement

Why is Corporate Advertising Controversial?

Consumers arent interested in this form of advertising

Claims of Opponents to Corporate Advertising

Corporate advertising is a waste of money The firms finances or image must be in trouble This is a costly form of corporate self-indulgence

Objectives of Corporate Advertising

Create a positive image for the firm

Establish diversified company identity

Communicate the organizations viewpoint

Objectives
Help newly deregulated industries Smooth labor relations Boost employee morale

Types of Corporate Advertising

Image Advertising Event Sponsorship Advocacy Advertising Cause-related Advertising

General Image Ads Positioning Ads Sponsorship Recruitment Financial Support

Boeing Advertises to Enhance Its Image

*Click outside of the video screen to advance to the next slide

Employee Recruitment by Grant Thornton

Event Sponsorship

Corporate Sponsor

Sporting Events Causes Cultural Events

Music, Entertainment Festivals Arts

Test Your Knowledge

Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing circuit?

A) To build equity and gain affinity with its target market

B) To show its position on sports marketing C) To create a generic positioning strategy D) To further segment its target market E) To reduce its overall promotional expenses

Advocacy Advertising

Advocacy advertising:
The propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor.

American Gas Association Advocacy Ad

Cause Related Marketing

Cause related marketing:

A form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.

Pros and Cons of Corporate Advertising

Advantages
Excellent vehicle for positioning the firm Takes advantage of benefits derived from public relations Reaches a selected target market Disadvantages May have questionable effectiveness Raises questions of constitutionality and ethics

Measuring Corporate Ad Effectiveness

Attitude Surveys

Effective?

Relating to Stock Prices

Focus Group Research