Chapter 16

Public Relations

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 The Practice of Public
Relations
Goal: Achieve effective relationships with
various audiences to manage the
organization’s image and reputation.
Publics may be external (customers, news
media, investment community, general
public, government), or internal (investors or
employees).
PR is a growing industry that employs
approximately 150,000 people.
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 Advantages and
Disadvantages of PR
Advantages Disadvantages
- Not completing
-Credibility
the
- Low cost
communication
- Less clutter
Process
-Lead generation
- Redundancies
-Ability to reach
with the
specific groups
marketing
- Image building
effort
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 The Practice of Public
Relations
Advertising is Primarily Concerned with Enhancing Sales While
PR is Concerned With Managing the Organization’s Image.

PR May Not Work in Concert With Other Communication

and Promotion Functions.

PR Operates on Two Levels in Most Firms

Physical Tasks Advice to Management

People in Advertising May be Reluctant to Incorporate PR Into

Their Planning Since It is Not a Bottom-Line Profit Producer.
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 Comparing Public Relations
and Advertising
Public Relations Differs From Advertising in Three
Important Ways:

Media Use Control Credibility

Advertising Advertising – Advertising-

Pays More Some
PR PR – Less PR – Much
Persuades More
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 Types of Public Relations
Activities
Public Affairs &
Issues Management

Managing
a PR
Crisis Program Image & Reputation
Management Begins Management
With a
Plan

Relationship
Management 6
 Public Opinion
Ask two primary questions about public
opinion to design public affairs programs:
 Which publics are most important to the
organization, now and in the future?
 What do these publics think?

Public opinion is what people think, a

“belief, based not necessarily on fact but on
the conception or evaluation of an event,
person, institution, or product”. 8
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 Image and Reputation
Management
A corporate image reflects how the public views
the organization.
Image programs try to send the right cues and
hope the audience will develop a positive image of
a company.
Overriding goal of a reputation management
program is to strengthen the trust that
stakeholders have in an organization.
An organization’s policies and actions determine
its reputation.
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From Identity to Reputation

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 Relationship Management

Government Media
Communicating with Developing Media
Government Bodies. Contacts.

Involved in the Management

Of Relationships With
Various Types of
Stakeholders.

Financial Relations Employees

Communications Aimed Programs Designed to
At the Financial Keep
Community. Employees Informed.
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Twenty Key Publics of a Typical
Multinational Corporation

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Crisis Management

Be Prepared By Anticipating the

Possibility of a Crisis.

Develop a Plan for Dealing With the

Crisis.

Plan Should Detail Who Does What

and Says What to Whom.

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Public Relations Tools

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 Public Relations Tools
The Sponsoring Organization Pays for Controlled Media so
They Maintain Total Control Over How and When the Message
is Delivered.
Prepared by the Organization for Use in
House Ads Its Own Publication or One Over Which It
Has Some Control.
Ads Designed by Charitable or Civic
Public Service
Organizations for Broadcast Free of
Announcements Charge.
Corporate
Designed to Promote a Corporate Image
(Institutional) or Viewpoint.
Advertising

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 Public Relations Tools

Publications Such as Pamphlets,

In-House Booklets, and Annual Reports for an
Publications Organization’s Own Employees and Other
Publics.
Speakers,
Maintaining Visual Contact With the
Photographs, Various Publics is a Big Part of PR.
& Films
Displays, All Are Used in Both Sales Promotion and
Exhibits, & PR Programs and Include Open Houses
Staged Events and Plant Tours.

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 Public Relations Tools
The Media, Rather Than the Organization, Controls the Use
and Placement of Uncontrolled Media.
News Release Press Conference

Primary Medium Used Convening Media Reps

To Deliver PR Messages To Make a Statement.
to Media Editors
And Reporters. Risky, Because Media
May Not See Company’s
Video News Releases Announcement as Being
Contain Video Coverage Real News.
That Can be Used
During a TV Newscast. May Distribute Press
Kits.

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 Practical Tips # 2
How to Measure PR Effectiveness
The following are common types of evaluation
used in public relations:
 Output (What goes out)
 Production: number of PR products generated.
 Distribution: number of media outlets receiving PR products.
 Coverage: column inches, seconds, or minutes of air time.
 Impressions: media placements x circulation or broadcast
reach.
 Advertising value: equivalent ad costs for time or space.
 Systematic content analysis: positive or negative slant, key
messages, sources, prominence.
 Outcome (Effect on the audience)
 Goals/ objectives achievement: surveys, focus groups, PR
product testing. 17
 Additional Means for
Measuring PR’s Effectiveness
Personal observation and reaction

Matching objectives and results

The team approach

Management by objectives

Public opinion and surveys

Audits 18
Marketing Public Relations (MPR)

Advertising and Public Relations Overlap in

Marketing Public Relations (MPR), Which is the
Process of Planning, Executing, and Evaluating
Programs That Encourage Purchase and
Consumer Satisfaction Through Credible
Communication of Information and Impressions
That Identify Companies and Their Products With
the Needs, Wants, Concerns, and Interests of
Consumers.

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Marketing Public Relations
(MPR) Adds Value:
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 the influential
Defending products at risk and giving
consumers a reason to buy 20
 Cause and Mission Marketing
Customer Attitudes of Disrespect, Disgust, and Distrust
Toward Advertising and Marketing Create New Marketplace
Challenges and Companies Must Prove They Are Good
Corporate Citizens Through:

Cause Marketing Mission Marketing

 Adopting a good  More Long Term and
cause and Pervasive Because
sponsoring its fund- the Cause is Linked
raising and other to the Company’s
efforts. Mission.

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EXH 12-16

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 Types of Corporate Advertising

Image Chevron
advertising
Advocacy California Avocado
advertising Commission

Cause-related J.C. Penney-PBS

advertising
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 Corporate Advertising
Corporate image (or identity) advertising
 To increase a firm’s name recognition or establish
goodwill for the firm and its products
 Ex.:“Think Different” campaign by Apple Computer
Corporate issue advertising (advocacy adv.)
 To take a position on a controversial social issue
of public importance in hopes of swaying public
opinion
 Ex.:“We want you to know where we stand” by
Philip Morris

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Advantages and Disadvantages of
Corporate Advertising
Advantages:
 Excellent vehicle for positioning
the firm
 Takes advantages of benefits of PR
 Reaches a select target market
Disadvantages:
 Questionable effectiveness
 Constitutionality and/or ethics
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