17
Public Relations, Publicity, and
Corporate Advertising
McGraw-Hill/Irwin Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed
Public Relations Defined
A management function
Which evaluates public attitudes
And identifies the policies and procedures
Of an organization with the public interest
And executes a program of action (& communication)
To earn public understanding and acceptance
17-2
Public Relations Management Stages
Determination and
evaluation of public
attitudes
Identification of policies
PR and procedures
Development and
execution of the
program
17-3
Traditional PR Perspective
Customers
Community Investors
Public
Relations
Department
Suppliers Government
Employees
17-4
Integration of PR into the Promotional Mix
Separate Functions
Marketing Public
Department Relations
Coordinated and Equal
Marketing Public
Department Relations
Integrated
Marketing Public
Department Relations
17-5
Marketing Public Relations Functions
public relations activities must be designed to support marketing objectives
Build market excitement before media ads break
Defend products at risk, give consumers reason to buy
Create ad news where there is no product news
Introduce a product with little or no advertising
Provide a value-added customer service
Build brand-to-customer bonds
Influence the influentials
Improve ROI
17-6
MPR in Practice
Pillsbury Bake-Off
has led to strong
brand loyalty
among Pillsbury
customers, who
compete by
submitting baked
goods. The
contest has taken
place annually
since 1949, and
the winner now
receives a $1
million prize.
17-7
The Process of Public Relations
Determining and Evaluating Public Attitudes
Establishing a PR Plan
Developing and Executing a PR Program
Measuring Program Effectiveness
17-8
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
17-9
Research on Public Attitudes
Provides input for Serves as an “early
the planning process warning system”
Increases
Secures internal
communications
cooperation, support
effectiveness
17-10
10 Evaluation Questions
• Click to add text
• Second level
1. Does the plan reflect a thorough
understanding of the company’s business
• Third level
situation?
– 2.
Fourth
Haslevel
the PR program made good use of
» Fifth leveland background sources?
research
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?
17-11
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?
17-12
Determining Public Relations Audiences
Internal or Associated External or Independent
Employees The Media
Stockholders and Educators
Investors
Community Members Civic & Business Organizations
Suppliers & Customers Governments
Financial Groups
17-13
Implementing the PR Program
Press
Releases
Press
Interviews
Conferences
PR Tools
The
Exclusives
Internet
Community
Involvement
17-14
Advantages of Public Relations
Credibility
Image Cost
Building Savings
PR
Provides
Avoidance
Selectivity
of Clutter
Lead
Generation
17-15
Potential Problems of Public Relations
Potential for incomplete
communication process
Potential Receiver not making
Problems connection to the source
Lack of coordination with
marketing dept.
Inconsistent, redundant
communications
17-16
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 American Idol
participants in Old Navy ads
17-17
General Mills Capitalizes on Publicity
This slide can be
used to show
how favorable
news about a
product or
service can be
used as the
basis for an
advertisement
17-18
Measuring PR Effectiveness
Contributions made?
What was achieved?
Quantitative measures?
Quality?
17-19
Criteria for Measuring PR Effectiveness
17-20
Additional Measures of PR Effectiveness
• Walter Lindenmann recommendations
• Did the audience receive the message?
• Did they pay attention to them?
• Were the messages understood?
• Where the messages retained?
• Mark Weiner suggests
• Media content analysis-Identify the characteristics of
messages that appear in the media
• Survey research- quantitatively assess consumers’ attitudes
toward the product or brand
• Marketing-mix modeling draw data from multiple sources
and integrate them to provide insight
17-21
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
17-22
A Response to Negative Publicity
major news media
reported that the
chemical Alar, which
is used to regulate
the growth of apples,
might cause cancer in
children
This slide shows an
ad that was used by
Tree Top to respond
to negative publicity
the company
received from the
media regarding the
safety of its apple
juice
17-23
Pros and Cons of Publicity
Advantages Disadvantages
Substantial credibility Timing difficult or
impossible to control
News value Inaccuracy, omission,
or distortion
may result
Significant word-of-
mouth
Perception of media
endorsement
17-24
Corporate Advertising
An extension of the PR
function
Does not promote a specific
product or service
Promotes the organization
Assuming a
Image Seeks
position on an
enhancement involvement
issue or cause
17-25
Why is Corporate Advertising Controversial?
Consumers aren’t
interested in this form of
advertising
Opponents to This is a costly form of
Corporate corporate self-indulgence
Advertising
The firm must be
in trouble
Corporate advertising is
a waste of money
17-26
Objectives of Corporate Advertising
Create a positive
image for the
firm
Establish Communicate
diversified the
company organization’s
identity viewpoint
Objectives
Help newly Boost
deregulated employee
industries morale
Smooth labor
relations
17-27
Types of Corporate Advertising
Image
General Image Ads
Advertising
Positioning Ads
Event
Sponsorships
Sponsorship
Recruitment
Advocacy
Advertising Financial Support
Cause-related
Advertising
17-28
Employee Recruitment by Grant Thornton
Companies with
well known
products and
corporate images
often will use them
in their recruitment
ads to attract the
interest of potential
employees
17-29
Event Sponsorship
Corporate Sponsor
Sporting Music,
Events Entertainment
Causes Festivals
Cultural Events Arts
17-30
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
17-32
Advocacy Advertising
Propagating ideas and
elucidating controversial social
issues of public importance in a
manner that supports the
interests of the sponsor
17-33
Advocacy Advertising
Advocacy Advertising
Advocacy Advertising
PROPAGANDA
Advocacy Ad
the American
Heart
Association and
the American
Stroke
Association are
advocating
support for
President
Obama’s
Health Care
program.
17-37
Cause Related Marketing
A form of marketing whereby
companies link with charities
or nonprofit organizations as
contributing sponsors
17-38
Cause Related Marketing
This slide shows
an innovative
campaign
sponsored by
New Balance,
which supports
the Susan G.
Komen Breast
Cancer
Foundation in its
Race for the
Cure.
.
17-39
Cause Related Marketing
When you buy specially-
marked packages of
HUGO Element (on the left) or
HUGO Man fragrances, HUGO
will pay for the planting of one
or more than a dozen species
of trees in the Amazon
rainforest.
The campaign is meant to
mitigate pollution in the
earth’s atmosphere, rainforest
deforestation, and rising CO2
levels.
Pros and Cons of Corporate Advertising
Advantages Disadvantages
May have
Excellent vehicle for
questionable
positioning the firm
effectiveness
Takes advantage of Raises questions of
benefits derived from constitutionality and
public relations ethics
Reaches a selected
target market
17-41
Measuring Corporate Ad Effectiveness
Attitude Surveys
Stock Prices
Effective?
Focus Group Research
17-42
• [Link] chapter discusses cause marketing,
advocacy advertising and issue ads. Explain
the differences between these forms of
communication and give examples of each.
• Q2. Explain how social networks can both
help and hurt companies in regard to
publicity
• Q3. Why do companies get involved in
event sponsorships? Is this an effective
strategy? Give examples of event
sponsorships that were successful and some
that were not.
Tutorial
• Identify a company web site and
discuss how web site has been
integrated with IMC tools to
communicate with customers.