PR / Communication Usage and Attitudes

Date: February 2007 Prepared for:

Methodology
Research method
Survey

Target population

Companies which either engage or intend to engage in PR activities in the next 6 months: top companies concerning the turnover, top companies concerning the advertising budget, top Fortune/ Forbes companies, which have branches in Romania, companies which are customers of PR agencies, companies which have potential for PR activities.

Data collection technique
CATI and CAWI interviews

Sample size

197 respondents

Fieldwork

28th of November 2006 - 11th of January 2007

2

Part 1 – Ways of Engaging in PR Activities

3

Engaging in PR Activities
Types of PR Activities Engaged by the Company Currently Engaging in PR Activities
%

N**=182

Brand PR Only

No (but intend to) 7.6%

Total Sample N*=197

13.7%
Brand PR
65.4

Both Brand PR & Corporate PR

51.6%

Corporate PR

86.3

Corporate PR Only

34.6%
Continuity of PR Activities Engaged by the Company
The PR activity takes place from now and then, whenever necessary 31.9%

Yes 92.4%

N**=182

The PR *Base: Companies which either engage or intend to engage in PR activities in the next 6 months **Base: Companies engaged in PR activities. Q1. Does your company engage in PR activities? Q3. What types of PR activities are engaged by your company? Q28. Which of the following statements best describes the PR activity in your company? 4

activity takes place continuously 68.1%

Areas Covered by PR Activities
Areas Covered by PR Activities
%
Brand PR Only Internal communications 68.0% 92.1% 89.4% 96.0% 73.0% 92.6% 72.0% 89.4% 36.0% 81.0% 91.5% 24.0% 58.7% 63.8%

N*=182

87.4

Corporate PR Only Both Brand PR & Corporate PR Brand PR Only Corporate PR Only Both Brand PR & Corporate PR

Marketing / Brand communications

86.3

Communications with business partners

85.7

Brand PR Only Both Brand PR & Corporate PR

Corporate communications

80.2

Brand PR Only Corporate PR Only Both Brand PR & Corporate PR

Communications regarding corporate social responsibility

56.6

Brand PR Only Corporate PR Only Both Brand PR & Corporate PR

*Base: Companies engaged in PR activities. Q7. Please tell me which of the following PR activities constantly take place in your company?

5

PR Services Used by the Company
PR Services Used by Companies
%
Media relations (press releases, meetings with the press) Planning and organizing events Internal communications Media monitoring Crisis monitoring Corporate social responsibility

N*=182
Brand PR Only Both Brand PR & Corporate PR 88.0% 98.9%

96.2 91.2 89.6 82.4 58.2 58.2 47.8 46.2 34.6

Brand PR Only Corporate PR Only Both Brand PR & Corporate PR

68.0% 95.2% 91.5%

Corporate PR Only Both Brand PR & Corporate PR Brand PR Only Corporate PR Only Both Brand PR & Corporate PR

46.0% 66.0% 28.0% 57.1% 67.0%

Financial/investors relations Consultancy on communications issues Government relations/public affairs

*Base: Companies engaged in PR activities. Q10. Which are the PR activities your company has engaged in?

6

Purposes of PR Activities
N*=182 %
Creating an image of the company Brand PR Only Corporate PR Only Both Brand PR & Corporate PR Brand PR Only Corporate PR Only Both Brand PR & Corporate PR Brand PR Only Corporate PR Only Both Brand PR & Corporate PR Corporate PR Only Both Brand PR & Corporate PR Involving and rewarding the employees 84.0% 96.8% 96.8% 100.0% 81.0% 98.9% 68.0% 90.5% 97.9% 90.5% 97.9% 52.0% 82.5% 76.6%

95.1 92.9

Supporting products and services

Creating a reputation of the company

91.2 75.3

Brand PR Only Corporate PR Only Both Brand PR & Corporate PR

Managing crises

73.6

*Base: Companies engaged in PR activities. Q8. Which of the following purposes does your company try to achieve through PR activities?

7

Part 2 – Attitudes towards PR Activities

8

Attitudes towards PR Activities
Total Sample (N=197)
A good agency can avouch for the results from the very beginning 8.1

T2B*
37.6

B2B**
35.0

Mean
2.96

29.4

27.4

20.8

14.2

The PR activity is not efficient if the “media value” is lower than the budget invested in the media relations service 10.2

26.9

39.1

13.7

10.2

37.1

23.9

3.13

The PR activity needs to be continuous in order to be efficient

62.4

24.4

8.1

1.0 4.1

86.8

5.1

4.43

The PR agency is responsible for everything that appears in the media about its clients

19.3

21.8

15.7

25.9

17.3

41.1

43.2

3.00

The PR activity has immediate results 5.6

24.4

17.8

35.0

17.3

29.9

52.3

2.66

The PR activity is really an ensemble of twisted information about the respective company 9.6

18.8

17.8

21.8

32.0

28.4

53.8

2.52

(5) Totally agree

(4) Slightly agree

(3) Neither agree nor disagree

(2) Slightly disagree

(1) Totally disagree

*T2B: 5=„Totally agree‟ + 4=„Slightly agree‟ **B2B: 1=„Totally disagree‟ + 2=„Slightly disagree‟ Q27. Now I will read some statements regarding the PR activity. Please express your agreement or disagreement with each of these statements, using the options “totally disagree”, “slightly disagree”, “neither agree, nor disagree”, “slightly agree” and “totally agree”.

9

Perception of the PR Activity Within the Company
N*=182

As a tactical activity supporting the company strategy

12.1%
As part of the company‟s integrated communications strategy As part of the company‟s business strategy

18.1%

37.4%

As part of the company‟s marketing plan

32.4%
Brand PR Only Corporate PR Only Both Brand PR & Corporate PR
*Base: Companies engaged in PR activities. Q9. How is the PR activity perceived in your company?

56.0% 25.4% 30.9%

10

Part 3 – Departments and Positions Engaging in PR Practices

11

Departments Engaging in PR Activities
Existing Departments Within the Company
% Marketing department (not asked about) PR department Communication and advertising department Product / brand management department Human resources department Another department N*=182

Company Departments Engaging in PR Activities
%

53.3 35.7 27.5
23.8% 39.4%

36.8 41.8 34.1
Corporate PR Only Both Brand PR & Corporate PR

14.3 13.2 3.8

91.2

DK/ NA

2.7

1.6

*Base: Companies engaged in PR activities. Q5. Which of the following departments are there in your company? Q6. Which of the following departments engage in PR activities in your company?

12

Positions Involved in PR Activities
Existing Positions Within the Company
N*=88 %

Initiator of the PR projects
%

Influencer in Choosing Decision Maker in PR Agencies Choosing PR Agencies
% % (one answer only)

Owner/Shareholder/Director Executive manager Economic manager/ Financial manager Human resources manager PR manager Marketing manager Someone else DK/ NA

96.6 39.8 92.1 79.6 33.0 88.6

27.3 10.2 1.1 11.4 29.6 62.5 22.7 2.3

39.8 8.0 9.1 6.8 27.3 61.4 23.9 1.1 10.2 17.0 5.7 3.4 2.3

60.2

*Base: Companies which outsource their PR activities. Q21. Which of the following positions exist in your company? Q22. Who initiates PR projects in your company? Q23. Who influences the choice of PR agencies in your company? Q24. Who makes the final decision in choosing the PR agencies in your company?

13

Part 4 – Outsourcing of PR Activities

14

Outsourcing of PR Activities
Outsourcing PR Activities PR Services Outsourced in the Past 12 Months
%
Planning and organizing events Brand PR Only Corporate PR Only Both Brand PR & Corporate PR 72.0% 38.1% 48.9% Media relations (press releases, meetings with the press) Media monitoring Consultancy on communications issues Crisis monitoring

68.2 67.1 62.5 35.2 26.1 14.8 9.1 6.8 4.6
N**=88

N*=182

Yes 48.4% No 51.6%
Brand PR Only Corporate PR Only Both Brand PR & Corporate PR 28.0% 61.9% 51.1%

Corporate social responsibility Internal communications Financial/investors relations Government relations/public affairs

*Base: Companies engaged in PR activities. **Base: Companies which outsource their PR activities. Q11. Does your company outsource their PR activities? Q12. Which of the following PR activities were outsourced in the past 12 months?

15

Satisfaction towards the Outsourced PR Services
T2B**
Media relations (press releases, meetings with the press) Consultancy on communications issues Crisis monitoring

Mean
3.98 4.13 4.13 4.02 4.50 4.00 4.00 4.33 4.20 N=59 N=31 N*=23 N=55 N*=8 N*=4 N*=13 N*=6 N=60

20.3 25.8 26.1 27.3 50.0 25.0 15.4 50.0 31.7

62.7 61.3 60.9 52.7 50.0 50.0 69.2 33.3 56.7

11.9 12.9 13.0 14.6

5.1

83.1 87.1 87.0

Media monitoring

5.5

88.0 100.0

Internal communications Government relations/public affairs

25.0 15.4 16.7 11.7

75.0 84.6 83.3 88.3
(2) Dissatisfied

Corporate social responsibility Financial/investors relations

Planning and organizing events

(5) Very satisfied

(4) Satisfied

(3) Neither satisfied nor dissatisfied

(1) Very dissatisfied

Base: Companies which outsource their PR activities. **T2B: 5=„Very satisfied‟ + 4=„Satisfied‟ *Small base: Treat data with Q13. Please tell me how satisfied you are with each of the PR activities you mentioned, using the options “very dissatisfied”, “dissatisfied”, “neither satisfied, nor dissatisfied”, “satisfied” and “very satisfied”.

caution

16

Importance of Aspects Related to PR Activities
N*=88
Execution / Implementation

T2B**
17.1

Mean
3.83

83.0

100.0

Maintaining the relation with the client

72.7

22.7

4.6

95.5

3.68

Evaluation

67.1

30.7

2.3

97.7

3.65

Strategic approach

68.2

23.9

8.0

92.0

3.60

Planning

62.5

29.6

6.8 1.1

92.0

3.53

Reporting

56.8

38.6

4.6

95.5

3.52

General concept / the concept corresponding to the suggested instruments

53.4

36.4

10.2

89.8

3.43

(4) Very important

(3) Important

(2) Somewhat important

(1) Not at all important

*Base: Companies which outsource their PR activities. **T2B: 4=„Very important‟ + 3=„Important‟ Q15. Now I will read several aspects related to the activities of PR agencies. Please tell me how important each one of these aspects is in evaluating a PR agency, using the options “not at all important”, “somewhat important”, “important” and “very important”.

17

Part 5 – PR Budget

18

PR Budget

Existence of a PR Budget in the Company

Don't know No 1.6% 15.9%

PR Budget Planning
The PR budget is allotted depending on the issues that arise

24.7%

N*=182

Yes 82.5%

There is a budget plan on activities for the whole fiscal year

75.3%

N**=150

*Base: Companies engaged in PR activities. **Base: Companies which have a budget allotted to PR activities. Q29. Is there a budget allotted to PR activities in your company? Q30. Which of the following statements best describes the way in which the PR budget is planned in your company?

19

Evolution & Size of the PR Budget
Evolution of the PR Budget - 2006 vs. 2005 with… Mean Estimated Evolution of the PR Budget - 2006 vs. 2007 with… Mean

33.19 %
It increased, 70.0%
N*=150

PR Budget for 2006 Fiscal Year

27.59 %
It will increase 66.0%

65,695 Euro
Don‟t know 13.3%
N*=150

Don‟t It decreased, know 4.7% 12.7

It remained constant, 12.7%

N**=27

It will remain constant 20.7%

with…

**Mean

11.25 %

*Base: Companies which have a budget allotted to PR activities. Q31. How did the budget allotted for PR activities evolve in 2006 as compared to 2005? How much? Q32. How will the budget allotted for PR activities evolve in 2007 as compared to 2006? How much? Q33. Approximately, what is the budget allotted to PR activities in the fiscal year 2006?

**Small base: Treat data with caution

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Part 6 – Demographics

21

Company Profile »
Field of Activity
Business services (lawyer, real estate, consultancy etc.) Banking Food production Medical and pharmaceutical Fast Moving Consumer Goods (FMCG) Transport IT Retail Chemical industry Constructions Energy and natural resources Auto Tourism Wholesale distribution Media Telecommunications Another field DK/ NA
D1. What field of activity is your company operating in?

13.7 10.2 7.6 6.1 5.6 5.1 4.6 4.1 4.1 4.1 4.1 3.6 3.6 2.0 1.5 1.5

Total sample (N=197)

16.8 2.0

22

» Company Profile
Number of Employees
More than 2000 14.7% Less than 50 12.2%

Total sample (N=197)

1001 - 2000 14.2%

50 - 100 8.6% 101 - 200 12.7%

Company Turnover (EURO)
22.3% 6.6% 1-3 million 3.6% 9.1% 3-5 million 5-10 million 17.3% 10-30 million 30-50 million 32.0% 9.1% Over 50 million DK/ NA

501 - 1000 15.2%

201 - 500 22.3%

D3. How many employees are there in your company? D4. Which of the following categories does your company‟s turnover belong to?

23

Respondent‟s Profile »
Total sample (N=197) Position within the Company
Financial manager Human resources manager 1.0% Human resources officer 0.5% Financial analyst 0.5% 0.5% PR manager/ director 17.3% Other PR positions (coordinator/ specialist/ officer) 16.8 Corporate affairs manager 2.0%

1.5% 4.1% 4.6% 6.6%
Other communications positions (analyst/ assistant) 4.1% Communication manager/ director 2.5%

1.0% 2.5% 1.0%

7.1% 36.0%

PR Department Marketing Department Communication Department

35.5%
Marketing manager/director 21.8% Other marketing positions (specialist/ analyst/ coordinator) 12.2% Brand manager 1.5%

Economic Department General/Executive Director Human Resources Department Client Service Department Financial Department Manager/Director Unspecified Other

D2. What is your current position?

24

» Respondent‟s Profile
Total sample (N=197)
Age Category
55 y.o. or more 45 - 54 y.o. 2.0% 5.6% 35 - 44 y.o. 20.3% 24 y.o. or less 7.1%

Gender
25 - 34 y.o. 65.0%
Male 31.5%

Female 68.5%

D5. What is your age? D6. Gender

25