Public Relations, Publicity,

and Corporate Advertising

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 1. Public Relations Defined

AA management
management function
function

which evaluates
evaluates public
public attitudes
attitudes

and identifies
identifies the
the policies
policies and
and procedures
procedures

of an
an organization
organization with
with the
the public
public interest
interest

and executes
executes aa program
program of
of action
action (and
(and communication)
communication)

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 2. Traditional PR Perspective

Customers
Customers

Investors
Investors

Public
Public
Relations
Relations
Department
Department
Suppliers
Suppliers Government
Government

Employees
Employees

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3. Integration of PR into the IMC Process

Separate
Marketing Public
Department Relations

Coordinated
Marketing Public
Department Relations

Integrated
Marketing Public
Department Relations

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 4. Marketing Public Relations (MPR) Functions

Building
Building marketplace
marketplace excitement
excitement before
before media
media advertising
advertising breaks
breaks

Improving
Improving ROI
ROI

Creating
Creating advertising
advertising news
news where
where there
there is
is no
no product
product news
news

Introducing
Introducing aa product
product with
with little
little or
or no
no advertising
advertising

Providing
Providing aa value-added
value-added customer
customer service
service

Building
Building brand-to-customer
brand-to-customer bonds
bonds

Influencing
Influencing influentials,
influentials, providing
providing information
information to
to opinion
opinion leaders
leaders

Defending
Defending products
products at
at risk,
risk, giving
giving consumers
consumers aa reason
reason to
to buy
buy
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
5. The process of PR

Determining
Determining and
and Evaluating
Evaluating Public
Public Attitudes
Attitudes

Establishing
Establishing aa PR
PR Plan
Plan

Developing
Developing and
and Executing
Executing aa PR
PR Program
Program

Measuring
Measuring Program
Program Effectiveness
Effectiveness

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Research on Public Attitudes

Provides
Provides input
input for
for Serves
Serves as
as an
an “early
“early
the
the planning
planning process
process warning
warning system”
system”

Increases
Increases Secures
Secures internal
internal
communications
communications cooperation,
cooperation, support
support
effectiveness
effectiveness

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR

Determining
Determining and
and Evaluating
Evaluating Public
Public Attitudes
Attitudes

Establishing
Establishing aa PR
PR Plan
Plan

Developing
Developing and
and Executing
Executing aa PR
PR Program
Program

Measuring
Measuring Program
Program Effectiveness
Effectiveness

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10 Questions for Evaluating
Public Relations Plans

1. Does the plan reflect a thorough

understanding of the company’s 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
product’s strengths and weaknesses?
5. Does the PR program describe several
cogent, relevant conclusions from the
research?

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10 Questions for Evaluating
Public Relations Plans

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?

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR

Determining
Determining and
and Evaluating
Evaluating Public
Public Attitudes
Attitudes

Establishing
Establishing aa PR
PR Plan
Plan

Developing
Developing and
and Executing
Executing aa PR
PR Program
Program

Measuring
Measuring Program
Program Effectiveness
Effectiveness

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Determining Public Relations Audiences

Internal
Internal or
or Associated
Associated

Stockholders
Stockholders and
and Employees
Employees of
of the
the
Investors
Investors Firm
Firm

Customers
Customers and
and Community
Community Vendors
Vendors and
and
Clients
Clients Members
Members Suppliers
Suppliers

External
External or
or Independent
Independent

Educators
Educators Governments
Governments

Civic
Civic and
and Business
Business
The
The Media
Media Financial
Financial Groups
Groups
Organizations
Organizations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Implementing the PR Program

Press
Press
Releases
Releases

Press
Press
Interviews
Interviews Conferences
Conferences

PR
PR Tools
Tools

The
The Internet
Internet Exclusives
Exclusives

Community
Community
Involvement
Involvement

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR

Determining
Determining and
and Evaluating
Evaluating Public
Public Attitudes
Attitudes

Establishing
Establishing aa PR
PR Plan
Plan

Developing
Developing and
and Executing
Executing aa PR
PR Program
Program

Measuring
Measuring Program
Program Effectiveness
Effectiveness

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Criteria for Measuring PR Effectiveness

On
On the
the On
On specific
specific
Total
Total number
number of of Over
impressions Over time
time target
target target
target
impressions .. .. .. audience audiences
audience audiences

Positive
Positive Negative
Negative
Percentage
Percentage of
of .. .. articles
articles over
over articles
articles over
over
time
time time
time

Ratio
Ratio of
of positive
positive
to
to negative
negative
articles
articles

Percentage
Percentage of of
positive
positive andand Publica-
Publica- Target
Target
Subject
Subject Reporter
Reporter
negative
negative articles
articles tion
tion audience
audience
by
by .. .. ..
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 6. Advantages of Public Relations

Credibility
Credibility

Image
Image
Building Cost
Cost Savings
Savings
Building

PR
PR
Provides
Provides
Avoidance
Avoidance of
of
Selectivity
Selectivity
Clutter
Clutter

Lead
Lead
Generation
Generation
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
7. Publicity

The
The Generation
Generation ofof News
News About
About aa Person,
Person,
Product,
Product, or
or Service
Service That
That Appears
Appears in
in the
the Media
Media

Part
Part of
of the
the PR
PR Process
Process

May
May Be
Be Out
Out of
of the
the Marketer’s
Marketer’s Control
Control

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Advantages and Disadvantages of Publicity

Advantages Disadvantages

Timing
Timing difficult
difficult or
or
Substantial
Substantial credibility
credibility impossible
impossible to
to control
control

Inaccuracy,
Inaccuracy, omission,
omission,
News
News value
value or
or distortion
distortion may
may
result
result

Significant
Significant word-of-
word-of-
mouth
mouth

Perception
Perception of
of
endorsement
endorsement byby
media
media
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
8. Corporate Advertising

An
An extension
extension of
of the
the PR
PR
function
function

Does
Does not
not promote
promote aa specific
specific
product
product or
or service
service

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Why Is Corporate Advertising Controversial?

Corporate
Corporate Consumers
Consumers aren’t
aren’t
advertising
advertising Is
Is aa interested
interested in
in this
this
waste
waste of
of money
money form
form ofof advertising
advertising

Claims
Claims of
of
Opponents
Opponents to to
Corporate
Corporate
Advertising
Advertising

This
This is
is aa costly
costly form
form The
The firm’s
firm’s finances
finances
of
of corporate
corporate self-
self- or
or image
image must
must be
be in
in
indulgence
indulgence trouble
trouble

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Objectives of Corporate Advertising

Create
Create aa positive
positive
image
image for
for the
the
firm
firm
Establish
Establish Communicate
Communicate
diversified
diversified the
the
company’s
company’s organization’s
organization’s
identity
identity viewpoint
viewpoint
Objectives
Objectives

Help
Help newly
newly Boost
Boost employee
employee
deregulated
deregulated morale
morale
industries
industries

Smooth
Smooth labor
labor
relations
relations

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Types of Corporate Advertising

Image
Image General
General Image
Image Ads
Ads
Advertising
Advertising
Positioning
Positioning Ads
Ads
Event
Event Sponsorship
Sponsorship
Sponsorship
Sponsorship
Recruitment
Recruitment
Advocacy
Advocacy
Advertising
Advertising

Cause-related
Cause-related
Advertising
Advertising

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Event Sponsorship

Corporate
Corporate Sponsor
Sponsor

Sporting
Sporting Music,
Music,
Events
Events Entertainment
Entertainment

Causes
Causes Festivals
Festivals

Cultural
Cultural Events
Events

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advocacy Advertising

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

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

An American Gas Association Advocacy Ad

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Cause Related Marketing

Cause
Cause related
related marketing:
marketing:
is
is aa form
form of
of marketing
marketing whereby
whereby
companies
companies linklink with
with charities
charities or
or
nonprofit
nonprofit organizations
organizations as
as
contributing
contributing sponsors.
sponsors.

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Measuring Corporate Advertising Effectiveness

Attitude
Attitude Surveys
Surveys

Effective?
Effective? Relating
Relating to
to Stock
Stock Prices
Prices

Focus
Focus Group
Group Research
Research

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin