Marketing analysis
1
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Chapter 17 Public
Relations, Publicity, and
Corporate Advertising
17-2
Public Relations (PR)
Evaluates public attitudes
Identifies the policies and procedures of an
organization with the public interest
Executes a program of action to earn public
understanding and acceptance
17-3
Role of PR
Traditional role
• Maintain mutually beneficial relationships between the organization and its publics
• Act as a management communications function
New role
• Work together with the marketing department
• Contribute to the IMC process in a way that is consistent with marketing goals
17-4
Marketing Public Relations (MPR)
Public relations activities designed to support
marketing objectives
Functions
Building marketplace excitement before media
advertising breaks
Improving ROI
Creating advertising news where there is no product
news
Introducing a product with little or no advertising
17-5
Marketing Public Relations (MPR)
Providing a value-added customer service
Building brand-to-customer bonds
Influencing the influentials
Defending products at risk and giving consumers a
reason to buy
17-6
Advantages and Disadvantages of
MPRs
Sources: Thomas L. Harris, “Marketing PR—The Second Century,” Reputation Management, www.prcentral.com , January/February 1999, pp. 1–6
2
17-7
Determining and Evaluating Public
Attitudes Reasons
Provides input into the planning process
Serves as an early warning system
Secures support internally
Increases the effectiveness of the communication
17-8
Steps to Develop a PR Plan
Define public relations problems
Plan and program
Take action and communicate
Evaluate the program
17-9
Types of Target Audiences
Internal audiences
• People who are connected to a firm with whom the firm communicates on a routine basis
• Employees
• Stockholders
• Investors
• Members of the local community
• Suppliers
• Current customers
External audiences
• People who are not closely connected with the organization
• Media
• Educators
• Civic and business organizations
• Governments
• Financial groups
17-10
Tools Used for Implementing the PR
Program
Press release: Statement provided to the media
Must be factual, true, and of interest to the medium
and its audience
Press conferences: Delivering information by
interacting directly with the media
Exclusives: Offering one particular medium
exclusive rights to the story
17-11
Tools Used for Implementing the PR
Program
Interviews - Interactions involving a spokesperson
answering questions directed toward him or her
Community involvement - Supporting and
contributing to a community
Internet - Helps to spread PR information
electronically
Social networks and blogs - Online social platforms
17-12
Advantages and Disadvantages of PR
Advantages
Credibility
Cost
Avoidance of clutter
Lead generation
Ability to reach specific
groups
Image building
Disadvantages
Potential for incomplete
communication process
Lack of connection between
receiver and sender
Lack of coordination with
marketing unit
Erratic, redundant
communications
3
17-13
Advantages of Measuring the
Effectiveness of PR Determines what has been achieved
Provides a way to measure the achievements
quantitatively
Provides a way to judge the quality of the
achievements and activities
17-14
Measuring the Effectiveness of PR
Should consider whether the target audience:
Received the messages
Paid attention to the messages
Understood the messages
Retained the messages
Methods
Media content analysis
Survey research
Marketing-mix modeling
17-15
Publicity
Generation of news about a person, product, or
service that appears in broadcast or print media
Differs from public relations by:
Being a short-term strategy
Not always being positive
Not always being controlled or paid by the
organization
17-16
Video News Release (VNR)
Publicity piece produced by publicists so that
stations can air it as a news story
Used by marketers to have control over the time
and place where information is released
17-17
Pros and Cons of Publicity
Pros
Substantial credibility
News value
Significant word-of-mouth
Perception of media
endorsement
Cons
Lack of control
Timing
Accuracy
17-18
Corporate Advertising
Designed to promote the firm overall by:
Enhancing its image
Assuming a position on a social cause
Seeking direct involvement in something
4
17-19
Reasons for Corporate Advertising
Being Controversial
Consumers are not interested
Costly form of self-indulgence
Belief that the firm must be in trouble
Perceived as a waste of money
17-20
Objectives of Corporate Advertising
Creating a positive image for the firm
Getting across the firm’s views on social, business,
and environmental issues
Boosting employee morale and smoothing labor
relations
17-21
Objectives of Corporate Advertising
Easing consumer uncertainty about newly
deregulated industries and answering investor
questions
Helping diversified firms to establish an identity
for the parent firm
17-22
Types of Corporate Advertising
Image advertising: Promotes the organization’s
overall image
Methods
General image or positioning ads
Sponsorships
Recruiting
Generating financial support
Event sponsorships: Sponsoring specific events or
causes as part of a marketing strategy
17-23
Types of Corporate Advertising
Advocacy advertising: Spreading ideas and
explaining controversial social issues of public
importance
Indirectly supports the sponsor’s interests
Issue ads: Sponsored by an organization to bring
attention to what they consider to be an important
issue
Cause-related marketing: Linking with nonprofit
organizations as contributing sponsors
17-24
Advantages and Disadvantages of
Corporate Advertising
Advantages
Excellent vehicle for
positioning the firm
Takes advantage of benefits
derived from public
relations
Reaches a selected target
market
Disadvantages
Questionable effectiveness
Raises questions of
constitutionality and ethics
5
17-25
Methods for Measuring the
Effectiveness of Corporate Advertising
Attitude surveys
Studies relating corporate advertising and stock prices
Focus group research