marketing

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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

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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

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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

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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

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17-25

Methods for Measuring the

Effectiveness of Corporate Advertising

Attitude surveys

Studies relating corporate advertising and stock prices

Focus group research