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Chapter Seventeen Public Relations, Publicity, and Corporate Advertising

Public Relations Defined


A management function

which and

evaluates public attitudes identifies the policies and procedures an organization with the public interest executes a program of action (and communication) earn public understanding and acceptance

of
and to

Public Relations Management Process


Determination and evaluation of public attitudes

PR

Identification of policies and procedures

Development and execution of the program

Traditional PR Perspective
Customers Community Investors

Public Relations Department


Suppliers Employees Government

Integration of PR into the IMC Process


Separate Marketing Department Coordinated Marketing Department Integrated Marketing Department Public Relations Public Relations Public Relations

Marketing Public Relations (MPR) 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 Providing a value-added customer service

Building brand-to-customer bonds


Influencing influentials, providing information to opinion leaders

Defending products at risk, giving consumers a reason to buy

Benefits of Marketing Public Relations (MPR)


Advantages
A cost-effective way to reach the market A highly targeted way to conduct public relations Endorsements by independent third parties Achievement of credibility Makes advertising messages more credible Breaks though the clutter Circumvents resistance to sales efforts

Disadvantages
Lack of control over media
Difficult to tie in slogans or other advertising devices

Media time and space arent guaranteed No standards for effective measurement Improved media involvement w/customers Creates influence among opinion leaders

Improved ROI

The Process of Public Relations


Determining and Evaluating Public Attitudes

Establishing a PR Plan

Developing and Executing a PR Program

Measuring Program Effectiveness

Implementing the PR Program


Press Releases Interviews Press Conferences

PR Tools
The Internet Community Involvement Exclusives

Advantages of Public Relations


Credibility Image Building Cost Savings

PR Provides
Selectivity Lead Generation Avoidance of Clutter

Publicity
The Generation of News About a Person, Product, or Service That Appears in the Media

Part of the PR Process

May Be Out of the Marketers Control

Advantages and Disadvantages of Publicity


Advantages Substantial credibility Disadvantages Timing difficult or impossible to control

News value
Significant word-ofmouth Perception of endorsement by media

Inaccuracy, omission, or distortion may result

Corporate Advertising
An extension of the PR function Does not promote a specific product or service Promotes the organization
Assuming a position on an issue or cause

Image enhancement

Seeks involvement

Why Is Corporate Advertising Controversial?


Corporate advertising Is a waste of money Consumers arent interested in this form of advertising

Claims of Opponents to Corporate Advertising


This is a costly form of corporate selfindulgence The firms finances or image must be in trouble

Objectives of Corporate Advertising


Create a positive image for the firm

Establish diversified companys identity

Communicate the organizations viewpoint

Objectives
Help newly deregulated industries Smooth labor relations

Boost employee morale

Types of Corporate Advertising


Image Advertising Event Sponsorship Advocacy Advertising Cause-related Advertising

General Image Ads Positioning Ads Sponsorship Recruitment Financial Support

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 May have questionable effectiveness Raises questions of constitutionality and ethics