In this chapter, we explore advertising and PR. Advertising involves communicating the company’s or brand’s value proposition by using paid media to inform, persuade, and remind consumers. PR involves building good relations with various company publics from consumers and the general public to the media, investor, donor, and government publics.
LECTURE23 Public Relations Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 11- 11 Topic Outline Đ Public Relations § What is public relations § The Role and Impact of Public Relations § Major Public Relations Tools § What are the strengths and limitations of brand publicity? § What are the brand publicity tools? § Why is corporate communication important to IMC programs? Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Lecture Perspective Two major developments recently: 1) 2) Public relations has forced all marketers to value stakeholder relationships IMC is helping to bridge the gap between Public Relations and Marketing Marketing Traditionally separate from the PR area Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall IMC Public Relations Traditionally separate from the Marketing area 1- What is Public Relations? Public relations (PR): A communication function used to promote mutual understanding between an organization and its various stakeholder groups Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Public Relations Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Public relations is used to promote product, people, ideas, and activities Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Public Relations Press relations or press agency involves the creation and placing of newsworthy information to attract attention to a person, product, or service Product publicity involves publicizing specific products Public affairs involves building and maintaining national or local community relations Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Public Relations Lobbying involves building and maintaining relations with legislators and government officials to influence legislation and regulation Investor relations involves maintaining relationships with shareholders and others in the financial community Development involves public relations with donors or members of nonprofit organizations to gain financial or volunteer support Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- PR Responsibilities Keep the Public Keep the Public Aware Aware of of Organization’s Organization’s Activities Activities Serve Serve AsAs the the Official Channel OfficialofChannel Information of Information Coordinate the Programs With Other MC Functions Plan and Administer Plan and Administer Information Programs Information Programs Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall PR Coordinate Coordinate Relationships Relationships With With Stakeholders Stakeholders Collect and Analyze Collect and Analyze Stakeholder Attitudes Stakeholder Attitudes 1- PR Activities Brand Publicity Brand Publicity Crisis Management Financial/ Financial/ Investor Investor Relations Relations Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Media Relations Media Relations PR Activities Corporate Corporate Communications Communications Employee Relations Employee Relations 1- Public Relations • Major Public Relations Tools Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 10 Public Relations Đ Đ The Role and Impact of Public Relations Lower cost than advertising Stronger impact on public awareness than advertising Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 11 PR In Action: Maytag Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 12 PR In Action: Maytag Challenge: Help introduce the new Neptune Help introduce the new Neptune washer washer A public relations program featuring:featuring: A public relations program •• Answer: •• Results: • • New York launch party for news media and appliance dealers starring the Maytag “Lonely Repairman” and famous TV “moms” Sponsored a water conservation test in a small Kansas town demonstrating overall water savings for the town Most successful Maytag product launch ever Maytag stock increased 100% Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 13 What Is Brand Publicity? Brand publicity: The use of nonpaid media messages to deliver brand information designed to positively influence customers and prospects Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 14 Brand Publicity Process Reviewing the situation • Fits with organization’s overall SWOT assessment Process Setting objectives • Similar to advertising, but can also include: • Creating word of mouth buzz (excited talk about a brand) Developing strategies and tactics • Traditional media • Guerilla marketing techniques • Viral marketing (spreading word of mouth via the internet) Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 15 Key Part of Brand Publicity: Media Relations Key part of brand publicity: Media relations: Maintaining a positive professional relationship with the media in general or with media that specialize in covering a specific industry • The challenge: getting past media gatekeepers • Editors and reporters who select (or reject) stories for their publications or stations based on what they think will interest their audiences Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 16 Tales From the Real World In the real world, PR people know that the media is not always going to cover a story exactly the way they would wish So, like a football coach’s reaction to a referee’s “call,” PR professionals sometimes challenge the media on their “call.” The result is often the same as in sports: the current story will stand, but the media may write something more favorable next time Just like a referee refusing a coach’s plea to reconsider a call, but then calling the other team for a penalty on the next series Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 17 Strengths And Limitations Of Brand Publicity Strengths Strengths • • • • • Builds a climate of acceptance for the brand Makes brand’s claims more credible Breaks through clutter Reaches the hard-toreach Cost effective Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Limitations • Vs • Less control over message Limited frequency 1- 18 What Are Brand Publicity Tools? News Release News Release (Press (Press Release) Release) Publicity Tools Pitch Letter Pitch Letter News Kit (Press Kit) Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 19 A New Release Developed By PeopleSoft’s Agency + Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 20 A Pitch Letter From A Clothing Maker + Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 21 A News Story Written About The New Jacket + Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 22 What Is Corporate Communication? Corporate communication: High level public relations carried out by executives who work at a senior level in a company and advise top management on how the organization presents itself Goal: to manage the image and reputation of the organization Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 23 Bibliography § § § § Principles of Marketing by Philip Kotler & Gary Armstrong Fifteenth Edition, Published by Prentice Hall Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc Principles and Practices of Marketing by Jobber, D 4th edition, McGraw Hill International Principles of Advertising & IMC by Tom Duncan 2nd Edition, Published by McGraw-Hill Irwin Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 24 The End “Take care of your reputation It’s your most valuable asset” Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 25 ...Topic Outline Đ Public Relations Đ What is public relations § The Role and Impact of Public Relations § Major Public Relations Tools § What are the strengths and limitations of brand publicity? §... Communications Employee Relations Employee Relations 1- Public Relations Major Public Relations Tools Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 10 Public Relations • § §... Publishing as Prentice Hall 1- 15 Key Part of Brand Publicity: Media Relations Key part of brand publicity: Media relations: Maintaining a positive professional relationship with the media in