Chapter 15 - Public relations. The goals of this chapter are: To recognise the roles of public relations, publicity and corporate advertising in the integrated marketing communication mix, to know the difference between public relations and publicity and demonstrate the advantages and disadvantages of each, to understand the reasons for corporate advertising and its advantages and disadvantages,...
Chapter 15 Public relations Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-1 Learning objectives To recognise the roles of public relations, publicity and corporate advertising in the integrated marketing communication mix To know the difference between public relations and publicity and demonstrate the advantages and disadvantages of each To understand the reasons for corporate advertising and its advantages and disadvantages To know the methods for measuring the effects of public relations, publicity and corporate advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-2 Planning and evaluation Media choices Publicity News Value Integration Publics Image advertising Processes Public relations Marketing PR Corporate advertising Sponsorship Advocacy advertising Non-marketing PR Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-3 A media storm Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-4 Public relations defined Public relations is the deliberate, planned and sustained effort Public relations is the deliberate, planned and sustained effort to establish and maintain mutual understanding between an to establish and maintain mutual understanding between an organisation (or individual) and its (or their) publics. organisation (or individual) and its (or their) publics. It is a management function which evaluates public attitudes, It is a management function which evaluates public attitudes, identifies the policies and procedures of an individual or an identifies the policies and procedures of an individual or an organisation with the public interest, and plans and executes a organisation with the public interest, and plans and executes a program of action to earn public understanding and program of action to earn public understanding and acceptance acceptance Public Public Relations Relations Institute Institute of of Australia Australia Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-5 PR as a planned process Preplanning Preplanning Determine Determine and and evaluate evaluate public public attitudes attitudes Planning Planning Identify Identify policies policies and and procedures procedures of of an an individual individual or or organisation organisation with with aa public public interest interest Implementation Implementation Develop Develop and and execute execute an an action action program program designed designed to to bring bring about about public public understanding understanding and and acceptance acceptance Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-6 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 isis 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-7 Firestone Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-8 Research on public attitudes Provides Provides input input for for the the planning planning process process Increases Increases communications communications effectiveness effectiveness Serves Serves as as an an 'early 'early warning warning system' system' Secures Secures internal internal cooperation, cooperation, support support Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-9 Determining public attitudes Environmental Environmental scanning scanning Market Market research research Communications Communications from from customers customers Techniques Techniques Market Market intelligence intelligence Media Media monitoring monitoring services services Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-10 Odwalla assures customers of quality Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-25 A response to negative publicity Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-26 Advantages and disadvantages of publicity Advantages Disadvantages Substantial Substantial credibility credibility Timing Timing difficult difficult or or impossible impossible to to control control News News value value Inaccuracy, Inaccuracy, omission omission or or distortion distortion may may result result Significant Significant word-of-mouth word-of-mouth Perception Perception of of endorsement endorsement by by media media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-27 Planning and evaluation Media choices Publicity News Value Integration Publics Image advertising Processes Public relations Marketing PR Corporate advertising Sponsorship Advocacy advertising Non-marketing PR Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-28 Corporate advertising An extension of the PR function An An extension of the PR function An extension extension of of the the PR PR function function Does not promote a specific Does Does not promote a specific Does not not promote promote aa specific specific product or service product product or service product or or service service Promotes Promotes the the organisation organisation Image Image enhancement enhancement Assuming Assuming aa position position on on an an issue issue or or cause cause Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Seeks Seeks involvement involvement 15-29 Types of corporate advertising Image Image advertising advertising General General image image ads ads Event Event sponsorship sponsorship Sponsorship Sponsorship Advocacy Advocacy advertising advertising Positioning Positioning ads ads Recruitment Recruitment Financial Financial support support Cause-related Cause-related advertising advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-30 Shell promotes its innovation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-31 Sponsorship Corporate Corporate sponsor sponsor Sporting Sporting events events Music, Music, entertainment entertainment Causes Causes Festivals Festivals Cultural Cultural events events Arts Arts Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-32 Advocacy advertising Advocacy Advocacy advertising: advertising: is is the the propagation propagation of of ideas ideas and and elucidation elucidation of of 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-33 Advocacy advertising (cont.) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-34 Cause-related marketing Cause-related Cause-related marketing: marketing: is is aa form form of of marketing marketing whereby whereby companies companies link link with with charities charities or or nonnonprofit profit organisations organisations as as contributing contributing sponsors sponsors Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-35 Avon supports a cause Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-36 Advantages and disadvantages of corporate advertising Advantages Disadvantages Excellent Excellent vehicle vehicle for for positioning positioning the the firm firm May May have have questionable questionable effectiveness effectiveness Takes Takes advantage advantage of of benefits benefits derived derived from from public public relations relations Raises Raises questions questions of of constitutionality constitutionality and and ethics ethics Reaches Reaches aa selected selected target target market market Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-37 Measuring corporate advertising effectiveness Attitude Attitude surveys surveys Measurement Measurement methods methods Studies Studies relating relating to to corporate corporate advertising advertising and and share share prices prices Focus Focus group group research research Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-38 Summary and conclusions Public relations has both marketing and non-marketing roles Many large companies engage external PR consultants to manage their PR activities Marketers must develop programs to manage positive and negative public attitudes Important tools include media relations, publicity, sponsorship, corporate advertising, advocacy and cause-related marketing A systematic approach to PR management includes identifying problems, planning programs and evaluating programs Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 15-39 ... through through public public relations relations activities activities Provides Provides management management with with aa way way to to measure measure public public relations relations achievements... Promotion 2e by Belch, Belch, Kerr & Powell 15-4 Public relations defined Public relations is the deliberate, planned and sustained effort Public relations is the deliberate, planned and sustained effort ... recognise the roles of public relations, publicity and corporate advertising in the integrated marketing communication mix To know the difference between public relations and publicity and demonstrate