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Chapter 17 - Public relations, publicity, and corporate advertising. The main goals of this chapter are: To recognize the roles of public relations, publicity, and corporate advertising in the promotional 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 17 Public Relations, Publicity, and Corporate Advertising Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 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 Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 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 Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Marketing Public Relations (MPR) Public relations activities designed to support marketing objectives Functions Building marketplace excitement Improving ROI Creating advertising news where there is no product news Introducing a product with little or no advertising Providing a valueadded customer service Building brandtocustomer bonds Influencing the influentials Defending products at risk & giving consumers reason to buy Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Figure 17.2 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 Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 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 Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Steps to Develop a PR Plan Define public relations problems Plan and program Take action and communicate Evaluate the program Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Figure 17.3 Ten Questions for Evaluating Public Relations Plans Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Types of Target Audiences Internal audiences External 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 • People who are not closely connected with the organization • Media • Educators • Civic and business organizations • Governments • Financial groups Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Tools for Implementing the PR Program Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 10 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 Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 11 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 Marketingmix modeling Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 12 Publicity Generation of news about a person, product, or service that appears in broadcast or print media Differs from public relations by: Being a shortterm strategy Not always being positive Not always being controlled or paid by the organization Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13 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 Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 14 Pros and Cons of Publicity Pros Cons Substantial credibility Lack of control News value Timing Significant wordofmouth Accuracy Perception of media endorsement Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 15 Corporate Advertising Designed to promote the firm overall by: Enhancing its image Assuming a position on a social cause Seeking direct involvement in something Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 16 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 Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 17 Types of Corporate Advertising Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 18 Methods for Measuring the Effectiveness of Corporate Advertising Attitude surveys Studies relating corporate advertising and stock prices Focus group research Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 19 ... Identifies the policies and procedures of an organization with the public interest Executes a program of action to earn public understanding and acceptance Copyright © 2014 McGraw-Hill Education... Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Figure 17. 2 Advantages and Disadvantages of MPRs... Education 10 Advantages and Disadvantages of PR Advantages Credibility Cost Avoidance of clutter Lead generation Ability to reach specific groups Image building Disadvantages Potential for incomplete