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17 Public Relations, Publicity, and Corporate Advertising Mc. Graw-Hill/Irwin Copyright © 2009 by The 17 Public Relations, Publicity, and Corporate Advertising Mc. Graw-Hill/Irwin Copyright © 2009 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Guerilla Marketing Aqua Teen Hunger Force Guerilla Marketing Aqua Teen Hunger Force

Guerilla Marketing • The body of unconventional ways of pursuing conventional goals. • A Guerilla Marketing • The body of unconventional ways of pursuing conventional goals. • A proven method of achieving profits with minimum money.

Guerilla Marketing Gone Apes • To promote the new Aqua Teen Hunger Force Movie, Guerilla Marketing Gone Apes • To promote the new Aqua Teen Hunger Force Movie, Turner Broadcasting Network teamed up with Guerilla Interference Inc. • The Goal: Deploy 400 LED “Lite. Bright” displays within 10 major cities. • Part of the marketing plan was to promote The Cartoon Network’s eccentric, nighttime, college-crowd brand of programming Adult Swim.

Guerilla Marketing Gone Apes • Some of Boston’s residents mistook the devices for explosives Guerilla Marketing Gone Apes • Some of Boston’s residents mistook the devices for explosives and contacted authorities. • The city quickly reacted and shut down all major public transportation and spent $500, 000 deploying police and bomb sniffing dogs. • Turner Broadcasting was fined $1, 000 from the city of Boston and also paid $1, 000 to “goodwill” funds to homeland security.

Results • In the days since the event: – Made national televised news – Results • In the days since the event: – Made national televised news – The average number of American households who viewed Aqua Teen Hunger Force rose 5%, to 1, 082, 500, from the previous week of 1, 030, 500 viewers. – T-shirts were instantly available for sale portraying the controversial characters. – Web site spiked 105. 2%, to 790, 000 from 385, 000 one week before. – Total US Gross: $5, 520, 368 – US DVD Sales: $11, 084, 232 – Movie Budget: $750, 000

Ethical Breach? • Turner Broadcasting failed to notify the major cities about what was Ethical Breach? • Turner Broadcasting failed to notify the major cities about what was going on. The lack of communication cost them unnecessary fines. • The Ethics Code published by the Word of Mouth Marketing Association stresses honesty of relationship, honesty of opinion, and honesty of identity.

Sources: • http: //www. businessweek. com/innovate/cont ent/feb 2007/id 20070209_934852_page_2. htm • http: //youtube. com/watch? Sources: • http: //www. businessweek. com/innovate/cont ent/feb 2007/id 20070209_934852_page_2. htm • http: //youtube. com/watch? v=9 yig. QGKaf 2 A • www. Google. com

Public Relations Defined A management function which and of and to evaluates public attitudes Public Relations Defined A management function which and of and to 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

Public Relations Management Process Determination and evaluation of public attitudes PR Identification of policies 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 Government Employees Traditional PR Perspective Customers Community Investors Public Relations Department Suppliers Government Employees

Integration of PR into the Promotional Mix Separate Functions Marketing Department Public Relations Coordinated Integration of PR into the Promotional Mix Separate Functions Marketing Department Public Relations Coordinated and Equal Marketing Department Public Relations Integrated Marketing Department Public Relations

Marketing Public Relations Functions Building market excitement before media ads break Improving ROI Creating Marketing Public Relations Functions Building market excitement before media ads break Improving ROI Creating news where there is no news Introducing a product with little or no advertising Providing a value-added customer service Building brand-to-customer bonds Influencing influentials, giving info to opinion leaders Defending products at risk, giving consumers reasons to buy

MPR in Practice MPR in Practice

Benefits of MPR Advantages A cost-effective way to reach the market Breaks though the Benefits of MPR Advantages A cost-effective way to reach the market Breaks though the clutter Highly targeted way to conduct public relations Circumvents resistance to sales efforts Endorsements by independent third parties Improved media involvement w/customers Achievement of credibility Creates influence among opinion leaders Makes advertising messages more credible Improved ROI

Benefits of MPR Disadvantages Lack of control over media Difficult to tie in slogans Benefits of MPR Disadvantages Lack of control over media Difficult to tie in slogans or other advertising devices Media time and space aren’t guaranteed No standards for effective measurement

The Process of Public Relations Determining and Evaluating Public Attitudes Establishing a PR Plan The Process of Public Relations Determining and Evaluating Public Attitudes Establishing a PR Plan Developing and Executing a PR Program Measuring Program Effectiveness

Test Your Knowledge In public relations targeting, external audiences include: A) Customers B) The Test Your Knowledge In public relations targeting, external audiences include: A) Customers B) The public at large C) Suppliers D) Stockholders E) All of the above

Research on Public Attitudes Provides input for the planning process Serves as an “early Research on Public Attitudes Provides input for the planning process Serves as an “early warning system” Increases communications effectiveness Secures internal cooperation, support

10 Evaluation Questions 1. Does the plan reflect a thorough understanding of the company’s 10 Evaluation Questions 1. Does the plan reflect a thorough understanding of the company’s business situation? 2. Has the PR program made good use of research and background sources? 3. Does the plan include full analysis of recent editorial coverage? 4. Do the PR people fully understand the product’s strengths and weaknesses? 5. Does the PR program describe several cogent, relevant conclusions from the research?

10 Evaluation Questions 6. Are the program objectives specific and measurable? 7. Does the 10 Evaluation Questions 6. Are the program objectives specific and measurable? 7. Does the program clearly describe what the PR activity will be and how it will benefit the company? 8. Does the program describe how its results will be measured? 9. Do the research, objectives, activities, and evaluations tie together? 10. Has the PR department communicated with marketing throughout the development of the program?

Determining Public Relations Audiences Internal or Associated External or Independent Stockholders and Investors Educators Determining Public Relations Audiences Internal or Associated External or Independent Stockholders and Investors Educators Customers and Clients Governments Employees Financial Groups Community Members Civic and Business Organizations Vendors and Suppliers The Media

Communicating With Target Audiences Internal or Associated External or Independent Newsletters Public relations ads Communicating With Target Audiences Internal or Associated External or Independent Newsletters Public relations ads Bulletin boards Press releases Direct mail Conferences Annual reports Research reports

The Media Also Engages in Public Relations The Media Also Engages in Public Relations

Implementing the PR Program Press Releases Press Conferences Interviews PR Tools The Internet Exclusives Implementing the PR Program Press Releases Press Conferences Interviews PR Tools The Internet Exclusives Community Involvement

Special Olympics Torch Run *Click outside of the video screen to advance to the Special Olympics Torch Run *Click outside of the video screen to advance to the next slide

The Internet as a PR Tool The Internet… Allows information to be presented quickly The Internet as a PR Tool The Internet… Allows information to be presented quickly Provides the media with instant access to additional sources of information Allows much more substantial information to be presented

Advantages of Public Relations Credibility Cost Savings Image Building PR Provides Avoidance of Clutter Advantages of Public Relations Credibility Cost Savings Image Building PR Provides Avoidance of Clutter Selectivity Lead Generation

Potential Problems of Public Relations Potential for incomplete communication process Potential Problems Receiver not Potential Problems of Public Relations Potential for incomplete communication process Potential Problems Receiver not making connection to the source Lack of coordination with marketing dept. Inconsistent, redundant communications

Test Your Knowledge Which of the following communications is most likely to have more Test Your Knowledge Which of the following communications is most likely to have more credibility among its receivers? A) Vogue's layout introducing its latest models B) Volvo's television ad promoting new standard safety features C) Motor Trend's announcement of the "Car of the Year" D) The CEO of Ford Motor Company appearing in its ads E) The appearance of the participants in American Idol in Old Navy ads

General Mills Capitalizes on Publicity General Mills Capitalizes on Publicity

Measuring PR Effectiveness Contributions made? What was achieved? Quantitative measures? Quality? Measuring PR Effectiveness Contributions made? What was achieved? Quantitative measures? Quality?

Criteria for Measuring PR Effectiveness Ratio of positive to negative articles Number of impressions. Criteria for Measuring PR Effectiveness Ratio of positive to negative articles Number of impressions. . . Over time On the target audience On specific target audiences Percentage of. . Positive articles over time Negative articles over time Percentage of positive and negative articles by. . . Subject Publication Reporter Target audience

Additional Measures of PR Effectiveness Personal observation and reaction Matching objectives and results The Additional Measures of PR Effectiveness Personal observation and reaction Matching objectives and results The team approach Management by objectives Public opinions and surveys Audits

Publicity versus Public Relations Publicity: The generation of news about a person, product, or Publicity versus Public Relations Publicity: The generation of news about a person, product, or service that appears in the media A short-term strategy A subset of public relations Not always positive Often originates outside the firm

A Response to Negative Publicity A Response to Negative Publicity

Pros and Cons of Publicity Advantages Disadvantages Substantial credibility Timing difficult or impossible to Pros and Cons of Publicity Advantages Disadvantages Substantial credibility Timing difficult or impossible to control News value Inaccuracy, omission, or distortion may result Significant word-ofmouth Perception of endorsement by media

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

Why is Corporate Advertising Controversial? Consumers aren’t interested in this form of advertising Claims Why is Corporate Advertising Controversial? Consumers aren’t interested in this form of advertising Claims of Opponents to Corporate Advertising Corporate advertising is a waste of money The firm’s finances or image must be in trouble This is a costly form of corporate self-indulgence

Objectives of Corporate Advertising Establish diversified company identity Create a positive image for the Objectives of Corporate Advertising Establish diversified company identity Create a positive image for the firm Communicate the organization’s viewpoint Objectives Help newly deregulated industries Boost employee morale Smooth labor relations

Types of Corporate Advertising Image Advertising General Image Ads Positioning Ads Event Sponsorship Recruitment Types of Corporate Advertising Image Advertising General Image Ads Positioning Ads Event Sponsorship Recruitment Advocacy Advertising Cause-related Advertising Financial Support

Boeing Advertises to Enhance Its Image *Click outside of the video screen to advance Boeing Advertises to Enhance Its Image *Click outside of the video screen to advance to the next slide

Employee Recruitment by Grant Thornton Employee Recruitment by Grant Thornton

Event Sponsorship Corporate Sponsor Sporting Events Music, Entertainment Causes Festivals Cultural Events Arts Event Sponsorship Corporate Sponsor Sporting Events Music, Entertainment Causes Festivals Cultural Events Arts

Test Your Knowledge Why would World Wrestling Entertainment (WWE) sponsor a car on the Test Your Knowledge Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing circuit? A) To build equity and gain affinity with its target market B) To show its position on sports marketing C) To create a generic positioning strategy D) To further segment its target market E) To reduce its overall promotional expenses

Advocacy Advertising Advocacy advertising: The propagation of ideas and elucidation of controversial social issues Advocacy Advertising Advocacy advertising: The propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor.

American Gas Association Advocacy Ad American Gas Association Advocacy Ad

Cause Related Marketing Cause related marketing: A form of marketing whereby companies link with Cause Related Marketing Cause related marketing: A form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.

Pros and Cons of Corporate Advertising Advantages Disadvantages Excellent vehicle for positioning the firm Pros and Cons of Corporate Advertising Advantages Disadvantages Excellent vehicle for positioning the firm May have questionable effectiveness Takes advantage of benefits derived from public relations Raises questions of constitutionality and ethics Reaches a selected target market

Measuring Corporate Ad Effectiveness Attitude Surveys Effective? Relating to Stock Prices Focus Group Research Measuring Corporate Ad Effectiveness Attitude Surveys Effective? Relating to Stock Prices Focus Group Research