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7 th international PR Conference in IRAN What they confronted with PR today Ilchul 7 th international PR Conference in IRAN What they confronted with PR today Ilchul Kim, Ph. D Professor Dongeui University, Korea ©Ilchul Kim, 2011

8, 000 km 12 hours Iran Location Longitude 53º 00″ West 32º 00” Area 8, 000 km 12 hours Iran Location Longitude 53º 00″ West 32º 00” Area 1, 648, 295㎢ Population 65. 88(m) Language Persian Capital Tehran Flag Korea Location Longitude 127º 30 Area 100, 210㎢ Population 48. 75(m) Language Korean Capital Seoul Flag ©Ilchul Kim, 2011

Seoul Mt. Geumgang military demarcation line Jeju Mt. Seorak Seoul Busan Jeju Mt. Geumgang Seoul Mt. Geumgang military demarcation line Jeju Mt. Seorak Seoul Busan Jeju Mt. Geumgang ©Ilchul Kim, 2011 Mt. Seorak

CONTENTS I. PROLOGUE II. PR in KOREA III. CULTURE, MEDIA and PR IV. EPILOGUE CONTENTS I. PROLOGUE II. PR in KOREA III. CULTURE, MEDIA and PR IV. EPILOGUE ©Ilchul Kim, 2011

I. PROLUGUE Iran & Korea 0. 1 Million U$/m² Teheran Street in downtown Seoul I. PROLUGUE Iran & Korea 0. 1 Million U$/m² Teheran Street in downtown Seoul June 17, 1977 Mayer of Teheran visit In memory of sister city between Teheran and Seoul , ©Ilchul Kim, 2011

II. PR in Korea ©Ilchul Kim, 2011 II. PR in Korea ©Ilchul Kim, 2011

Brief History of PR 1945 - PR, with its word and meaning first has Brief History of PR 1945 - PR, with its word and meaning first has been brought by the GHQ just after the independence from the Japanese colony. 1953 - While the dictatorship transferred to Korean government regime, The English ‘PR’ interpreted as Gongbo (means Public Affairs) 1980 - Then extended to Hongbo (means Publicity) 2003 - Named Public Affairs ©Ilchul Kim, 2011

History (Continued) 1974 - First Advertising curriculum in the College – Joongang University 1981 History (Continued) 1974 - First Advertising curriculum in the College – Joongang University 1981 - First PR Agency - Communications Korea 1986 - Seoul Olympic nominates Burson. Mastellar as the Official PR Agency ©Ilchul Kim, 2011

PR Market Place § Major companies have in-house PR function § Major Ad. Agencies PR Market Place § Major companies have in-house PR function § Major Ad. Agencies also provide PR services § There about 80 PR agencies with 300 million U$ annual turnover approximately ©Ilchul Kim, 2011

PR in Asia ©Ilchul Kim, 2011 PR in Asia ©Ilchul Kim, 2011

Top 10 Companies Rank(2009) Company Sales Volume (unit: million US) Business 1( - ) Top 10 Companies Rank(2009) Company Sales Volume (unit: million US) Business 1( - ) Samsung Electronics 112, 024. 94 Electronics 2(2↑) SK Innovation 43, 863. 50 Telecom 3(3↑) Korea Electric 39, 189. 60 Energy 4(3↑) Hyundai Motors 36, 769. 40 Automobile 5(6↑) GS Caltex 33, 039. 50 Energy 6(4↑) POSCO 32, 582 Iron 7(1↑) LG Electronics 29, 238. 50 Electronics 8(6↑) Wori Bank 25, 853. 50 Finance 9(3↑) Samsung Insurance 25, 696. 20 Insurance 10(7↑) LG Display 25, 004. 20 ©Ilchul Kim, 2011

Top 10 Ad. Agencies Company Billing (unit: million US) Mother Company Cheil Communication 346 Top 10 Ad. Agencies Company Billing (unit: million US) Mother Company Cheil Communication 346 Samsung Innocean 250. 2 Hyundai HS Ad 141 LG SK M&C 129. 7 SK Daehong 95 Lotte TBWA Korea 63. 1 - IWT Adventure 56. 6 - Korea Press Foundation Oricom 46. 7 Government 46. 1 Doosan Grape Communication 43. 9 - ©Ilchul Kim, 2011

Top 10 PR Agencies Unit: Million U$ No 1 2 3 Agency Establish No. Top 10 PR Agencies Unit: Million U$ No 1 2 3 Agency Establish No. of ed Employees KPR&Associ 1989 120 ates Prain 2000 160 Sales Volume 12 Affiliates Major Clients Independent Sunkist, Shell, Lexus, 3 M, CISCO Samsung, HP Consumer, Outback, Nike. Korea, Apple, Intel, SKT, Pizza Hut Independent Fleishman Korea Incomm Korea 2001 80 Fleishman-Hillard 1993 75 Incommbroadeur 5 Korcom 1995 60 Porter Novelli 6 Burson. Mastellar 1989 40 Burson- Mastellar 7 IPR 1998 30 Independent 8 Communica tion Korea 1987 20 Independent 9 Edelman Korea 1996 60 Edelman Worldwide 10 Ogilvy PR 1999 30 4 Ogilvy & Mather Korea ©Ilchul Kim, 2011 Samsung, Pepsi, Philips, kellog, Pfizer, AMD AIG보험, IBM, ARM, Cialis, Nissan Korea, Pulmuwon, Daesung Mr. Pizza , Woongji, SKC, NHN, HP, YBM Philip Morris, Schering, VISA, Fed. Ex, CDMA, MSD Korea LIG Insurance, KFC, , Honeywell, ELCA Ministry of Information, Thai Tourism , TGI, BT AMD, S&P’s, California Diamond, BASF, BMS Pharmacy, DHL Nokia, Du. Pont, UPS, Gillette, ASURION, Samsung Automation

Government & NGO Government & NPO membership website Ministry of Culture, Sport and Tourism Government & NGO Government & NPO membership website Ministry of Culture, Sport and Tourism Improving popular feeling for the national performance with mutual communication and sympathy http: //www. mcst. go. kr Presidential Committee for Nation Brand To pursue differentiated branding strategies according to the awareness of Korea by continent/ country as part of a plan to achieve systematic management of the national reputation. http: //www. koreabrand. go. kr Korea PR Assoc. Branch of IPRA http: //www. koreapr. org Korea PR Company Assoc. KPRCA adopted promotion businesses such as business for rights and interests of PR industry http: //www. kprca. or. kr ©Ilchul Kim, 2011

Academy & NPO Academy Korea Advertising Society (KAS) Korea Ad & PR Assoc, (PAAK) Academy & NPO Academy Korea Advertising Society (KAS) Korea Ad & PR Assoc, (PAAK) membership • Research on theory and practice of advertisement • Alliance with domestic and international academia http: //www. koads. or. kr • Practical study for advertising and PR http: //www. kadpr. or. kr Korea Academy of • PR Theory and Practice PR Research, Seminar and Journals (KASPR) Korea Comm. Academy (KSJCS) website • to provide a forum for the development, conduct, and evaluation of journalism and communication research Korea Academy of IMC Specialists in Academy and Practice IMC President: Dr. Ilchul Kim ©Ilchul Kim, 2011 http: //www. kaspr. or. kr http: //www. comm. or. kr http: //cafe. naver. com/kaimc

III. Culture, Media and PR Digital culture & social media are the two most III. Culture, Media and PR Digital culture & social media are the two most important factors which would affect to the new concept of PR § Korea is very fast moving to multiraces country in 30 years § Korea is the fastest smart/mobile device developing and expansion country § ©Ilchul Kim, 2011

Culture § The more SNS accelerates the internationalization of the world, the more ethnic Culture § The more SNS accelerates the internationalization of the world, the more ethnic and/or cultural differences become important issues. § Though language seems to be unified by English globally, local communication heavily depends on the mother tongue. § Culture supported by language should be the final identification on earth. ©Ilchul Kim, 2011

Categories vs. Relationships § Study conducted among American and Chinese children, as well as Categories vs. Relationships § Study conducted among American and Chinese children, as well as among students from America and China/Taiwan. § They were asked to indicate which two were most closely related. ©Ilchul Kim, 2011

East vs. West A B What goes with this? A or B ©Ilchul Kim, East vs. West A B What goes with this? A or B ©Ilchul Kim, 2011

Categories vs. Relationships (…contd. ) § Americans preferred to group objects because they belonged Categories vs. Relationships (…contd. ) § Americans preferred to group objects because they belonged to the same category. § The cow and chicken are both animals. Panda and monkey both fit into the animal category as well. § Chinese preferred to group objects on the basis of relationships. § The cow eats the grass. Monkeys eat bananas. ©Ilchul Kim, 2011

Group 1 Group 2 ©Ilchul Kim, 2011 Is this target object similar to Group Group 1 Group 2 ©Ilchul Kim, 2011 Is this target object similar to Group 1 or Group 2?

Categories vs. Relationships (…contd. ) § 60% of Koreans thought the object was more Categories vs. Relationships (…contd. ) § 60% of Koreans thought the object was more similar to the group on the left. There is a family resemblance. § 67% of Americans thought the object was more similar to the group on the right. They share the same rule of having “a straight (as opposed to curved) stem. ” ©Ilchul Kim, 2011

Categories vs. Relationships (…contd. ) § Westerners perceptions of similarity between objects is influenced Categories vs. Relationships (…contd. ) § Westerners perceptions of similarity between objects is influenced by the degree to which the objects can be categorized by applying a set of rules. § Easterners perceptions of similarity is based more on the family resemblance among objects. ©Ilchul Kim, 2011

Cultural Difference by Country § § § Power Distance Individualism vs. Collectivism Masculinity vs. Cultural Difference by Country § § § Power Distance Individualism vs. Collectivism Masculinity vs. Femininity Uncertainty avoidance Long-term orientation Source: www. geert-hofstede. com ©Ilchul Kim, 2011

©Ilchul Kim, 2011 ©Ilchul Kim, 2011

©Ilchul Kim, 2011 ©Ilchul Kim, 2011

©Ilchul Kim, 2011 ©Ilchul Kim, 2011

Foreigners Increasing Ratio (UNIT: %) Source: OECD, UN 2000~2008 annual average K o r Foreigners Increasing Ratio (UNIT: %) Source: OECD, UN 2000~2008 annual average K o r e a S p a i n I t a l y G r e e c e C z e c h P o r t u g a l S l o v a k i a E n g l a n d H u n g a r y N o r w a y F i n l a n d J a p a n ©Ilchul Kim, 2011 L u x e m b u r g D e n m a r k A u s t r a l i a S w i t z e r L a n d S w e d e n N e t h e r l a n d s G e r m a n y

Annual Registered Foreigners Per 1000 1, 676, 100 (Unit: person) 854, 007 437, 954 Annual Registered Foreigners Per 1000 1, 676, 100 (Unit: person) 854, 007 437, 954 147, 914 (Estimate) Source: Korea Ministry of Law ©Ilchul Kim, 2011

Normal vs. New Normality Economies FEATURE NOMAL ECONOMY NEW NORMALITY ECONOMY Economic Cycles Predictable Normal vs. New Normality Economies FEATURE NOMAL ECONOMY NEW NORMALITY ECONOMY Economic Cycles Predictable Absent Upturns/Booms Definable(Avg. 7 years) Unpredictable, Erratic Downturns/Recessions Definable(Avg. 10 months) Unpredictable, Erratic Potential Impact of Issues Low High Overall Investment Profile Expansive, Broad Cautious, Focused Market Risk Tolerance Acceptance Avoidance Customer Attitudes Confident Insecure Customer Preferences Steady, Evolving Apprehensive, Flight to Safety ©Ilchul Kim, 2011 Source: Chaotics, P. 16

Market vs Community MARKET COMMUNITY Initiative Marketer Consumer Status Tangible Intangible Communication S-M-C-R O-C-R Market vs Community MARKET COMMUNITY Initiative Marketer Consumer Status Tangible Intangible Communication S-M-C-R O-C-R Stuff products Information ©Ilchul Kim, 2011

Comparison of Marketing 1. 0, 2. 0, and 3. 0 Marketing 1. 0 Product-centric Comparison of Marketing 1. 0, 2. 0, and 3. 0 Marketing 1. 0 Product-centric Marketing 2. 0 Consumeroriented Marketing 3. 0 Values-driven Marketing Objective Sell products Satisfy and retain the consumers Make the world a better place Enabling forces Industrial Revolution Information technology New wave technology How companies see the market Mass buyers with physical needs Smarter consumer with mind and heart Whole human with mind, heart, and spirit Key marketing concept Product development Differentiation Values Company marketing guidelines Product specification Corporate and Corporate mission, product positioning vision, and value Value propositions Functional and emotional Interaction with consumers One-to-many transaction One-to-one ©Ilchul Kim, 2011 relationship Functional, emotional, and spiritual Many-to-many collaboration Source: Marketion 3. 0, P. 9

Marketing Evolution Marketing 1. 0 4 P Marketing 2. 0 4 C Marketing 3. Marketing Evolution Marketing 1. 0 4 P Marketing 2. 0 4 C Marketing 3. 0 SIVA Product Consumer Solution Promotion Communication Information Price Cost Value Place Convenience Access Market Physical On/off line Community Media Mass Demass Social Message Manual Information Story Direction One-way Two-way Interactivity Mix ©Ilchul Kim, 2011

Media ©Ilchul Kim, 2011 Media ©Ilchul Kim, 2011

Newspaper declining worldwidely No. of N. P. Circulation ©Ilchul Kim, 2011 Newspaper declining worldwidely No. of N. P. Circulation ©Ilchul Kim, 2011

Sales Volume unit: Bill. U$ NP Tele Com TV ©Ilchul Kim, 2011 Cable Sales Volume unit: Bill. U$ NP Tele Com TV ©Ilchul Kim, 2011 Cable

Media in Korea Media 2008 (Unit: million) 2009 2010(e) 2011(e) volume share Volume TV Media in Korea Media 2008 (Unit: million) 2009 2010(e) 2011(e) volume share Volume TV 180, 550 38. 0% 166, 931 39. 2% 177, 679 40. 3% 187, 368 40. 7% News Paper 118, 980 25. 1% 98, 079 23. 0% 95, 166 21. 6% 93, 743 20. 3% Magazine 55, 063 11. 6% 44, 143 10. 4% 43, 229 9. 8% 42, 733 9. 3% Radio 36, 511 7. 7% 32, 453 7. 6% 32, 005 7. 3% 32, 651 7. 1% Outdoor 31, 877 6. 7% 28, 292 6. 6% 29, 415 6. 7% 30, 745 6. 7% Theater 2, 213 0. 5% 2, 082 0. 5% 2, 215 0. 5% 2, 344 0. 5% Internet 49, 767 10. 5% 54, 244 12. 7% 61, 312 13. 9% 71, 114 15. % 474, 961 100. 0% 426, 224 100. 0% 441, 020 100. 0% 460, 698 100. 0% Total Source : Zenith. Optimedia, 2010. 7 share volume ©Ilchul Kim, 2011 share volume share

SNS Development 출처: Boyd & Ellison(2008) ©Ilchul Kim, 2011 SNS Development 출처: Boyd & Ellison(2008) ©Ilchul Kim, 2011

Worldwide SNS Users unit: Million ©Ilchul Kim, 2011 Worldwide SNS Users unit: Million ©Ilchul Kim, 2011

Facebook Users v. Facebook 유저수 증가율 ©Ilchul Kim, 2011 Facebook Users v. Facebook 유저수 증가율 ©Ilchul Kim, 2011

SNS in Netizens v인터넷 이용자 중 SNS 계정을 가진 사람의 비중 ©Ilchul Kim, 2011 SNS in Netizens v인터넷 이용자 중 SNS 계정을 가진 사람의 비중 ©Ilchul Kim, 2011

OECD Wireless Internet Supply Unit: % Korea Finland Sweden Norway Japan Portugal Denmark Australia OECD Wireless Internet Supply Unit: % Korea Finland Sweden Norway Japan Portugal Denmark Australia U. S. A. Poland OECD average ©Ilchul Kim, 2011 Source: OECD

Advertising Budget by Media Outdoor Production IPTV DMB Satellite Online Cable Magazine Newspaper Radio Advertising Budget by Media Outdoor Production IPTV DMB Satellite Online Cable Magazine Newspaper Radio TV Source : Cheil communications (2010), unit : % ©Ilchul Kim, 2011

World Smart Phone Market Total Mobile phone sales Smart phone sales 1. 568 b World Smart Phone Market Total Mobile phone sales Smart phone sales 1. 568 b 1. 5 b 1. 151 b 1. 0 b 0. 5 b 0. 122 b 0. 648 b Source : Samsung Economy Institute ©Ilchul Kim, 2011

Mobile & Smart Phone in Korea Smart phone (unit : person) Unit : million Mobile & Smart Phone in Korea Smart phone (unit : person) Unit : million Source : Korea Communication committee (Mar. 2011) ©Ilchul Kim, 2011

Rethink the PR 2. 0 § Social Media Driven PR -D. Breakenridge § Mehdi Rethink the PR 2. 0 § Social Media Driven PR -D. Breakenridge § Mehdi Bagherian (5 th IPRA) § Personal Reciprocity - I. Kim ©Ilchul Kim, 2011

Traditional PR in Brief Communication management to keep the mutually desirable Relationship between the Traditional PR in Brief Communication management to keep the mutually desirable Relationship between the Organization and its Publics. ©Ilchul Kim, 2011

Traditional Structure of PR Public Organization Public ©Ilchul Kim, 2011 Traditional Structure of PR Public Organization Public ©Ilchul Kim, 2011

PR 2. 0 Circumstances § Information Revolution-Demassification § Web 2. 0 - Open, Share PR 2. 0 Circumstances § Information Revolution-Demassification § Web 2. 0 - Open, Share and Peer § Computer Mediated Communication -> Computer Generated Media § Social Media ->Owned Media § From Market to Community ©Ilchul Kim, 2011

Why discrepancy? § Is this culture problem, market problem or something else? § More Why discrepancy? § Is this culture problem, market problem or something else? § More seriously, we’re passing through the marcom turbulences derived from the media revolution. § Most of the marketing activities become global, so we have to share the consensus as far as PR concerned. ©Ilchul Kim, 2011

§ Then, do we share the same meaning on PR internationally? § If not, § Then, do we share the same meaning on PR internationally? § If not, how we can approach to consensus? “The new PR concept of which generally accepted should imply the broad understanding of Digital Culture and Social Media ingredients for more productive and efficient global PR campaign. ” ©Ilchul Kim, 2011

How to Imply the Culture and Media Change into PR ©Ilchul Kim, 2011 How to Imply the Culture and Media Change into PR ©Ilchul Kim, 2011

Environment of PR Message Multi Media Story Telling Media Convergence & Divergence Personal Market Environment of PR Message Multi Media Story Telling Media Convergence & Divergence Personal Market Cyber, Global, Prosumer ©Ilchul Kim, 2011

PR 1. 0 vs. PR 2. 0 PR 1. 0 PR 2. 0 Target PR 1. 0 vs. PR 2. 0 PR 1. 0 PR 2. 0 Target Public Community Media Mass Social Initiative Marketer Consumer Communication S-M-C-R Economy Scale of Economy Zero Sum Society Industry Information Philosophy Reductionism Holism ©Ilchul Kim, 2011 O-C-R Open Share Web 2. 0 Peer

*Significantly higher for Xers/Boomers Source: The Net Generation: A Strategoc Investigation, ©n. Genera, 2008 *Significantly higher for Xers/Boomers Source: The Net Generation: A Strategoc Investigation, ©n. Genera, 2008 ©Ilchul Kim, 2011

©Ilchul Kim, 2011 ©Ilchul Kim, 2011

Product-Driven Distribution-Driven Customer-Driven Marketer Brand Information Brand Channel Information Media Media Information Customer ©Ilchul Product-Driven Distribution-Driven Customer-Driven Marketer Brand Information Brand Channel Information Media Media Information Customer ©Ilchul Kim, 2011 Customer

Traditional Communication Model Sender’s Field of Experience Encoding MESSAGE Decoding Receiver 58 SE ON Traditional Communication Model Sender’s Field of Experience Encoding MESSAGE Decoding Receiver 58 SE ON SP NOISE RE E FE D C BA K Source/ Sender Receiver’s Field of Experience

O-C-R Model ©Ilchul Kim, 2011 O-C-R Model ©Ilchul Kim, 2011

Complex Adaptive System Freq uenc cy Frequen Intermediate host y t os h cy Complex Adaptive System Freq uenc cy Frequen Intermediate host y t os h cy quen Frequ ency Frequency ©Ilchul Kim, 2011

Simplicity (Reductionism) Complexity (Holism) From Mass to Social Media Zero Sum Scale of Economy Simplicity (Reductionism) Complexity (Holism) From Mass to Social Media Zero Sum Scale of Economy 3 S for Mass From News to Story Telling MARKET Seller Openness Shareness Peerness -------- C O M M U N I T Y Prosumer ©Ilchul Kim, 2011 Buyer

Owned Media Personal Networking Public One-way National Culture West Category Division Mass Media Integrity Owned Media Personal Networking Public One-way National Culture West Category Division Mass Media Integrity International West Relationship

Executive Summary § The market, media and message surrounding PR are totally changing. § Executive Summary § The market, media and message surrounding PR are totally changing. § Under these circumstances, we should reconsider the concept and role of PR. § Culture and Media are two major coordinates for the discussion. Culture could be an X axis as it diversified country by country horizontally. § The Y axis should be the Media. While it has been developing from mass to social to owned media, the initiative is transferring from authority to person vertically. ©Ilchul Kim, 2011

Cont’d… § Traditional PR understood as the relationship management between the organization and her Cont’d… § Traditional PR understood as the relationship management between the organization and her groups. Though Grunig & Hunt (1984) categorized 4 types of PR, all are considered from the organization’s perspective. And even more seriously does not reflect any ICT based changes. § Re conceptualization and definition should imply this recent revolutionary change. ©Ilchul Kim, 2011

Cont’d… § We should consider PR 2. 0 from O’Reilly’s Web 2. 0 idea Cont’d… § We should consider PR 2. 0 from O’Reilly’s Web 2. 0 idea represented as Openness, Shareness, and Peerness. § I argued PR as personal reciprocity (pr) instead of Public Relations (PR) to reflect the demassfied changing conditions at the 5 th Iran International PR Conference in 2008 § Compromise the distance between ‘PR’ and ‘pr’, I bring Community to replace the Public and Networking for Relations. ©Ilchul Kim, 2011

Cont’d… § Public->Community-> Personal § Relation->Networking->Reciprocity. § I propose discussion based on the Culture(X) Cont’d… § Public->Community-> Personal § Relation->Networking->Reciprocity. § I propose discussion based on the Culture(X) and Media(Y) coordinates to re-modify the concept or definition of PR. ©Ilchul Kim, 2011

Thank you ! § ickim@deu. ac. kr § www. ickim. pe. kr § www. Thank you ! § ickim@deu. ac. kr § www. ickim. pe. kr § www. cafe. naver. com/kaimc § Twitter, Facebook =>ilchulkim § 82 -010 -9803 -1911 We’re connected 24 hours a day, 7 days a week. Let’s keep in touch ! ©Ilchul Kim, 2011