Chapter 15 Public relations Copyright 2012 Mc Graw-Hill

Learning objectives 1. To recognise the roles of public relations, publicity and corporate advertising in the integrated marketing communication mix. 2. To know the difference between public relations and publicity and demonstrate the advantages and disadvantages of each. 3. To understand the reasons for corporate advertising and its advantages and disadvantages. 4. To know the methods for measuring the effects of public relations, publicity and corporate advertising. Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -2

Planning and evaluation Media choices Publicity News Value Integration Image advertising Processes Public relations Marketing PR Corporate advertising Sponsorship Advocacy advertising Non-marketing PR Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -3

A media storm Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a

Public relations defined Public relations is the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organisation (or individual) and its (or their) publics. It is a management function which evaluates public attitudes, identifies the policies and procedures of an individual or an organisation with the public interest, and plans and executes a program of action to earn public understanding and acceptance. Public Relations Institute of Australia Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -5

PR as a planned process Preplanning Determine and evaluate public attitudes Planning Identify policies and procedures of an individual or organisation with a public interest Implementation Develop and execute an action program designed to bring about public understanding and acceptance Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -6

Marketing public relations (MPR) functions Building marketplace excitement before media advertising breaks Improving ROI Creating advertising news where there is no product news Introducing a product with little or no advertising Providing a value-added customer service Building brand-to-customer bonds Influencing influentials, providing information to opinion leaders Defending products at risk, giving consumers a reason to buy Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -7

Firestone Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and

Research on public attitudes Provides input for the planning process Increases communications effectiveness Serves as an 'early warning system' Secures internal cooperation, support Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -9

Determining public attitudes Environmental scanning Market research Communications from customers Techniques Market intelligence Media monitoring services Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -10

Determining public relations audiences Internal or associated Shareholders and Stockholders investors and Investors Customers and clients Clients Employees of of Employees the company the Firm Community members Members Vendors and Suppliers External or independent Educators The media The Media Governments Civic and business organisations Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell Financial groups 15 -11

Evaluating the PR plan Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides

Internal communications Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising

Corporate communications Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising

Corporate advertising Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising

Implementing the PR program: tools Media releases Interviews Media conferences PR tools The internet Exclusives Community involvement Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -16

The media release Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a

Westpac supports Surf Lifesaving Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides

Westpac takes advantage of the internet Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power.

Benefits of marketing public relations (MPR) Advantages Credibility Cost efficiency Disadvantages Lack of control over media Clutter avoidance Media time and space are not guaranteed Lead generation Difficulty coordinating messages Selectivity Measurement problems Image building Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -20

Why evaluate PR? Provides management with information about what has been achieved through public relations activities. Provides management with a way to measure public relations achievements quantitatively. Allows managers a means to judge the quality of public relations achievements and activities. Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -21

Three levels of evaluation Basic Measure actual PR activities undertaken Intermediate Measure audience reception and understanding of message Advanced Measure perceptual and behavioural change Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -22

Planning and evaluation Media choices Publicity News Value Integration Image advertising Processes Public relations Marketing PR Corporate advertising Sponsorship Advocacy advertising Non-marketing PR Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -23

Publicity The generation of news about a person, product or service that appears in the media. A subset of the PR process May be out of the marketer’s control Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -24

Odwalla assures customers of quality Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point

A response to negative publicity Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point

Advantages and disadvantages of publicity Advantages Disadvantages Substantial credibility Timing difficult or impossible to control News value Inaccuracy, omission or distortion may result Significant word-of-mouth Perception of endorsement by media Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -27

Planning and evaluation Media choices Publicity News Value Integration Image advertising Processes Public relations Marketing PR Corporate advertising Sponsorship Advocacy advertising Non-marketing PR Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -28

Corporate advertising An extension of the PR function Does not promote a specific product or service Promotes the organisation Image enhancement Assuming a position on an issue or cause Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell Seeks involvement 15 -29

Types of corporate advertising Image advertising General image ads Event sponsorship Sponsorship Advocacy advertising Positioning ads Recruitment Financial support Cause-related advertising Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -30

Shell promotes its innovation Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides

Sponsorship Corporate sponsor Sporting events Music, entertainment Causes Festivals Cultural events Arts Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -32

Advocacy advertising: is the propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor. Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -33

Advocacy advertising (cont. ) Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides

Cause-related marketing: is a form of marketing whereby companies link with charities or nonprofit organisations as contributing sponsors. Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -35

Avon supports a cause Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides

Advantages and disadvantages 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 Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -37

Measuring corporate advertising effectiveness Attitude surveys Measurement methods Studies relating to corporate advertising and share prices Focus group research Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -38

Summary and conclusions q Public relations has both marketing and non-marketing roles. q Many large companies engage external PR consultants to manage their PR activities. q Marketers must develop programs to manage positive and negative public attitudes. q Important tools include media relations, publicity, sponsorship, corporate advertising, advocacy and cause -related marketing. q A systematic approach to PR management includes identifying problems, planning programs and evaluating programs. Copyright 2012 Mc. Graw-Hill Australia Pty Ltd Power. Point Slides t/a Advertising and Promotion 2 e by Belch, Kerr & Powell 15 -39