CHAPTER 17

Public Relations,
Publicity, and
Corporate
Advertising

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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

17-2

Role of PR
Traditional role

New role

Maintain mutually
beneficial
relationships between
the organization and
its publics
Act as a management
communications
function

Work together with

the marketing
department
Contribute to the IMC
process in a way that
is consistent with
marketing goals

17-3

Marketing Public Relations (MPR)

Build market excitement before media ads break
Defend products at risk, give consumers reason to buy

Create ad news where there is no product news

Introduce a product with little or no advertising
Provide a value-added customer service
Build brand-to-customer bonds
Influence the influentials
Improve ROI
17-4

Advantages of MPRs
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
17-5

Disadvantages of MPRs
Lack of control over media
Difficult to tie in slogans or other
advertising devices
Media time and space arent
guaranteed
No standards for effective
measurement

17-6

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

17-7

Steps to Develop a PR Plan

Define public relations problems

Plan and program

Take action and communicate

Evaluate the program

17-8

Types of Target Audiences

Internal 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

External audiences
People who are not closely
connected with the
organization
Media
Educators
Civic and business
organizations
Governments
Financial groups

17-9

Tools Used for Implementing the PR Program

Press Releases
Press
Conferences

Interviews

PR Tools
The Internet

Exclusives

Community
Involvement
17-10

Advantages of PR
Credibility
Image Building

Cost Savings

PR
Provides
Avoidance of
Clutter

Selectivity
Lead Generation

17-11

Disadvantages of PR
Potential for incomplete
communication process

Potential
Problems

Receiver not making

connection to the source
Lack of coordination with
marketing dept.
Inconsistent, redundant
communications
17-12

Publicity
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

17-13

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

17-14

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 media
endorsement

17-15

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

17-16

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

17-17

Objectives of Corporate Advertising

Establish
diversified
company
identity

Create a positive
image for the
firm

Objectives
Help newly
deregulated
industries

Communicate
the
organizations
viewpoint
Boost
employee
morale

Smooth labor
relations
17-18

Types of Corporate Advertising

Image
Advertising

General Image Ads

Positioning Ads

Event
Sponsorship

Sponsorships
Recruitment

Advocacy
Advertising

Financial Support

Cause-related
Advertising
17-19

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
17-20