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Chapter 17Public
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
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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
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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 value-added customer service
Building brand-to-customer bonds
Influencing the influentials
Defending products at risk & giving consumers reason to buy
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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
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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
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Steps to Develop a PR Plan
Define public relations problems
Plan and program
Take action and communicate
Evaluate the program
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Figure 17.3 - Ten Questions for Evaluating Public Relations Plans
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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
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Tools for Implementing the PR Program
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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
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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 Marketing-mix modeling
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Publicity
Generation of news about a person, product, or service that appears in broadcast or print media
Differs from public relations by: Being a short-term strategy
Not always being positive
Not always being controlled or paid by the organization
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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
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Pros and Cons of Publicity
Pros
Substantial credibility
News value
Significant word-of-mouth
Perception of media endorsement
Cons
Lack of control
Timing
Accuracy
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Corporate Advertising
Designed to promote the firm overall by: Enhancing its image
Assuming a position on a social cause
Seeking direct involvement in something
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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
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Types of Corporate Advertising
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Methods for Measuring the Effectiveness of Corporate Advertising
Attitude surveys
Studies relating corporate advertising and stock prices
Focus group research
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