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Introduction to Public Relations and Publicity Management. How does this relate to the other elements of promotion ?. Public Relations. Often referred to as many things and often not in a positive light Many excuse behavior as “just PR”
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Introduction to Public Relations and Publicity Management How does this relate to the other elements of promotion?
Public Relations • Often referred to as many things and often not in a positive light • Many excuse behavior as “just PR” • According to critics it is “an industry designed to alter perceptions, reshape reality and manufacture consent.” • Others say any PR is good PR – generates coverage and interest
PR Disasters, Missteps and Successes this WEEK! • Newt Gingrich and his love life • The Costa Concordia and Carnival Cruise Lines • GM and the Volt • Steven Tyler and the National Anthem (American Idol) • Penn State and death of Joe Paterno
Is Public Relations about Deception? • Does it pull the wires that control the public mind? • Does it attempt to bind and guide the world?” • Examples • Political campaigns – are we drinking the kool aid? • Introduction of new products – is this really an improvement and innovation – remember the Segue? • Green Marketing – are we really saving environment, creating jobs? Nissan’s Leaf, Chevy Volt
Public Relations • Often misused and misunderstood • It is a Management function that focuses on the relationships and communications that individuals and organizations have with other groups for the purposes of creating mutual goodwill. • The focus is the relationships between the organizations and their stakeholder publics! • It should be reciprocal, mutual and between parties!
The Public Relations Society of America (PRSA) • The many definitions suggest that PR: • Conducts a planned and sustained program as part of an organization’s management • Deals with the relationships between an organization and its stakeholder publics • Monitors awareness, opinions, attitudes, and behavior inside and outside the organization • Analyze the impact of policies, procedures, and actions on stakeholder publics
PRSA Definition (cont’d) • Identifies policies, procedures, and actions that conflict with the public interest and organizational survival • Counsels management on the establishment of new policies, procedures, and actions that are beneficial to both the organization and its publics • Establishes and maintains two way communication between the organization and its publics
Role of PR vs Marketing • Many PR professionals consider it to be a wholly separate function • Is considered apart of the promotions mix • PR • Advertising • Personal Selling • Direct Marketing • Sales Promotion
Definition of Marketing • Exchange is the act of obtaining a desired object from someone by offering something in return … Marketing consists of actions taken to build and maintain desirable exchange relationships with target audiences involving product, service, idea or other object. • Apple article on tablets… that is PR to support new product introduction
Public Relations • Use and communication of information through a variety of media to influence public opinion • Involves identifying important ‘publics’ and developing and maintaining relationships
Public Relations • PR should help reconcile or adjust in the public interest those aspects of our personal and corporate behavior which have social significance • It should help organizations adjust to their social environments
Consequences of Poorly Managed PR Functions • Loss of customers and revenues • Time lost dealing with complaints or lawsuits • Loss of esteem • Weakens brand equity • Impacts ability to secure financing
Advertising vs. PR • Advertising uses the mass media and is paid for by the sponsor • Customers view with skepticism rarely the best tool for building credibility • Carefully placed to gain TA attention
PR Communications generally are not openly sponsored or financed Info received in the form of news articles, interviews, feature stories after being edited and reviewed by the media More credible to publics Less precise in reach Often followed with corporate ad campaigns to increase effectiveness Differences between Advertising and PR
Differences in Viewpoint • Advertising professionals have a business background and view marketing as the umbrella process in which product development, how to distribute and sell them • PR professionals have a background in journalism and feel that pr should be the umbrella process “PR is a management discipline that encompasses a wide range of activities from marketing to advertising.” Inside PR
Strengths of PR • Targets and maintains relationships with important stakeholders • can reach difficult to reach audiences such as opinion leaders and upscale consumers • pr professionals can advise clients and companies regarding the implications of trends and corporate activities on consumer opinions • can break through clutter more effectively than ads
Strengths of PR • pr specialists can present the company as good citizens • can handle crises, minimizing negative effects on the organization’s reputation • offers the business more flexibility than advertising and sales promotion • laws less strict for press releases • adds credibility and believability - why would Diane Sawyer lie? • cost effective
Weaknesses of PR • lack of control over the story slant and coverage • subject to others’ approval for news story to run • Bottom-line impact difficult to measure • PR objectives are difficult to quantify
Who are the Publics? • all of the audiences that the marketing communicator targets to receive messages about the company or who are perceived as influencing opinions about the firm
Parts of the PR Function • Internal Relations • Publicity • Advertising • Public Affairs • Address public policy • Lobbying • Issues management • Investor Relations • Development
Segments to Target • Internal Stakeholders • employees • shareholders • suppliers, distributors, brokers, wholesalers, retailers, dealers • consumers (regular or loyal)
External Publics • The media • local community neighbors • local, regional and federal governmental bodies and regulators • financial community • special interest groups • prospective customers, employees, shareholders
Importance of Stakeholders • Employee satisfaction and confidence • WOM (Word of Mouth) • Governmental motivation to monitor • financial market confidence • community involvement and perceptions • consumer confidence
Types of Public Relations • Media relations • corporate public relations • crisis management • employee relations • financial relations • public affairs • community relations • marketing public relations
Media Relations • Function primarily responsible for publicity generation and management • Develop personal relations with media contacts • provide information regarding • story ideas • press releases • supplemental info
Corporate PR • High-level counseling with senior management about the company’s overall reputation, its image in the eyes of the various stakeholders, and its response to issues that may impact the success of the firm
Corporate PR • Issue Management • practice of planning a company’s response to important issues • Corporate advertising • ads used to create positive attitudes and goodwill toward the firm • Advocacy Advertising • expresses a viewpoint of the firm on an important issue
Crisis Management • Strategies to address crises or disasters • oil spills, plane crashes, management improprieties • Often referred to as reactive PR • addresses negative publicity
Employee Relations • Motivation programs • newsletters • flyers • video programming • bulletin boards • Keys to success • security • consideration • recognition • opportunity • respect • participation
Financial Relations • Comply with governmental regulations • manage communications with stockbrokers, investors • distribute and deal with financial reporting of acquisitions, actions that effect stock prices
Public Affairs and Community Relations • Public Affairs - focus on communication with government agencies • Community Relations • management of relations with stakeholders in the local community event marketing
Marketing Public Relations • Seeks positive publicity for products • very important for new products • MPR specialists work closely with marketing staff members on the design of the new product, strategic positioning in the marketplace • handle special events for major announcements • coordination of imc