15-1
Public relations is a communication discipline covering a
wide range of functions that help an organization connect
with the people it touches.
Public relations is used to generate goodwill for an
organization.
Public relations focuses on all the relationships
an organization has with various stakeholders.
Identifying Stakeholders
A stakeholder is any person or group that has a
vested interest in an organization’s activities.
• Employees (internal
marketing)
• Unions
• Shareholders
• Channel members
• Customers
• Media
• Local community
• Financial community
• Government (lobbying?)
Stakeholders
Pubic relations should work with the HR department to ensure the messages
being sent to employees are consistent with the company’s external
communications and IMC plan
Public Relations
• Public relations department
– Separate entity
– Part of marketing department
– Department of communications
• Internal versus external agency
• Identify internal and external stakeholders
• Assess the corporate reputation
• Audit corporate social responsibility
• Create positive image-building activities
• Prevent or reduce image damage
Public Relations
Functions
Customer-based corporate reputation of a
service firm: scale development and validation
Gianfranco Walsh,
Sharon E. Beatty
Journal of the Academy of Marketing Science
March 2007, Volume 35, Issue 1, pp 127-143
Media use
 Public relations seeks to persuade media gatekeepers
to “cover” their companies.
 Gatekeepers are writers, editors, producers, talk-show
coordinators, and newscasters.
 This aspect of public relations is called publicity.
Control
 With news stories, public relations strategists are at the
mercy of the media gatekeeper.
 There is no guarantee that your story will run. The story
may be rewritten or reorganized.
 In contrast, advertising runs exactly as the client who
paid for it has approved, and as scheduled.
Public relations speaker notes presentation
 House ads: used in a company’s own publication or
programs for self-promotion.
 Public service announcements: run free on TV, radio, or
print for a charities organizations.
 Corporate identity advertising is used to enhance or
maintain their reputation among specific audiences.
 News releases
◦ Deliver public relations messages to external media.
◦ They should answer the five “Ws and the H.”
 Video news releases (VNRs)
◦ Contain video for a television newscast.
Media relations focuses on developing media contacts.
One must know who in the media might be interested in the
organization’s story.
 Press conferences
◦ An event at which a spokesperson makes a statement to
the media.
◦ A media kit may be sent ahead of time.
 Media tours
◦ A “press conference on wheels.”
◦ A spokesperson makes speeches and announcements,
holds press conferences, and offers interviews.
In one of his classic
performances, Steve Jobs
unveils the iPad, generating
lots of buzz for the new
product.
 Booklets
 Annual reports
 Books
 Newsletters
 Inserts and enclosures
DVD, CDs, podcasts, books and online video
 These are now major public relations tools.
 Books can be published simply with electronic publishing.
 Videos are expensive but are ideal for distributing in-
depth information.
 YouTube is being used for corporate messages.
 Displays and exhibits
◦ Displays include racks and holders for promotional
literature.
◦ Exhibits are larger than displays and may have moving
parts, sound, or video.
Special events and tours
 Special events celebrate company milestones:
◦ Birthday celebrations
◦ Corporate sponsorship of events
 Tours and trips by delegates and representatives
• Discrimination
• Harassment
• Pollution
• Misleading communications
• Deceptive communications
• Offensive communications
• Empowerment of
employees
• Charitable contributions
• Sponsoring local events
• Selling environmentally
safe products
• Outplacement programs
• Supporting community
events
Image Destroying
Activities
Image Building
Activities
Activities that Affect a
Company’s Image
Corporate Social Responsibility
• Companies have an obligation to act ethically and to
consider the needs of society.
• Organizations need ethical guidelines for employees, a code
of ethics.
• Consumers today expect corporate transparency. It is the
responsibility of management to ensure the company and its
employees act in a socially-responsible manner.
• It is the public relations department’s charge to make sure
internal stakeholders are aware of a corporation’s social
responsibility efforts.
 Corporate social
responsibility describes
good works done in the
community and
environment.
General Electric demonstrates its
commitment to meet
environmental challenges using
green technology while promoting
economic growth.
 The first year a teen drives is one of the most dangerous
years of his/her life.
Toyota Safety Effort Tackles Teens' First Year
Behind Wheel
http://www.toyota.com/teendrive365/index.html
Creating a Positive Image
• Green marketing
• Cause-related marketing
Green Marketing
• Green marketing is the development and promotion of
products that are environmentally safe.
• Consumers support, but only when price and quality is equal
• Green products seen as inferior
Green Marketing
Promotion of green efforts varies widely
• Low-key approach
– Coca-Cola
• Promote product first, pro-environment second
– Prius
• Green products within brand line
– C&A Bio cotton products
• Promote pro-environment
– Body Shop, City Farm
Cause-Related Marketing
Cause-related marketing is a program whereby a firm ties a marketing
program to a charity in order to generate goodwill.
Cause-related marketing has become a partnership where
both parties have to benefit.
 It can create a bond with the customer, depending on how strongly
they feel about the cause.
 In past, just gave money
 Companies need a benefit
 Benefit should relate to business
 Cause liked by one – disliked by another
Pepsi invites customers to
submit ideas about good
causes that need support,
which are listed on the
campaign’s website and then
voted on by visitors to the site.
Benefits of Cause-Related Marketing
for Company
– Additional customers
– Increased profits
– Consumer goodwill for the future
– Better relations with government agencies
– Reduced negative public opinion
Cause-Related Marketing
To benefit from cause-related marketing, the public
needs to know.
But, companies have to be careful !
Too much publicity makes the public think that the
company is using the charity for personal gain.
Not enough publicity is also dangerous. No one knows
about it so there are no tangible benefits.
Kardelenler project aims to
promote the education of young
women.
“Kardelenler project has reached a
helping hand to 20,000 female
students in the last 10 years”
 “Nearly 9,000 scholarships were
given to high school students
and 2,707 to university students, with
755 students having completed their
university studies to this day.
Preventing or Reducing Image
Damage
Damage control is reacting to negative events,
regardless of the cause
• Negative publicity travels fast
• Two situations
– Firm has made an error
– Unjustified or exaggerated negative press
• Two strategies
– Proactive prevention strategies
– Reactive damage-control strategies
Proactive approaches try to prevent or
reduce the chances of negative events
through building a positive image through
entitling and enhancements
Reactive Strategies try to react to a negative
situation through
– Internet interventions
– Crisis management programs
– Apology strategy
Damage-Control
Strategies
Reactive
Damage-Control Strategies
• Internet interventions
• Crisis management
• Apology strategies
Internet Interventions
• Use Internet to react
• Consumers can spread bad news quickly
• Assign employees to monitor online communications
– Involves hundreds of post per day
– Watch for trends, increased chatter
– Must choose which warrant a reaction
• Provides information on what people are thinking
Crisis Management
With crisis management, a company can either accept the
blame for an event and offer an apology or it can refuse it.
The event can be an opportunity or a problem.
• Pepsi – hypodermic needles
• Toyota – quality control
– Denied problems
– Launched full-scale PR campaign
– Loyal fans - Social media PR
 Strong brands take years to build, but can be destroyed in
days.
 Understanding and implementing a crisis management plan
can reduce the negative impact of an event and save a
brand’s reputation
https://www.youtube.com/watch?v=xH9O8JlvOe4
Mattel CEO
https://www.youtube.com/watch?v=uFiXWboPD5A
Dominos
Apology Strategies
An apology strategy is a form of crisis management and a
good approach when the firm is at fault.
– It is important to immediately offer an apology and not try to
blame other companies.
– An apology is a good strategy especially when there is no way a
firm can deny responsibility.
– It can be an effective approach to create emotional bonds with
consumers, if the apology is sincere.
Forms of Sponsorships
A sponsorship is an excellent way to build brand
awareness and customer loyalty
• Part of IMC efforts
• Build customer loyalty
• Sponsoring cultural events
• Sponsoring television shows
Sponsorship of bloggers
– Lucrative business for some bloggers
Sponsorship Objectives
• Enhance company image
• Increase firm visibility
• Differentiate a company or brand
• Showcase specific goods or services
• Develop a closer relationship with current and
prospective customers
Steps in Selecting a
Sponsorship or Event
• Determine objectives
• Match audience to company’s target market
• Promote the sponsorship or event
• Advertise at the event
• Track results

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Public relations speaker notes presentation

  • 2. Public relations is a communication discipline covering a wide range of functions that help an organization connect with the people it touches. Public relations is used to generate goodwill for an organization. Public relations focuses on all the relationships an organization has with various stakeholders.
  • 3. Identifying Stakeholders A stakeholder is any person or group that has a vested interest in an organization’s activities.
  • 4. • Employees (internal marketing) • Unions • Shareholders • Channel members • Customers • Media • Local community • Financial community • Government (lobbying?) Stakeholders Pubic relations should work with the HR department to ensure the messages being sent to employees are consistent with the company’s external communications and IMC plan
  • 5. Public Relations • Public relations department – Separate entity – Part of marketing department – Department of communications • Internal versus external agency
  • 6. • Identify internal and external stakeholders • Assess the corporate reputation • Audit corporate social responsibility • Create positive image-building activities • Prevent or reduce image damage Public Relations Functions
  • 7. Customer-based corporate reputation of a service firm: scale development and validation Gianfranco Walsh, Sharon E. Beatty Journal of the Academy of Marketing Science March 2007, Volume 35, Issue 1, pp 127-143
  • 8. Media use  Public relations seeks to persuade media gatekeepers to “cover” their companies.  Gatekeepers are writers, editors, producers, talk-show coordinators, and newscasters.  This aspect of public relations is called publicity.
  • 9. Control  With news stories, public relations strategists are at the mercy of the media gatekeeper.  There is no guarantee that your story will run. The story may be rewritten or reorganized.  In contrast, advertising runs exactly as the client who paid for it has approved, and as scheduled.
  • 11.  House ads: used in a company’s own publication or programs for self-promotion.  Public service announcements: run free on TV, radio, or print for a charities organizations.  Corporate identity advertising is used to enhance or maintain their reputation among specific audiences.
  • 12.  News releases ◦ Deliver public relations messages to external media. ◦ They should answer the five “Ws and the H.”  Video news releases (VNRs) ◦ Contain video for a television newscast. Media relations focuses on developing media contacts. One must know who in the media might be interested in the organization’s story.
  • 13.  Press conferences ◦ An event at which a spokesperson makes a statement to the media. ◦ A media kit may be sent ahead of time.  Media tours ◦ A “press conference on wheels.” ◦ A spokesperson makes speeches and announcements, holds press conferences, and offers interviews.
  • 14. In one of his classic performances, Steve Jobs unveils the iPad, generating lots of buzz for the new product.
  • 15.  Booklets  Annual reports  Books  Newsletters  Inserts and enclosures
  • 16. DVD, CDs, podcasts, books and online video  These are now major public relations tools.  Books can be published simply with electronic publishing.  Videos are expensive but are ideal for distributing in- depth information.  YouTube is being used for corporate messages.
  • 17.  Displays and exhibits ◦ Displays include racks and holders for promotional literature. ◦ Exhibits are larger than displays and may have moving parts, sound, or video.
  • 18. Special events and tours  Special events celebrate company milestones: ◦ Birthday celebrations ◦ Corporate sponsorship of events  Tours and trips by delegates and representatives
  • 19. • Discrimination • Harassment • Pollution • Misleading communications • Deceptive communications • Offensive communications • Empowerment of employees • Charitable contributions • Sponsoring local events • Selling environmentally safe products • Outplacement programs • Supporting community events Image Destroying Activities Image Building Activities Activities that Affect a Company’s Image
  • 20. Corporate Social Responsibility • Companies have an obligation to act ethically and to consider the needs of society. • Organizations need ethical guidelines for employees, a code of ethics. • Consumers today expect corporate transparency. It is the responsibility of management to ensure the company and its employees act in a socially-responsible manner. • It is the public relations department’s charge to make sure internal stakeholders are aware of a corporation’s social responsibility efforts.
  • 21.  Corporate social responsibility describes good works done in the community and environment. General Electric demonstrates its commitment to meet environmental challenges using green technology while promoting economic growth.
  • 22.  The first year a teen drives is one of the most dangerous years of his/her life. Toyota Safety Effort Tackles Teens' First Year Behind Wheel http://www.toyota.com/teendrive365/index.html
  • 23. Creating a Positive Image • Green marketing • Cause-related marketing
  • 24. Green Marketing • Green marketing is the development and promotion of products that are environmentally safe. • Consumers support, but only when price and quality is equal • Green products seen as inferior
  • 25. Green Marketing Promotion of green efforts varies widely • Low-key approach – Coca-Cola • Promote product first, pro-environment second – Prius • Green products within brand line – C&A Bio cotton products • Promote pro-environment – Body Shop, City Farm
  • 26. Cause-Related Marketing Cause-related marketing is a program whereby a firm ties a marketing program to a charity in order to generate goodwill. Cause-related marketing has become a partnership where both parties have to benefit.  It can create a bond with the customer, depending on how strongly they feel about the cause.  In past, just gave money  Companies need a benefit  Benefit should relate to business  Cause liked by one – disliked by another
  • 27. Pepsi invites customers to submit ideas about good causes that need support, which are listed on the campaign’s website and then voted on by visitors to the site.
  • 28. Benefits of Cause-Related Marketing for Company – Additional customers – Increased profits – Consumer goodwill for the future – Better relations with government agencies – Reduced negative public opinion
  • 29. Cause-Related Marketing To benefit from cause-related marketing, the public needs to know. But, companies have to be careful ! Too much publicity makes the public think that the company is using the charity for personal gain. Not enough publicity is also dangerous. No one knows about it so there are no tangible benefits.
  • 30. Kardelenler project aims to promote the education of young women. “Kardelenler project has reached a helping hand to 20,000 female students in the last 10 years”  “Nearly 9,000 scholarships were given to high school students and 2,707 to university students, with 755 students having completed their university studies to this day.
  • 31. Preventing or Reducing Image Damage Damage control is reacting to negative events, regardless of the cause • Negative publicity travels fast • Two situations – Firm has made an error – Unjustified or exaggerated negative press • Two strategies – Proactive prevention strategies – Reactive damage-control strategies
  • 32. Proactive approaches try to prevent or reduce the chances of negative events through building a positive image through entitling and enhancements Reactive Strategies try to react to a negative situation through – Internet interventions – Crisis management programs – Apology strategy Damage-Control Strategies
  • 33. Reactive Damage-Control Strategies • Internet interventions • Crisis management • Apology strategies
  • 34. Internet Interventions • Use Internet to react • Consumers can spread bad news quickly • Assign employees to monitor online communications – Involves hundreds of post per day – Watch for trends, increased chatter – Must choose which warrant a reaction • Provides information on what people are thinking
  • 35. Crisis Management With crisis management, a company can either accept the blame for an event and offer an apology or it can refuse it. The event can be an opportunity or a problem. • Pepsi – hypodermic needles • Toyota – quality control – Denied problems – Launched full-scale PR campaign – Loyal fans - Social media PR
  • 36.  Strong brands take years to build, but can be destroyed in days.  Understanding and implementing a crisis management plan can reduce the negative impact of an event and save a brand’s reputation https://www.youtube.com/watch?v=xH9O8JlvOe4 Mattel CEO https://www.youtube.com/watch?v=uFiXWboPD5A Dominos
  • 37. Apology Strategies An apology strategy is a form of crisis management and a good approach when the firm is at fault. – It is important to immediately offer an apology and not try to blame other companies. – An apology is a good strategy especially when there is no way a firm can deny responsibility. – It can be an effective approach to create emotional bonds with consumers, if the apology is sincere.
  • 38. Forms of Sponsorships A sponsorship is an excellent way to build brand awareness and customer loyalty • Part of IMC efforts • Build customer loyalty • Sponsoring cultural events • Sponsoring television shows Sponsorship of bloggers – Lucrative business for some bloggers
  • 39. Sponsorship Objectives • Enhance company image • Increase firm visibility • Differentiate a company or brand • Showcase specific goods or services • Develop a closer relationship with current and prospective customers
  • 40. Steps in Selecting a Sponsorship or Event • Determine objectives • Match audience to company’s target market • Promote the sponsorship or event • Advertise at the event • Track results