Public Relations, Publicity

and Corporate Advertising

Relationship Marketing

• The aim of building mutually satisfying long

term relationship with key parties –
– Four key constituents:
– customers, employees, marketing partners
(channels, suppliers, distributors), and members of
the financial community (shareholder, investor, etc.)

• Customer relationship management (CRM) –

Partner relationship management (PRM)
• Ultimate outcome - Marketing network
Public Relations

• A communication function used to promote

mutual understanding between an
organization and its various stakeholder
groups.
(Duncan, 2005)

• PR covers a wide variety of activities designed

to affect both public opinion and the opinion of
specific stakeholders whose support a
company needs.
 Public Relations Defined

A management function

which evaluates public attitudes

and identifies the policies and procedures

of an organization with the public interest

and executes a program of action (and communication)

to earn public understanding and acceptance

 Traditional PR Perspective

Customers

Community Investors

Public
Relations
Department

Suppliers Government

Employees
 Role of PR

Keep the Public

Serve As the
Aware of
Official Channel
Organization’s
of Information
Activities

Coordinate the Coordinate

Programs With Relationships
Other MC PR With
Functions Stakeholders

Plan and Collect and

Administer Analyze
Information Stakeholder
Programs Attitudes
Public Relations Activities

Brand Publicity Media Relations

Crisis PR Corporate
Management Activities Communications

Financial/ Employee
Investor Relations Relations
Brand Publicity
 Brand Publicity

• The use of nonpaid media to deliver brand

information….designed to positively influence
customers and prospects
• The generation of news about a person, product, or
service that appears in the media
• Tools
• News release (Press release)
• Pitch letter
• News Kit (Press kit)
• Press Conference
• Interviews, Speeches (Public statement)
• Media events, Media tours
• Examples?
 Key Part of Brand Publicity

Media relations: Maintaining a positive

professional relationship with the media in
general or with media that specialize in covering
a specific industry
The challenge
•Getting past media gatekeepers - Editors and reporters
•They select (or reject) stories based on what they think
will interest their audiences
 Strengths & Limitations of Brand Publicity

Strengths Limitations

• Builds a climate of • Less control over

acceptance for the message
brand
• Limited frequency
• Makes brand’s claims Vs.
more credible
• Breaks through clutter
• Reaches the hard-to-
reach
• Cost effective
Corporate Advertising
 Corporate Advertising

An extension of the PR High level PR

function carried out
by senior
Does not promote a specific level
product or service executives on
how the
Promotes the organization organization
presents
itself
Goal: to manage the image
and reputation of the organization
 Objectives of Corporate Advertising

Create a positive
image for the
firm
Establish Communicate
diversified the
company’s organization’s
identity viewpoint

Objectives

Help newly
Boost employee
deregulated
morale
industries

Smooth labor
relations
 Two Types of Corporate Advertising
Corporate Public Service
Advertising Announcements

Ads designed
Ads designed to to Ads for nonprofit
build awareness
build awareness of of organizations that
a company
a company and
and run on time and
explain what
explain what itit does
does space donated by
or believes
or believes the media
Types of Corporate Advertising

Image
General Image Ads
Advertising
Positioning Ads
Event
Sponsorship
Sponsorship
Recruitment
Advocacy
Financial Support
Advertising

Cause-related
Advertising
Event Sponsorship

Corporate Sponsor

Sporting Music,
Events Entertainment

Causes Festivals

Cultural Events Arts

Advocacy Advertising

Advocacy advertising:
• social, business or environmental
issues
• is the propagation of ideas and
elucidation of controversial social
issues of public importance in a
manner (indirectly) that supports
the interests of the sponsor.
Cause Related Marketing

Cause related marketing:

is a form of marketing whereby
companies link with charities or
nonprofit organizations as
contributing sponsors.
Other Activities

• Employee relations
• Financial/investor relations
• Crisis management
 Advantages of Public Relations

Credibility

Image
Building Cost Savings

PR
Provides
Avoidance of
Selectivity
Clutter

Lead
Generation
Public Relations Planning
The Process of Public Relations

Determining and Evaluating Public Attitudes

Establishing a PR Plan

Developing and Executing a PR Program

Measuring Program Effectiveness

 Research on Public Attitudes

Provides input for Serves as an “early

the planning process warning system”

Increases
Secures internal
communications
cooperation, support
effectiveness
 Determining Public Relations Audiences

Internal or Associated

Stockholders and Employees of the

Investors Firm

Customers and Community Vendors and

Clients Members Suppliers

External or Independent

Educators Governments

Civic and Business

The Media Financial Groups
Organizations
The Internet as a PR Tool

The Internet allows information to be

presented quickly

The Internet provides the media with instant

access to additional sources of information

The Internet offers the ability to provide

much more substantial information
 Criteria for Measuring PR Effectiveness

On the On specific
Total number of Over time target target
impressions . . .
audience audiences

Positive Negative
Percentage of . . articles over articles over
time time

Ratio of positive
to negative
articles

Percentage of
positive and Publica- Target
Subject Reporter
negative articles tion audience
by . . .