Chapter 9. PR

Chapter 8.
Public relations,
publicity, and corporate
advertising
Doan Viet Phuong Nguyen (MBA)
Learning
outcome
Building public relations
Sponsorship and corporate
advertising
Public Relations - PR
The Traditional
Definition of PR
• Evaluates public attitudes.
• Identifies policies and
procedures of an organization
with the public interest.
• Executes a program of action
to earn public understanding
and acceptance.
4
The New Role of PR
◦ Traditional role:
◦ Maintain mutually beneficial relationships
between the organization and its publics.
◦ Act as a marketing communications
function.
◦ New role:
◦ Work together with marketing
department.
◦ Contribute to IMC process that is
consistent with marketing goals.
◦ Integrating PR into the Promotional Mix
◦ Must include traditional and new
responsibilities.
Marketing Public Relations Functions
• Marketing public relations (MPR): Public relations activities designed to support marketing
objectives.
Building marketplace
Creating advertising Introducing product
excitement before
Improving ROI. news where there is with little or no
media advertising
no product news. advertising.
breaks.
Defending products
Providing value-
Building brand-to- Influencing the at risk and giving
added customer
customer bonds. influentials. consumers a reason
service.
to buy.
Spot & local advertising
Advantages Disadvantages
It is a cost-effective way to reach the market. There is a lack of control over the media.
It is a highly targeted way to conduct public relations. It is difficult to tie in slogans and other
It benefits from the endorsement of independent and objective third advertising devices.
parties who have no association with the product. Media time and space are not guaranteed.
It achieves credibility. There are no standard effectiveness
It supports advertising programs by making messages more credible. measures.
It breaks through the clutter.

It circumvents consumer resistance to sales efforts.
There can be improved media involvement among consumers.
It can create influence among opinion leaders and trendsetters.
It can improve ROI.
PR Management
Take action
Plan and Evaluate the
Research and
program program
communicate
• Provides input into • Identify the • Press release • Achieve the

planning process. audiences • Press conferences objective?
• Serves as early • Choosing the • Exclusive news • Quantitative
warning system. mediums • Interviews • Learn from mistake
• Secures support • Forming the • Community
internally. messages relations
• Increases • Scheduling • Digital PR
effectiveness of the • Budgetting • Internal relations
communication.
Determining relevant target audiences
• Internal audiences: People who are • External audiences: People who are not
connected to a firm with whom the firm closely connected with the organization.
communicates on a routine basis. • Media.
• Employees of the firm. • Educators.
• Stockholders and investors. • Civic and business organizations.
• Community members. • Governments.
• Suppliers and customers. • Financial groups.
Implementing the PR program
Press
Press release Exclusives Interviews
conferences
Social
Community Government
Internet networks and
involvement relations
blogs
Lobby Events Crisis handling

Advantages and Disadvantages of PR
Credibility. Potential for incomplete

Cost. communication process.
Avoidance of clutter. Lack of connection
between receiver and
Lead generation. sender.
Ability to reach specific Lack of coordination
groups. with marketing unit.
Image building.
Measuring the Effectiveness of PR
Why? Organization Methods
benefit
• Determines what has been • Validate results of their • Media content analysis.
achieved. efforts. • Survey research.
• Provides a way to measure • Link results to business • Marketing-mix modeling.
achievements outcomes.
quantitatively. • Credibly merchandise
• Provides a way to judge impact of results to PR
the quality of program funders.
achievements and • Set and develop better
activities. objectives and strategies.
• Make midcourse
adjustments and
corrections.
• Regularly adapt their
measurement approaches.
Publicity
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.
The Power of Publicity
• Publicity more powerful than advertising, sales
promotion, and other forms of public relations
because:
• Publicity is highly credible.
• Publicity information may be perceived as
endorsed by the medium in which it
appears.
• Publicity has news value and frequently
generates exposure.
The Control and Dissemination of Publicity
• Sometimes information leaks out—
adverse publicity.
• Some publicity can benefit marketers.
• Video news release (VNR):
• Publicity piece produced by
publicists so stations air it as a news
story.
• Control over time and place where
information is released.
Advantages and Disadvantages of
Publicity
Substantial credibility. Lack of control.

News value. Timing.
Significant word-of- Accuracy.
mouth.
Perception of media
endorsement.
Corporate advertising
Corporate
Advertising
• Designed to promote the firm overall by:
• Enhancing its image.
• Assuming a position on a social cause.
• Seeking direct involvement in

something.
• Controversial because:
• Consumers are not interested.
• Costly form of self-indulgence.
• Belief that the firm must be in trouble.
• Perceived as a waste of money.

Objectives of Corporate Advertising
• Creating positive image for the firm.
• Getting across firm’s views on social, business, and environmental issues.
• Boosting employee morale and smoothing labor relations.
• Helping newly deregulated industries ease consumer uncertainty and answer investor
questions.
• Helping diversified companies establish identity for parent firm rather than relying solely on
brand names.
Types of Corporate Advertising
Image advertising Event sponsorships Advocacy advertising Cause-related advertising
Promotes organization’s Sponsoring specific events or Spreading ideas and Linking with nonprofit
overall image. causes as part of a marketing explaining controversial social organizations as contributing
Methods: strategy. issues of public importance. sponsors.
• General image or positioning Builds equity and gains affinity Indirectly supports sponsor’s Takes time and effort to be
ads. with target audiences. interests. successful.
• Sponsorships. Issue ads: Sponsored by
• Recruiting. organization to bring
• Generating financial attention to what they
support. consider to be an important
issue.
Advantages and Disadvantages of
Corporate Advertising
Excellent vehicle for Questionable

positioning the firm. effectiveness.
Takes advantage of Raises questions of
benefits derived from constitutionality and
public relations. ethics
Reaches a selected
target market
Thank you
Doan Viet Phuong Nguyen
[email protected]
079 5678 933

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Chapter 8.

It breaks through the clutter.

• Provides input into • Identify the • Press release • Achieve the

Lobby Events Crisis handling

Credibility. Potential for incomplete

Substantial credibility. Lack of control.

• Enhancing its image.

• Assuming a position on a social cause.

• Seeking direct involvement in

• Consumers are not interested.

• Costly form of self-indulgence.

• Belief that the firm must be in trouble.

• Perceived as a waste of money.

Image advertising Event sponsorships Advocacy advertising Cause-related advertising

Excellent vehicle for Questionable

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