Public Relations, Publicity, and Corporate by baa17504


									                                                            PR, Publicity, and Corporate
                 Public Relations,
                 Publicity, and                               Tools for communicating information about
                                                              an organization, its products, and its
                 Corporate Advertising                        services in order to benefit the firm and its

Why Engage in PR?                                           How has the Role of PR Changed?
                                                            Traditional Role:
 Goodwill                                                          Communicating and gaining acceptance of policies
                                                                   and programs in the community

 Promote a Product or Company                               New Role:
                                                                   More marketing-oriented (Marketing Public Relations – MPR)
                                                                   Operates within a marketing department to develop programs
 Internal Communications                                                  and policies
                                                                   Supports marketing objectives and adds value to the IMC

What is MPR?                                                How can MPR be used?
 Developing programs that encourage purchase and
 satisfaction by communicating information and delivering     Builds a bond between the brand and customer
                                                              Influence the influential
 They link a company and its products with the needs and
 interests of consumer                                        Give consumers a reason to buy

 Has a sales focus but is perceived as credible               Helps introduce a product and build excitement for a
                                                              product before advertising
  Marketing Public Relations                                               Target’s IMC Campaign
     Target wanted to launch its own credit card to build long-               TV and print ads
     term relationships with customers
                                                                              Sunday newspaper circular
     Devised a “Take Charge of Education” program, a fund                     In-store kiosks with brochures
     raising program for local schools                                        In-store banners
         1% of purchases made with the Target card go directly to the
         school of their choice                                               Direct mailing package distributed to 100,000 schools
                                                                              across the US announcing the program
     Initial objective: 100,00 new card users                                 Also sponsored causes such as Grants for art education,
     Targeted: parent with school age kids, female 25-54,                     “Good Neighbors” volunteer program, and “Earth
     living in suburbs, with HH income of $50,000+
                                                                              Savers”, a kids environment club

                                                                        Direct Mailing
                                                                        to parents,
                                                                        teachers, etc.

Newspaper circular

                                                                          Mailing to the

Scholarships and Awards                                                    Teacher Scholarships
 sponsored by Target

Additional programs                                                         Partnership promotion
    sponsored                                                               with SC Johnson
Target’s Results                                   What do PR people do?
 136,000 new credit cards in 9 months (36% over     Determine the public’s existing attitude toward
 their goal)                                        the firm
                                                      Helps planning
                                                      Serves as early warning system for problems
 32% of schools participated that received          Design a PR plan that is proactive rather than
 the enrollment kits (5,000 more than projected)    reactive
                                                    Execute the plan
                                                      Determine relevant target audiences
 Cardholders visited Target 2X as often as non-       Decide on tools
 card holders and spent 3X more                     Determine the effectiveness of the plan

Who are the Target Audiences?                      What are the Tools?
 Internal: employees, stockholders,                 Press release
 investors, customers, suppliers                    Video news releases (VNRs)
                                                    Press conference
 External: media, govt., educators,                 Exclusives
 financial groups, civic groups                     Interviews
                                                    Community involvement – sponsor events
                                                    Company newsletter

            Newspaper Article from News Release
                                                           How do we Measure the
NBC Nightly News Broadcast
                                                           Effectiveness of our PR Efforts?
 Ad executive brought in to lead U.S. in war
 message                                                    Matching results with objectives
   Charlotte Beers, Undersecretary of State, former CEO
   of Ogilvy and Mather                                     Surveys
   Mission: to market the U.S. “brand” and connect with     Personal observation and reactions
   “hearts and minds” abroad, “the best we can do is
   open a dialogue of mutual respect and                    Audits
   understanding” (Beers)

What are the Advantages of using
                                                           What’s the downside?
Public Relations?

 Credibility                                                Lack of control over material
 Low cost
 Breaks through the clutter                                 Media time and space aren’t guaranteed
 Image building
 Get over consumer resistance                               Measurement is difficult

What is Publicity?

 Generating news about a product or service in the media

 Short-term strategy (whereas PR extends over a period
 of time)

 News isn’t always positive or under the control of the
 organization (whereas PR provides positive info about a
 firm and is usually controlled by the firm)
Why is Publicity so Powerful?                              What are the disadvantages?
  Highly credible
    reported by a 3rd party like a newscaster, magazine,    Timing – can’t be guaranteed
    or newspaper, Consumer Reports)
  News value
                                                            Accuracy – what is aired or printed isn’t up
  Generates a lot of impressions
                                                            to you
  Word of mouth is high

How do we Measure the
                                                           Corporate Advertising
Effectiveness of Publicity?

Ketchum Effectiveness Yardstick:
                                                            Promoting the firm by enhancing its image,
Level 1 – media placements, impressions                     assuming a position on a social issue, or
                                                            seeking involvement from the market
Level 2 – Awareness, comprehension, retention

Level 3 – Opinion change, attitude change,
           behavioral change

Why do Corporate Image
                                                           Types of Corporate Advertising
                                                            Image advertising
  Boost employee morale and improve relations                 Promote the organization’s image through ads,
                                                              sponsorship, recruiting
  Give investors information and reduce uncertainty
                                                            Advocacy advertising
                                                              Promote a position on an issue rather than the firm
  Help diversified companies establish an identity            directly

  Helps position the firm and reach target markets not
  reached through other forms of advertising
                                                            Cause related advertising
                                                              Sponsor of a charity or non-profit organization
Nortel’s “What do you want the Internet to be?” campaign                      Olympic Gold Medalist runner
Ads demonstrate the different ways that the Internet can be used              Michael Johnson – Nortel carries
                                                                              Internet traffic, data, and voice at
                                                                              a speed that leads the industry

                                                    Demonstrates the
                                                    Internet as a teacher
                                                    through Nupur Lala,
                                                    the 14 year old
                                                    National Spelling Bee
                                                    Champion and Cyberphile

                                                                              Copy notes that Nortel will make
                                                                              Michael look as if he is standing still

                                                                                                                         Chicken of the Sea is a
                                                                                                                          Corporate sponsor of
                                                                                                                          the US Synchronized
                                                                                                                        Swimming National Team

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