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PR, Publicity, and Corporate
Advertising
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
offerings
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
program
Lobbying
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
impressions
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
prospective
schools
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)
http://www.msnbc.com/news/654355.asp
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
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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