Chapter 4 by billhandy

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									Ethics
Just a few more points

Navran Decision Making Model
     

Define the problem Identify viable alternatives Evaluate alternatives Make the decision Implement the decision Evaluate the decision

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Apply the PLUS filter to steps 1, 3 & 6
– – – – Policies Legal Universal Self

The Navran Model doesn’t guarantee an ethical decision but it will ensure ethical components are taken into consideration

Public Relations Departments & Firms
Chapter 4

Public Relations Departments
Serve companies and organizations  George Westinghouse created the first corporate department in 1889 to publicize AC electricity  Today, PR has expanded from its traditional role of publicity - it now influences the highest levels of management
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Today, Public Relations serves as...
Process of negotiation and compromise with a number of key publics  It’s building good relationships w/ strategic publics, which requires executives to be strategic communication managers rather than communication technicians
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PR Departments save the company from
 Bad Relationships, which lead to: – Litigation – Regulation – Legislation – Pressure campaign boycotts – Lost revenues

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In some organizations, big or small, top-level management only sees PR as a journalistic or technical function, such as media relations or publicity, or they see it as a support function of the marketing department
– This limits what PR can do

Departmental Names
Relations  Public Affairs  Corporate communications  Strategic Communications
 Public

PR Department Expertise:


Strategic and Operational Management Knowledge
– – – – – Develop strategies for solving problems Manage organizational response to issues Develop goals and objectives for department Prepare budgets Manage people

PR Department Expertise:
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Research knowledge:
– – – – Perform environmental scanning Determine public reactions to your organization Use research to segment publics Conduct evaluation research

PR Department Expertise:


Negotiation knowledge
– Negotiate w/ activist publics – Help management understand opinions of publics – Use conflict resolution theories w/ publics

PR Department Expertise:
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Persuasion knowledge
– Persuade public that organization is right – Use theory in a campaign – Get publics to behave, react like you want them to react

Specialized Divisions of PR:
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Coordinator or managers of:
– – – – – – – – Media relations Investor relations Consumer affairs Urban Affairs Governmental relations Community relations Marketing communications Employee communications

Functions of Corporate PR Departments
Media relations -96%  Crisis management -75%  Special events -68%  Reputation management -65%  Employee Communications -64%  Product/Brand Communication -63%  Community relations -60%
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Corporate Public Relations
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Head of Communications reports to:
– CEO - 64% – Head of marketing - 25%

Sources of Friction in PR Departments:
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Legal – conflicts over what to say, what information to release

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Human Resources – battle over who is responsible in employee communication,

Sources of Friction in PR Departments:
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Advertising Marketing

Outsourcing of Public Relations
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To Firms or agencies w/ expertise and resources

Outsourcing…
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Most frequent outsourced activities include:
– – – – – Writing and communication Media relations Publicity Strategy and planning Event planning

PR Firms
US has the most firms (about 9,000)  Technology firms have increased 46%  Financial services - 37%  Industry - 36%  Government and non-profit - 36%  Healthcare - 30%  Consumer retail - 22%
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What expertise do firms offer?
Marketing communications  Executive speech training  Research and evaluation  Crisis communication  Media analysis  Community relations  Events management
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Other Trends in PR Firms
Most emphasize “counseling” as a service  We don’t use term “agencies” like we used to because we’re not agents.  Global Expansion  24/7 news cycle and online communications necessitates 24/7 business hours
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Communication Conglomerates
They also own advertising agencies, marketing firms, billboard companies, direct mail firms, special event shops  INTEGRATED COMMUNICATION NETWORKS
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– Advertising revenues have remained the same – PR revenues are rising because of communication aspects

Structure of Firms
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Account supervisor
– In charge of one major account or several small ones

Account executive
– Reports to supervisor, handles daily activity w/ clients

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Assistant account executive
– Compiling media lists, technical stuff, writing rough drafts, etc.

What PR People do w/ their time:
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3500 professionals polled (78% who work for agencies, 60% who work for corporate and 46% who work for non-profits)
– – – – – Strategic Planning PR Program planning Project management Media relations Account/client management 89% 88% 86% 78% 67%

What PR people do w/ their time:
– – – – – – Special events/conferences Internal relations Community relations Issues management Relations w/ special audiences Crisis management 66% 65% 60% 55% 54% 45%

Top 5 Global PR Firms:
Weber-Shandwick  Fleishman-Hillard  Hill & Knowlton  Incepta(Citigate)  Burson/Marsteller
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2832 emp/$426 m 2288 emp/$345 m 1117 emp / $325 m 2236 emp/$266 m 1613 emp/259. m

PR Firms Code of Ethics
Every firm should have a code used as a guideline for all employees  All employees should sign it  The code should appear in all client proposals  Display the code in the office  Set up ethics committees  Set ethical guidelines on behavior and activities  Senior management must set the standard
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Schnake , Tunnbo, Frank PR - Credo Our firm’s business philosophy is based on universally regarded morals and principles. Service is the cornerstone of our credo: Service to our clients, to our community and to one another. We believe our clients are our lifeblood. They are the reason for our existence and the key to our success, our growth and our future. Client service is our top priority. We believe our employees are the reason for our success. We believe in celebrating their achievements and rewarding them for high levels of performance. We thrive on creativity, humility, forward thinking, open mindedness and fresh ideas. We believe in empowerment. We recognize that with empowerment comes responsibility. We believe in hard work and teamwork. We believe that continual improvement comes from continuous education – about our profession, our community and our world. The spirit of congeniality reigns at all times. We expect leadership from ourselves and respect for others. We support a work environment that is positive, enjoyable and healthy. We practice good sportsmanship and are respectful of our competition. We realize that balance is a key component to quality of life. We believe in having fun, and in celebrating the accomplishments of our employees, our clients and our lives. We recognize that a diverse workforce – in ideology, ethnicity, background and beliefs – creates a culture that is invigorating and stimulating. We believe that listening is an essential trait in practicing public relations and that client counsel should be forthright and untarnished. We believe public relations is a profession with a distinct body of knowledge. We are committed to its advancement and proudly subscribe to the Code of Ethics of the Public Relations Society of America. These are our beliefs. Our goal is to make life better: For our clients, for our employees and for our communities.

Advantages of using a PR Firm:
Objectivity  Skills and expertise  Extensive resources  Offices throughout the country  Specialized problem-solving  Credibility  Costs
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Disadvantages of using a PR Firm:
Don’t understand the client completely  Lack of full-time commitment  Take a lot of time to get started  Resentment by internal staff  Confidential information  Top management must be involved  Costs
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Fees of PR firms:
Hourly fees and out-of-pocket expenses - hours spent working on it, cab fares, hotels, airlines, meals  Retainer fees - monthly fee for being on call, plus administrative fees, overhead expenses, set number of hours
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Fees con’t
Fixed project fees - annual reports, newsletters or special events may cost about $30,000 plus the cost of production - sometimes clients like this because there are no surprises and it can be budgeted easily  Pay-for-placement - not used often because you can’t guarantee placement = editors are gatekeepers
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Corporate PR vs. PR Firms:
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Firms:
– – – –
– – – –

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Corporations:
– Jobs difficult to find w/out experience – Little variety – Growth limited – Slower paced – No networking – Less pressure – Less turnover – Salaries higher – More resources

Get more experience quickly Variety Fast-paced, exciting networking w/ other professionals Learn other skills Intense daily pressure Lower salaries Less resources


								
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