Chevron Corporation Corporate Image Advertising - PowerPoint

							Chapter 16


Public Relations



                   1
      The Practice of Public
           Relations
Goal: Achieve effective relationships with
various audiences to manage the
organization’s image and reputation.
Publics may be external (customers, news
media, investment community, general
public, government), or internal (investors or
employees).
PR is a growing industry that employs
approximately 150,000 people.
                                           2
        Advantages and
      Disadvantages of PR
Advantages          Disadvantages
                    - Not completing
-Credibility
                           the
- Low cost
                      communication
- Less clutter
                         Process
-Lead generation
                     - Redundancies
-Ability to reach
                         with the
  specific groups
                        marketing
- Image building
                          effort
                                       3
         The Practice of Public
              Relations
Advertising is Primarily Concerned with Enhancing Sales While
  PR is Concerned With Managing the Organization’s Image.

  PR May Not Work in Concert With Other Communication
               and Promotion Functions.


          PR Operates on Two Levels in Most Firms



   Physical Tasks                    Advice to Management


People in Advertising May be Reluctant to Incorporate PR Into
 Their Planning Since It is Not a Bottom-Line Profit Producer.
                                                                 4
 Comparing Public Relations
     and Advertising
Public Relations Differs From Advertising in Three
                 Important Ways:




  Media Use          Control        Credibility

  Advertising     Advertising –    Advertising-
     Pays            More             Some
      PR           PR – Less        PR – Much
  Persuades                           More
                                                     5
  Types of Public Relations
         Activities
               Public Affairs &
             Issues Management

                Managing
                  a PR
  Crisis        Program       Image & Reputation
Management       Begins          Management
                 With a
                  Plan

               Relationship
               Management                     6
           Public Opinion
Ask two primary questions about public
opinion to design public affairs programs:
 Which publics are most important to the
  organization, now and in the future?
 What do these publics think?

Public opinion is what people think, a
“belief, based not necessarily on fact but on
the conception or evaluation of an event,
person, institution, or product”. 8
                                             7
      Image and Reputation
          Management
A corporate image reflects how the public views
the organization.
Image programs try to send the right cues and
hope the audience will develop a positive image of
a company.
Overriding goal of a reputation management
program is to strengthen the trust that
stakeholders have in an organization.
An organization’s policies and actions determine
its reputation.
                                               8
From Identity to Reputation




                              9
     Relationship Management

   Government                                 Media
 Communicating with                     Developing Media
 Government Bodies.                        Contacts.


               Involved in the Management
                  Of Relationships With
                     Various Types of
                      Stakeholders.

Financial Relations                         Employees
Communications Aimed                 Programs Designed to
   At the Financial                         Keep
     Community.                       Employees Informed.
                                                           10
Twenty Key Publics of a Typical
  Multinational Corporation




                                  11
Crisis Management

Be Prepared By Anticipating the
     Possibility of a Crisis.


Develop a Plan for Dealing With the
              Crisis.


Plan Should Detail Who Does What
    and Says What to Whom.

                                      12
Public Relations Tools




                         13
           Public Relations Tools
 The Sponsoring Organization Pays for Controlled Media so
They Maintain Total Control Over How and When the Message
                        is Delivered.
                        Prepared by the Organization for Use in
     House Ads         Its Own Publication or One Over Which It
                                  Has Some Control.
                         Ads Designed by Charitable or Civic
    Public Service
                         Organizations for Broadcast Free of
   Announcements                      Charge.
      Corporate
                       Designed to Promote a Corporate Image
    (Institutional)                 or Viewpoint.
     Advertising


                                                                  14
      Public Relations Tools

                    Publications Such as Pamphlets,
 In-House         Booklets, and Annual Reports for an
Publications    Organization’s Own Employees and Other
                                Publics.
 Speakers,
                  Maintaining Visual Contact With the
Photographs,      Various Publics is a Big Part of PR.
  & Films
  Displays,     All Are Used in Both Sales Promotion and
  Exhibits, &    PR Programs and Include Open Houses
Staged Events                and Plant Tours.




                                                         15
         Public Relations Tools
The Media, Rather Than the Organization, Controls the Use
        and Placement of Uncontrolled Media.
      News Release               Press Conference

  Primary Medium Used          Convening Media Reps
 To Deliver PR Messages         To Make a Statement.
     to Media Editors
      And Reporters.           Risky, Because Media
                              May Not See Company’s
   Video News Releases        Announcement as Being
  Contain Video Coverage            Real News.
     That Can be Used
   During a TV Newscast.       May Distribute Press
                                       Kits.

                                                       16
       Practical Tips # 2
How to Measure PR Effectiveness
 The following are common types of evaluation
 used in public relations:
    Output (What goes out)
         Production: number of PR products generated.
         Distribution: number of media outlets receiving PR products.
         Coverage: column inches, seconds, or minutes of air time.
         Impressions: media placements x circulation or broadcast
          reach.
         Advertising value: equivalent ad costs for time or space.
         Systematic content analysis: positive or negative slant, key
          messages, sources, prominence.
    Outcome (Effect on the audience)
         Goals/ objectives achievement: surveys, focus groups, PR
          product testing.                                       17
   Additional Means for
Measuring PR’s Effectiveness
   Personal observation and reaction

    Matching objectives and results

          The team approach

      Management by objectives

      Public opinion and surveys

                Audits                 18
Marketing Public Relations (MPR)

     Advertising and Public Relations Overlap in
   Marketing Public Relations (MPR), Which is the
    Process of Planning, Executing, and Evaluating
       Programs That Encourage Purchase and
       Consumer Satisfaction Through Credible
    Communication of Information and Impressions
   That Identify Companies and Their Products With
     the Needs, Wants, Concerns, and Interests of
                     Consumers.


                                                     19
Marketing Public Relations
   (MPR) Adds Value:
Building marketplace excitement before
media advertising breaks
Creating advertising news where there is no
product news
Introducing a product with little or no
advertising
Providing a value-added customer service
Building brand-to-customer bonds
Influencing the influential
Defending products at risk and giving
consumers a reason to buy                     20
  Cause and Mission Marketing
  Customer Attitudes of Disrespect, Disgust, and Distrust
Toward Advertising and Marketing Create New Marketplace
  Challenges and Companies Must Prove They Are Good
               Corporate Citizens Through:

    Cause Marketing             Mission Marketing
        Adopting a good            More Long Term and
         cause and                   Pervasive Because
         sponsoring its fund-        the Cause is Linked
         raising and other           to the Company’s
         efforts.                    Mission.

                                                       21
EXH 12-16




            22
           Types of Corporate
              Advertising
 Image                Chevron
 advertising
Advocacy             California Avocado
advertising            Commission

Cause-related        J.C. Penney-PBS
 advertising
                                          23
      Corporate Advertising
Corporate image (or identity) advertising
   To increase a firm’s name recognition or establish
    goodwill for the firm and its products
   Ex.:“Think Different” campaign by Apple Computer
Corporate issue advertising (advocacy adv.)
   To take a position on a controversial social issue
    of public importance in hopes of swaying public
    opinion
   Ex.:“We want you to know where we stand” by
    Philip Morris

                                                         24
Advantages and Disadvantages of
     Corporate Advertising
 Advantages:
    Excellent vehicle for positioning
     the firm
    Takes advantages of benefits of PR
    Reaches a select target market
 Disadvantages:
    Questionable effectiveness
    Constitutionality and/or ethics
                                      25