Public Relations, Publicity,

and Corporate Advertising

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

"Everything you do or say is public

relations.
-Unknown

A good PR story is infinitely more

effective than a front page ad
Richard Branson

1. Public Relations Defined

AA management
management function
function

which
and
of
and

evaluates
evaluates public
public attitudes
attitudes
identifies
identifies the
the policies
policies and
and procedures
procedures
an
an organization
organization with
with the
the public
public interest
interest
executes
executes aa program
program of
of action
action (and
(and communication)
communication)

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Traditional PR Perspective
Customers
Customers
Investors
Investors
Public
Public
Relations
Relations
Department
Department
Suppliers
Suppliers

Government
Government
Employees
Employees
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3. Integration of PR into the IMC Process

Separate
Marketing
Department

Public
Relations
Coordinated

Marketing
Department

Public
Relations
Integrated

Marketing
Department
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Public
Relations

4. Marketing Public Relations (MPR) Functions

Building
Building marketplace
marketplace excitement
excitement before
before media
media advertising
advertising breaks
breaks

Improving
Improving ROI
ROI
Creating
Creating advertising
advertising news
news where
where there
there is
is no
no product
product news
news
Introducing
Introducing aa product
product with
with little
little or
or no
no advertising
advertising
Providing
Providing aa value-added
value-added customer
customer service
service
Building
Building brand-to-customer
brand-to-customer bonds
bonds
Influencing
Influencing influentials,
influentials, providing
providing information
information to
to opinion
opinion leaders
leaders

Defending
Defending products
products at
at risk,
risk, giving
giving consumers
consumers aa reason
reason to
to buy
buy
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR
Determining
Determining and
and Evaluating
Evaluating Public
Public Attitudes
Attitudes

Establishing
Establishing aa PR
PR Plan
Plan

Developing
Developing and
and Executing
Executing aa PR
PR Program
Program

Measuring
Measuring Program
Program Effectiveness
Effectiveness
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Research on Public Attitudes

Provides
Provides input
input for
for
the
the planning
planning process
process

Serves
Serves as
as an
an early
early
warning
warning system
system

Increases
Increases
communications
communications
effectiveness
effectiveness

Secures
Secures internal
internal
cooperation,
cooperation, support
support

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR
Determining
Determining and
and Evaluating
Evaluating Public
Public Attitudes
Attitudes

Establishing
Establishing aa PR
PR Plan
Plan

Developing
Developing and
and Executing
Executing aa PR
PR Program
Program

Measuring
Measuring Program
Program Effectiveness
Effectiveness
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10 Questions for Evaluating

Public Relations Plans

1. Does the plan reflect a thorough

understanding of the companys business
situation?
2. Has the PR program made good use of
research and background sources?
3. Does the plan include full analysis of
recent editorial coverage?
4. Do the PR people fully understand the
products strengths and weaknesses?
5. Does the PR program describe several
cogent, relevant conclusions from the
research?

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10 Questions for Evaluating

Public Relations Plans

6. Are the program objectives specific and

measurable?
7. Does the program clearly describe what
the PR activity will be and how it will
benefit the company?
8. Does the program describe how its results
will be measured?
9. Do the research, objectives, activities, and
evaluations tie together?
10. Has the PR department communicated
with marketing throughout the
development of the program?

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR
Determining
Determining and
and Evaluating
Evaluating Public
Public Attitudes
Attitudes

Establishing
Establishing aa PR
PR Plan
Plan

Developing
Developing and
and Executing
Executing aa PR
PR Program
Program

Measuring
Measuring Program
Program Effectiveness
Effectiveness
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Determining Public Relations Audiences

Internal
Internal or
or Associated
Associated
Stockholders
Stockholders and
and
Investors
Investors

Employees
Employees of
of the
the
Firm
Firm

Customers
Customers and
and
Clients
Clients

Vendors
Vendors and
and
Suppliers
Suppliers

Community
Community
Members
Members

External
External or
or Independent
Independent
Educators
Educators
The
The Media
Media

Governments
Governments

Civic
Civic and
and Business
Business
Organizations
Organizations
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Financial
Financial Groups
Groups

Implementing the PR Program

Press
Press
Releases
Releases
Press
Press
Conferences
Conferences

Interviews
Interviews

PR
PR Tools
Tools
The
The Internet
Internet

Exclusives
Exclusives
Community
Community
Involvement
Involvement
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. The process of PR
Determining
Determining and
and Evaluating
Evaluating Public
Public Attitudes
Attitudes

Establishing
Establishing aa PR
PR Plan
Plan

Developing
Developing and
and Executing
Executing aa PR
PR Program
Program

Measuring
Measuring Program
Program Effectiveness
Effectiveness
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Criteria for Measuring PR Effectiveness

Total
Total number
number of
of
impressions
impressions .. .. ..

Over
Over time
time

On
On the
the
target
target
audience
audience

Percentage
Percentage of
of .. ..

Positive
Positive
articles
articles over
over
time
time

Negative
Negative
articles
articles over
over
time
time

On
On specific
specific
target
target
audiences
audiences

Ratio
Ratio of
of positive
positive
to
to negative
negative
articles
articles
Percentage
Percentage of
of
positive
positive and
and
negative
negative articles
articles
by
by .. .. ..

Subject
Subject

PublicaPublication
tion

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Reporter
Reporter

Target
Target
audience
audience

6. Advantages of Public Relations

Credibility
Credibility
Image
Image
Building
Building

Cost
Cost Savings
Savings

PR
PR
Provides
Provides
Avoidance
Avoidance of
of
Clutter
Clutter

Selectivity
Selectivity
Lead
Lead
Generation
Generation
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

7. Publicity
The
The Generation
Generation of
of News
News About
About aa Person,
Person,
Product,
Product, or
or Service
Service That
That Appears
Appears in
in the
the Media
Media

Part
Part of
of the
the PR
PR Process
Process

May
May Be
Be Out
Out of
of the
the Marketers
Marketers Control
Control

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advantages and Disadvantages of Publicity

Advantages

Disadvantages

Substantial
Substantial credibility
credibility

Timing
Timing difficult
difficult or
or
impossible
impossible to
to control
control

News
News value
value

Inaccuracy,
Inaccuracy, omission,
omission,
or
or distortion
distortion may
may
result
result

Significant
Significant word-ofword-ofmouth
mouth
Perception
Perception of
of
endorsement
endorsement by
by
media
media
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Corporate Advertising
Corporate advertising promotes company as an entity
rather than single out any product or service.
Corporate advertising is specially designed to promote
the company as a whole in order to enhance its
corporate image and position the company
as distinct from competitors.

Objectives

a. to build company image, reputation and

corporate brand awareness among publics.
2. To communicate companys views on social
causes, environmental issues, or business
practices etc. to represent its

Example: P&G Thank You Mom

Campaign

8. Corporate Advertising

An
An extension
extension of
of the
the PR
PR
function
function
Does
Does not
not promote
promote aa specific
specific
product
product or
or service
service

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Why Is Corporate Advertising Controversial?

Consumers
Consumers arent
arent
interested
interested in
in this
this
form
form of
of advertising
advertising

Corporate
Corporate
advertising
advertising Is
Is aa
waste
waste of
of money
money

Claims
Claims of
of
Opponents
Opponents to
to
Corporate
Corporate
Advertising
Advertising
This
This is
is aa costly
costly form
form
of
of corporate
corporate selfselfindulgence
indulgence

The
The firms
firms finances
finances
or
or image
image must
must be
be in
in
trouble
trouble

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Objectives of Corporate Advertising

Establish
Establish
diversified
diversified
companys
companys
identity
identity

Create
Create aa positive
positive
image
image for
for the
the
firm
firm

Communicate
Communicate
the
the
organizations
organizations
viewpoint
viewpoint

Objectives
Objectives
Help
Help newly
newly
deregulated
deregulated
industries
industries

Boost
Boost employee
employee
morale
morale
Smooth
Smooth labor
labor
relations
relations
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Types of Corporate Advertising

Image
Image
Advertising
Advertising

General
General Image
Image Ads
Ads
Positioning
Positioning Ads
Ads

Event
Event
Sponsorship
Sponsorship

Sponsorship
Sponsorship
Recruitment
Recruitment

Advocacy
Advocacy
Advertising
Advertising
Cause-related
Cause-related
Advertising
Advertising
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Event Sponsorship

Corporate
Corporate Sponsor
Sponsor

Sporting
Sporting
Events
Events

Music,
Music,
Entertainment
Entertainment

Causes
Causes

Festivals
Festivals

Cultural
Cultural Events
Events

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advocacy Advertising

Advocacy
Advocacy advertising:
advertising:
is
is the
the propagation
propagation of
of ideas
ideas and
and
elucidation
elucidation of
of controversial
controversial social
social
issues
issues of
of public
public importance
importance in
in aa
manner
manner that
that supports
supports the
the
interests
interests of
of the
the sponsor.
sponsor.

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

An American Gas Association Advocacy Ad

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Cause Related Marketing

Cause
Cause related
related marketing:
marketing:
is
is aa form
form of
of marketing
marketing whereby
whereby
companies
companies link
link with
with charities
charities or
or
nonprofit
nonprofit organizations
organizations as
as
contributing
contributing sponsors.
sponsors.

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Measuring Corporate Advertising Effectiveness

Attitude
Attitude Surveys
Surveys

Effective?
Effective?

Relating
Relating to
to Stock
Stock Prices
Prices

Focus
Focus Group
Group Research
Research

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Marketing
"Response is one of the five keys of successful
direct marketing. if you have that, the other
four don't matter"
Dean Rieck

Direct marketing is a form of marketing

communications:
It seeks to elicit a measurable response such as a
sale, a visit to a retail store or Web site, or a request
for further information from a selected group of
consumers in response to a communication from the
marketer.
What is the difference between direct marketing
and direct selling?

Examples of direct marketing

companies

1. Amway has a presence in 88 countries

with a turnover of $6.5 billion through direct
marketing.
2. Avon, a beauty Icon, is the Number 1
Beauty Direct Seller in the World.

Direct Marketing mix

"Direct Marketing is evolving every day; in some cases, it
seems that we have come full circle. A few years ago,
there was the rush to telemarketing, and then came the
rush to the Internet. Now marketers are starting to
understand that all of these - telephone, mail, internet, email, so-called 'new media' - are simply alternative
channels that enable direct contact with a customer."
Audrey Price-Dix, Chairman, Assegai Awards

Why direct marketing?

a. Dynamic customer profile

b. Fragmented media
c. Proliferation of media vehicle

Direct Marketing
Direct Marketing Media Vehicles include
the following:

Focus of direct marketing

Data base and relationship marketing (e.g Dell
and tupperware)
Latest developments in DBMS and order fulfilment
have made direct marketing activities easier and
cost-effective.
The advancement in technology has provided
better infrastructure for direct marketing.
It has encouraged more players from across
various industries to communicate and distribute
products through the direct marketing route.
Enumerate the advantage of both........

Data Dev process

Direct Marketing Compaign Process

Mass media: Tools for direct marketing

Various direct marketing tools in digital

media

Alternative media

Questions:

What is direct marketing? Please give Examples.

Why direct marketing?
Various media used in direct marketing
What are the various digital media being used for
direct marketing.

Thank You