Lecture fundamentals of marketing - Lecture 23: Public Relations

LECTURE­23

Public Relations

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Topic Outline

•

§

Public Relations
§

What is public relations

§

The Role and Impact of Public Relations

§ Major Public Relations Tools
§ What are the strengths and limitations of
brand publicity?

§ What are the brand publicity tools?
§ Why is corporate communication

important to IMC programs?

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Lecture Perspective
Two major developments recently:
1)

2)

Public relations has forced all marketers to value
stakeholder relationships
IMC is helping to bridge the gap between Public
Relations and Marketing

Marketing
Traditionally
separate from the
PR area
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IMC

Public Relations
Traditionally

separate from the
Marketing area
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What is Public Relations?

Public relations (PR):
A communication function
used to promote mutual
understanding between an
organization and its various
stakeholder groups

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Public Relations
Public relations involves building good
relations with the company’s various
publics by obtaining favorable publicity,
building up a good corporate image,
and handling or heading off
unfavorable rumors, stories, and
events
Public relations is used to promote
product, people, ideas, and activities

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Public Relations
Press relations or press agency
involves the creation and placing of
newsworthy information to attract
attention to a person, product, or
service
Product publicity involves publicizing
specific products
Public affairs involves building and
maintaining national or local
community relations
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Public Relations
Lobbying involves building and
maintaining relations with legislators
and government officials to influence
legislation and regulation
Investor relations involves maintaining
relationships with shareholders and

others in the financial community
Development involves public relations
with donors or members of nonprofit
organizations to gain financial or
volunteer support
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PR Responsibilities
Keep
the
Public
Keep the
Public
Aware
Aware of of
Organization’s
Organization’s
Activities
Activities

Serve
Serve AsAs
the the
Official
Channel
OfficialofChannel

Information
of Information
Coordinate the
Programs With
Other MC
Functions
Plan and
Administer
Plan and Administer
Information
Programs
Information
Programs
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PR

Coordinate
Coordinate
Relationships
Relationships With
With
Stakeholders
Stakeholders
Collect and
Analyze
Collect and Analyze
Stakeholder
Attitudes

Stakeholder
Attitudes
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PR Activities

Brand
Publicity
Brand
Publicity

Crisis
Management

Financial/
Financial/
Investor
Investor
Relations
Relations
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Media
Relations
Media
Relations

PR

Activities

Corporate
Corporate
Communications
Communications

Employee
Relations

Employee Relations

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Public Relations
•

Major Public Relations Tools

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Public Relations
•

§

§

The Role and Impact of Public
Relations
Lower cost than advertising
Stronger impact on public awareness
than advertising

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PR In Action: Maytag

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PR In Action: Maytag
Challenge:

Help
introduce the new Neptune
Help introduce the new Neptune washer
washer

A public
relations
program
featuring:featuring:
A
public
relations
program
••

Answer:

••

Results:

•
•

New York launch party for news media and
appliance dealers starring the Maytag
“Lonely Repairman” and famous TV “moms”
Sponsored a water conservation test in a
small Kansas town demonstrating overall
water savings for the town

Most successful Maytag product launch ever
Maytag stock increased 100%

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What Is Brand Publicity?

Brand publicity:
The use of nonpaid media
messages to deliver brand
information designed to
positively influence
customers and prospects

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Brand Publicity Process
Reviewing the situation
•
Fits with organization’s overall SWOT
assessment

Process

Setting objectives
•

Similar to advertising, but can also
include:
•
Creating word of mouth buzz
(excited talk about a brand)
Developing strategies and tactics
•
Traditional media
•
Guerilla marketing techniques
•
Viral marketing (spreading word of
mouth via the internet)

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Key Part of Brand Publicity: Media
Relations
Key part of brand publicity:
Media relations: Maintaining a positive
professional relationship with the media in
general or with media that specialize in
covering a specific industry
•
The challenge: getting past media
gatekeepers

•
Editors and reporters who select (or
reject) stories for their publications or
stations based on what they think will
interest their audiences
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Tales From the Real World

In the real world, PR people know that the media
is not always going to cover a story exactly the way
they would wish. So, like a football coach’s reaction
to a referee’s “call,” PR professionals sometimes
challenge the media on their “call.”
The result is often the same as in sports: the current
story will stand, but the media may write something
more favorable next time. Just like a referee refusing
a coach’s plea to reconsider a call, but then calling
the other team for a penalty on the next series.
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Strengths And Limitations Of Brand

Publicity
Strengths
Strengths

•

•

•
•

•

Builds a climate of
acceptance for the
brand
Makes brand’s claims
more credible
Breaks through clutter
Reaches the hard-toreach
Cost effective

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Limitations

•

Vs.

•

Less control over
message
Limited frequency

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What Are Brand Publicity Tools?
News Release
News Release
(Press (Press
Release)
Release)

Publicity
Tools

Pitch Letter
Pitch Letter

News Kit (Press Kit)
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A New Release Developed By PeopleSoft’s
Agency

+
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A Pitch Letter From A Clothing
Maker

+
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A News Story Written About The New
Jacket

+
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What Is Corporate Communication?

Corporate communication:
High level public relations carried
out by executives who work at a
senior level in a company and
advise top management on how
the organization presents itself
Goal: to manage the image
and reputation of the organization
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Bibliography
§

§

§

§

Principles of Marketing by Philip Kotler & Gary Armstrong
Fifteenth Edition, Published by Prentice Hall
Marketing Management – A South Asian Perspective
by Philip Kotler, Kevin Lane Keller, Abraham Koshy &
Mithileshwar Jha, 13th Edition, Published by Pearson

Education, Inc.
Principles and Practices of Marketing by Jobber, D. 4th
edition, McGraw Hill International.
Principles of Advertising & IMC by Tom Duncan 2nd
Edition, Published by McGraw-Hill Irwin.

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The End

“Take care of your reputation.
It’s your most valuable asset”

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