Public Relations, Publicity, and Corporate Advertising Notes

Learning Objectives

  • LO17-1: Roles of public relations, publicity, and corporate advertising in the promotional mix.

  • LO17-2: Advantages, disadvantages, and effectiveness of public relations and publicity.

  • LO17-3: Advantages, disadvantages, and effectiveness of corporate advertising.

  • LO17-4: Different forms of corporate advertising.

Public Relations (PR)

Traditional Definition

  • Definition: Evaluates public attitudes, identifies organization's policies and procedures aligning with public interest, executes programs for public understanding and acceptance.

New Role of PR

  • Traditional Role: Maintain beneficial relationships with publics, act as a nonmarketing function.

  • New Role: Collaborate with marketing, align with Integrated Marketing Communications (IMC) to support marketing objectives.

  • Responsibilities: Include both traditional and new aspects in promotional strategy.

Marketing Public Relations (MPR)

Functions of MPR

  • Support Marketing Objectives: Designed to create excitement before ads, enhance ROI, create advertising news, provide customer service, strengthen brand customer relationships, influence opinions, and defend products at risk.

  • Benefits: Building strong marketplace presence and consumer engagement.

Advantages of MPR

  • Cost-effective, highly targeted, credible endorsements, enhances advertising impact, cuts through clutter, generates media involvement, leads to improved ROI.

Disadvantages of MPR

  • Lack of control over media messages, difficulties tying in promotional elements, media coverage not guaranteed, no standard measures for effectiveness.

Process of Public Relations

Steps in PR Process

  1. Research: Evaluate public attitudes for planning.

  2. PR Plan Development: Define problems, plan actions, implement communication, and evaluate.

Key Evaluation Questions for PR Plans

  • Understanding of the company’s situation, use of research, analysis of media coverage, product strengths and weaknesses, specific measurable objectives, and coordination with marketing.

Target Audiences

  • Internal: Employees, stockholders, investors, community members.

  • External: Media, educators, civic organizations, governmental entities, financial groups.

Implementing PR Programs

  • Strategies include press releases, press conferences, interviews, community involvement, and utilizing social media.

Publicity

Definition

  • Publicity: Generation of news about an entity for exposure across various media.

  • Key Differences from PR: Short-term strategy, unpredictability, and potential negativity.

Advantages of Publicity

  • High credibility, significant media endorsements, visibility in the marketplace.

Disadvantages of Publicity

  • Lack of control, critical timing, potential for inaccuracy.

Corporate Advertising

Purpose

  • Promote overall firm image, engage in social causes, and directly connect with stakeholders.

  • Controversy: Seen as costly or unnecessary by some consumers.

Objectives

  • Build a positive image, communicate firm’s social values, improve employee relations, and address uncertainties in emerging industries.

Types of Corporate Advertising

  1. Image Advertising: General awareness and goodwill.

  2. Event Sponsorships: Builds equity through association with events.

  3. Advocacy Advertising: Addresses social issues indirectly benefitting the firm.

  4. Cause-Related Advertising: Supports charities and enhances firm reputation while providing funds to charitable organizations.

Advantages and Disadvantages of Corporate Advertising

  • Advantages: Excellent for firm positioning and leveraging PR benefits.

  • Disadvantages: Questions regarding effectiveness and ethics.

Measuring Corporate Advertising Effectiveness

  • Tools include attitude surveys, impact studies related to stock prices, and focus groups to gauge results and refine strategies.