Class 12 Public Relations

Public Relations

Learning Objectives

  • Understand what public relations is and the value it brings to your brand or organization.

  • Apply tenets of public relations theory to your business or organization or to your own personal brand.

  • Manage your brand’s reputation and prepare a proactive crisis communication plan for your business or organization.

What is Public Relations?

  • Public relations is a strategic communication process that builds mutually beneficial relationships between organizations and their publics.

Difference Between Public Relations and Advertising

  • Public Relations focuses on managing the brand's reputation and fostering positive relationships with various stakeholders, while Advertising is directly promoting products or services through paid media.

Reputation: Goodwill, Trust, and Integrity

  • Goodwill: The positive reputation of an organization based on past interactions and experiences with various stakeholders.

  • Trust: The belief in the reliability and integrity of the organization.

  • Integrity: Adherence to moral and ethical principles by the organization.

  • Reputation vs. Brand Image: Reputation encompasses the overall perception of an organization across its stakeholders, while brand image refers specifically to consumer perception of the brand itself.

Key Publics in Public Relations

  • There are twenty key publics that multinational corporations focus on, including:

    • Media

    • Employees

    • Financial community

    • Government

    • General public

Aspects of Public Relations

By Relationships

  • Media Relations: Managing communication with news outlets.

  • Employee Relations: Engaging with employees to cultivate a positive workplace culture.

  • Financial Relations: Communicating with stakeholders who provide financial support.

  • Public Affairs: Engaging with government entities and policymakers.

  • Community Relations: Building relationships with local communities.

  • Consumer Relations: Engaging with current customers and maintaining their loyalty.

By Functions

  • Corporate Reputation Management: Building a positive image for the organization.

  • Crisis Management: Preventing and managing reputation damage.

  • Reputation Monitoring: Ongoing assessment of how the organization is perceived.

Building a Positive Image

Corporate Reputation Management

  • Cause-Related Marketing/Prosocial Marketing: Partnerships with charitable organizations to create societal benefits.

  • Green Marketing: Promoting environmentally sustainable products.

Cause-Related Marketing

  • Involves businesses partnering with charities; brands invest in initiatives that resonate with their audience.

  • Most consumers are:

    • Likely to purchase a brand associated with a cause they care about.

    • Willing to pay more for brands engaged in social causes.

Example: TOMS Shoes

  • TOMS invests 1/3 of its profits in grassroots initiatives targeting community improvement.

  • Grassroots good is defined as effective community-led efforts addressing social issues due to shared experiences.

Example: JetBlue For Good

  • JetBlue supports various causes, investing in youth and education, community development, and environmental conservation.

Social Responsibility as Public Relations

  • Example: Häagen-Dazs commenced a partnership with researchers to tackle the declining honeybee population, demonstrating corporate responsibility.

  • Since 2008, Häagen-Dazs has donated over $1 million for honeybee research, linking corporate responsibility with positive brand image.

Funding Research and Creating Awareness

  • Increase public awareness and education about relevant issues can lead to positive consumer sentiment towards brands.

  • Use of innovative strategies, such as developing new flavors products and initiating campaigns like the "Million Seeds Challenge" to support environmental causes.

Lessons Learned from Case Studies

  • Importance of clear communication in brand awareness and consumer connection.

Crisis Management Plan

  • Crisis Communication: Timely and effective dissemination of information to address crises impacting an organization's reputation.

  • Best Practices: Be quick, accurate, and consistent in messaging to stakeholders.

Types of Crises

  1. Financial Crises: e.g., bankruptcy announcements.

  2. Personnel Crises: Layoffs or controversial behavior of employees.

  3. Organizational Misconduct: Wrongdoing due to poor organizational practices.

  4. Technological Failures: Issues causing substantial operational loss.

  5. Natural Crises: Announcements during natural disasters.

  6. Confrontational Crises: Social media backlash from stakeholders.

  7. Workplace Violence: Employee-related incidents harming others.

  8. Crisis of Malevolence: Using illegal means to harm competitors.

Crisis Management Communications Plan

Components of a Crisis Communications Plan

  • Purpose Statement

  • Crisis management authority and the appointed spokespeople

  • Stakeholder identification

  • Examples of crisis scenarios and response strategies

Crisis Severity Escalation Framework

  • Green: Low risk to reputation; monitor closely.

  • Yellow: Moderate potential risk; ongoing assessment required.

  • Red: High-risk situations requiring immediate action.

Communication Strategy During Crises

  • Assign primary and secondary spokespeople.

  • Facilitate media access to spokespeople.

  • Identify key audiences and tailor communications effectively.

  • Develop key messages and a media mix strategy.

Best Practices for Communication

Examples of Effective Responses in Crises

  • General Legal Issues: Emphasize commitment to company values without disclosing specific legal details.

  • Offensive Statements by Employees: Distancing the company from harmful statements while emphasizing the organization’s values and commitments.

  • Accidents by Companies: Full company accountability and action to remedy the impact on customers.

Effective Language in Crisis Communication

  • Using "We" vs "I":

    • Using collective language can create a sense of belonging and shared responsibility with stakeholders.

Post-Crisis Evaluation

Evaluating Crisis Response

  • Analyze the effectiveness of the response strategies. Assess public reaction to rebuild trust with stakeholders.

Post-Crisis Self-Evaluation Criteria

  1. Did the response happen timely?

  2. Was the information informative and relevant?

  3. Did the organization show sincerity and care?

  4. Was the response honest and transparent?

  5. How well did the organization own its mistakes?

Case Study Analysis

  • Identifying stakeholders involved in crises and establishing a crisis management team.

  • Define the roles of each department in addressing the crisis.

  • Develop a comprehensive crisis communication plan, including key messages and press strategy.