Public Relations
A strategic communication process that builds mutually beneficial relationships between organizations and their publics.
Manages communications with every group connected with the company. Ex: consumers, suppliers, media, shareholders, community members, govt, etc
Public Relations Functions
- Identify internal and external stakeholders.
- Assess the corporate responsibility
- Create positive image building activities.
- Prevent or reduce image damage.
Public Relations STRENGTHS
- Reaching elusive audiences.
- Image reputation management.
- Credibility.
- Relatively low cost.
Public Relations WEAKNESSES
- Relative loss of control.
- Measurement difficulties (effectiveness)
Internal Stakeholders
- Employees
- Unions
- Shareholders
- Channel members
- Customers
- Suppliers
- Board members
External Stakeholders
- Media
- Local community
- Financial community
- Govt
- Special-interest groups
- Suppliers
- Regulatory
Public Relations Tools
- press releases
- newspaper stories
- website updates
- news stories (via media)
- annual reports
Corporate Social Responsibility
Firms have an obligation to be ethical and transparent in the way they go about business.
Ways to Practice Corporate Social Responsibility
Economic
Environmental
Social
Image Destroying Activities
- Discrimination
- harassment
- pollution
- misleading communications
- deceptive communications
- offensive communications
Image Building Activities
- empowerment of employees
- charitable contributions
- sponsoring local events
- selling environmentally safe products
- outplacement programs
- support community events
Cause Related Marketing (CRM)
Benefits include:
-intangible elements - goodwill and top of mind
-increased business
-can create a favorable image of the business
-can change consumers perceptions of the business
BUT, one cause may be liked by one person and not the other which makes picking a cause to support difficult
Cause examples
- improving public schools
- dropout prevention
- scholarships
- cleaning up the environment
- community health education
Consumers are NOT willing to sacrifice:
- price
- quality
- convenience
- availability
- performance
Sponsorships
The firm pays money to sponsor some group, or something that is part of an activity.
Sponsorship marketing can:
-build brand equity
-produce positive feelings transferred to brand
Sponsorship Marketing Objectives
- enhance company image
- increase firm visibility
- differentiate a company or brand
- showcase specific goods or services
- develop a closer relationship with current and prospective customers
- unload excess inventory
Product Placement
Planned insertion of a brand or product into a movie, television show and some other media program with the purpose of influencing viewers. They: -increase awareness -create a more positive feeling toward brand -no immediate impact on sales -have a low cost per viewer Examples: - ET and Reese's Pieces
Branded Entertainment
The integration of entertainment and advertising by embedding brands into the storyline of a movie, television shows, or other entertainment medium.
Use increased sharply with reality shows.
Buzz Marketing
AKA word of mouth advertising. Major emphasis is for consumers to pass along information about a product or service. It works because: -people trust someone elses opinion -people like to give their opinion
Four Pillars
- Identify Stakeholders
- Study stakeholders
- Prioritize stakeholders
- Contact stakeholders
Reactive Strategies
- Pre-emptive action
- Offensive response
- Defensive response
- Diversionary response
- Vocal commiseration
- Rectifying behavior
- Deliberate inaction
Preemptive Action
Action taken before the opposition launches its charge
Prebuttal - releasing the bad news itself
Offensive Resonse
- Attack
- Embarrassment
- Shock
- Standing Firm
- Threat
Defensive Response
- Denial
- Excuse
- Justification
- Reversal
