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Promotional Strategy
MKT4230
Public Relations, Publicity,
and Corporate Advertising
Patricia Knowles, Ph.D.
Associate Professor
Clemson University
1
2
Promotional Strategy
MKT4230
2
Public Relations Defined
This is the definition of public relations:
Textbook
Page 572 - 573
A management function
And identifies the policies and procedures
Of an organization with the public interest
And executes a program of action (& communication)
To earn public understanding and acceptance
Which evaluates public attitudes
3
Promotional Strategy
MKT4230
3
Public Relations Management Stages
These are the three stages of the public relations management process:
Textbook
Page 573
Identification of policies and
procedures
Determination and evaluation of
public attitudes
Development and execution of the
program
PR
4
Promotional Strategy
MKT4230
4
Traditional PR Perspective
This is the traditional view of public relations:
Textbook
Pages 573 - 574
Customers
Employees
Investors
Government
Community
Suppliers
Public Relations
Department
5
Promotional Strategy
MKT4230
5
Integration of PR into the Promotional Mix
This visual shows the integration of public relations into the IMC process:
Textbook
Pages 573 - 574
Marketing
Department
Public
Relations
Separate Functions
Marketing
Department
Public
Relations
Coordinated and Equal
Marketing
Department
Public
Relations
Integrated
6
Promotional Strategy
MKT4230
6
Marketing Public Relations Functions
This is a list of public relations activities deigned to support marketing objectives:
Textbook
Pages 574 - 575
Build market excitement before media ads break
Create ad news where there is no product news
Introduce a product with little or no advertising
Provide a value-added customer service
Build brand-to-customer bonds
Influence the influentials
Improve ROI
Defend products at risk, give consumers reason to buy
7
Promotional Strategy
MKT4230
7
MPR in Practice
This visual presents a real-world example of marketing public relations at work, specifically,
building a brand-to-customer bond.
Textbook
Page 575 / Exhibit 17 - 1
8
Promotional Strategy
MKT4230
8
Benefits of MPR
These are the advantages of using marketing public relations:
Textbook
Pages 576 / Figure 17 - 2
A cost-effective way to reach the
market
Highly targeted way to conduct
public relations
Endorsements by independent third
parties
Achievement of credibility
Makes advertising messages more
credible
Breaks though the clutter
Circumvents resistance to sales
efforts
Improved ROI
Creates influence among opinion
leaders
Improved media involvement
w/customers
9
Promotional Strategy
MKT4230
9
Disadvantages of MPR
These are the disadvantages of using marketing public relations:
Textbook
Page 576 / Figure 17 - 2
Difficult to tie in slogans or other advertising devices
No standards for effective measurement
Lack of control over media
Media time and space aren’t guaranteed
10
Promotional Strategy
MKT4230
10
The Process of Public Relations
This chart outlines the various activities of the public relations process.
Textbook
Pages 576 - 584
Measuring Program Effectiveness
Developing and Executing a PR Program
Establishing a PR Plan
Determining and Evaluating Public Attitudes
11
Promotional Strategy
MKT4230
11
Test Your Knowledge
In public relations targeting, external audiences include:
A. Customers
B. The public at large
C. Suppliers
D. Stockholders
E. All of the above
12
Promotional Strategy
MKT4230
12
Research on Public Attitudes
These are some of the reasons why companies regularly survey public attitudes:
Textbook
Page 576 - 577
Provides input for the
planning process
Serves as an “early warning
system”
Secures internal
cooperation, support
Increases communications
effectiveness
13
Promotional Strategy
MKT4230
13
10 Evaluation Questions
These are the ten key questions for evaluating public relations plans:
1. Does the plan reflect a thorough understanding of the company’s 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 product’s strengths and weaknesses?
5. Does the PR program describe several cogent, relevant conclusions from the research?
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?
Textbook
Page 577 – 578 / Figure 17 - 3
14
Promotional Strategy
MKT4230
14
Determining Public Relations Audiences
The target audience for public relations activities can be broken into two main categories,
internal audiences and external audiences.
Textbook
Pages 578 - 580
Stockholders and Investors
Community Members
Suppliers & Customers
Employees
Internal or Associated
Financial Groups
Educators
Civic & Business Organizations
External or Independent
The Media
Governments
15
Promotional Strategy
MKT4230
15
Implementing the PR Program
These are the various methods by which organizations keep in touch with target audiences:
Textbook
Pages 580 - 582
Press Releases
Community
Involvement
Press
Conferences
Exclusives
Interviews
The Internet
PR Tools
16
Promotional Strategy
MKT4230
16
Advantages of Public Relations
This chart outlines the advantages of using public relations in the IMC program.
Textbook
Pages 582 - 583
Credibility
Lead Generation
Cost Savings
Avoidance of
Clutter
Image Building
Selectivity
PR Provides
These are the potential problems that may arise when using public relations in the IMC
program:
17
Promotional Strategy
MKT4230
17
Potential Problems of Public Relations
Textbook
Page 583
Potential
Problems
Potential for incomplete communication process
Receiver not making connection to the source
Lack of coordination with marketing dept.
Inconsistent, redundant communications
18
Promotional Strategy
MKT4230
18
Test Your Knowledge
Which of the following communications is most likely to have more credibility among its
receivers?
A. Vogue's layout introducing its latest models
B. Volvo's television ad promoting new standard safety features
C. Motor Trend's announcement of the "Car of the Year"
D. The CEO of Ford Motor Company appearing in its ads
E. The appearance of American Idol participants in Old Navy ads
19
Promotional Strategy
MKT4230
19
General Mills Capitalizes on Publicity
This visual shows an ad for General Mills cereals, and demonstrates how General Mills uses
publicity from a variety of sources to promote the importance of whole grain in a healthy
diet.
Textbook
Pages 582 / Exhibit 17 - 11
20
Promotional Strategy
MKT4230
20
Measuring PR Effectiveness
These are the questions that are answered by measuring the effectiveness of PR:
Textbook
Page 584
Contributions made?
What was achieved?
Quantitative measures?
Quality?
21
Promotional Strategy
MKT4230
21
Criteria for Measuring PR Effectiveness
This is a system for measuring the effectiveness of a public relations program that was
developed by Lotus HAL.
Textbook
Page 584 / Figure 17 - 4
22
Promotional Strategy
MKT4230
22
Additional Measures of PR Effectiveness
These are some additional ways to evaluate the effectiveness of a PR campaign:
• Walter Lindenmann recommendations
• Did the audience receive the message?
• Did they pay attention to them?
• Were the messages understood?
• Where the messages retained?
• Mark Weiner suggests
• Media content analysis
• Survey research
• Marketing-mix modeling
Textbook
Page 584
23
Promotional Strategy
MKT4230
23
Publicity vs. Public Relations
This is the definition of publicity:
Textbook
Pages 584 - 586
A short-term strategy
Publicity
The generation of news about a person, product, or service that appears in
the media
A subset of public relations
Not always positive
Often originates outside the firm
24
Promotional Strategy
MKT4230
24
A Response to Negative Publicity
This visual shows an ad that was used by Tree Top to respond to negative publicity the
company received from the media regarding the safety of its apple juice.
Textbook
Pages 586 – 587 / Exhibit 17 - 13
25
Promotional Strategy
MKT4230
25
Pros and Cons of Publicity
These are the advantages and disadvantages of publicity:
Textbook
Pages 587 - 589
Substantial credibility
News value
Significant word-of-mouth
Perception of media endorsement
Advantages
Inaccuracy, omission, or distortion
may result
Timing difficult or impossible to control
Disadvantages
26
Promotional Strategy
MKT4230
26
Corporate Advertising
These are the various characteristics of corporate advertising:
Textbook
Page 589
Does not promote a specific product or service
Image enhancement
Assuming a position on an
issue or cause
Seeks involvement
An extension of the PR function
Promotes the organization
27
Promotional Strategy
MKT4230
27
Why is Corporate Advertising Controversial?
There are number of reasons why corporate advertising is considered controversial:
Textbook
Page 589 - 590
Opponents to Corporate
Advertising
Consumers aren’t interested in this
form of advertising
This is a costly form of corporate self-
indulgence
The firm must be
in trouble
Corporate advertising is
a waste of money
28
Promotional Strategy
MKT4230
28
Objectives of Corporate Advertising
These are the various objectives of corporate advertising:
Textbook
Page 590
Create a positive image for
the firm
Smooth labor relations
Communicate the
organization’s viewpoint
Boost employee morale
Establish diversified
company identity
Help newly deregulated
industries
Objectives
29
Promotional Strategy
MKT4230
29
Types of Corporate Advertising
These are the various types of corporate advertising with special attention toward image
advertising:
Textbook
Page 590 - 596
Positioning Ads
Sponsorships
Recruitment
General Image Ads
Financial Support
Image Advertising
Event Sponsorship
Advocacy Advertising
Cause-related Advertising
30
Promotional Strategy
MKT4230
30
Employee Recruitment by Grant Thornton
This visual shows an example of a recruitment advertisement used by Grant Thornton
designed to attract new employees.
Textbook
Page 591 / Exhibit 17 - 16
31
Promotional Strategy
MKT4230
31
Event Sponsorship
These are the various types of activities sponsored by corporations.
Textbook
Page 592 / Figure 17 - 8
Sporting Events Music, Entertainment
Causes Festivals
Cultural Events Arts
Corporate Sponsor
32
Promotional Strategy
MKT4230
32
Test Your Knowledge
Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing
circuit?
A. To build equity and gain affinity with its target market
B. To show its position on sports marketing
C. To create a generic positioning strategy
D. To further segment its target market
E. To reduce its overall promotional expenses
33
Promotional Strategy
MKT4230
33
Advocacy Advertising
This is the definition of another form of corporate advertising, known as advocacy
advertising:
Textbook
Page 593
Propagating ideas and
elucidating controversial social issues of public
importance in a manner that supports the interests of
the sponsor
34
Promotional Strategy
MKT4230
34
Advocacy Ad
This visual shows an examples of an advocacy ad.
Textbook
Page 593 / Exhibit 17 - 18
35
Promotional Strategy
MKT4230
35
Cause Related Marketing
This is the definition of cause-related advertising:
Textbook
Pages 595 - 596
A form of marketing whereby companies link
with charities or nonprofit organizations
as contributing sponsors
36
Promotional Strategy
MKT4230
36
Cause Related Marketing
This is a cause-related ad by New Balance:
Textbook
Pages 595 - 596
37
Promotional Strategy
MKT4230
37
Pros and Cons of Corporate Advertising
These are the advantages and disadvantages of corporate advertising.
Textbook
Pages 596 - 597
Raises questions of constitutionality
and ethics
May have questionable
effectiveness
Excellent vehicle for positioning the
firm
Takes advantage of benefits derived
from public relations
Reaches a selected target market
Advantages Disadvantages
38
Promotional Strategy
MKT4230
38
Measuring Corporate Ad Effectiveness
These are the various methods that can be used to evaluate the effectiveness of corporate
advertising.
Textbook
Page 597
Stock Prices
Attitude Surveys
Focus Group Research
Effective

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Chapter 17 Presentation

  • 1. Promotional Strategy MKT4230 Public Relations, Publicity, and Corporate Advertising Patricia Knowles, Ph.D. Associate Professor Clemson University 1
  • 2. 2 Promotional Strategy MKT4230 2 Public Relations Defined This is the definition of public relations: Textbook Page 572 - 573 A management function And identifies the policies and procedures Of an organization with the public interest And executes a program of action (& communication) To earn public understanding and acceptance Which evaluates public attitudes
  • 3. 3 Promotional Strategy MKT4230 3 Public Relations Management Stages These are the three stages of the public relations management process: Textbook Page 573 Identification of policies and procedures Determination and evaluation of public attitudes Development and execution of the program PR
  • 4. 4 Promotional Strategy MKT4230 4 Traditional PR Perspective This is the traditional view of public relations: Textbook Pages 573 - 574 Customers Employees Investors Government Community Suppliers Public Relations Department
  • 5. 5 Promotional Strategy MKT4230 5 Integration of PR into the Promotional Mix This visual shows the integration of public relations into the IMC process: Textbook Pages 573 - 574 Marketing Department Public Relations Separate Functions Marketing Department Public Relations Coordinated and Equal Marketing Department Public Relations Integrated
  • 6. 6 Promotional Strategy MKT4230 6 Marketing Public Relations Functions This is a list of public relations activities deigned to support marketing objectives: Textbook Pages 574 - 575 Build market excitement before media ads break Create ad news where there is no product news Introduce a product with little or no advertising Provide a value-added customer service Build brand-to-customer bonds Influence the influentials Improve ROI Defend products at risk, give consumers reason to buy
  • 7. 7 Promotional Strategy MKT4230 7 MPR in Practice This visual presents a real-world example of marketing public relations at work, specifically, building a brand-to-customer bond. Textbook Page 575 / Exhibit 17 - 1
  • 8. 8 Promotional Strategy MKT4230 8 Benefits of MPR These are the advantages of using marketing public relations: Textbook Pages 576 / Figure 17 - 2 A cost-effective way to reach the market Highly targeted way to conduct public relations Endorsements by independent third parties Achievement of credibility Makes advertising messages more credible Breaks though the clutter Circumvents resistance to sales efforts Improved ROI Creates influence among opinion leaders Improved media involvement w/customers
  • 9. 9 Promotional Strategy MKT4230 9 Disadvantages of MPR These are the disadvantages of using marketing public relations: Textbook Page 576 / Figure 17 - 2 Difficult to tie in slogans or other advertising devices No standards for effective measurement Lack of control over media Media time and space aren’t guaranteed
  • 10. 10 Promotional Strategy MKT4230 10 The Process of Public Relations This chart outlines the various activities of the public relations process. Textbook Pages 576 - 584 Measuring Program Effectiveness Developing and Executing a PR Program Establishing a PR Plan Determining and Evaluating Public Attitudes
  • 11. 11 Promotional Strategy MKT4230 11 Test Your Knowledge In public relations targeting, external audiences include: A. Customers B. The public at large C. Suppliers D. Stockholders E. All of the above
  • 12. 12 Promotional Strategy MKT4230 12 Research on Public Attitudes These are some of the reasons why companies regularly survey public attitudes: Textbook Page 576 - 577 Provides input for the planning process Serves as an “early warning system” Secures internal cooperation, support Increases communications effectiveness
  • 13. 13 Promotional Strategy MKT4230 13 10 Evaluation Questions These are the ten key questions for evaluating public relations plans: 1. Does the plan reflect a thorough understanding of the company’s 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 product’s strengths and weaknesses? 5. Does the PR program describe several cogent, relevant conclusions from the research? 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? Textbook Page 577 – 578 / Figure 17 - 3
  • 14. 14 Promotional Strategy MKT4230 14 Determining Public Relations Audiences The target audience for public relations activities can be broken into two main categories, internal audiences and external audiences. Textbook Pages 578 - 580 Stockholders and Investors Community Members Suppliers & Customers Employees Internal or Associated Financial Groups Educators Civic & Business Organizations External or Independent The Media Governments
  • 15. 15 Promotional Strategy MKT4230 15 Implementing the PR Program These are the various methods by which organizations keep in touch with target audiences: Textbook Pages 580 - 582 Press Releases Community Involvement Press Conferences Exclusives Interviews The Internet PR Tools
  • 16. 16 Promotional Strategy MKT4230 16 Advantages of Public Relations This chart outlines the advantages of using public relations in the IMC program. Textbook Pages 582 - 583 Credibility Lead Generation Cost Savings Avoidance of Clutter Image Building Selectivity PR Provides
  • 17. These are the potential problems that may arise when using public relations in the IMC program: 17 Promotional Strategy MKT4230 17 Potential Problems of Public Relations Textbook Page 583 Potential Problems Potential for incomplete communication process Receiver not making connection to the source Lack of coordination with marketing dept. Inconsistent, redundant communications
  • 18. 18 Promotional Strategy MKT4230 18 Test Your Knowledge Which of the following communications is most likely to have more credibility among its receivers? A. Vogue's layout introducing its latest models B. Volvo's television ad promoting new standard safety features C. Motor Trend's announcement of the "Car of the Year" D. The CEO of Ford Motor Company appearing in its ads E. The appearance of American Idol participants in Old Navy ads
  • 19. 19 Promotional Strategy MKT4230 19 General Mills Capitalizes on Publicity This visual shows an ad for General Mills cereals, and demonstrates how General Mills uses publicity from a variety of sources to promote the importance of whole grain in a healthy diet. Textbook Pages 582 / Exhibit 17 - 11
  • 20. 20 Promotional Strategy MKT4230 20 Measuring PR Effectiveness These are the questions that are answered by measuring the effectiveness of PR: Textbook Page 584 Contributions made? What was achieved? Quantitative measures? Quality?
  • 21. 21 Promotional Strategy MKT4230 21 Criteria for Measuring PR Effectiveness This is a system for measuring the effectiveness of a public relations program that was developed by Lotus HAL. Textbook Page 584 / Figure 17 - 4
  • 22. 22 Promotional Strategy MKT4230 22 Additional Measures of PR Effectiveness These are some additional ways to evaluate the effectiveness of a PR campaign: • Walter Lindenmann recommendations • Did the audience receive the message? • Did they pay attention to them? • Were the messages understood? • Where the messages retained? • Mark Weiner suggests • Media content analysis • Survey research • Marketing-mix modeling Textbook Page 584
  • 23. 23 Promotional Strategy MKT4230 23 Publicity vs. Public Relations This is the definition of publicity: Textbook Pages 584 - 586 A short-term strategy Publicity The generation of news about a person, product, or service that appears in the media A subset of public relations Not always positive Often originates outside the firm
  • 24. 24 Promotional Strategy MKT4230 24 A Response to Negative Publicity This visual shows an ad that was used by Tree Top to respond to negative publicity the company received from the media regarding the safety of its apple juice. Textbook Pages 586 – 587 / Exhibit 17 - 13
  • 25. 25 Promotional Strategy MKT4230 25 Pros and Cons of Publicity These are the advantages and disadvantages of publicity: Textbook Pages 587 - 589 Substantial credibility News value Significant word-of-mouth Perception of media endorsement Advantages Inaccuracy, omission, or distortion may result Timing difficult or impossible to control Disadvantages
  • 26. 26 Promotional Strategy MKT4230 26 Corporate Advertising These are the various characteristics of corporate advertising: Textbook Page 589 Does not promote a specific product or service Image enhancement Assuming a position on an issue or cause Seeks involvement An extension of the PR function Promotes the organization
  • 27. 27 Promotional Strategy MKT4230 27 Why is Corporate Advertising Controversial? There are number of reasons why corporate advertising is considered controversial: Textbook Page 589 - 590 Opponents to Corporate Advertising Consumers aren’t interested in this form of advertising This is a costly form of corporate self- indulgence The firm must be in trouble Corporate advertising is a waste of money
  • 28. 28 Promotional Strategy MKT4230 28 Objectives of Corporate Advertising These are the various objectives of corporate advertising: Textbook Page 590 Create a positive image for the firm Smooth labor relations Communicate the organization’s viewpoint Boost employee morale Establish diversified company identity Help newly deregulated industries Objectives
  • 29. 29 Promotional Strategy MKT4230 29 Types of Corporate Advertising These are the various types of corporate advertising with special attention toward image advertising: Textbook Page 590 - 596 Positioning Ads Sponsorships Recruitment General Image Ads Financial Support Image Advertising Event Sponsorship Advocacy Advertising Cause-related Advertising
  • 30. 30 Promotional Strategy MKT4230 30 Employee Recruitment by Grant Thornton This visual shows an example of a recruitment advertisement used by Grant Thornton designed to attract new employees. Textbook Page 591 / Exhibit 17 - 16
  • 31. 31 Promotional Strategy MKT4230 31 Event Sponsorship These are the various types of activities sponsored by corporations. Textbook Page 592 / Figure 17 - 8 Sporting Events Music, Entertainment Causes Festivals Cultural Events Arts Corporate Sponsor
  • 32. 32 Promotional Strategy MKT4230 32 Test Your Knowledge Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing circuit? A. To build equity and gain affinity with its target market B. To show its position on sports marketing C. To create a generic positioning strategy D. To further segment its target market E. To reduce its overall promotional expenses
  • 33. 33 Promotional Strategy MKT4230 33 Advocacy Advertising This is the definition of another form of corporate advertising, known as advocacy advertising: Textbook Page 593 Propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor
  • 34. 34 Promotional Strategy MKT4230 34 Advocacy Ad This visual shows an examples of an advocacy ad. Textbook Page 593 / Exhibit 17 - 18
  • 35. 35 Promotional Strategy MKT4230 35 Cause Related Marketing This is the definition of cause-related advertising: Textbook Pages 595 - 596 A form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors
  • 36. 36 Promotional Strategy MKT4230 36 Cause Related Marketing This is a cause-related ad by New Balance: Textbook Pages 595 - 596
  • 37. 37 Promotional Strategy MKT4230 37 Pros and Cons of Corporate Advertising These are the advantages and disadvantages of corporate advertising. Textbook Pages 596 - 597 Raises questions of constitutionality and ethics May have questionable effectiveness Excellent vehicle for positioning the firm Takes advantage of benefits derived from public relations Reaches a selected target market Advantages Disadvantages
  • 38. 38 Promotional Strategy MKT4230 38 Measuring Corporate Ad Effectiveness These are the various methods that can be used to evaluate the effectiveness of corporate advertising. Textbook Page 597 Stock Prices Attitude Surveys Focus Group Research Effective