Public Relations and Corporate Advertising

1
Public Relations and Corporate Advertising

• Chapter 20 with Duane Weaver

2
Public Relations - defined

• focuses on communication that can foster
  goodwill between a firm and its many constituent
  groups customers, stockholders, suppliers,
  employees, government entities, citizen action
  groups, and the general public.
• OGuinn, Allen, Semenik, 4E, p. 699

3
Todays PR

• Todays major brands tend to be born with
  publicity, not advertising, whereby advertising
  is used to maintain brands and PR is used to
  establish brands. As per The Fall of
  Advertising The Rise of PR.

4
PR and Damage Control

• PR can provide damage control from bad publicity.
• E.G. Intel, 1994..Pentium Chipflaw in floating
  point calculations producing errors to the 5th
  and 6th decimal place.
• PR 1 so insignificant that a flaw once in 27,000
  years
• IBM counteronce very 24 hours, stop shipping
  intel PCs
• Every major newspaper and even Dilbert laughed at
  Intel publicly
• PR 2 Intel admitted division problem and offered
  free chip to anyone experiencing the problem
  475 M replacement program
• E.G. Pepsico and syringe in can
• PR 1 Pepsico considers 100 recall, yet FDA
  suggests not necessary
• PR 2 Pepsico enlist FDA to go on camera with
  Pepsico to defend manufacturing process
• PR 3 Pespico catches woman on film inserting a
  syringe in a can of pepsi after purchase
• PR often reactive, but can be planned and
  proactive

5
PR Objectives

• Promote Goodwill
• Image building, industry events, community
  activities
• Promote a Product or Service
• Press releases, events, brand news, increase
  public awareness
• Prepare internal Communications
• Disseminate information and correct
  misinformation to maintain employee support
• Counteract Negative Publicity
• Damage control function
• Lobby
• Deal with government officials and pre-empt
  pending legislation
• Give Advice and Counsel
• Assist management positioning on public issues,
  prepare employees for public appearances, and
  help management anticipate public repsonses.

6
PR Tools

• Press Releases
• Feature Stories
• Company Newsletters
• Interviews and Press Conferences
• Sponsored Events
• Publicity (unpaid media exposure)
• Buzz Marketing seeding the media
• Viral Marketing consumers marketing to
  consumers via blogs, newsgroups, etc

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Basic PR Strategy

• Proactive
• Guided by marketing objectives, publicizes brands
  and company, offensive approach to PR.
• PR Audit looking for ve newsworthy aspects of
  a firm
• PR Plan identifies objectives and activities
• Current Situation Analysis
• Program Objectives
• Program Rationale
• Communications Vehicles
• Message Content
• Reactive
• Driven by outside influences to the company,
  problem solving based, defensive approach to PR.
• PR Audit same as above (provides ammunition to
  react)
• Identification of Vulnerabilities recognize
  areas where firm has weaknesses so as to be
  prepared for controversy, discussion.

8
Corporate Advertising

• not intended to promote a specific brand,
  ratherintended to establish a favourable
  attitude toward a company as a whole.
• TYPES
• Image
• Majority of corporate advertising is Image.
• Enhance overall image amongst constituents
  consumers, employees, and general public.
• Advocacy
• Establish corporations position on important
  social, political, ore environmental issues.
• Cause-Related
• Features the firms affiliation with an important
  social cause.

9
ETHICS

• SUPERSIZE ME and Ethics.