Ch 17 IMC Student PDF

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    Copyright 2015 McGraw-Hill Education. All rightsreserved. No reproduction or distribution without the prior

    written consent of McGraw-Hill Education.

    CHAPTER 17

    Public Relations,Publicity, and

    CorporateAdvertising

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    17-2

    Public Relations (PR)

    Evaluates public attitudes

    Identifies the policies and procedures of an

    organization with the public interest

    Executes a program of action to earn public

    understanding and acceptance

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    Role of PR

    Traditional role

    Maintain mutually

    beneficialrelationships between

    the organization and

    its publics

    Act as a managementcommunications

    function

    New role

    Work together with

    the marketingdepartment

    Contribute to the IMC

    process in a way that

    is consistent withmarketing goals

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    17-4

    Marketing Public Relations (MPR)

    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

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    Advantages of MPRs

    A cost-effective way toreach the market

    Highly targeted way toconduct public relations

    Endorsements byindependent third parties

    Achievement of credibility

    Makes advertisingmessages more credible

    Breaks though the clutter

    Circumvents resistance tosales efforts

    Improved ROI

    Creates influence amongopinion leaders

    Improved mediainvolvement w/customers

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    17-6

    Disadvantages of MPRs

    Difficult to tie in slogans or otheradvertising devices

    No standards for effectivemeasurement

    Lack of control over media

    Media time and space arentguaranteed

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    Determining and Evaluating Public

    Attitudes Reasons

    Provides input into the planning process

    Serves as an early warning system

    Secures support internally

    Increases the effectiveness of the communication

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    Steps to Develop a PR Plan

    Define public relations problems

    Plan and program

    Take action and communicate

    Evaluate the program

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    Types of Target Audiences

    Internal audiences

    People who are connected to

    a firm with whom the firm

    communicates on a routinebasis

    Employees

    Stockholders

    Investors

    Members of the local

    community

    Suppliers

    Current customers

    External audiences

    People who are not closely

    connected with the

    organization Media

    Educators

    Civic and business

    organizations

    Governments

    Financial groups

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    Tools Used for Implementing the PR Program

    Press Releases

    CommunityInvolvement

    PressConferences

    Exclusives

    Interviews

    The Internet

    PR Tools

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    Advantages of PR

    Credibility

    Lead Generation

    Cost Savings

    Avoidance of

    Clutter

    Image Building

    Selectivity

    PR

    Provides

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    Disadvantages of PR

    Potential

    Problems

    Potential for incompletecommunication process

    Receiver not making

    connection to the source

    Lack of coordination with

    marketing dept.

    Inconsistent, redundant

    communications

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    Publicity

    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

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    Video News Release (VNR)

    Publicity piece produced by publicists so that

    stations can air it as a news story

    Used by marketers to have control over the time

    and place where information is released

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    Pros and Cons of Publicity

    Substantial credibility

    News value

    Significant word-of-mouth

    Perception of mediaendorsement

    Advantages

    Inaccuracy, omission, ordistortionmay result

    Timing difficult orimpossible to control

    Disadvantages

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    Corporate Advertising

    An extension of the PRfunction

    Promotes the organization

    Does not promote a specific

    product or service

    Image

    enhancement

    Assuming a position

    on an issue or cause

    Seeks

    involvement

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    Reasons for Corporate Advertising

    Being Controversial

    Consumers are not interested

    Costly form of self-indulgence

    Belief that the firm must be in trouble

    Perceived as a waste of money

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    Objectives of Corporate Advertising

    Create a positive

    image for the

    firm

    Smooth labor

    relations

    Communicate

    the

    organizations

    viewpoint

    Boost

    employeemorale

    Establish

    diversified

    company

    identity

    Help newly

    deregulatedindustries

    Objectives

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    Types of Corporate Advertising

    Positioning Ads

    Sponsorships

    Recruitment

    General Image Ads

    Financial Support

    ImageAdvertising

    Event

    Sponsorship

    Advocacy

    Advertising

    Cause-related

    Advertising

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    Advantages and Disadvantages of

    Corporate Advertising

    Raises questions ofconstitutionality and

    ethics

    May have questionableeffectiveness

    Excellent vehicle forpositioning the firm

    Takes advantage ofbenefits derived from

    public relations

    Reaches a selectedtarget market

    Advantages Disadvantages