Because learning changes everything.

Chapter 17

Public Relations, Publicity,

and Corporate Advertising

© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
 Learning Objectives

LO1 Describe the roles of public relations, publicity, and

corporate advertising in the promotional mix.

LO2 Compare the advantages, disadvantages, and

effectiveness of public relations and publicity.

LO3 Discuss the advantages, disadvantages, and

effectiveness of corporate advertising.

LO4 Compare the different forms of corporate advertising.

© McGraw Hill 2
 Public Relations 1

The Traditional Definition of PR

• Public relations (PR) is defined as the management
function which evaluates public attitudes, identifies
the policies and procedures of an organization with
the public interest, and executes a program of action
(and communication) to earn public understanding
and acceptance.

LO17-1

© McGraw Hill 3
 Public Relations 2

The New Role of PR

• Traditional role:
• Maintain mutually beneficial relationships between the organization and its
publics.

• Act as a marketing communications function.

• New role:
• Work together with marketing department.

• Contribute to IMC process that is consistent with marketing goals.

• Integrating PR into the Promotional Mix

• Must include traditional and new responsibilities.
LO17-2

© McGraw Hill 4
 Public Relations 3

Marketing Public Relations Functions

• Marketing public relations (MPR): Public relations activities
designed to support marketing objectives.
• Functions:
• Building marketplace excitement before media advertising breaks.
• Improving ROI.
• Creating advertising news where there is no product news.
• Introducing product with little or no advertising.
• Providing value-added customer service.
• Building brand-to-customer bonds.
• Influencing the influentials.
• Defending products at risk and giving consumers a reason to buy.

© McGraw Hill 5
 The Process of Public Relations 1

Determining and Evaluating Public Attitudes

• Reasons for conducting research:
• Provides input into planning process.

• Serves as early warning system. In conducting research, firms are able

to identify problems or potential problems and handle them before they
become more serious issues.
• Secures support internally. If a problem exists and is identified early on, PR
practitioners will be able to more easily garner internal support to fix the
problem.

• Increases effectiveness of the communication.

© McGraw Hill 6
 The Process of Public Relations 2

Establishing a PR Plan
• Four-step process:
• Define public relations problems.

• Plan and program.

• Take action and communicate.

• Evaluate the program.

© McGraw Hill 7
 The Process of Public Relations 3

Developing and Executing the PR Program

• Determining relevant target audiences:
• Internal audiences: People who are connected to a firm with whom the
firm communicates on a routine basis.

• Employees of the firm.

• Stockholders and investors.

• Community members.

• Suppliers and customers.

© McGraw Hill 8
 The Process of Public Relations 4

Developing and Executing the PR Program continued

• Determining relevant target audiences: continued
• External audiences: People who are not closely connected with the
organization.

• Media.

• Educators.

• Civic and business organizations.

• Governments.

• Financial groups.

© McGraw Hill 9
 The Process of Public Relations 5

Developing and Executing the PR Program continued

• Implementing the PR program:

• Press release: Statement provided to the media.

• Must be factual, true, and of interest to the medium and its audience.

• Press conferences: Delivering information by interacting directly with the

media.

• Exclusives: Exclusives involve offering one particular medium exclusive rights

to the story if that medium reaches a substantial number of people in the target
audience.

© McGraw Hill 10
 The Process of Public Relations 6

Developing and Executing the PR Program continued

• Implementing the PR Program: continued

• Interviews: Interactions involving a spokesperson answering questions

directed toward him or her. OR Personal interviews with
spokespeople or top management.

• Community involvement: Supporting and contributing to a community.

• Internet: Disseminate information electronically.

• Social networks and blogs: Online social platforms.

• Digital public relations: Intersection between traditional public

relations activities and new digital marketing functions.

© McGraw Hill 11
 The Process of Public Relations 7
Advantages and Disadvantages of PR
• Advantages:
• Credibility.

• Cost. • Disadvantage:

• Avoidance of clutter.(Because they are • Potential for incomplete

typically perceived as news items, communication process.
public relations messages are not subject
to the clutter of ads.) • Lack of connection
between receiver and
• Lead generation(Information about sender.
technological innovations, medical
breakthroughs, and the like results • Lack of coordination with
almost immediately in a multitude of marketing unit.
inquiries. These inquiries may give the
firm some quality sales leads.).

• Ability to reach specific groups.

• Image building.
© McGraw Hill 12
 The Process of Public Relations 8

Measuring the Effectiveness of PR

• Determines what has been achieved.
• Provides a way to measure achievements quantitatively.
• Provides a way to judge the quality of achievements and activities.

© McGraw Hill 13
 The Process of Public Relations 9

Measuring the Effectiveness of PR continued

• PR evaluation enables organizations to:
• Validate results of their efforts.

• Link results to business outcomes.

• Credibly merchandise impact of results to PR program funders.

• Set and develop better objectives and strategies.

• Make midcourse adjustments and corrections.

• Regularly adapt their measurement approaches.

© McGraw Hill 14
 The Process of Public Relations 10

Measuring the Effectiveness of PR continued

• Methods:
• Media content analysis.

• Survey research.

• Marketing-mix modeling.

© McGraw Hill 15
 Publicity 1

Publicity
• Publicity refers to the generation of news about a person, product, or service that
appears in broadcast digital or print media.
• Differs from public relations by:
• Being a short-term strategy.

• Not always being positive.

• Not always being controlled or paid by the organization.

© McGraw Hill 16
 Publicity 2

The Power of Publicity

• Publicity more powerful than advertising, sales promotion, and other
forms of public relations because:

• Publicity is highly credible.

• Publicity information may be perceived as endorsed by the medium in

which it appears.

• Publicity has news value and frequently generates exposure.

© McGraw Hill 17
 Publicity 3

The Control and Dissemination of Publicity

• Sometimes information leaks out—adverse publicity.

• Some publicity can benefit marketers.

• Video news release (VNR):

• Publicity piece produced by publicists so stations air it as a news story.

• Marketers have control over time and place where information is released.

© McGraw Hill 18
 Publicity 4

Advantages and Disadvantages of Publicity

• Advantages: • Disadvantages:
• Substantial credibility. • Lack of control.

• News value. • Timing.

• Significant word-of-mouth. • Accuracy.

• Perception of media
endorsement.

© McGraw Hill 19
 Corporate Advertising 1

Corporate Advertising
Corporate advertising is designed to promote the firm overall—either by
enhancing its image, assuming a position on a social issue or cause, or seeking
direct involvement from the market.
• Controversial because:
• Consumers are not interested.

• Costly form of self-indulgence.

• Belief that the firm must be in trouble.

• Perceived as a waste of money.

LO17-3

© McGraw Hill 20
 Corporate Advertising 2

Objectives of Corporate Advertising

• Creating positive image for the firm.
• Getting across firm’s views on social, business, and environmental
issues.
• Boosting employee morale and smoothing labor relations.
• Helping newly deregulated industries ease consumer uncertainty and
answer investor questions.
• Helping diversified companies establish identity for parent firm rather
than relying solely on brand names.

© McGraw Hill 21
 Corporate Advertising 3

Types of Corporate Advertising

1# Image advertising: Advertising designed to promote the organization’s
overall image

• Methods:
 General image or positioning ads—Ads designed to create an image
of the firm in mind.
 Sponsorships—Firms often run corporate image advertising on TV
programs or specials.
 Recruiting—Image advertising designed to attract new employees.
 Generating financial support—Some corporate advertising is
designed to generate investments in the corporation.

LO17-4

© McGraw Hill 22
 Corporate Advertising 4

Types of Corporate Advertising continued

2# Event sponsorships:
• Sponsoring specific events or causes as part of a marketing strategy.

• Builds equity and gains affinity with target audiences.

Hertz believes a NASCAR

sponsorship is a good investment.

© McGraw Hill Action Sports Photography/ Shutterstock 23

 Corporate Advertising 5

Types of Corporate Advertising continued

3# Cause-related advertising:
• Linking with nonprofit organizations as contributing sponsors.

• Takes time and effort to be successful.

4# Advocacy advertising—This form of advertising is designed to promote

the organization through the taking of a position on an issue rather than through the
promotion of the firm directly.

© McGraw Hill 24
 Corporate Advertising 6

Advantages and Disadvantages of Corporate Advertising

• Advantages:
• Excellent vehicle for positioning the firm.

• Takes advantage of benefits derived from public relations.

• Reaches a selected target market.

• Disadvantages:
• Questionable effectiveness.

• Raises questions of constitutionality and ethics.

© McGraw Hill 25
 Corporate Advertising 7

Measuring the Effectiveness of Corporate Advertising

• Attitude surveys.
• Studies relating corporate advertising and stock prices.
• Focus group research.

© McGraw Hill 26
 End of Main Content

Because learning changes everything. ®

www.mheducation.com

© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.