PR, Publicity, and Corporate Advertising Public Relations, Publicity, and „ Tools for communicating information about an organization, its products, and its Corporate Advertising services in order to benefit the firm and its offerings

Why Engage in PR? How has the Role of PR Changed?

Traditional Role: „ Goodwill Communicating and gaining acceptance of policies and programs in the community

„ Promote a Product or Company New Role: More marketing-oriented (Marketing Public Relations – MPR) Operates within a marketing department to develop programs „ Internal Communications and policies Supports marketing objectives and adds value to the IMC program „ Lobbying

What is MPR? How can MPR be used?

„ Developing programs that encourage purchase and satisfaction by communicating information and delivering „ Builds a bond between the brand and customer impressions „ Influence the influential „ They link a company and its products with the needs and interests of consumer „ Give consumers a reason to buy

„ Has a sales focus but is perceived as credible „ Helps introduce a product and build excitement for a product before advertising

1 Marketing Public Relations Target’s IMC Campaign

„ Target wanted to launch its own credit card to build long- „ TV and print ads term relationships with customers „ Sunday newspaper circular

„ Devised a “Take Charge of Education” program, a fund „ In-store kiosks with brochures raising program for local schools „ In-store banners 1% of purchases made with the Target card go directly to the school of their choice „ Direct mailing package distributed to 100,000 schools across the US announcing the program „ Initial objective: 100,00 new card users „ Also sponsored causes such as Grants for art education, „ Targeted: parent with school age kids, female 25-54, “Good Neighbors” volunteer program, and “Earth living in suburbs, with HH income of $50,000+ Savers”, a kids environment club

Direct Mailing to parents, teachers, etc.

Newspaper circular

Mailing to the prospective schools

Scholarships and Awards Teacher Scholarships sponsored by Target

Additional programs Partnership promotion sponsored with SC Johnson

2 Target’s Results What do PR people do?

„ 136,000 new credit cards in 9 months (36% over „ Determine the public’s existing attitude toward their goal) the firm Helps planning Serves as early warning system for problems „ 32% of schools participated that received „ Design a PR plan that is proactive rather than the enrollment kits (5,000 more than projected) reactive „ Execute the plan Determine relevant target audiences „ Cardholders visited Target 2X as often as non- Decide on tools card holders and spent 3X more „ Determine the effectiveness of the plan

Who are the Target Audiences? What are the Tools?

„ Internal: employees, stockholders, „ Press release investors, customers, suppliers „ Video news releases (VNRs) „ Press conference „ External: media, govt., educators, „ Exclusives financial groups, civic groups „ Interviews „ Community involvement – sponsor events „ Company newsletter

Newspaper Article from News Release

3 How do we Measure the NBC Nightly News Broadcast Effectiveness of our PR Efforts?

„ Ad executive brought in to lead U.S. in war message „ Matching results with objectives Charlotte Beers, Undersecretary of State, former CEO of Ogilvy and Mather „ Surveys Mission: to market the U.S. “brand” and connect with „ Personal observation and reactions “hearts and minds” abroad, “the best we can do is open a dialogue of mutual respect and „ Audits understanding” (Beers) http://www.msnbc.com/news/654355.asp

What are the Advantages of using What’s the downside? Public Relations?

„ Credibility „ Lack of control over material „ Low cost „ Breaks through the clutter „ Media time and space aren’t guaranteed „ Image building „ Get over consumer resistance „ Measurement is difficult

What is Publicity?

„ Generating news about a product or service in the media

„ Short-term strategy (whereas PR extends over a period of time)

„ News isn’t always positive or under the control of the organization (whereas PR provides positive info about a firm and is usually controlled by the firm)

4 Why is Publicity so Powerful? What are the disadvantages?

„ Highly credible rd reported by a 3 party like a newscaster, magazine, „ Timing – can’t be guaranteed or newspaper, Consumer Reports) „ News value „ Accuracy – what is aired or printed isn’t up „ Generates a lot of impressions to you „ Word of mouth is high

How do we Measure the Corporate Advertising Effectiveness of Publicity?

Ketchum Effectiveness Yardstick: „ Promoting the firm by enhancing its image, Level 1 – media placements, impressions assuming a position on a social issue, or seeking involvement from the market Level 2 – Awareness, comprehension, retention

Level 3 – Opinion change, attitude change, behavioral change

Why do Corporate Image Types of Corporate Advertising Advertising?

„ Image advertising „ Boost employee morale and improve relations Promote the organization’s image through ads, sponsorship, recruiting

„ Give investors information and reduce uncertainty „ Advocacy advertising Promote a position on an issue rather than the firm „ Help diversified companies establish an identity directly

„ Helps position the firm and reach target markets not „ Cause- related advertising reached through other forms of advertising Sponsor of a charity or non-profit organization

5 Nortel’s “What do you want the Internet to be?” campaign Olympic Gold Medalist runner Ads demonstrate the different ways that the Internet can be used Michael Johnson – Nortel carries Internet traffic, data, and voice at a speed that leads the industry

Demonstrates the Internet as a teacher through Nupur Lala, the 14 year old National Spelling Bee Champion and Cyberphile

Copy notes that Nortel will make Michael look as if he is standing still

Chicken of the Sea is a Corporate sponsor of the US Synchronized Swimming National Team

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