17

Public Relations,
Publicity, and Corporate
Advertising

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Guerilla Marketing

Aqua Teen Hunger Force

 Guerilla Marketing

• The body of
unconventional
ways of pursuing
conventional
goals.
• A proven method
of achieving
profits with
minimum money.
 Guerilla Marketing Gone Apes
• To promote the new Aqua Teen Hunger
Force Movie, Turner Broadcasting Network
teamed up with Guerilla Interference Inc.
• The Goal: Deploy 400 LED “LiteBright”
displays within 10 major cities.
• Part of the marketing plan was to promote
The Cartoon Network’s eccentric, nighttime,
college-crowd brand of programming Adult
Swim.
 Guerilla Marketing Gone Apes
• Some of Boston’s residents mistook the
devices for explosives and contacted
authorities.
• The city quickly reacted and shut down all
major public transportation and spent
$500,000 deploying police and bomb
sniffing dogs.
• Turner Broadcasting was fined $1,000,000
from the city of Boston and also paid
$1,000,000 to “goodwill” funds to homeland
security.
 Results
• In the days since the event:
– Made national televised news
– The average number of American households
who viewed Aqua Teen Hunger Force rose 5%,
to 1,082,500, from the previous week of
1,030,500 viewers.
– T-shirts were instantly available for sale
portraying the controversial characters.
– Web site spiked 105.2%, to 790,000 from
385,000 one week before.
– Total US Gross: $5,520,368
– US DVD Sales: $11,084,232
– Movie Budget: $750,000
 Ethical Breach?
• Turner Broadcasting failed to notify
the major cities about what was
going on. The lack of communication
cost them unnecessary fines.
• The Ethics Code published by the
Word of Mouth Marketing
Association stresses honesty of
relationship, honesty of opinion, and
honesty of identity.
 Sources:

• http://www.businessweek.com/innovate/cont
ent/feb2007/id20070209_934852_page_2.htm
• http://youtube.com/watch?v=9yigQGKaf2A
• www.Google.com
 Public Relations Defined

AA management
management function
function

which evaluates
evaluates public
public attitudes
attitudes

and identifies
identifies the
the policies
policies and
and procedures
procedures

of an
an organization
organization with
with the
the public
public interest
interest

and executes
executes aa program
program of
of action
action (and
(and communication)
communication)

to earn
earn public
public understanding
understanding and
and acceptance
acceptance
Public Relations Management Process

Determination
Determination and
and
evaluation
evaluation of
of public
public
attitudes
attitudes

Identification
Identification of
of policies
policies
PR
PR and
and procedures
procedures

Development
Development andand
execution
execution of
of the
the
program
program
 Traditional PR Perspective

Customers
Customers

Community
Community Investors
Investors

Public
Public
Relations
Relations
Department
Department
Suppliers
Suppliers Government
Government

Employees
Employees
Integration of PR into the Promotional Mix

Separate Functions
Marketing Public
Department Relations

Coordinated and Equal

Marketing Public
Department Relations

Integrated
Marketing Public
Department Relations
 Marketing Public Relations Functions

Building market excitement before media ads break

Improving ROI

Creating news where there is no news

Introducing a product with little or no advertising

Providing a value-added customer service

Building brand-to-customer bonds

Influencing influentials, giving info to opinion leaders

Defending products at risk, giving consumers reasons to buy

MPR in Practice
 Benefits of MPR

Advantages
A cost-effective way to
Breaks though the clutter
reach the market
Highly targeted way to Circumvents resistance to
conduct public relations sales efforts
Endorsements by Improved media
independent third parties involvement w/customers
Creates influence among
Achievement of credibility
opinion leaders
Makes advertising
Improved ROI
messages more credible
 Benefits of MPR

Disadvantages
Lack of control over media

Difficult to tie in slogans or

other advertising devices

Media time and space aren’t

guaranteed

No standards for effective

measurement
 The Process of Public Relations

Determining
Determining and
and Evaluating
Evaluating Public
Public Attitudes
Attitudes

Establishing
Establishing aa PR
PR Plan
Plan

Developing
Developing and
and Executing
Executing aa PR
PR Program
Program

Measuring
Measuring Program
Program Effectiveness
Effectiveness
 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
 Research on Public Attitudes

Provides
Provides input
input for
for Serves
Serves as
as an
an “early
“early
the
the planning
planning process
process warning
warning system”
system”

Increases
Increases Secures
Secures internal
internal
communications
communications cooperation,
cooperation, support
support
effectiveness
effectiveness
 10 Evaluation Questions

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?
 10 Evaluation Questions

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?
Determining Public Relations Audiences

Internal
Internal or
or External
External or
or
Associated
Associated Independent
Independent

Stockholders and Educators

Investors

Customers and Governments

Clients

Employees Financial Groups

Community Civic and Business

Members Organizations
Vendors and
Suppliers The Media
Communicating With Target Audiences

Internal
Internal or
or External
External or
or
Associated
Associated Independent
Independent

Newsletters Public relations ads

Press releases
Bulletin boards

Direct mail Conferences

Annual reports Research reports

The Media Also Engages in Public Relations
 Implementing the PR Program

Press
Press
Releases
Releases
Press
Press
IInterviews
nterviews Conferences
Conferences

PR
PR Tools
Tools

The
The Exclusives
Exclusives
Internet
Internet
Community
Community
Involvement
Involvement
 Special Olympics Torch Run

*Click outside of the video screen to advance to the next slide

 The Internet as a PR Tool

The Internet…

Allows information to be presented quickly

Provides the media with instant access

to additional sources of information

Allows much more substantial information

to be presented
 Advantages of Public Relations

Credibility
Credibility

Image
Image Cost
Cost
Building
Building Savings
Savings
PR
PR
Provides
Provides
Avoidance
Avoidance
Selectivity
Selectivity
of
of Clutter
Clutter
Lead
Lead
Generation
Generation
Potential Problems of Public Relations

Potential for incomplete

communication process

Potential
Potential Receiver not making
Problems
Problems connection to the source

Lack of coordination with

marketing dept.

Inconsistent, redundant
communications
 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 the participants in
American Idol in Old Navy ads
General Mills Capitalizes on Publicity
Measuring PR Effectiveness

Contributions made?

What was achieved?

Quantitative measures?

Quality?
 Criteria for Measuring PR Effectiveness

Ratio of positive to negative articles Percentage of

positive and
negative articles
Number of impressions . . . by . . .

Over time Subject

On the target audience
Publication
On specific target audiences
Reporter
Percentage of . . Target
audience
Positive articles over time

Negative articles over time

Additional Measures of PR Effectiveness

Personal observation and reaction

Matching objectives and results

The team approach

Management by objectives

Public opinions and surveys

Audits
 Publicity versus Public Relations

Publicity:
The generation of news about a person,
product, or service that appears in the media

A short-term strategy

A subset of public relations

Not always positive

Often originates outside the firm

A Response to Negative Publicity
 Pros and Cons of Publicity

Advantages Disadvantages

Timing difficult or
Substantial credibility impossible to control

Inaccuracy, omission,
News value or distortion may
result

Significant word-of-
mouth

Perception of
endorsement by
media
 Corporate Advertising

An
An extension
extension of
of the
the PR
PR
function
function

Does
Does not
not promote
promote aa specific
specific
product
product or
or service
service

Promotes
Promotes the
the organization
organization

Assuming a
Image Seeks
position on an
enhancement involvement
issue or cause
Why is Corporate Advertising Controversial?

Consumers aren’t
interested in this form of
advertising
Claims
Claims of
of
Opponents
Opponents to to Corporate advertising is
Corporate a waste of money
Corporate
Advertising
Advertising
The firm’s finances or
image must be in trouble

This is a costly form of

corporate self-indulgence
 Objectives of Corporate Advertising

Create
Create aa positive
positive
image
image for
for the
the
firm
firm
Establish
Establish Communicate
Communicate
diversified
diversified the
the
company
company organization’s
organization’s
identity
identity viewpoint
viewpoint
Objectives
Objectives

Help
Help newly
newly Boost
Boost
deregulated
deregulated employee
employee
industries
industries morale
morale
Smooth
Smooth labor
labor
relations
relations
 Types of Corporate Advertising

Image
Image General
General Image
Image Ads
Ads
Advertising
Advertising
Positioning
Positioning Ads
Ads
Event
Event Sponsorship
Sponsorship
Sponsorship
Sponsorship
Recruitment
Recruitment
Advocacy
Advocacy
Advertising Financial
Financial Support
Support
Advertising

Cause-related
Cause-related
Advertising
Advertising
Boeing Advertises to Enhance Its Image

*Click outside of the video screen to advance to the next slide

Employee Recruitment by Grant Thornton
 Event Sponsorship

Corporate
Corporate Sponsor
Sponsor

Sporting
Sporting Music,
Music,
Events
Events Entertainment
Entertainment

Causes
Causes Festivals
Festivals

Cultural
Cultural Events
Events Arts
Arts
 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
 Advocacy Advertising

Advocacy advertising:
The propagation of ideas and
elucidation of controversial social
issues of public importance in a
manner that supports the interests
of the sponsor.
American Gas Association Advocacy Ad
 Cause Related Marketing

Cause related marketing:

A form of marketing whereby
companies link with charities or
nonprofit organizations as
contributing sponsors.
Pros and Cons of Corporate Advertising

Advantages Disadvantages

May have
Excellent vehicle for
questionable
positioning the firm
effectiveness

Takes advantage of Raises questions of

benefits derived from constitutionality and
public relations ethics

Reaches a selected
target market
Measuring Corporate Ad Effectiveness

Attitude
Attitude Surveys
Surveys

Relating
Relating to
to Stock
Stock Prices
Prices
Effective?
Effective?

Focus
Focus Group
Group Research
Research