1

7
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 Networks eccentric, nighttime,
college-crowd brand of programming Adult
Swim.

Guerilla Marketing Gone Apes

Some of Bostons 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
and
of
and
to

evaluates
evaluates public
public attitudes
attitudes
identifies
identifies the
the policies
policies and
and procedures
procedures
an
an organization
organization with
with the
the public
public interest
interest
executes
executes aa program
program of
of action
action (and
(and communication)
communication)
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

PR
PR

Identification
Identification of
of policies
policies
and
and procedures
procedures
Development
Development and
and
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
Department

Public
Relations

Coordinated and Equal

Marketing
Department

Public
Relations
Integrated

Marketing
Department

Public
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
reach the market

Breaks though the clutter

Highly targeted way to

conduct public relations

Circumvents resistance to
sales efforts

Endorsements by
independent third parties

Improved media
involvement w/customers

Achievement of credibility

Creates influence among

opinion leaders

Makes advertising
messages more credible

Improved ROI

Benefits of MPR

Disadvantages
Lack of control over media
Difficult to tie in slogans or
other advertising devices
Media time and space arent
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
the
the planning
planning process
process

Serves
Serves as
as an
an early
early
warning
warning system
system

Increases
Increases
communications
communications
effectiveness
effectiveness

Secures
Secures internal
internal
cooperation,
cooperation, support
support

10 Evaluation Questions

1. Does the plan reflect a thorough

understanding of the companys 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
products 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
Associated
Associated

External
External or
or
Independent
Independent

Stockholders and
Investors

Educators

Customers and
Clients

Governments

Employees

Financial Groups

Community
Members

Civic and Business

Organizations

Vendors and
Suppliers

The Media

Communicating With Target Audiences

Internal
Internal or
or
Associated
Associated

External
External or
or
Independent
Independent

Newsletters

Public relations ads

Bulletin boards

Press releases

Direct mail

Conferences

Annual reports

Research reports

The Media Also Engages in Public Relations

Implementing the PR Program

Press
Press
Releases
Releases
Press
Press
Conferences
Conferences

IInterviews
nterviews

PR
PR Tools
Tools
The
The
Internet
Internet

Exclusives
Exclusives
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
Cost
Cost
Savings
Savings

Image
Image
Building
Building

PR
PR
Provides
Provides
Avoidance
Avoidance
of
of Clutter
Clutter

Selectivity
Selectivity
Lead
Lead
Generation
Generation

Potential Problems of Public Relations

Potential for incomplete
communication process

Potential
Potential
Problems
Problems

Receiver not making

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
Number of impressions . . .
Over time
On the target audience
On specific target audiences
Percentage of . .
Positive articles over time
Negative articles over time

Percentage of
positive and
negative articles
by . . .
Subject
Publication
Reporter
Target
audience

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

Substantial credibility

Timing difficult or
impossible to control

News value

Inaccuracy, omission,
or distortion may
result

Significant word-ofmouth
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
Image
enhancement

Assuming a
position on an
issue or cause

Seeks
involvement

Why is Corporate Advertising Controversial?

Consumers arent
interested in this form of
advertising

Claims
Claims of
of
Opponents
Opponents to
to
Corporate
Corporate
Advertising
Advertising

Corporate advertising is
a waste of money
The firms finances or
image must be in trouble
This is a costly form of
corporate self-indulgence

Objectives of Corporate Advertising

Establish
Establish
diversified
diversified
company
company
identity
identity

Create
Create aa positive
positive
image
image for
for the
the
firm
firm

Communicate
Communicate
the
the
organizations
organizations
viewpoint
viewpoint

Objectives
Objectives
Help
Help newly
newly
deregulated
deregulated
industries
industries

Boost
Boost
employee
employee
morale
morale
Smooth
Smooth labor
labor
relations
relations

Types of Corporate Advertising

Image
Image
Advertising
Advertising

General
General Image
Image Ads
Ads
Positioning
Positioning Ads
Ads

Event
Event
Sponsorship
Sponsorship

Sponsorship
Sponsorship
Recruitment
Recruitment

Advocacy
Advocacy
Advertising
Advertising
Cause-related
Cause-related
Advertising
Advertising

Financial
Financial Support
Support

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
Events
Events

Music,
Music,
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

Excellent vehicle for

positioning the firm

May have
questionable
effectiveness

Takes advantage of
benefits derived from
public relations

Raises questions of
constitutionality and
ethics

Reaches a selected
target market

Measuring Corporate Ad Effectiveness

Attitude
Attitude Surveys
Surveys

Effective?
Effective?

Relating
Relating to
to Stock
Stock Prices
Prices

Focus
Focus Group
Group Research
Research