Pr and marketing

PUBLIC RELATIONS AND MARKETING

STAMFORD COLLEGE

DMC 115PRINCIPLES OF

PUBLIC RELATIONS

PREPARED BY :MS GOMALA SUKUMARAN

LEARNING OBJECTIVES

• Explain how Public Relations can work with the key functions in organizations.

• Confidently explain the role of marketing.

• Define the Promotional Mix and its components.

• Describe the relationships between Public Relations and other promotional activities.PREPARED BY :MS GOMALA SUKUMARAN

ORGANISATIONS

• The key functions in any organization are :–Financial–Production–Procurement (buying)–Distribution–Personnel–Marketing


financial

• Responsible for all the finances of an organization

• Everything from the use of capital to build new factories, etc to the collection of money owed by the organisation’s customers.

• Everything that public relations may want or be asked to do must be properly costed and approved


PRODUCTION• In a manufacturing organisation,

the production director is responsible for making whatever the organisation sells.

• Under his control are the factories, the machinery and the people who make the products.


continued…

• Public relations will regularly be involved with production.

• Typical activities–To arrange media visits to factories–To help launch new product

concepts–To help develop good relationships

with local communities


PROCUREMENT

• Organizations have to buy of all kinds, from raw materials for production to office stationery

• Public relations people may indirectly have a major impact on buying decision, because they will help to specify the organization's image.

• This image will influence what the organization does and how it behaves


• Thus, buyers may have to locate environmentally friendly suppliers.• Their products may be more

expensive to buy, but the overall benefit may well justify the extra cost.


DISTRIBUTION• Products have to be sent out to

the customers• The distribution function takes

responsibility from the factory gate to the customer’s warehouse.

• All depots, warehouses, delivery vans and personnel are the responsibility of the head of distribution


• Public relations will be concerned because the image of the organization is carried to the community by those who distribute

• The way the vans are painted and kept clean and the uniforms and behavior of delivery staff must comply with the organization's overall image.


PERSONNEL

• Many organisations see their people as an important resouce.

• The staff should be carefully recruited, then trained so that they can cheerfully carry out their duties.

• Public relations often has a major role to play inside an organisation.


marketing• The marketing director and his

team are the only function in direct and regular contact with the organization's customers.

• Marketing is often described as the “bridge to the consumer” because marketers work hard to develop 2-way communication.


• Public relations people will often work closely with marketers.

• Both need the organization to have communication policy.

• Sometimes this is set by top management with public relations, and is followed by marketing.

• Sometimes it is set from marketing and is followed by the organization and public relations.


• Sometimes it is set from marketing and is followed by the organization and public relations• Often senior managers, public

relations and marketers work closely together to establish policy.


advertising• Advertising is not normally an

organizational function• It was once a powerful internal function,

but it is now usual for advertising agencies to supply specialist skills from outside the organization.

• Marketing normally works closely with advertising professionals in the creation of promotional campaigns.


• Public relations will almost always be involved in such work, because the whole of communication must be integrated to achieve maximum effect.


MARKETING

• The management process responsible for identifying, anticipating and satisfying customer requirements profitably.(British Chartered Institute of Marketing (CIM))


KEY POINTS• Management–Marketing is a management process– It has a management responsibility for

one whole function of an organization.

• Identification– Customers and their needs have to be

identified so that product offers can be constructed to meet those needs.


• Anticipation–Marketing works to the future.– The need is to identify what will be

needed in time for the product offer to be constructed

–Marketers are , therefore, risk takers. Nobody can know exactly what will happen in future, yet marketing has to anticipate future demand


• Satisfaction–The actual identified need(s) have

to be satisfied

• Profitability–Marketing is in the business of

making profit–This need not be a cash profit


MARKETING –THE BRIDGE

• Marketing is the bridge to the organization's clients, customers and consumers• It is the only part of an

organization that is externally focused.


COMMUNICATION

• Marketers need to show prospective customers, consumers and clients why their products should be chosen.• They must be skilled

communicators and be skilled in using a range of tools.


PRODUCTS OR SERVICES

• Whatever the organisation offers, it must be made (or put together in some way) so that it will do something that the prospoctive customers, consumers or clients will value


INFORMATION

• All managers need to be informed about what is happening and to make judgments about what might happen in the future• Marketing is a major source of

information from outside an organisation.


CASH OR OTHER BENEFITS

• All organisations need some funding to survive, but not all earn it in the marketplace by selling products.

• Those that provide an intangible benefit such as a marriage guidance service, measure their success by the number of clients they have helped, and how effective their help has been.


Marketing mix• “Mix”is used by marketers to

describe the elements that have to be combined to achieve success.

• In a kitchen you have recipe, which lists the ingredients and says how much of each to use.

• The marketing mix lists the tools a marketer can use in his planning.


• Public relations is, of course, one of the key elements.

• The marketing mix has seven components – known as 7 Ps.

• It is marketing’s task to blend the components of the mix so as to produce a ‘Product Offering’ that meets identified customer and consumer need.


7 P’s


7 P’S

PRODUCT• People buy what product will do for

them.• Carpenters only buy drills because

they want to make holes.• Gardeners buy cabbage seeds

because they want to grow cabbages.

• Unless the product offer shows why it will help to meet a need, it will not be bought.PREPARED BY :MS GOMALA SUKUMARAN

CONTINUED…

• Public relations can be of great help in building overall understanding and in showing what needs are met.


PRICE• What accountants call price is what

customers call cost.• Unless customers think the cost is

reasonable, there is will be no sale.• Public relations can illustrate how

valuable the product is in use, and how others have benefited.



PLACE• Do we take goods to the customer or

bring the customer to the goods?• Direct marketing is a major step in taking

goods to customers and consumers.• Interactive television is allowing shopping

from the armchair• Public relations has a major role in

shaping opinion and in educating target audiences.

PROMOTION

• The contact made between organisation and its audiences is of major important.


PHYSICAL EVIDENCE

• Everything physical that surrounds an offer is noted by a potential customer, often subconsciously.

• Customers notice such things as how clean and tidy the sales person is, how busy the shop seems to be, and what kind of people shop there.


CONTINUED…

• Public relations skills can help the creation of a favourable image and so help to influence decisions.


PARTICIPANTS

• The people involved are of key importance.

• Compare the attitude of a sales person in a very high quality jewellers with a counter hand in burger king.

• The one’s attitude and behaviour would be wrong in the other’s shop.

• Public relations can assist by generating publicity in the media best suited to the image the organisation wants to project .


PROCESS

• How easy and straightforward is it make the purchase?

• Do things happen as promised?• Buyers want their needs met at

once• They will switch products if another

offers the same value in use, but faster or easier processing.


CONTINUED…

• Public relations can help by showing through that the organisation is friendly and easy to deal with, and that it is safe to trade with because it is sympathetic and fair in its dealings.


package• Marketers put together a “package of

benefits” that meet the needs of the identified customers and consumers.

• We have seen that people buy what a product or service does for them.

• They don’t mind if the offer is a product, a service or a combination.


CONTINUED…

• So if you have tried to separate product from service – forget it.

• We shall not refer to “ product or service” again.

• Instead we shall refer to package (of benefits) or the product offering.


Tips

• Do not confuse package as used in promotion with package as used to describe a physical pack.


PROMOTIONAL MIX

• Four tools–Public relations–Advertising–Sales promotion–Selling


CONTINUED…

• Each tool has a separate role.• They must work together.• When they do, we have an

“integrated campaign”.• Public relations people must know

when to operate alongside marketing, in support of marketing objectives, and when to operate on a wider front.


ADVERTISING

• Public relations and advertising appear to be similar.• They are both concerned with

communication to an organisation’s target audiences.


THEY DIFFER…BECAUSE

•Public relations is used to create understanding.•Advertising is used to promote.


CONTINUED…

• The advertiser’s job is to put forward the best points, to link them to consumer need.• It is understood that an advertisement will “puff” a product.


puffing• Puffing a product is to

exaggerate –to emphasize the good parts.

• Typical puffs are –“world’s largest”–“everybody’s buying it”–“it will reach where other beers

cannot reach”


CONTINUED…

• Puffing a product in an advertisment is legal, because everyone reading an advertisment e expects the benefits to be stressed.• Therefore they allow for

exaggeration and are not deceived.


ADVERTISING..DEFINED

• Advertising presents the most persuasive possible selling message to the right prospects for the product or service at the lowest possible cost. (British Institute of Ptactioners in Advertising (IPA))

• Any paid for, non-personal presentation and promotion of ideas, goods or services by an identified person. (Kotler)PREPARED BY :MS GOMALA SUKUMARAN

SALES PROMOTION

• Packaging was redesigned to add information• Advertising was designed for

Point of Purchase (PoP) and extra incentives were also added.• Sales promotion was born.


Sales promotion…defined

• Short-term incentives to encourage purchase at Point of Sale (PoS)

(Kotler)


KEY POINTS• Short term–Sales promotion works at the PoP

where a decision is usually taken quite quickly.–Often decision is made on impulse

– especially where there is little risk. –Eg : how long do you take to decide

between bars of chocolate or breakfast cereals?PREPARED BY :MS GOMALA SUKUMARAN

CONTINUED…

• Incentive– The extra incentive must be something

that will appeal to members of the target audience.

– Kids toys in breakfast cereals, loyalty points at a filling station.

• Encourage purchase– Sales promotion works to encourage the

buying decision – now.– It is ultra short-term- immediate


CONTINUED…

• We have been influenced by sales promotion

• We have all met such offers as :– Two for the price of one – Free sample– Voucher of next purchase

• Sales promotion works to clear objectives and must integrate with the other promotional tools.


Selling• Sales people meet customers

personally, sometimes over the telephone, usually face to face.

• They can always speak direclty with the potential customers.

• Sales people are the only promotional tool that can instantly react to feedback.


DIRECT SELLING…DEFINED

• An oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales. (Kotler)


KEY POINTS• Oral means of speech

– An oral presentation is talking with somebody

• Conversation– This emphasises the need for interactive communication

• Prospective purchasers– All contacts are treated as prospective buyers even if

they buy regularly.– They may change to another supplier at any time

• Making sales– Sales people exist to sell– Never allow a sales person to become on an “ order

taker”


THE END…Q TIME

• ORGANISATIONS• THE ROLE OF MARKETING• PROMOTIONAL MIX• RELATIONSHIP BETWEEN PR AND

OTHER PROMOTIONAL ACTIVITIES


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Pr and marketing