A management function
evaluates public attitudeswhichwhich
identifies the policies and proceduresandand
an organization with the public interestofof
executes a program of action (and communication)andand
earn public understanding and acceptancetoto
executes a program of action (and communication)
an organization with the public interest
identifies the policies and procedures
evaluates public attitudes
A management function
Public Relations Defined
PR Perspective and Integration
Customers
Employees
Investors
Government
Community
SuppliersSuppliers
Employees
Government
Investors
Customers
Public Relations Department
MarketingDepartment
PublicRelations
IntegratedIntegrated
Marketing Public Relations (MPR) Functions
Building marketplace excitement before media advertising breaks
Creating advertising news where there is no product news
Introducing a product with little or no advertising
Providing a value-added customer service
Building brand-to-customer bonds
Influencing influentials, providing information to opinion leaders
Improving ROI
Defending products at risk, giving consumers a reason to buy
Building marketplace excitement before media advertising breaks
Creating advertising news where there is no product news
Introducing a product with little or no advertising
Providing a value-added customer service
Building brand-to-customer bonds
Influencing influentials, providing information to opinion leaders
Improving ROI
Benefits of Marketing Public Relations (MPR)
Difficult to tie in slogans or other advertising devices
No standards for effective measurement
Lack of control over media
Media time and space aren’t guaranteed
A highly targeted way to conduct public relations
Endorsements by independent third parties
Achievement of credibility
Makes advertising messages more credible
Breaks though the clutter
Circumvents resistance to sales efforts
AdvantagesAdvantages DisadvantagesDisadvantages
Difficult to tie in slogans or other advertising devices
Lack of control over media
Media time and space aren’t guaranteed
A highly targeted way to conduct public relations
Endorsements by independent third parties / opinion leaders
Achievement of credibility
Makes advertising messages more credible
Breaks though the clutter
Circumvents resistance to sales efforts
Improved ROIImproved ROI
The Process of Public Relations
Measuring Program Effectiveness
Developing and Executing a PR Program
Establishing a PR Plan
Determining and Evaluating Public Attitudes
Developing and Executing a PR Program
Establishing a PR Plan
Determining and Evaluating Public Attitudes
Determining Public Relations Audiences
The Media
Governments
Financial GroupsThe Media
Governments
External or Independent
Educators
Civic and Business
Organizations
Educators
Civic and Business
Organizations
Customers and
Clients
Employees of the Firm
Vendors and
SuppliersCommunity Members
Stockholders and InvestorsStockholders and Investors
Customers and
Clients
Employees of the Firm
Vendors and
SuppliersCommunity Members
Internal or Associated
Implementing the PR Program
Press Releases
Community Involvement
Press Conferences
Exclusives
Interviews
The Internet
PR Tools
Press Releases
Community Involvement
Press Conferences
ExclusivesThe Internet
Credibility
Lead Generation
Cost Savings
Avoidance of Clutter
Image Building
SelectivitySelectivity
Lead Generation
Avoidance of Clutter
Cost Savings
Credibility
Advantages of Public Relations
PRProvides
Positive articles over time
Negative articles over time
Negative articles over time
Positive articles over time
Over timeOn the target audience
On specific target audiences
SubjectPublica-tion Reporter
Targetaudience
Over time On the target audience
On specific target audiences
SubjectPublica-tion Reporter
Criteria for Measuring PR Effectiveness
Percentage of positive and negative articles by . . .
Ratio of positive to negative articles
Percentage of . .
Total number of impressions . . .
May Be Out of the Marketer’s Control
Part of the PR Process
The Generation of News About a Person,
That Appears in the
Media
The Generation of News About a Person,
Product, or Service That Appears in the
Media
Part of the PR Process
The Generation of News About a Person,
Product, or Service That Appears in the
Media
Publicity
Image enhancementAssuming a position on
an issue or causeImage enhancement
Assuming a position on an issue or cause
Corporate Advertising
An extension of the PR function
Promotes the organization
Does not promote a specific product or service
An extension of the PR function
Does not promote a specific product or service
Seeks involvement
Create a positive
image for the firm
Communicate the
organization’s
viewpoint
Boost employee
morale
Establish
diversified
company’s identity
Help newly
deregulated
industries
Smooth labor
relationsBoost employee
morale
Communicate the
organization’s
viewpoint
Create a positive
image for the firm
Objectives of Corporate Advertising
Objectives
Positioning Ads
Sponsorship
Recruitment
General Image Ads
Financial Support
General Image Ads
Positioning Ads
Sponsorship
Recruitment
Types of Corporate Advertising
Image Advertising
Event Sponsorship
Advocacy Advertising
Cause-related 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.
Raises questions of constitutionality and ethics
May have questionable effectiveness
Excellent vehicle for positioning the firm
Takes advantage of benefits derived from public relations
Reaches a selected target market
May have questionable effectiveness
Reaches a selected target market
Takes advantage of benefits derived from public relations
Excellent vehicle for positioning the firm
Advantages and Disadvantages of Corporate Advertising
AdvantagesAdvantages DisadvantagesDisadvantages
Relating to Stock Prices
Attitude Surveys
Relating to Stock Prices
Attitude Surveys
Measuring Corporate Advertising Effectiveness
Focus Group Research
Effective?
Price
• Final price
negotiable
• Price provides
adequate margin
Product or
Service
• Complex goods
or services
• Major purchase
decisions
• Personal
demonstration
required
Channels
• Channel short
and direct
• Training needed
by
intermediaries
• Selling needed
to push product
through
• Intermediaries
can provide
personal selling
Advertising
• Media do not
provide an
effective link
• Information can
not be provided
by media
• Sparse market
reduce
advertising
economies
PriceProduct or
ServiceChannels
When the Sales Force is a Major Part of IMC
Selling activity limited to
order-takingProvider Stage
Attempting to persuade customer
to buyPersuader Stage
Seeking out buyers perceived to
have a needProspector Stage
Buyers identify problems to be
met by goods
Problem-solver Stage
Seller determines buyer needs
and fulfills themProcreator Stage
Buyers identify problems to be
met by goods
Problem-solver Stage
Seeking out buyers perceived to
have a needProspector Stage
Attempting to persuade customer
to buyPersuader Stage
Selling activity limited to
order-takingProvider Stage
Stages of Personal Selling Evolution
Customer Relationship Management
The organization’s effort to develop a long term, cost effective link with individual customers for mutual benefit.
Following up and servicing the account
Closing the sale
Demonstrating capabilities of the product
Recommending a way to satisfy them
Determining customers’ needs and wants
Locating prospective customers
Closing the sale
Demonstrating capabilities of the product
Recommending a way to satisfy them
Determining customers’ needs and wants
Locating prospective customers
Personal Selling Responsibilities
This is essentially a support roleThis is essentially a support role
Requires the most skill and preparationRequires the most skill and preparation
Must assess situation, determine needs
This role is much more casual
Often involves straight rebuying
May not actually take the order
Often involves straight rebuying
Must assess situation, determine needs
This role is much more casual
Types of Sales Jobs
Creative Selling
Order Taking
Missionary Sales Rep
10 Traits of Effective Salespeople
1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection.
2. Sense of urgency: wanting to get it done now.
3. Ego drive: a combination of competitiveness and self esteem.
4. Assertiveness: the ability to firm and get one’s point across confidently.
5. Risk-taking: willing to innovate and take a chance.
6. Sociable: outgoing, friendly, talkative, and interested in others.
7. Abstract reasoning: ability to understand concepts and ideas.
8. Skepticism: a slight lack of trust and suspicion of others.
9. Creativity: the ability to think differently.
10. Empathy: the ability to place oneself in someone else’s shoes.
Reach may be
very limited
Reach may be
very limited
Message can be
tailored to recipient
Message can be
tailored to recipient
Two-way interaction
with prospect
Two-way interaction
with prospect
Prospect isn't likely
to be distracted
Prospect isn't likely
to be distractedCost is often
extremely high
Cost is often
extremely high
Personal Selling Advantages and Disadvantages
Possible management-sales
force conflict
Messages may be inconsistent
Seller involved in purchase
decision
Source of research information Potential ethical problems
AdvantagesAdvantages DisadvantagesDisadvantages
Possible management-sales
force conflict
Messages may be inconsistent
Seller involved in purchase
decision
Source of research information
Measures of Sales Results
Orders
Sales Volume
Margins
Customer Accounts
Sales Calls
Selling ExpensesSelling Expenses
Sales Calls
Customer Accounts
Margins
Sales Volume
Orders
Customer Service
Quantitative
Measures
Selling Skills
Sales Related Activities
Qualitative
Measures