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570<br />

Part Five Developing the Integrated Marketing Communications Program<br />

Belch: Advertising and<br />

Promotion, Sixth Edition<br />

Exhibit 17-3 An example<br />

of a newsletter used for<br />

internal communication<br />

Exhibit 17-4 Annual<br />

reports serve a variety of<br />

purposes<br />

V. Developing the<br />

Integrated Marketing<br />

Communications Program<br />

17. Public Relations,<br />

Publicity, and Corporate<br />

Advertising<br />

© The McGraw−Hill<br />

Companies, 2003<br />

It may be necessary to communicate with these groups on an<br />

ongoing basis for a variety of reasons, ranging from ensuring goodwill<br />

to introducing new policies, procedures, or even products. A few<br />

examples may help.<br />

Employees of the Firm Maintaining morale and showcasing the<br />

results of employees’ efforts are often prime objectives of the public<br />

relations program. Organizational newsletters, notices on bulletin<br />

boards, paycheck envelope stuffers, direct mail, and annual reports<br />

are some of the methods used to communicate with these groups.<br />

Exhibit 17-3 shows one such internal communication used by the<br />

Business School at San Diego State University.<br />

Personal methods of communicating may be as formal as an established<br />

grievance committee or as informal as an office Christmas<br />

party. Other social events, such as corporate bowling teams or picnics,<br />

are also used to create goodwill.<br />

Stockholders and Investors You may think an annual report like<br />

the one in Exhibit 17-4 just provides stockholders and investors with<br />

financial information regarding the firm. While this is one purpose,<br />

annual reports are also a communications channel for informing this<br />

audience about why the firm is or is not doing well, future plans, and<br />

other information that goes beyond numbers.<br />

For example, McDonald’s has successfully used annual reports to fend off potential<br />

PR problems. One year the report described McDonald’s recycling efforts to alleviate<br />

consumers’ concerns about waste; another report included a 12-page spread on food<br />

and nutrition. Other companies use similar strategies, employing shareholders’ meetings,<br />

video presentations, and other forms of direct mail. General Motors’ annual public<br />

interest report is sent to shareholders and community members to detail the<br />

company’s high standards of corporate responsibility. GM also produces a sustainability<br />

report to update interested parties on its progress. Companies have used these<br />

approaches to generate additional investments, to bring more of their stocks “back<br />

home” (i.e., become more locally controlled and managed), and to produce funding to<br />

solve specific problems, as well as to promote goodwill.<br />

Community Members People who live and work in the community where a firm is<br />

located or doing business are often the target of public relations efforts. Such efforts<br />

may involve ads informing the community of activities that the organization is

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