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Belch: Advertising and Promotion, Sixth Edition V. Developing the Integrated Marketing Communications Program 17. Public Relations, Publicity, and Corporate Advertising Krispy Kreme, a donut shop, started in 1934 in Winston-Salem. While the one store slowly grew into a 34-state chain over the years, it was really not a popular, well-known national brand. Then with a strong PR program and a subsequent IPO, Krispy Kreme took off. When a new Krispy Kreme shop opens today, press coverage and free publicity almost eliminate the need for advertising. Many public relations programs require little more than the time and expenses associated with putting the program together and getting it distributed, yet they still accomplish their objectives. 3. Avoidance of clutter. Because they are typically perceived as news items, public relations messages are not subject to the clutter of ads. A story regarding a new product introduction or breakthrough is treated as a news item and is likely to receive attention. When Steven Jobs (the founder of Apple Computer) announced his return to Apple, after being with another firm for years, all the networks covered it, as did major newspapers and magazines. Some (like CNN) devoted two- to three-minute segments to the story. 4. Lead generation. Information about technological innovations, medical breakthroughs, and the like results almost immediately in a multitude of inquiries. These inquiries may give the firm some quality sales leads. 5. Ability to reach specific groups. Because some products appeal to only small market segments, it is not feasible to engage in advertising and/or promotions to reach them. If the firm does not have the financial capabilities to engage in promotional expenditures, the best way to communicate to these groups is through public relations. 6. Image building. Effective public relations helps to develop a positive image for the organization. A strong image is insurance against later misfortunes. For example, in 1982, seven people in the Chicago area died after taking Extra Strength Tylenol capsules that had been laced with cyanide (after they reached the store). Within one week of the poisonings, Tylenol’s market share fell from 35 to only 6.5 percent. Strong public relations efforts combined with an already strong product and corporate image helped the product rebound (despite the opinions of many experts that it had no chance of recovering). A brand or firm with a lesser image would never have been able to come back. The ad in Exhibit 17-12 demonstrates the power of a strong image. The Firestone tire recall cited earlier is another example. Because of a strong image established over 102 years of doing business, Firestone was able to weather the storm and recover from the incident. Perhaps the major disadvantage of public relations is the potential for not completing the communications process. While public relations messages can break through the clutter of commercials, the receiver may not make the connection to the source. Many firms’ PR efforts are never associated with their sponsors in the public mind. Public relations may also misfire through mismanagement and a lack of coordination with the marketing department. When marketing and PR departments operate independently, there is a danger of inconsistent communications, redundancies in efforts, and so on. The key to effective public relations is to establish a good program, worthy of public interest, and manage it properly. To determine if this program is working, the firm must measure the effectiveness of the PR effort. Measuring the Effectiveness of PR As with the other promotional program elements, it is important to evaluate the effectiveness of the public relations efforts. In addition to determining the contribution of this program element to attaining communications objectives, the evaluation offers other advantages: 1. It tells management what has been achieved through public relations activities. 2. It provides management with a way to measure public relations achievements quantitatively. 3. It gives management a way to judge the quality of public relations achievements and activities. © The McGraw−Hill Companies, 2003 577 Chapter Seventeen Public Relations, Publicity, and Corporate Advertising
578 Part Five Developing the Integrated Marketing Communications Program Belch: Advertising and Promotion, Sixth Edition Exhibit 17-12 This Wall Street Journal ad stresses the value of a strong brand and/or corporate image V. Developing the Integrated Marketing Communications Program 17. Public Relations, Publicity, and Corporate Advertising © The McGraw−Hill Companies, 2003 As shown in Figure 17-4, a number of criteria may be used to measure the effects of PR programs. Raymond Simon suggests additional means for accomplishing this evaluation process, including the following: • Personal observation and reaction. Personal observation and evaluation by one’s superiors should occur at all levels of the organization. • Matching objectives and results. Specific objectives designed to attain the overall communications objectives should be related to actions, activities, or media coverage. For example, placing a feature story in a specific number of media is an objective, quantitative, and measurable goal. 22 • The team approach. Harold Mendelsohn suggests that one way to achieve attitude and behavior modification through public information campaigns is the team approach, whereby evaluators are actually involved in the campaign. 23 By using research principles and working together, the team develops—and accomplishes— goals.
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