Chapter 1 Think! textbook. Slides adapted from Think!

1. Ch 1: What is
Public Relations?

2. Overview
● Challenges ● Public relations & journalism
● Global scope ● Public relations & advertising
● A variety of definitions ● Public relations & marketing
● Public relations as a Process: ● An integrated perspective:
R.A.C.E. Strategic communication
● The components of
public relations

3. The Challenge of Public Relations
● PR is multifaceted-
○ Public relations professionals must have skills in:
 Written communication
 Interpersonal communication
 Research
 Negotiation
 Creativity
 Logistics
 Facilitation
 Problem solving
 Evaluation

4. A Variety of Definitions
● A number of definitions have been formulated
over the years.
○ Cutlip, Center, and Broom, Effective Public Relations
 Public relations is the management function that identifies,
establishes and maintains mutually beneficial relationships
between an organization and the various publics on whom its
success or failure depends.
○ Glen Cameron, University of Missouri
 Public Relations is the “strategic management of competition
and conflict for the benefit of one’s own organization—and
when possible—also for the mutual benefit of the
organization and its various stakeholders or publics.”

5. The Official Definition
● 2012 PRSA
○ “Public relations is a strategic communication process
that builds mutually beneficial relationships between
organizations and their publics.”
– focuses on the basic concept of public relations
– as a communication process, one that is strategic in
nature and emphasizing “mutually beneficial
relationships.”
– crowdsourced & public vote
● 1987 PRSA
○ “Public relations helps an organization and its publics
adapt mutually to each other.”

6. What Do You Think?
● What are the key terms used in the definitions
that frame today’s modern PR?

7. Public Relations - Key Terms
● Deliberate
● Planned
● Performance
● Public interest
● Two-way communication
● Strategic management of competition and
conflict

8. Global Scope
● The public relations industry is growing in many nations.
○ Global public relations industry grew by slightly more than 8 percent in
2010, ending the year with fee income of at least $8.8 billion and
employing about 60,000 people.
○ Edelman had the highest revenue for public relations agencies in 2010,
with $531.5 million in income.
● The average annual public relations budget in a publicly-owned company is
$9.9 million.
● The average annual public relations budget for a government agency is
$16.4 million.
Source: The Holmes Report - http://bit.ly/SBDk2s

9. PR in the US
● Total communications spending, including advertising, marketing, and
communications, increased 4.2% in 2011.
○ Expected to grow 5.6% this year (2012), outpacing GDP growth of
4.4%.
○ Predicted total communications spending will grow 31%, or by $343
billion, to $1.4 trillion by 2015.
● Spending on traditional public relations services grew by 4.9 percent.
○ From 2005-10, to $3.7 billion.
● Spending on combined public relations and word-of-mouth marketing
spending will grow 14.6% this year.
● Annual spending on traditional public relations services will increase at a
compound annual growth rate of 8 percent, to $5.4 billion.
● Annual spending on word of mouth marketing services will increase at a
compound annual growth rate of 22.3 percent, to $5.6 billion.
○ Up from $2 billion in 2010.
Study performed by Veronis Suhler Stevenson - http://vss.com

10. PR Employees
● According to the U.S. Bureau of Labor Statistics:
○ Over 7,000 public relations firms in the United States.
○ Community is even larger considering the public relations function within
America’s:
 Corporations, government bodies, health care institutions, military
branches, professional services firms, associations, nonprofit
organizations, and other public and private entities.
● In 2008
○ 64,000 individuals employed as public relations managers (up from
63,000 in 2007).
○ 135,000 employed as public relations specialists (up from 132,000 in
2007).
● Job titles vary greatly within the industry thus difficult to track.
Source: US Bureau of Labor Statistics - http://www.bls.gov/

11. Public Relations as a Process: RACE
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12. The Components of Public Relations
● Counseling ● Workplace diversity
● Research ● Special events
● Media relations ● Marketing communications
● Publicity/image building ● Speech writing
● Employee/member relations ● Corporate communications
● Community relations ● Public service
● Public affairs/lobbying ● Image building
● Government affairs ● Branding
● Issue management ● Personal
● Financial relations ● Advocacy
● Industry relations ● Entertainment
● Development ● Crisis
● Multicultural relations ● Educational
● Many more….

13. Differences between Journalism and PR
Journalists PR Professionals
● Use only two components ● Use many components
(writing and media relations) ● Are advocates
● Are objective observers ● Focus on defined publics
● Focus on a mass audience ● Use a variety of channels
● Use only one channel

14. Differences between Advertising and PR
Advertising Public Relations
● Works through mass media ● Relies on a variety of communication
outlets tools
● Addresses external audiences ● Targets specialized audiences
● Is a communications function
● Is broader in scope
● Is a communication tool in PR
● Fills a support role
● Sells goods and services
● Creates a favorable environment for
an organization’s survival

15. How PR Supports Marketing
● Eight ways public relations supports marketing
○ Develops new prospects
○ Provides third party endorsements
○ Generates sales leads
○ Paves the way for sales calls
○ Stretches dollars
○ Provides inexpensive literature
○ Establishes credibility
○ Helps sell minor products

16. Differences between Marketing and PR
M arketing Public Relations
● Is concerned with customers •Is concerned with building relationships
and the introduction for selling and generating goodwill
products or services
●Deals with multiple publics, audiences,
● Deals with target market,
and stakeholders
consumers, and customers

17. An Integrated Perspective:
Strategic Communication
● Concept of integration:
○ To use a variety of strategies and tactics to convey a
consistent message in a variety of forms
● Global/multicultural
● Research based
● Relationship focused
● Internet/new media oriented
● Toolbox-driven tactics