1. ARE YOU READY?
• Evaluate the various sales
promotion tools and decide which
promotional tools would you use.
Allocate the budget month-wise
and tool-wise (Total Budget – 1
crore)

2. Public Relations, Publicity,
and Corporate Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3. At the end of this lecture, you will be able to understand:
 Meaning and Scope of Publicity and Public
Relations
 Its Relationship and Function with Other IMC
Tools
 Function of Public Relations
 Different Models of Public Relations
 Difference Between Advertising and Publicity
 Different types of corporate advertising

5. PUBLIC
• A public is any group
that has an actual or
potential interest in or
impact on a company’s
ability to achieve its
objectives.

6. Public Relations Defined
A management function
A management function
which evaluates public attitudes
evaluates public attitudes
and identifies the policies and procedures
identifies the policies and procedures
of an organization with the public interest
an organization with the public interest
and executes a program of action (and communication)
executes a program of action (and communication)
to earn public understanding and acceptance
earn public understanding and acceptance
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

7. Public Relations Management Process
Determination and
Determination and
evaluation of public
evaluation of public
attitudes
attitudes
Identification of policies
Identification of policies
PR
PR and procedures
and procedures
Development and
Development and
execution of the
execution of the
program
program
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

8. Traditional PR Perspective
Customers
Customers
Community
Community Investors
Investors
Public
Public
Relations
Relations
Department
Department
Suppliers
Suppliers Government
Government
Employees
Employees
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

9. Integration of PR into the IMC Process
Separate
Marketing Public
Department Relations
Coordinated
Marketing Public
Department Relations
Integrated
Marketing Public
Department Relations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10. Marketing Public Relations (MPR) Functions
Building marketplace excitement before media advertising breaks
Building marketplace excitement before media advertising breaks
Improving ROI
Improving ROI
Creating advertising news where there is no product news
Creating advertising news where there is no product news
Introducing a product with little or no advertising
Introducing a product with little or no advertising
Providing a value-added customer service
Providing a value-added customer service
Building brand-to-customer bonds
Building brand-to-customer bonds
Influencing influentials, providing information to opinion leaders
Influencing influentials, providing information to opinion leaders
Defending products at risk, giving consumers a reason to buy
Defending products at risk, giving consumers a reason to buy
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

11. The Process of Public Relations
Determining and Evaluating Public Attitudes
Determining and Evaluating Public Attitudes
Establishing a PR Plan
Establishing a PR Plan
Developing and Executing a PR Program
Developing and Executing a PR Program
Measuring Program Effectiveness
Measuring Program Effectiveness
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

12. Research on Public Attitudes
Provides input for
Provides input for Serves as an “early
Serves as an “early
the planning process
the planning process warning system”
warning system”
Increases
Increases Secures internal
Secures internal
communications
communications cooperation, support
cooperation, support
effectiveness
effectiveness
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

13. Determining Public Relations Audiences
Internal or Associated
Internal or Associated
Stockholders and
Stockholders and Employees of the
Employees of the
Investors
Investors Firm
Firm
Customers and
Customers and Community
Community Vendors and
Vendors and
Clients
Clients Members
Members Suppliers
Suppliers
External or Independent
External or Independent
Educators
Educators Governments
Governments
Civic and Business
Civic and Business
The Media
The Media Financial Groups
Financial Groups
Organizations
Organizations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

14. Implementing the PR Program
Press
Press
Releases
Releases
Press
Press
Interviews
Interviews Conferences
Conferences
PR Tools
PR Tools
The Internet
The Internet Exclusives
Exclusives
Community
Community
Involvement
Involvement
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

15. Advantages of Public Relations
Credibility
Credibility
Image
Image
Building Cost Savings
Cost Savings
Building
PR
PR
Provides
Provides
Avoidance of
Avoidance of
Selectivity
Selectivity Clutter
Clutter
Lead
Lead
Generation
Generation
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

16. General Mills Capitalizes on Positive Publicity
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

17. Criteria for Measuring PR Effectiveness
On the
On the On specific
On specific
Total number of
Total number of Over time
Over time target
target target
target
impressions .. .. ..
impressions audience
audience audiences
audiences
Positive
Positive Negative
Negative
Percentage of .. ..
Percentage of articles over
articles over articles over
articles over
time
time time
time
Ratio of positive
Ratio of positive
to negative
to negative
articles
articles
Percentage of
Percentage of
positive and
positive and Publica-
Publica- Target
Target
Subject
Subject Reporter
Reporter
negative articles
negative articles tion
tion audience
audience
by .. .. ..
by
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

18. Benefits of Marketing Public Relations (MPR)
Advantages Disadvantages
A cost-effective way to
A cost-effective way to Lack of control over media
Lack of control over media
reach the market
reach the market
A highly targeted way to
A highly targeted way to Difficult to tie in slogans or
Difficult to tie in slogans or
conduct public relations
conduct public relations other advertising devices
other advertising devices
Endorsements by
Endorsements by Media time and space
Media time and space
independent third parties
independent third parties aren’t guaranteed
aren’t guaranteed
No standards for effective
No standards for effective
Achievement of credibility
Achievement of credibility measurement
measurement
Makes advertising
Makes advertising Improved media
Improved media
messages more credible
messages more credible involvement w/customers
involvement w/customers
Breaks though the clutter Creates influence among
Creates influence among
Breaks though the clutter opinion leaders
opinion leaders
Circumvents resistance to
Circumvents resistance to
sales efforts Improved ROI
Improved ROI
sales efforts
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

19. PR in India
• Challenges

20. Publicity
The Generation of News About a Person,
The Generation of News About a Person,
Product, or Service That Appears in the Media
Product, or Service That Appears in the Media
Part of the PR Process
Part of the PR Process
May Be Out of the Marketer’s Control
May Be Out of the Marketer’s Control
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

21. PUBLICITY
• PUBLICITY is any communication about an
organization, its products, or policies through
the media not paid for by the organization.
• TYPES:
– Good Publicity
– Bad Publicity
• THREE MEANS
– Prepare & distribute a story
– Personal communication with a group
– One-on-one personal communication (Lobbying)

22. Advertising Versus Publicity
Factor
Factor Advertising
Advertising Publicity
Publicity
Control
Control Great
Great Little
Little
Credibility
Credibility Lower
Lower Higher
Higher
Reach
Reach Measurable
Measurable Undetermined
Undetermined
Frequency
Frequency Schedulable
Schedulable Uncontrollable
Uncontrollable
Cost
Cost High/Specific
High/Specific Low/Unspecified
Low/Unspecified
Flexibility
Flexibility High
High Low
Low
Timing
Timing Specifiable
Specifiable Tentative
Tentative

24. India's biggest sporting extravaganza,
IPL, gets off to a cracking start

25. Publicity Vehicles
Feature
Feature
Articles
Articles
News
News Interviews
Interviews
Interviews
Releases
Releases Publicity
Publicity
Vehicles
Vehicles
Press
Press Special
Special
Conferences
Conferences Events
Events

26. Coca-Cola in India:
Controversy and Comeback
Controversy
• In 2003, Coca-cola was accused for alleged
impurities in their drinks.
• Found elevated pesticide levels in carbonated
drinks made by Coca-Cola.

27. Results of Controversy
• Several states banned the drinks from
government canteens and schools.
• Immediate 10 per cent plunge in sales.

28. Suppose you are the brand
manager for Coca Cola India, what
will you do in such situation

29. How did Coca-Cola Tackle with
Tarnished Consumer Trust?
• Carefully-worded statements by industry experts in support of
the Coca-Cola.
• Assurance by senior scientists.
• Intensive communication and engagement strategy.
• Use of Aamir Khan and Smriti Irani to regain faith of Indian
consumers
• Guided tours of its manufacturing facilities to showcase its
commitment to quality

30. Cadbury manages a crisis with IMC

31. Advantages and Disadvantages of Publicity
Advantages Disadvantages
Timing difficult or
Timing difficult or
Substantial credibility
Substantial credibility impossible to control
impossible to control
Inaccuracy, omission,
Inaccuracy, omission,
News value
News value or distortion may
or distortion may
result
result
Significant word-of-
Significant word-of-
mouth
mouth
Perception of
Perception of
endorsement by
endorsement by
media
media
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

32. Corporate Advertising
An extension of the PR
An extension of the PR
function
function
Does not promote a specific
Does not promote a specific
product or service
product or service
Promotes the organization
Promotes the organization
Assuming a
Assuming a
Image
Image Seeks
Seeks
position on an
position on an
enhancement
enhancement involvement
involvement
issue or cause
issue or cause
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

33. ADITYA BIRLA
• Corporate Ad

34. Why Is Corporate Advertising Controversial?
Corporate
Corporate Consumers aren’t
Consumers aren’t
advertising Is a
advertising Is a interested in this
interested in this
waste of money
waste of money form of advertising
form of advertising
Claims of
Claims of
Opponents to
Opponents to
Corporate
Corporate
Advertising
Advertising
This is a costly form
This is a costly form The firm’s finances
The firm’s finances
of corporate self-
of corporate self- or image must be in
or image must be in
indulgence
indulgence trouble
trouble
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

35. Objectives of Corporate Advertising
Create a positive
Create a positive
image for the
image for the
firm
firm
Establish
Establish Communicate
Communicate
diversified
diversified the
the
company’s
company’s organization’s
organization’s
identity
identity viewpoint
viewpoint
Objectives
Objectives
Help newly
Help newly Boost employee
Boost employee
deregulated
deregulated morale
morale
industries
industries
Smooth labor
Smooth labor
relations
relations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

36. Types of Corporate Advertising
Image
Image General Image Ads
General Image Ads
Advertising
Advertising
Positioning Ads
Positioning Ads
Event
Event Sponsorship
Sponsorship
Sponsorship
Sponsorship
Recruitment
Recruitment
Advocacy
Advocacy
Financial Support
Financial Support
Advertising
Advertising
Cause-related
Cause-related
Advertising
Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

37. Grant Thornton Uses Advertising for
Employee Recruitment
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

39. Event Sponsorship
Corporate Sponsor
Corporate Sponsor
Sporting
Sporting Music,
Music,
Events
Events Entertainment
Entertainment
Causes
Causes Festivals
Festivals
Cultural Events
Cultural Events Arts
Arts
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

40. IPL SPONSOR
• DLF IPL

41. Advocacy Advertising
Advocacy advertising:
Advocacy advertising:
is the propagation of ideas and
is the propagation of ideas and
elucidation of controversial social
elucidation of controversial social
issues of public importance in a
issues of public importance in a
manner that supports the
manner that supports the
interests of the sponsor.
interests of the sponsor.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

42. An American Gas Association Advocacy Ad
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

43. Cause Related Marketing
Cause related marketing:
Cause related marketing:
is a form of marketing whereby
is a form of marketing whereby
companies link with charities or
companies link with charities or
nonprofit organizations as
nonprofit organizations as
contributing sponsors.
contributing sponsors.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

44. RELIANCE FOUNDATION &
SATYAMEVA JAYATE

45. Advantages and Disadvantages
of Corporate Advertising
Advantages Disadvantages
May have
May have
Excellent vehicle for
Excellent vehicle for questionable
questionable
positioning the firm
positioning the firm effectiveness
effectiveness
Takes advantage of
Takes advantage of Raises questions of
Raises questions of
benefits derived from
benefits derived from constitutionality and
constitutionality and
public relations
public relations ethics
ethics
Reaches a selected
Reaches a selected
target market
target market
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

46. Measuring Corporate Advertising Effectiveness
Attitude Surveys
Attitude Surveys
Effective?
Effective? Relating to Stock Prices
Relating to Stock Prices
Focus Group Research
Focus Group Research
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

47. Hometask- Next week
• Wednesday - Plan events to gain
publicity. Mention the brief of an
event along with the allocated
budget and month-wise schedule
(1 crore)

48. Hometask – Next Week
• Thursday - How will you measure
the results of the different
campaigns and media
• Friday – Final submission