{"id":94,"date":"2015-01-05T03:42:16","date_gmt":"2015-01-05T03:42:16","guid":{"rendered":"https:\/\/courses.candelalearning.com\/principlesmktg1x2kscope\/?post_type=chapter&p=94"},"modified":"2019-06-25T12:20:35","modified_gmt":"2019-06-25T12:20:35","slug":"12-1-public-relations-activities-and-tools","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/oakwood-principlesofmarketing\/chapter\/12-1-public-relations-activities-and-tools\/","title":{"raw":"Public Relations Activities and Tools","rendered":"Public Relations Activities and Tools"},"content":{"raw":"
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Learning Objectives<\/h3>\r\n
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  1. Understand the concept of public relations and why organizations allocate part of their promotional budgets to it.<\/li>\r\n\t
  2. Understand what the different types of public relations tools are.<\/li>\r\n\t
  3. Explain how companies use different public relations tools to their advantage.<\/li>\r\n<\/ol>\r\n<\/div>\r\n \r\n\r\nGood public relations efforts can help a firm create rapport with its customers, promote what it has to offer, and supplement its sales efforts. PR puts a positive spin on news stories and is often perceived as more neutral and objective than other forms of promotion because much of the information is tailored to sound as if it has been created by an organization independent of the seller. Public relations materials include press releases, publicity, and news conferences. Companies also use PR to promote products and to supplement their sales efforts.\r\n\r\nMany organizations that engage in public relations have in-house PR departments, media relations groups, or investor relations groups. Other organizations sometimes hire external PR firms or advertising agencies to find and create public relations opportunities for them. PR specialists must build relationships with people at different media outlets to help get their stories placed. Universities, hospitals, government organizations, and charitable organizations often hire PR people to help disseminate positive information about their services and to increase interest in what they do. As such, PR is part of a company\u2019s promotion budget and their integrated marketing communications.\r\n\r\nPR specialists also help political campaign managers generate positive information in the press. PR specialists can handle crisis communication and put a positive view on situations when something bad happens to an organization or person. In foreign markets, PR agencies may help ensure product concepts are understood correctly. Getting all PR stories placed in desired media is not guaranteed. A lot of time and effort is spent getting to know people who can help publish or announce the information to the public.\r\n\r\nCompanies use a variety of tools for their public relations purposes, including annual reports, brochures and magazines for both employees and the public, Web sites to show good things they\u2019re doing, speeches, blogs, and podcasts. Some of the most commonly used PR tools include press releases, news conferences, and publicity. Sponsorships, product placements, and social media also generate a lot of positive PR.\r\n
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    Press Releases<\/h2>\r\nPart of a company\u2019s public relations efforts includes putting a positive spin on news stories. A press release<\/span><\/span> is a news story written by an organization to promote a product, organization, or person. Consider how much better a story or a product recommendation is likely to be perceived when the receiver thinks the content is from an objective third party rather than an organization writing about itself. Public relations personnel frequently prepare press releases in hopes that the news media will pick them up and disseminate the information to the public. However, there is no guarantee that the media will use a press release. Some of the PR opportunities that companies may seek to highlight in their press releases include charity events, awards, new products, company reports, and things they are doing to improve the environment or local community.\r\n\r\nRead the following two examples of press releases. The first story sounds like it was written by a news organization, but it was created by Apple and their public relations people to highlight the introduction of the new iPhone 3G. The second press release and picture (see Figure 12.1 \"A Picture of Stubb\u2019s Legendary Kitchen\u2019s \u201cFeed the World Tour\u201d\") provide an example of how a company like Stubb\u2019s Bar-B-Q teams up with Mobile Loaves & Fishes, a charity that helps feed the hungry, to help feed homeless and poor people and restock food banks around the country. The story enhances the positive image of both organizations.\r\n\r\n \r\n
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    An Example of a Press Release to Introduce a New Product<\/h3>\r\nApple Introduces the New iPhone 3G<\/strong>\r\n\r\nTwice as Fast at Half the Price<\/em>\r\n\r\nSAN FRANCISCO\u2014June 9, 2008\u2014Apple\u00ae today introduced the new iPhone\u2122 3G, combining all the revolutionary features of iPhone with 3G networking that is twice as fast* as the first generation iPhone, built-in GPS for expanded location-based mobile services, and iPhone 2.0 software which includes support for Microsoft Exchange ActiveSync and runs the hundreds of third party applications already built with the recently released iPhone SDK. In the US the new iPhone 3G is priced at a stunning $199 for the 8GB model, and just $299 for the 16GB model.** iPhone 3G will be available in more than 70 countries later this year, beginning with customer availability in 22 countries\u2014Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK and the US\u2014on July 11.\r\n\r\n*Based on 3G and EDGE testing. Actual speeds vary by site conditions.\r\n\r\n**Based on iPhone 3G (8GB) and first generation iPhone (8GB) purchases. Requires new two year AT&T rate plan, sold separately.\r\n\r\nApple, Inc., \u201cApple Introduces the New iPhone 3G,\u201d http:\/\/www.apple.com\/pr\/library\/2008\/06\/09iphone.html<\/a> (accessed December 9, 2009).<\/span>\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n \r\n
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    An Example of a Press Release to Show How a Company Helps Feed the Hungry and Restock Food Banks around the Country<\/h3>\r\nStubb\u2019s Teams Up with Mobile Loaves & Fishes to Launch \u201cFeed the World Tour\u201d<\/strong>\r\n\r\nTuesday, May 26, 5 p.m. @ Wooldridge Park<\/em>\r\n\r\nAUSTIN\u2014Stubb\u2019s Legendary Kitchen will kick off its 12-city \u201cFeed the World Tour\u201d this Tuesday, May 26 at 5 p.m. in Wooldridge Square Park, 9th and Guadalupe Streets, by serving chopped beef sandwiches with famous Stubb\u2019s barbecue sauce to homeless and working poor people from one of Mobile Loaves & Fishes\u2019 special catering trucks, which serve people in six cities every day.\r\n\r\nKurt Koegler, president of Stubb\u2019s Legendary Kitchen, will join Alan Graham, Mobile Loaves\u2019 founder\/president, and volunteers from the company and MLF volunteers to serve the sandwiches and distribute Stubb\u2019s T-shirts. The Austin-based company chose Mobile Loaves as its partner to kick off the \u201cFeed the World Tour,\u201d which is named for the stated mission of Texas Bar-B-Q legend, C.B. \u201cStubb\u201d Stubblefield, who said: \u201cI was born hungry I want to feed the world.\u201d\r\n\r\nAfter leaving Austin, the tour will swing through the Southeast, up the East Coast and into Washington, D.C. where the Stubb\u2019s team will compete at the annual BBQ Battle on Pennsylvania Avenue. In each city, Stubb\u2019s Legendary Kitchen and company president Koegler will barbecue for the homeless and help restock depleted food banks.\r\n\r\n\u201cStubb was a cook but more than that, a lover of people. The values that guided his life still guide the company that bears his name. Stubb\u2019s life truly is in every bottle of sauce and marinade we make. All of us at Stubb\u2019s are thrilled to be working with Mobile Loaves and bringing all of Stubb\u2019s Love and Happiness to those who all too often need it most\u201d said Koegler.\r\n\r\n\u201cThe economy has placed greater demand on organizations like Mobile Loaves and local food banks, so we couldn\u2019t think of a better time to show our support,\u201d Koegler said. \u201cStubb\u2019s greatest joy was feeding the people who came from all around for a taste of his famous barbecue, and it is an honor for us to fulfill his mission with our Feed the World Tour<\/em>.\u201d\r\n\r\n\u201cWe\u2019re honored to be selected as Stubb\u2019s charity partner for the kick-off of this awesome tour,\u201d Graham said. \u201cAs someone who once was poor and hungry, C.B. \u2018Stubb\u2019 Stubblefield is smiling in heaven to know that his creation is helping feed brothers and sisters on the street here in Austin and around the country. We look forward to connecting Stubb\u2019s with people on the streets here and in the other cities we serve.\u201d\r\n\r\nMobile Loaves & Fishes Blog, \u201cStubb\u2019s Teams Up With MLF to Launch \u2018Feed The World\u2019 Tour!\u201d May 22, 2009, http:\/\/mobileloavesandfishes.typepad.com\/weblog\/2009\/05\/stubbs-teams-up-with-mlf-to-launch-feed-the-world-tour-homeless.html<\/a> (accessed December 9, 2009).<\/span>\r\n\r\n<\/div>\r\n \r\n\r\nPress releases and other PR activities can also be used for damage control purposes. Crisis communication<\/span><\/span> is the process of countering the extreme negative effects a company gets when it receives bad publicity. Domino\u2019s Pizza was forced to engage in damage control after two of its employees created a video doing disgusting things to pizzas and then posting it to YouTube. If the publicity is particularly bad, as it was for Domino\u2019s, a company might hold a press conference or prepare a speech for the top executive to give. For example, the president of Domino\u2019s spoke on video to try to control the damage to Domino\u2019s business. The company then posted the following video on YouTube.\r\n\r\nhttp:\/\/youtu.be\/xvg4-E2C8UE\r\n
    \r\n\r\nPatrick Doyle, the president of Domino\u2019s, responds on YouTube to a video created by two Domino\u2019s employees, who were subsequently fired by the pizza chain.\r\n\r\n<\/div>\r\nSimilarly, companies that move into foreign markets are sometimes perceived negatively by locals because they have little information about the firms. In India, the reputation of companies is very important to workers and their families. As a result, U.S. employers recruiting in the tech industry in India often have to work hard to make their brands and products known so people will want to work for them. The firms do so via various PR efforts.\r\n\r\nJust as press releases can be used to promote the good things an organization or person does, press conferences can also be held when a company is simply seeking good PR. An organization might hold a press conference to announce that it has hired new, highly sought-after executives, that it is breaking ground on a new building, or to talk about its community service projects.\r\n
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    Sponsorships<\/h2>\r\n[caption id=\"attachment_856\" align=\"alignright\" width=\"300\"]\"The<\/a> The Staples Center in Los Angeles is an example of a venue sponsorship. The office supplies store Staples paid for the naming rights to the stadium.[\/caption]\r\n\r\nMany of you have heard of the Staples Center, where the Los Angeles Lakers play basketball. But imagine how many more<\/em> people heard about the Staples Center following the announcement that Michael Jackson\u2019s public memorial would take place there. All the news stories talking about tickets and information about the memorial provided \u201cfree\u201d publicity for the center and for the office supplies store, Staples, for which the center is named. Staples paid $375 million for naming rights of the center, which was built in 1998.\u00a0Indeed, the chain has gotten a huge return on its sponsorship of the center.\r\n
    <\/div>\r\n<\/div>\r\nA sponsorship<\/span><\/span> involves paying a fee to have your name associated with different things, such as the following:\r\n