Public Relations: Building Relationships

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Public Relations Building Relationships
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What is Public Relations?

• PRSA Definition
• Public relations helps an organization and its
  publics adapt mutually to each other.
• Research
• Planning
• Communications dialogue
• Evaluation

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Public Relations Functions Edelman Worldwide

• Corporate
• Design
• Governance advisory
• Crisis and issues
• Diversity solutions
• Editorial services
• Employee engagement

• Interactive solutions
• Financial and investor relations
• Food
• Litigation
• Marketing
• Public affairs
• Sports and entertainment

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PR vs. Marketing PR

• Public relations involves all of a firms
  communications with its publics
• Employees
• Suppliers
• Stockholders
• Government
• Community
• Consumers

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PR vs. Marketing PR

• Marketing PR is activities in support of selling
  a product or service

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Uses of Marketing PR

• Builds excitement before advertising breaks
• Creates news
• Introduces a product with little/no advertising
• Provides value-added customer service
• Builds brand-to-customer bonds
• Influences influentials

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Strengths of Marketing PR

• Cost-effective
• Highly targeted
• Objectivity
• Credibility/believability
• Breaks through clutter
• Reaches consumers who might ignore advertising

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Weaknesses of Marketing PR

• Lack of control
• Can be hard to integrate
• Have to go through gatekeepers
• Hard to measure effectiveness

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PR Decisions Target Audience(s)

• Employees
• Stockholders/ investors
• Community members
• Suppliers
• Customers

• Media
• Educators
• Civic/business organizations
• Governments
• Financial groups

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PR Decisions Tools

• Press releases
• Interviews/press conferences
• Exclusives
• Company newsletters
• Community involvement
• Internet
• www.nppc.org

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Publicity

• Generation of news about a person, product, or
  service that appears in broadcast or print media.

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Measuring PR Effectiveness

• Attitude surveys
• Stock prices
• Focus groups
• Ink
• Sales increases

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Event Marketing

• Why events?
• Because events can strike an emotional chord
  with a jaded, media-saturated consumer audience.
  Events offer a face-to-face interaction with the
  brand, can be tailored to an audience or venue,
  give marketers control they cant get with
  in-store campaigns, and let marketers do things
  they cant do on TV.
• Kinsman, PROMO, 10/1/02

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Consumer opinions on events

• of consumers saying event marketing influences
  my buying behavior
• Young adults 60
• Females 43

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• Preferred venues
• For Women 18-37
• Malls
• In-store
• Fairs
• For Men (any age)
• Sporting events

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• 79 of Caucasians said their purchasing is
  influenced a lot by event sponsorships
• 68 of African Americans said their purchasing is
  influenced a lot by event sponsorships
• 58 of Hispanics said their purchasing is
  influenced a lot by event sponsorships
• Event marketing is used heavily to reach GLBT
  consumers

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2002 Event Marketing Budgets

• Total spending in 2002 132.3 billion (15
  increase from 2001)
• 17.4 of firms spent between 100,000 and
  250,000
• 12.4 spent between 50,000 and 99,999
• Source Promo Magazine

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Budget Expectations for 2004

• 45 said their event budget will stay the same
• 36 said their event budget will increase
• 8 said their event budget will decrease
• Source PROMO Magazine

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Event marketing goals

• Increase sales 79
• Raise brand awareness 74
• Capture market share 64
• Source PROMO Magazine

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What gives the best ROI?

• 2001 survey of 124 sales/marketing execs
• 47 events
• 32 advertising
• 29 sales promotion
• 15 public relations

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Ways of measuring event ROI

• Head count (attendance) 67
• Sales at event 49
• Samples/coupons distributed 35
• Internet hits 28
• Other 23
• Source PROMO Magazine

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Sponsorships

• 9.5 billion in 2002 (2.9 increase from 2001)
• Spend 2.00-2.40 on related promotions for every
  1.00 in rights fees

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Top Sponsorship Spenders

• Anheuser-Busch (190-195 M)
• Philip Morris (175-180M)
• General Motors (150-155 M)
• Coke (155-120 M)

• Pepsi (110-115 M)
• Nike (95-100 M)
• DaimlerChrysler (95-100M)
• Eastman Kodak (80-85M)
• Ford (70-75M)

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NASCAR

• Sponsorships 6-15 million/year
• Salaries and travel
• Name and logo on car, plus
• Promo services of driver (ads, sales meetings,
  corporate guests)
• Core 18-49 male audience 72 make a conscious
  effort to buy products that support their
  favorite drivers (Liz Clarke, Washington Post,
  6/9/01)
• www.nascar.com

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Example Events

• Walgreens Welness Tour
• 45 markets
• Portable lab doing screenings for bone density,
  cholesterol, blood pressure, glucose, body mass
  index (takes c. 30 minutes, worth 100)
• Healthy and beauty area
• Kids corner

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• Sample bag with educational material (Total
  toothpaste, Oscal calcium supplement, Smart Zone
  bar, Huggies diapers, LOreal skin care,
  Benefiber fiber supplement, Prilosec, Accu-Check
  glucose monitoring system, Listerine)

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Example Events

• Fisher-Price play area festival
• Targeting Hispanic households
• 60x60 play area with five different play
  stations for six-month to six-year olds
• Photo area co-sponsored by Polaroid

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Example Events

• Loews Cineplex Entertainment Corp.
• Nov. 6 Ultimate Film Fan contest, NYC
• Lifetime of free movies at any Loews Cineplex
  record the Loews jingle
• Nov. 10 Exhibit at the Museum of the Moving
  Image on evolution of Loews theaters
• Nov. 10 Start of national in-school educational
  program on how films tell stories that reflect
  the world student essay contest

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Who plans the event?

• Done by in-house marketing or event department
  79
• Use full-service promotion agency 22
• Use event marketing agency 19
• Use independent event planner 17
• Source PROMO Magazine

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How do you promote the event?

• Direct mail 64
• Local radio 46
• In-store promotion 43
• Guerilla marketing 41
• Local TV 24
• Local newspaper inserts 14

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Choosing an Event

• Positioning and Image
• Logical/believable brand link?
• Consistency with company image?
• Fit with brands key point(s) of difference?
• Audience reach/appeal
• Right target?
• Acceptable reach and frequency?
• Fits targets values/lifestyle?

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Choosing an Event

• Marketing/Sales Objectives
• Generates awareness?
• Stimulates trial/retrial?
• Encourages loyalty?
• Builds/steals share?
• Enhances distribution?

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Choosing an Event

• Marketing/Sales Strategies
• Consistent with current themes/messages?
• Supports/exploits seasonality?
• Supports/exploits regionality?
• Creates news?
• Measurable impact?

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Choosing an Event

• Tactical/Executional Effectiveness
• Can be easily/effectively extended with
  communications?
• Can be easily/effectively extended at retail?
• Managed by reputable, competent promoter?
• Requires minimal arms and legs?
• Legally acceptable and safe?
• Lifestyle and Event Marketing by Schreiber
  Lenson