Transcript Chapter 19
CHAPTER 19 Copyright © 2001, Prentice Hall, Inc. FOR STARTERS: Consumers & Investors Why has dealing with consumers and investors become so important for public relations? Copyright ©2001 Prentice Hall, Inc. 2 Tyco Toys, Inc. Copyright ©2001 Prentice Hall, Inc. Toy Fair Breakfast Media Day at Sesame Place Theme Park Elmo sent to Rosie O’Donnell 15,000 media mentions Source of Elmo character: http://www.geocities.com/~chicky-ma-ma/elmo.htm [accessed 6/16/2000] 3 Let’s Discuss Consumer Movement History 1872 – Criminal Fraud Statute 1887 – Interstate Commerce Commission 1900s – Muckrakers The Jungle Food and Drug Act Food, Drug, and Cosmetic Act Copyright ©2001 Prentice Hall, Inc. 4 JFK’s Consumer Bill of Rights Right to Choose Right to Safety Copyright ©2001 Prentice Hall, Inc. Right to Be Heard Right to Be Informed 5 QUICK QUIZ Federal Consumer Agencies What does each of the following federal agencies do? Federal Trade Commission Regulates television and radio advertising Covers areas not included in national advertising (general litigation division) Enforces consumer credit program (fair credit reporting, truth in packaging) Copyright ©2001 Prentice Hall, Inc. 6 QUICK QUIZ Federal Consumer Agencies What does each of the following federal agencies do? Justice Department Enforces consumer protection measures such as the Truth in Lending Act and Product Safety Act Runs anti-trust division (Microsoft suit) Copyright ©2001 Prentice Hall, Inc. 7 QUICK QUIZ Federal Consumer Agencies What does each of the following federal agencies do? Food & Drug Administration Protects consumers from hazardous items: foods, drugs, cosmetics, therapeutic and radiological devices, food additives, serums, and vaccines Copyright ©2001 Prentice Hall, Inc. 8 QUICK QUIZ Federal Consumer Agencies What does each of the following federal agencies do? Office of Consumer Affairs Consumer Product Safety Commission Publishes literature informing the public of recent developments in consumer affairs Oversees product safety (seatbelts, strollers, etc.) Copyright ©2001 Prentice Hall, Inc. 9 QUICK QUIZ Name some consumer watchdog vehicles or groups. Consumers Union (publishes Consumer Reports) The Consumer Federation of America The Internet Copyright ©2001 Prentice Hall, Inc. 10 Business’s Consumer Relations Division Duties Handling Complaints Developing Guidelines to Evaluate Products & Services Developing Consumer Programs Developing Field-Training Programs Evaluating Service Approaches Evaluating Company Effectiveness in Showing Concern for Customers Copyright ©2001 Prentice Hall, Inc. 11 Chrysler Corporation’s “Customer’s Bill of Rights” Every customer has the following rights: Quality Long-term Protection Satisfaction Service with a Smile Grievance Opportunities Safe Vehicles Copyright ©2001 Prentice Hall, Inc. 12 Consumerist Objectives Let’s Discuss Explain how each would benefit a company: Keeping Old Customers Attracting New Customers Marketing New Items / Services Reducing Costs Copyright ©2001 Prentice Hall, Inc. Handling Complaints 13 Investigate complaints made against the firm Provide a central location for customers who seek redress Monitor difficulties customers have with products Influence organizations to improve service Copyright ©2001 Prentice Hall, Inc. 14 DEFINE: Timely and valuable communications that gain and maintain shareholder support Copyright ©2001 Prentice Hall, Inc. 15 What is a company’s CURRENCY? Its STOCK Copyright ©2001 Prentice Hall, Inc. PRICE 16 DEFINE: Any fact that would be important to an investor making an investment decision Copyright ©2001 Prentice Hall, Inc. 17 Examples of Material Information: Proposed mergers or acquisitions Changed dividend policy Determination of earnings Acquisition or loss of significant business contract Major management changes Significant change in capital investment plans Copyright ©2001 Prentice Hall, Inc. 18 Examples of Material Information: Purchase or sale of a major asset Incurring a major debt or selling a significant amount of equity annuities Pending significant legislation A major discovery or innovation Marketing a new product Copyright ©2001 Prentice Hall, Inc. 19 OVERVIEW: Annual Reports: Company description Letter to shareholders Financial review Explanation/analysis Management/marketing discussions Graphics Copyright ©2001 Prentice Hall, Inc. 20 OVERVIEW: Quarterly Reports: Comparison of current performance with previous year’s quarter performance Copyright ©2001 Prentice Hall, Inc. Annual Meetings: In-person meetings Q&A sessions Speeches Stockholder voting 21 OVERVIEW: Conference Calls: Follow-up quarterly reports to answer questions Copyright ©2001 Prentice Hall, Inc. Media Contact & Monitoring: In-person meetings Q&A sessions Speeches Stockholder voting 22 OVERVIEW: Internet Investor Relations: Homepage / Web site SEC documents online FAQs Links to financial data Copyright ©2001 Prentice Hall, Inc. 23