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Informasjon og Samfunnskontakt (Public Relations) Høyskole i Stavanger Norsk Hotellhøgskole Peggy Simcic Brønn 19.02.01 Peggy Simcic Brønn 1 The Four P’s of the Marketing Mix (Kotler) Variety Quality Product Marketing Design Mix Features Brand name Packaging Sizes Services Target Warranties Market Price Returns List price Discounts Allowances Payment period Credit terms Peggy Simcic Brønn Place Channels Coverage Assortments Locations Inventory Transport Promotion Sales Advertising Sales force PUBLIC RELATIONS Direct marketing 2 Marketing-Mix Strategy Promotion Mix Offer Mix Sales Promotion Products Advertising Distribution Target Company Services Salesforce channels Customers Public Relations Prices Direct mail & Telemarketing Peggy Simcic Brønn 3 Relative Importance of Promotional Tools in Consumer versus Industrial Markets Consumer Goods Industrial Markets Advertising Personal Selling Sales Promotion Sales Promotion Personal Selling Advertising Public Relations Relative Importance Public Relations Relative Importance Public Relations and Marketing - Differing Views Separate but equal functions Equal and overlapping functions Marketing the dominant function Public Relations the dominant function The same function Peggy Simcic Brønn 5 PR AND MARKETING Public Relations Relationship building is everything. Relationships with all groups affecting organization. Goal - save money by managing threats and finding opportunities. Peggy Simcic Brønn Marketing Relationship building is key. Relationships mainly with customers/clients. Goal - organization’s economic objectives. 6 “PR - A COMMUNICATION FUNCTION OF MANAGEMENT THROUGH WHICH ORGANIZATIONS ADAPT TO, ALTER, OR MAINTAIN THEIR ENVIRONMENT FOR THE PURPOSE OF ACHIEVING ORGANIZATIONAL GOALS.” Peggy Simcic Brønn 7 Marketing Communications Mix Advertising Direct Marketing Sales Promotion Public Relations and Publicity Personal Selling Peggy Simcic Brønn 8 Advertising Print and broadcast ads Packaging - outer Packaging - inserts Motion pictures Brochures and booklets Posters and leaflets Peggy Simcic Brønn Directories Reprints of ads Billboards Display signs Point-of-purchase displays Audio-visual materials Symbols & logos 9 Sales Promotion Contests, games, sweepstakes, lotteries Premiums, gifts Samplings Fairs, trade shows Exhibits Demonstrations Peggy Simcic Brønn Couponing Rebates Low-interest financing Entertainment Trade-in allowance Trading stamps Tie-ins 10 Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows Peggy Simcic Brønn 11 Direct Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Peggy Simcic Brønn 12 Public relations: An umbrella term... Product publicity Corporate communications Issues management Investor relations Financial communications Lobbying Public affairs Peggy Simcic Brønn Media relations Community affairs Crisis management Events management Sponsorship A range of services feeding into these... 13 Success Criteria Peggy Simcic Brønn Skills Knowledge Abilities Qualities 14 Public Relations Functions Publications and communications materials Conventions, meetings, seminars Interpreting government actions Compiling and publicizing relevant statistics Preparing and distributing material to press Peggy Simcic Brønn 15 Public Relations Functions Promoting codes and ethics Institutional advertising Furthering employer-employee relations Crisis coordination Public service activities Peggy Simcic Brønn 16 What are We? Corporate Affairs Corporate Communications Communications Public Affairs Public Relations Marketing Communications Peggy Simcic Brønn Information Government Affairs Community Affairs Employee Relations Publications Press and Media Relations Marketing 17 Tools Written material Audio-visual material Corporate identity media News Events Speeches Telephone information service Internet Peggy Simcic Brønn 18 Tools Written material » » » » » Annual reports Catalogs Employee newsletter Magazines Posters and flyers Peggy Simcic Brønn Audio-Visual material » Films » Slides » Audio cassettes 19 Tools Events » Attract attention » Develop stories around » Important for nonprofits » Anniversaries » Art exhibits » Auctions » Fashion shows Peggy Simcic Brønn Speeches » Effective spokespersons for organization » Address topical issues 20 Tools News » Finding, creating, selling to appropriate media » 3 qualities – Higher veracity – Catches people off guard – Potential for dramatization Peggy Simcic Brønn Telephone Information Service » Numbers to get information » Pre-recorded answers to common questions » Shows a caring about public 21 Tools Internet » Pluses – – – – – Peggy Simcic Brønn Edit self Dialog (two-way) Always updated Extremely cheap Global coverage » Minuses – Boring – Rigid – People must be looking for information on you 22 Ethics Moral guidelines » Truthful » Testimonials » Children and young people » Exploitation of goodwill Peggy Simcic Brønn » » » » » Comparisons Imitation Safety Denigration Responsibility 23 Traditional PR Responses Circle the Wagons Cosmetic Missionary Interactive Communications Open Door Peggy Simcic Brønn 24 CORPORATE IMAGE - WHAT IS IT? Corporate Identity Individual Interpretation Corporate = Image $ Lundquist, O. S., Rønning, L., Sandberg, G., ‘Corporate Identity and Corporate Image, En litteraturstudie av begrepenes definisjoner, Diplomoppgave, Siviløkonomstudiet, BI (1997). Peggy Simcic Brønn 25 25 CORPORATE IDENTITY The way in which an organization presents itself » Symbols » Communication » Behavior Referred to as Corporate Identity (CI) Mix Personality manifested through this mix Peggy Simcic Brønn 26 CORPORATE IDENTITY MEDIA Product Price Logos Name Stationery Brochures Signs Peggy Simcic Brønn Visit cards Buildings Uniforms Sponsorship Packaging Work environment Figure or “character” Peggy Simcic Brønn 27 27 IMPORTANCE OF IDENTITY Raises motivation among employees Inspires confidence in stakeholder groups Acknowledges important role of customers Acknowledges vital role of financial groups Peggy Simcic Brønn Peggy Simcic Brønn 28 28 TYPES OF CORPORATE IDENTITY Monolithic -- Shell, Philips, BMW Endorsed -- GM, L’Oreal Branded -- Unilever Peggy Simcic Brønn Peggy Simcic Brønn 29 29 Corporate Identity Names Self-Presentations Customer Image Community Image Investor Image Employee Image Corporate Reputation Fombrun, C. J., Reputation, Harvard Business School Press Reputation is the most important commercial mechanism for conveying information to consumers. It is a distinctive capability that accrues competitive advantage to an organization. John Kay Foundations of Corporate Success Peggy Simcic Brønn 31 WHY DO WE NEED TO CARE ABOUT IMAGE? Consumers are more sophisticated than ever before There is more distrust than ever regarding motives of big business There has been more changes in the last ten years than in the last 80 There is a clear relationship between a positive image and profitability Peggy Simcic Brønn Peggy Simcic Brønn 32 32 Image is no longer solely the realm of marketing, but rather a strategic instrument of top management. De Soet (CEO Dutch KLM) When having to choose similar products, 9 out of 10 consumers base their decisions on the reputation of the company. Mackiewicz TODAY’S SITUATION Quality and good service taken as given Programs such as TQM and ISO9000 have worked Organizations need new differentiators, new USP’s » Advocacy advertising » Green advertising Peggy Simcic Brønn Peggy Simcic Brønn 34 34 REASONS FOR IMAGE ‘MANAGEMENT’ General promotion value Encourage favorable behavior towards organization Build sales Attract shareholders Attract and motivate employees/build morale Reduce cost of capital Peggy Simcic Brønn Aid in relations with community/ government Serve corporate objectives Create familiarity and favorability Create position in industry Can demand premium prices Peggy Simcic Brønn 35 35 IT HELPS POSITION PRODUCT Peggy Simcic Brønn Physical product attributes Distribution Price Image Peggy Simcic Brønn 36 36 IMAGE LEVELS Product class Brand Company Sector Shop Country User Peggy Simcic Brønn Peggy Simcic Brønn 37 37 IMAGE AUDIENCES Consumers Shareholders Investment community Employees Communities Suppliers Peggy Simcic Brønn Peggy Simcic Brønn 38 38 What are the most important things to know about a company to judge its reputation? (percentage) - Financial Performance - Quality of Management - Quality of Products/ Services - Customer Services Peggy Simcic Brønn Bus. Editors General City Business Public Investors Press 42 9 65 80 28 9 91 71 8 6 47 18 20 0 0 20 Peggy Simcic Brønn 39 39 Corporate Identity and Corporate Personality Personal and nonpersonal communication Super and subordinate images Experiences with product/service & staff Corporate Image Management/ employees Products/Services Ethics/Community Finances 40 Management/Employees • Quality of Management •Quality of work conditions (physical and social) •Quality of strategies Products/Services • Quality • Satisfaction • Technology • Value • Selection Ethics/Community • Equal employment •Socially responsible •Protect jobs Finances • Sound investment opportunity •Contributes to charity • Pays dividends •Helps the community • Reporting practices •Conserves energy • Stock price •Environmentally conscience • Diversified •Supports culture •Responsible citizen • Wise use of assets • Consistent growth CORPORATE IMAGE IS THE PERCEIVED SUM OF THE ENTIRE ORGANIZATION - ITS OBJECTIVES AND PLANS. IT ENCOMPASSES PRODUCTS, SERVICES, MANAGEMENT STYLE, COMMUNICATIONS ACTIVITIES AND ACTIONS AROUND THE WORLD. G.A. Marken Peggy Simcic Brønn Peggy Simcic Brønn 42 42 FACTORS CONTROLLING COMPANY IMAGE Reality of company Newsworthiness of company Diversity of company Communications effort Time Memory decay Peggy Simcic Brønn Peggy Simcic Brønn 43 43 IMAGE-ORIENTED ADVERTISING OBJECTIVES Industry - develop and maintain favorable industry image. Generate primary demand. Company - develop and maintain a favorable company image. Generate selective demand. Peggy Simcic Brønn Peggy Simcic Brønn 44 44 BARRIERS TO ACHIEVING ‘DESIRED’ IMAGE “CEO disease” Mental models If it’s not broke don’t fix it Inability to read environment Confusion regarding who’s job it is Peggy Simcic Brønn Peggy Simcic Brønn 45 45 OPTIMAL - AN INTEGRATED EFFORT Unified image Data base management-driven integration Integrated customer contact points Stakeholder-based integration Peggy Simcic Brønn Peggy Simcic Brønn 46 46 Goal: Credible Image Believable message Clearly stated Continually and consistently Through appropriate channels At the appropriate level of understanding Peggy Simcic Brønn Peggy Simcic Brønn 47 47 The Three I’s - Mission Oriented Identity: Who we are Image: What we are Ideas: Peggy Simcic Brønn What we stand for and believe 48 Monitoring What you have The organization Corporate Visuals Corporate Identity How you intend to use it Corporate Identity: Era 1 -- Badging Source: Bamber Forsyth in White, J. and Mazur, L. Strategic Communications Management, Addison Wesley, London, 1996. Audience Perceptions Monitoring What you have Corporate Visuals The organization How you intend to use it Corporate Identity Corporate Communications Corporate Identity: Era 2 -- Visuals plus Communication Source: Bamber Forsyth in White and Mazur Audience Perceptions Monitoring What you have Corporate Behavior The organization How you intend to use it Process Corporate Communications Corporate Identity Vehicles Corporate Values Corporate Identity: Era 3 -- The integrated approach Source: Bamber Forsyth in White and Mazur Audience Perceptions