Public Relations

Public relations is the part of the marketing mix designed to build or maintain a positive organizational image among an organization's stakeholders. Public relations is a slow process that gradually changes the impressions, attitudes, and opinions of the various publics over time. Although public relations sometimes can be used to "spin" negative information into a more favorable light, it cannot build a positive reputation for an organization when it is not deserved. Similarly, public relations cannot smother deserved criticisms or malpractice. There are a number of tools for promulgating the organization's message through public relations. In addition to media relations, public relations activities may include face-to-face techniques, research, the use of the Internet, various in-house publications, and the design and protection of the corporate logo and other branding.

According to conventional wisdom, if one should "build a better mousetrap, the world will beat a path to your door." The reality, however, is more complex. Whether or not one's "mousetrap" is truly better will depend on a number of factors, including what kind of mousetrap customers want or need and how good the mousetraps of the competition are. Pricing, too, will come into play. The potential customer must decide how much "better" is worth. If the benefit achieved from using the better mousetrap is not worth the price, most customers will not purchase it. However, even if the mousetrap is truly better, needed by the customer, unparalleled by the competition, and gives value for its price, customers still will not purchase the new mousetrap if they do not know about it. For this reason, businesses carry out various marketing activities ranging from word-of-mouth to elaborate marketing campaigns. The marketing function creates, communicates, and delivers value to customers and manages customer relationships in ways that benefit the organization and its stakeholders.

When thinking about marketing, many people think first about various techniques that directly advertise the organization's goods and services. These include advertising media including print, television, and radio advertisements, billboards and other advertising signage, Internet advertisements, sales promotions, and direct marketing. In addition, another vital part of the marketing effort comprises public relations. This is the process of creating and managing a public image or reputation with outside agencies and groups. In business, the public relations function is responsible for developing positive messages about the organization and reducing the impact of negative events and information on the organization's reputation. The public relations function focuses efforts on various internal and external stakeholders, including stockholders, employees, the government, public interest groups, and society as a whole. It is the function of public relations to monitor its various constituencies and provide positive information to reinforce its integrated marketing communications strategy and advertising direction as well as to react quickly to counteract a shift in the desired position of any of its publics.

The Marketing Mix

As shown in Figure 1[CCL1], each of the various elements in the marketing mix is designed to move prospective customers closer to a sale. At first, these activities are targeted toward making the customer aware of the organization and its products or services. Publicity and advertising in particular are effective in achieving this goal. Once the prospective customer is made aware of the organization and what it has to offer, marketing efforts next focus on generating interest in the customer for purchasing the organization's goods or services. Publicity and advertising, again, tend to be particularly successful in generating interest. However, as shown in Figure 1, personal selling efforts tend to become increasingly successful as the customer acquires more information about the organization and what it has to offer. These activities also help prospective customers understand the nature and value of the organization's products or services and can help promote the conviction that the product or service being offered is something that is appropriate for the customer. Once this has been accomplished, marketing efforts attempt to turn this conviction that the product or service is appropriate or needed into a desire to purchase it. At this point, sales promotions can also be effectively used in making a prospective customer a current customer.

In addition to the more direct elements of the marketing effort -- publicity, advertising, personal selling, and sales promotion -- there is also the public relations function. As shown in the figure, public relations efforts can be effective throughout the process of turning prospective customers into current customers by helping them better understand the organization (or at least the image that the organization wishes to portray).

The marketing mix is the combination of product, price, place, and promotion that is used to get a product into the hands of the consumer. One of the primary tasks of marketing is to optimize the mix to best position the product for success in the marketplace. The public relations function of the organization can positively contribute throughout the entire marketing program. During new product development, public relations can contribute by monitoring competitor activity and helping to determine the nature of the marketing opportunity. The public relations function can also determine the public relations objectives and strategy. For example, the type of development (whether or not it is an innovation, a reintroduction of a previous product, an extension of the organization's current line, a reappraisal or revitalization of a current product, or a managed decline or withdrawal of a product) will influence whether stakeholders need to be educated about the product, service, or brand, or reassured (e.g., if a product is going off the market); public relations actions need to be taken to support the sales strategy; or if the strategy requires a reassessment. Marketing research can also be used to formulate reports or news stories that can be used in public relations efforts.

In addition to activities directly related to marketing a product or service, public relations has many functions that can help the organization in meeting its goals and objectives. Primarily, public relations is used to build or maintain a positive image among the various stakeholders. For example, public relations can be used to help employees feel good about the organization that they are working in or be used as a selling point to attract and acquire high quality new employees. Public relations can also be used to raise the awareness of various stakeholders or publics about the organization or its products or services, and educate them in an attempt to build a positive and attractive image. It can also help maintain investor confidence or attract new investors and raise financing. In addition, public relations can help launch new products or services. Public relations efforts can also be used to manage issues that might otherwise negatively affect the organization or its reputation and help defuse potential damaging impact of crisis situations on the organization.

However, public relations is not a magic wand that can immediately gain and maintain customer loyalty. As opposed to other marketing channels, public relations is a slow process that gradually changes the impressions, attitudes, and opinions of the various publics over time. Although public relations sometimes can be used to "spin" negative information into a more favorable light, it cannot build a positive reputation for an organization when it is not deserved. Similarly, public relations cannot smother deserved criticisms or malpractice.

Further, although public relations can help raise the awareness of the organization in the eyes of its various publics or stakeholders, it does not substitute for other elements of the marketing mix (e.g., advertising, publicity, promotion, personal sales) needed to market the organization's products or services. In addition, although good public relations practices can help increase the chances of getting media coverage, it cannot guarantee it. Similarly, although good public relations can increase the likelihood of increased sales, it cannot guarantee them.

Applications

Face-to-Face Public Relations

Public relations techniques encompass more than media relations. There are also face-to-face techniques that allow organizations to spread their message and widen their recognition. Venues for face-to-face techniques used in public relations include seminars, meetings, conferences and conventions, and exhibitions. For example, the public relations department of an organization can set up an exhibit of their products, do demonstrations, or pass out literature at one or more conferences or conventions that are held each year. These opportunities allow the organization to choose one or more specific target audiences to whom it wishes to market and to focus its message to best communicate with that market. Face-to-face approaches are the most direct of the public relations tools and may be one of the most powerful methods to reach stakeholders. These techniques also allow the organization to focus the public relations effort so that it can be presented in more detail. If the organization is in charge of the event (e.g., a seminar put on by an investment business that teaches people about retirement planning), they have control over what information is presented and how this is done. If the event is being put on by a larger organization (e.g., exhibiting at a convention), the organization may enjoy a larger audience than if putting on the event independently and have the added benefit of being associated with the reputation of the larger organizer. Face-to-face events, however, are not without their drawbacks. The cost of such events is typically higher than for other public relations techniques. In addition, if working through a third party, one must also work within the parameters set by that party.

Public Relations Research

Another tool of public relations is research. Publishing research on a topic in which the organization has an interest or a proposed solution can not only generate greater interest in the topic but in the organization's solution. In some cases, the link between the research and the organization's interests may be obvious or overused. However, there are situations where the publication of research findings may be particularly successful. In particular, the publication of research findings is likely to help the organization when it is truly newsworthy or has an interesting angle, is parallel to a strong educational campaign, or includes good case histories. Research can do more than generate media coverage, however. It can also provide a point of departure for discussions with stakeholders or as a basis for a conference or other face-to-face method. In addition, research can be used to reinforce the message of an advertising or direct marketing campaign. However, if an organization decides to use research as a public relations tool, it must be very careful that the research is impeccable; otherwise, it will harm the organization's reputation rather than enhance it.

Mediums for Public Relations Outreach

With advances in electronic communications technology, one of the first choices for many public relations communications is the organization's website. Increasingly, stakeholders turn to this medium for information and updates about the organization and to compare the offerings of one organization to another. The organization's public relations function should regularly review the organization's website and make recommendations on how to keep it up to date and use it proactively to manage the organization's reputation. The organization's website can be used as a virtual press office and can include press releases, summaries of research, and information about products or services, as well as advertising and contact information. A website can also be used to collect data and report the results of analysis, publicize events, or announce outstanding employee achievement. Electronic communications need not be limited to the Internet, however. Intranets also offer an important medium for public relations efforts with employees. In addition, e-mail newsletters can be sent to employees or other stakeholders.

Electronic communications methods have both advantages and disadvantages. Websites can potentially deliver the organization's message to virtually any place in the modern world not only quickly, but cost-effectively. In addition, electronic communications methods allow two-way communication between the organization and its stakeholders. The information on websites can be quickly and easily updated, a feature essential for getting out information in a timely manner. This feature also means that public relations can issue rebuttals or deal with adverse comments in a timely fashion. However, to be useful from a public relations standpoint, a website needs to be monitored and frequently updated. This requires web-savvy personnel who understand how to update the website. In addition, it must be remembered that public relations information tends require a more subtle presentation than does overt advertising. A light hand is required when developing public relations materials for one's website. Otherwise, the material may have the opposite effect than was intended.

The Internet is not the only modern technology that is useful for public relations activities. Other technologies such as video and audio recordings can be used to promulgate the organization's message to stakeholders. Multimedia efforts can be used for sending out the organization's message in the form of such things as company reports, internal communications, education, recruitment, documentaries, business development, demonstrations, welcome materials for visitors, and issues management. To determine which medium is most appropriate, several considerations need to be taken into account. First, the organization needs to determine what message it is trying to communicate with the stakeholders. Some messages are more appropriate to certain media than are others. For example, if the organization is trying to communicate that it is on the cutting edge of technology, dispersing this message via audio cassette tape may be considered oxymoronic. Another question to be answered is to whom the message is being delivered. Stakeholders who are facile with modern media will appreciate being communicated with in that manner and will interpret the organization's use of such media as a demonstration that their needs are understood. In addition, it must be determined what the purpose of the message is. Just because a medium is available does not mean that it is appropriate to use it. Similarly, just because the message does not utilize all the storage space on the medium does not mean that the message should be longer. In many cases, shorter is better.

Another way that the organization can get out its message to stakeholders is through in-house publications, such as company bulletins, newsletters, newspapers, or magazines. Potential targets of these publications might include internal employees (e.g., workers, management, sales personnel), distributors (e.g., retailers, wholesalers), current or prospective customers, supporters (e.g., donors, guests, passengers), and opinion leaders (e.g., business leaders, academics, politicians).

Similarly, the organization's message can be promulgated through various printed materials -- in particular, educational literature, corporate reports, and research or other special reports. For example, a manufacturer of a new drug might provide several different types of information to stakeholders. They might develop a simple leaflet for patients that discusses the disease, the actions of the drugs, and answers patients' frequently asked questions. A more detailed document could be developed for health care professionals that summarizes scientific research on the drug and explains the actions of the drug on the human body. Package inserts might also be prepared for the patient. All this material might also be posted on the organization's website.

Public Relations & Branding

Last but not least, the public relations department should be involved in the design and safeguarding of the corporate logo and other branding. These things are closely related to the corporate identity and public relations needs to make certain that they are appropriate to the image that the organization is trying to portray. Careful research needs to be done before changing these things to determine how they will be perceived by the public. Similarly, public relations needs to be watchful that the corporate logo or branding is not infringed by others. For example, several major snack manufacturers filed suit against a person who modified their branding to package drug-laced candy and soda. Organizations need to be vigilant so that their logo and branding only bring up positive associations in the minds of their stakeholders.

Terms & Concepts

Advertising: Public communication promoted by businesses to persuade prospective customers to buy their goods or services. These communications can take place through any number of different media, including television or radio broadcasts, newspapers, magazines, direct mail, billboards, or catalogs.

Direct Marketing: A customer relationship management strategy in which the provider of the product or service delivers the promotional message directly to potential customers on a one-to-one basis rather than through the use of mass media.

Integrated Marketing Communications: An approach to marketing communications that improves message consistency and effectiveness through combining multiple marketing elements (e.g., advertising, direct response, sales promotions, public relations).

Marketing: According to the American Marketing Association, marketing is "an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships to profit the organization and its stakeholders."

Marketing Mix: The combination of product, price, place, and promotion that is used to get a product into the hands of the consumer. One of the primary tasks of marketing is to optimize the mix to best position the product for success in the marketplace.

New Product Development: The application of systematic methods to all processes necessary to create a new product from conceptualization through marketing. New products can be improvements on existing products or total innovations.

Personal Selling: Personal communication with the customer on a one-to-one basis aimed at convincing him or her to purchase a product or service. Personal selling includes a variety of activities, such as developing a relationship with the customer, collecting and analyzing data to gauge the customer's needs, determining the best match between the customer's needs and the offered products or services, and effectively communicating this information to persuade the customer to make the desired purchase.

Public Relations: The process of creating and managing a public image or reputation with outside agencies and groups. In business, the public relations function is responsible for developing positive messages about the organization and reducing the impact of negative events and information on the organization's reputation.

Publicity: Any general communication about a business or its products or services that is disseminated through mass media (e.g., television, radio, newspaper, online social media) and attracts public notice.

Sales Promotion: Activities or materials that supplement normal advertising measures and are intended to attract the attention of potential customers and persuade them to make a purchase. Sales promotions frequently offer rewards if the customer makes a purchase such as coupons, discount prices, rebates, free samples, or free entry into contests. Sales promotions can either target the individual consumer, or they can target the wholesaler or reseller of the product.

Spin: To provide an interpretation to potentially negative information in such a way as to sway public opinion and prevent damage to the reputation of the organization. The term is sometimes used pejoratively.

Stakeholder: Any individual or group who has an investment or an interest in a business. Stakeholders may include a business's employees, suppliers, distributors, and stockholders.

Strategy: In business, a strategy is a plan of action to help the organization reach its goals and objectives. A good business strategy is based on the rigorous analysis of empirical data, including market needs and trends, competitor capabilities and offerings, and the organization's resources and abilities.

Bibliography

Black, C. (2001). PR Practitioner's desktop guide. London, England: Thorogood.

Clow, K. E., & Baack, D. (2005). Public relations. In K. E. Clow & D. Baack (Eds.), Concise encyclopedia of advertising (p. 133). Binghamton, NY: Haworth. Retrieved July 10, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22573994&site=ehost-live

Dach, L. (2013). Don't spin a better story. Be a better company. Harvard Business Review, 91(10), 42. Retrieved November 19, 2013 from EBSCO online database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=90325417

Horn, S. (2013). Social media's online advantage: The evolution of public relations to digital communications. Public Relations Tactics, 20(1), 16. Retrieved November 19, 2013 from EBSCO online database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=84930683

The PR professional of 2015: Analyzing the future of public relations. (2012). Public Relations Tactics, 19(3), 14-15. Retrieved November 19, 2013 from EBSCO online database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=73308187

Ruskin-Brown, I. (2005). Promoting a service. In I. Ruskin-Brown (Ed.), Marketing your service business (pp. 199-221). London, England: Thorogood. Retrieved July 10, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22377471&site=ehost-live

Suggested Reading

Carayol, V., & Frame, A. (2012). Communication and PR from a cross-cultural standpoint: Practical and methodological issues. Brussels, Belgium: Peter Lang. Retrieved November 19, 2013 from EBSCO online database eBook Academic Collection (EBSCOhost). http://search.ebscohost.com/login.aspx?direct=true&db=e000xna&AN=486414&site=ehost-live

Dunn, J. (2001a). Crisis public relations: How to handle emergencies. In J. Dunn (Ed.), Public relations techniques that work pocketbook (pp. 121-137). London, England: Thorogood. Retrieved July 10, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22377706&site=ehost-live

Dunn, J. (2001b). The nature of public relations. In J. Dunn (Ed.), Public relations techniques that work pocketbook (pp. 3-12). London, England: Thorogood. Retrieved July 10, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22377695&site=ehost-live

Gottschalk, P. (2011). Corporate social responsibility, governance and corporate reputation. Hackensack, NJ: World Scientific. Retrieved November 19, 2013 from EBSCO online database eBook Academic Collection (EBSCOhost). http://search.ebscohost.com/login.aspx?direct=true&db=e000xna&AN=389603&site=ehost-live

Knights, K. (2001). Getting out what you put in. In K. Knights (Ed.), Strategic planning in public relations (pp. 16-23). London, England: Thorogood. Retrieved July 10, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22383614&site=ehost-live

What is strategic planning and why do we need it? (2001). In K. Knights (Ed.), Strategic planning in public relations (pp. 1-6). London, England: Thorogood. Retrieved July 10, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22383612&site=ehost-live

Moloney, K. (2000). The PR industry from top to bottom. In K. Moloney (Ed.), Rethinking public relations (pp. 17-30). New York, NY: Routledge. Retrieved July 10, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=17441814&site=ehost-live [CCL1]image is poor quality -- remake image from print-out/PDF