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Public Relations and corporate image

Public relations defined

The deliberate, planned and sustained effort to institute and maintain mutual understanding between an organisation and its publics.

Institute of Public Relations (IPR)



Specific public relations disciplines include:

Financial public relations providing information mainly to business reporters Consumer/lifestyle public relations gaining publicity for a particular product or service, rather than using advertising Crisis public relations responding to negative accusations or information Industry relations providing information to trade bodies Government relations engaging government departments to influence policymaking

How has the Role of PR Changed?

Traditional Role: Communicating and gaining acceptance of policies and programs in the community

New Role:

More marketing-oriented (Marketing Public Relations MPR) Operates within a marketing department to develop programs and policies Supports marketing objectives and adds value to the integrated marketing communications program Incorporates marketing and corporate PR functions.

What do PR people do?

Determine the publics existing attitude toward the firm Helps planning Serves as early warning system for problems 2. Design a PR plan that is proactive rather than reactive. 3. Execute the plan. Determine relevant target audiences Decide on tools 4. Determine the effectiveness of the plan

Public Relations Tools

Public Relations Tools

The Sponsoring Organization Pays for Controlled Media so They Maintain Total Control Over How and When the Message is Delivered.
House Ads Public Service Announcements Corporate (Institutional) Advertising
Prepared by the Organization for Use in Its Own Publication or One Over Which It Has Some Control.
Ads Designed by Charitable or Civic Organizations for Broadcast Free of Charge. Designed to Promote a Corporate Image or Viewpoint.

Public Relations Tools

Publications Such as Pamphlets, Booklets, and Annual Reports for an Organizations Own Employees and Other Publics. Maintaining Visual Contact With the Various Publics is a Big Part of PR. All Are Used in Both Sales Promotion and PR Programs and Include Open Houses and Plant Tours.

In-House Publications

Speakers, Photographs, & Films

Displays, Exhibits, & Staged Events

Public Relations Tools

The Media, Rather Than the Organization, Controls the Use and Placement of Uncontrolled Media.
News Release Primary Medium Used To Deliver PR Messages to Media Editors And Reporters. Video News Releases Contain Video Coverage That Can be Used During a TV Newscast.

Press Conference
Convening Media Reps To Make a Statement. Risky, Because Media May Not See Companys Announcement as Being Real News. May Distribute Press Kits.

Corporate image

A corporate image refers to how a business is perceived. It is a generally accepted image of what a company stands for. A corporation's image is not solely created by the company. Other contributors to a company's image could include: news media, journalists, labor unions, environmental organisations, and other NGOs.

Corporate Image
Definition: Corporate images are selectively perceived mental pictures of an organization.The sum total of these perceived characteristics of the corporation is what we refer to as the corporate image. (Zinkhan, Ganesh, Jaju, Hayes)

Who is interested in the corporate image?

The most important groups are

- Stockholders: who have invested in the company - Board of Directors: who manage the company - Employees: who is in middle management and below - Suppliers: who supplies any kinds of materials and services (banks) - Channel members: who are involved in the distribution network - Customers: who purchase the companys products and/or services - Community: who asses the companys role as corporate citizen

Benefits of an effective corporate image

stimulating sales establishing company goodwill creating an identity for employees influencing investors and financial institutions promoting favourable relations with the community, government and opinion leaders achieving a competitive position

How is Corporate Image formed?

Step 1: Influence and manage corporate image
Internal controllable sphere

External non-controllable sphere

The internal controllable sphere can be used to influence the stakeholders image of the organization. The external factors, however can also be indirectly manipulated.

Forming a corporate image on the internal sphere

Steps to follow: Forming a corporate image on the internal sphere through the six major sources: 1.Corporate Identity. 2. Corporate Advertising 3. Brand Image 4. Public Relations 5. Frontline Employees Behaviour 6. Websites

Forming a corporate image on the external sphere

Steps to follow: There are four major sources:
1. Industry image . Country-of-Origin Image 2. 3. Press Reports and Press releases. 4. Word-of-mouth

Marketing involves a number of activities. To begin with, an organisation may decide on its target group of customers to be served. Once the target group is decided, the product is to be placed in the market by providing the appropriate product, price, distribution and promotional efforts. These are to be combined or mixed in an appropriate proportion so as to achieve the marketing goal. Such mix of product, price, distribution and promotional efforts is known as Marketing Mix