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MGT301 - Principles of Marketing - Lecture Handout 38

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Lesson overview and learning objectives:

Explain how companies use public relations to communicate with their publics. Public relations, the final mass communication tool described in this chapter, is an attempt to build good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image,” and handling or heading off unfavorable rumors, stories, or events. The organization has a variety of tools at their disposal for accomplishing this feat. One of the overriding tasks of public relations is to control the exposure and relationship with the mass media. By focusing on consumer attitudes, awareness, and knowledge of the organization, the company is better prepared to succeed. Public relations have even been extended to the Internet and companies are beginning to explore ways to increase their effects on the newly emerging world of e-commerce.


A. Direct Marketing

a. Other Marketing Applications through Databases

Some of the important uses or advantages of using database market are as following:

  • Match profiles to cross-sell other products to customers
  • Modify marketing messages based on customer profiles
  • Reach out to customers to reinforce the purchase decision
  • Find new customers
  • Gain insight into who is purchasing products
  • Improve customer service

Beside uses database marketing also has some disadvantages like

  • Marketing databases can be costly and time consuming,
  • Databases need to be carefully planned
  • Consumer privacy issues.

b. Integrated Direct Marketing

Too often, a company’s individual direct marketing efforts are not well integrated with one another or with other elements in its marketing and promotional mixes. A more powerful approach is integrated direct marketing, which involves using multiple-vehicle, multiple-stage campaigns.

c. Public Policy and Ethical Issues in Direct Marketing

Direct marketers and their customers usually enjoy mutually rewarding relation-ships, however, occasionally, a darker side emerges. Irritation, unfairness, deception, and fraud are common complaints. Many consumers perceive that an innocent desire to become “close” to the customer really is an invasion of privacy (this is the toughest issues facing the industry).

  1. Consumers can benefit from database marketing, but at what cost to privacy?
  2. in a company’s desire to build a database, they often get carried away.
  3. in a recent survey, 79 percent of consumers expressed concern about their privacy. In reality, direct marketing is just too expensive to waste on consumers who don’t want it.

B. Public Relations

Public relations are very believable—news stories, features, and events seem more real and believable to readers than ads do. Public relations can also reach many prospects who avoid salespeople and advertisements—the message gets to the buyers as "news" rather than as a salesdirected communication. As with advertising, public relations can dramatize a company or product. Marketers tend to underused public relations or to use it as an afterthought. Yet a well-thought-out
public relations campaign used with other promotion mix elements can be very effective and economical.

a. Public Relations

Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Major functions are:

  1. Press relations or press gentry.
  2. Product publicity.
  3. Public affairs.
  4. Lobbying.
  5. Investor relations.
  6. Development.

Public relations are used to promote products, places, ideas, activities, organizations, even nations.

b. The Role and Impact of Public Relations

The Role and Impact of Public

Public relations can have a strong impact on public awareness at a much lower cost than advertising. Despite its potential strengths, public relations are often described as a marketing stepchild because of its limited and scattered use. This may be changing, however. Many companies today are looking for public relations to take a more active role in marketing and promotion planning. Marketing public relations departments are being formed. Public relation tools are being used by the companies in evaluating public attitudes, identifying the issues of public concern and to execute the different programs that can gain public acceptance. It means that the public relations is that marketing function which evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

c. Major Public Relations Tools

Major Public Relations Tools

Major tools include:

  1. News.
  2. Speeches.
  3. Special events (mobile marketing).
  4. Written materials (such as annual reports, brochures, articles, and company newsletters).
  5. Audiovisual materials (such as films, slide-and-sound programs, video and audio cassettes).
  6. Corporate identity materials (such as logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, and company cars and trucks).

Companies also improve public relations by contributing time and money to public service activities. A company’s Web site can be a good public relations vehicle. Consumer and members of other publics can visit the site for information and entertainment. Major public relations decisions include:

  1. Setting public relations objectives.
  2. Choosing public relations messages and vehicles.
  3. Implementing the public relations plan.
  4. Evaluating the results.

d. Major Public Relations Decisions

Major Public Relations Decisions

As shown in the fig major public relation decisions are:
Setting Public relations objective that means deciding what are the results that the companies want to achieve by using public relation tools, than second step is choosing the message that companies can communicate to public to fulfill the role of public relation, next step of this system is implementation of the program and finally evaluation of the program in
order to judge the success level of public relations tools used.

e. Publicity

Public information is information about a company’s goods or services appearing in the mass media as a news item. Stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations. Publicity is more credible to consumers than any other promotional mix element Although publicity is generally thought of as not paid for, firms incur publicity-related expenses that include the cost of employing marketing personnel assigned to create and submit publicity releases, printing and mailing costs, and related expenses.

Related Content: MGT301 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of Principles of Marketing