Copyright 2011 Pearson Education, Inc.

publishing as Prentice Hall

5-1

The CEO is the firms top manager, responsible for setting strategy and framing policy. The CEO serves as: chief spokesperson corporate booster reputation defender These duties are much like those of the public relations professional.
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As with management, public relations demands clear strategies and bottom-line objectives that flow into specific tactics. Each tactic must have its own: budget timetable resources
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Managers insist on results the best public relations programs can be measured in terms of achieving key relationships. The relevance of public relations is measured by its contribution to the management process.

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

5-4

According to Grunig and Hunt, public relations managers fill a boundary role. They function at the edge of the organization, as a liaison between internal and external publics. This position can be a lonely and precarious one.
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What are we attempting to achieve, and where are we going in that pursuit? What is the nature of the environment in which we operate? Who are the key audiences we must convince in the process? How will we get to where we want to be?
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To serve as a true interpreter, the public relations director must report to the CEO. To be valued by management, public relations must remain: independent credible objective Public relations serves as the organizations corporate conscience.
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Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

We can afford to lose money even a lot of money but we cannot afford to lose reputation not even a shred of reputation. Warren Buffet CEO, Berkshire Hathaway

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

5-8

What are the dangers of public relations reporting to advertising, marketing or the legal department?
Answer: The job mistakenly becomes one of promoting a specific department, rather than the organization as a whole.

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

5-9

Strategic planning for public relations is an essential part of management. Public relations is too often considered a seat-ofthe-pants activity impossible to plan or measure. Why is this thinking flawed? With proper planning, public relations practitioners can defend and account for their actions.
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Environment Business objectives Public relations objectives and strategies Public relations programs

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5-11

1. Defining the problem or opportunity 2. Programming 3. Action 4. Evaluation

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5-12

Typical components include:

Executive summary Communication process Background Situation analysis Message statement

Audiences Key audience messages Implementation Budget Monitoring and evaluation

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5-13

Based on your public relations plan, its time to take action:

Back-grounding the problem Preparing the proposal Implementing the plan Evaluating the campaign

Although planning is important, public relations is still assessed in terms of action, performance and practice.

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

5-14

As the saying goes, What gets measured, gets done. Test your objectives according to these questions:
1. 2. 3. 4. 5.

Do they clearly describe the end result expected? Are they understandable to everyone? Do they list a firm completion date? Are they realistic, attainable and measurable? Are they consistent with managements objectives?

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

5-15

As with any other business activity, public relations programs must be based on sound budgeting. The key steps:

Estimate the resources needed to accomplish each public relations activity. 2. Estimate cost and availability of those resources, both in personnel and purchases. 3. Develop a budget and monthly cash flow plan.
1.
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5-16

What do PR practitioners do? Here is a partial list:

Media relations Social network marketing Internal communications Government relations and public affairs Community relations Investor relations Consumer relations Public relations research

Public relations writing Special publics relations Institutional advertising Graphics Website management Philanthropy Special events Management counseling

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

5-17

Public relations professionals generally work in one of two organizational structures: 1. As staff in the public relations department of a corporation, university, hospital, etc. 2. As a line professional in a public relations agency

Departments range from one-person operations to huge networks with hundreds of people.

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

5-18

A question for you: What are the main differences between working for an external agency and an internal department?

One answer: The difference is perspective: outside-looking-in versus inside-looking-out.

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

5-19

Advantages: Agencies are often used to escape the tunnel vision syndrome that often afflicts organizations. They can provide management with an objective reading of public concerns. Disadvantages: Agencies are outsiders. They may be unfamiliar with internal details and managements operating style.
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5-20

Agencies generally organize according to industries such as healthcare, sports, finance or technology. Agencies specialize in functions including media relations, government relations, social media and investor relations.

Account teams are assigned to specific clients.

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5-21

This means managing all aspects of an organizations reputation: Brand Position Goodwill Image

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5-22

A company with a good reputation can:

charge premium prices enjoy greater access to new markets, products and capital profit from word-of-mouth endorsement possess an unduplicated identity

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5-23

Public relations promises a strong future:

Health care, consumer and retail fields are strong High-tech sector will need more and more skilled professionals Investor relations, crisis management and other specialties pay well

Public relations agencies will continue to expand

Nonprofit: hospitals, schools, museums, etc. all need public relations Employee communications is needed to win back trust

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5-24

Salaries vary by experience, location and sector:

Public relations agencies: Companies and other enterprises: Professional organizations: Colleges and universities: Local governments:

$118,350 $107,480 $100,720 $87,900 $74,710

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5-25

Today, women predominate in public relations work. Minorities African-Americans, Asians and Hispanics are small in numbers but are growing in participation.

However, in the early 21st century, women and minorities still lagged behind their white male counterparts in salaries.
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5-26

In the 21st century, public relations enjoys a significant management role, encountering many new challenges.

There has never been a better time to do business and this trend will continue for the next 10 to 20 years!

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

5-27

Perils of an Out-of-the-Shadows CEO

Review this case on pp. 83-84. As a class, discuss:

What could Mark Penn have done to avoid conflictof-interest contentions in serving Hillary Clinton? What is the potential danger of heading a public relations firm and representing a particular political candidate at the same time?
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Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall