The Nature of Public Relations

TOPIC 1

By: Yunita Permatasari, M.Si Sylvia Roennfeld, M.Si

The Nature of Public Relations

Understanding Public Relations

Definition of Public Relations, Propaganda, and the differences between Public Relations and Marketing

The Uses of Public Relations

Public Relations function in the Work

The Structure of Public Relations

Public Relations structure in the organization, in house Public Relations, external Public Relations

Understanding Public Relations

Definition of Public Relations

The British Institute of Public Relations ( IPRA ) define
Public Relations as two stages :

Public Relations :
Is about reputations of what you do, what you say and what others say about you

Public Relations Practice :

It is planned and sustained effort to establish and maintain goodwill and mutual understanding between the organization and its publics Planning : Public Relations is a carefully planned activity Sustained : Public Relations must be continuous it is not a One shot : process Mutual : Public Relations people must listen as well as speak Receive as well as transmit Two way communications

The Public Relations Transfer Process

Hostility Prejudice Apathy Ignorance Sympathy Acceptance Interest Knowledge

Public Relations and Propaganda

Propaganda defined as : An organized scheme for the propagation of a doctrine or discipline Three types of Propaganda : White propaganda Source of communications : identified The information : accurate Grey propaganda Source : may or may not be correctly identified The information : uncertain Black propaganda Source : false The information : lies,fabrications and deceptions

Public Relations, Marketing and Advertising

Definition of Marketing :
The Management process responsible for identifying, anticipating and satisfying customer requirements profitably ( British Chartered Institute of Marketing CIM )

The most important : Customer and Profit Marketing Mix 7 Ps ( Product, Price, Place, Promotion, Physical Evidence, Participant, Process ) Costumer Needs 7 Cs ( Customer value, Cost, Convenience, Communication, Confirmation, Consideration, Coordination )

Product

Price Physical evidence

Place Participant

Promotion Process

PACKAGE

Marketing point of view Customer point of view

Customer Need

Confirmation
Customer value

Consideration

Coordination
Communication

Cost

Convenience

Promotional Mix

Public Relations : To support marketing objective Advertising Present the most persuasive possible selling message to the right prospects for the product or service at the lowest possible cost. The different with PR is used to create understanding Sales promotion Any Short term incentives to encourage purchase at point of sale Selling A verbal presentation in conversation with one or more prospective purchasers for the purpose of making sales ( Kotler )

The differences between Public Relations Marketing Advertising

Public Relations Marketing :

Public Relations concern with building relationship and generating goodwill for the organization Marketing is concern with customer and selling products and services

Public Relations Advertising :

Public Relations is to create understanding about organization or product Advertising is persuasion methods to sell about the product

Integrated Campaign

Is the use of all promotional tools to achieve the 3 As such as :

Awareness : To ensure the product offer's existence is known Attitude : To create and reinforce as positive attitude towards the product Action : To secure the sale

The Uses of Public Relations

Financial Public Relations or investor relations : PR activity that focuses to communicating with the financial organization/ individuals Example: maintain the shareholder relations, manage the information flow Government and public affairs PR activity that focuses to communicating with the government, local authorities, public bodies and its public Example : Explaining the activities of government, communicating information about new law or policies, etc. Commercial market Public Relations activities that focuses on communicating with commercial market Example: Launching the product, market education, etc Non Profit organizations PR activity that focuses on communicating the organizations relationship with its public, and the donator Example: Maintaining the relationship with the donor, informing the organization activity to its public, etc

There are 2 Types of Public Relations

1. Public Relations Department 2. Public Relations Consultant

Public Relations Organizations

Public Relations Role, Function and Responsibilities

The Role :
To provide management with communications expertise in the form of counseling and active communications skills

The Function :
To advise management of the most cost effective and efficient means of achieving identified communications strategies and tactics

The Responsibilities :
To make sure that strategic and tactical Public Relations objectives are achieved.

Public Relations Structure

To operate effectively, a Public Relations department must meet the needs of the task Some organization they have the needs to have Public Relations department ( In house Public Relations ) However, for others organization it is not cost effective to have In house department of Public Relations, and prefer to outsourcing the expertise. ( External Public Relations / Consultancy )

Public Relations Department activities

Liaison with the PR consultancy if one is employed Writing news release, commissioning photograph and feature articles, etc Distributing information to identified publics Maintaining an accurate media information service Training and rehearsal of organization staff who will meet the media Organizing events such as media visits, receptions and conferences Arranging media interviews with top management Editing and production of journal, annual reports, external journal and other printed publications To provide a full service from concept, through planning, creation, management, until evaluation for corporate identity programs, presentations, exhibitions, sponsorship and sales /dealer conferences

Public Relations Staffing

It depends on the size of the organizations or type of organizations

Small setting Larger setting

General structure Divisional structure

Public Relations Manager /Public Relations Officer

Public Relations manager are responsible for the Public Relations function, and report to the management. Public Relations officer are the working Public Relations people. They are the ones that have on going external contact, and provide the liaison between the Public Relations function and its range of contacts and publics. The main responsibilities are :
To maintain contact with individuals in the media To supply information to the media

Press Officer

General Structure
Managing Director Public Relations Finance Director Marketing Director

Production Director

Personnel Director

Divisional Structure Managing Director Public Relations

Press officer
Production Director Personnel Director

Event management

Finance Director

Marketing Director

External Public Relations / Consultant

There are 2 types of Public Relations Consultancy

Full Service The consultant give any kind of service in Public Relations Specialist The Consultant specialized in one area only Role :
To provide client management with communication expertise in the form of counseling and active communication skills in order to further interest of the client organization To advise the management of client organization of the most cost-effective and efficient means of achieving identified communication strategies and tactics, and to implement strategies and tactical plans in order to achieve those objectives

Consultant Role and function

Function :

Charging

Client can be charge :

1. FIXED FEE
Monthly installment Additional fee to cover any unexpected needs

2. RETAINER AND HOURLY/DAILY CHARGES

The Client is charged on agreed amount for each service provided be based on hourly or daily charge that comes from timesheet
A minimum is agreed for the length of the contract. After minimum fee has been used it is supplemented with hourly ( or Daily ) charges The Fees are strictly for Public Relations Peoples time and expertise

3. MINIMUM FEE AND HOURLY CHARGES

4. OTHER CHARGES

FUNCTIONAL STRUCTURE

Managing Director

Account Manager

Press Office

Publications

Events

Evaluation / Research

Admin Finance Office

CLIENT STRUCTURE Managing Director

Client A
Press Film Event

Client B

Client C
Press Film Event

Evaluation/ Admin Research Finance Office

Press

Film

Event

Advantage of In house

Public Relations staff are employed by the organization, they :

Identify closely with the aims and objectives of the organization Have personal stake in the organizations success Do not need to refer or if they do, it is relatively easy because they have access Are close to the decision makers Can offer 24 hours service Can move freely around the organization Can inform internal networks with employees from across the organization

Cost of space, admin back up, etc can be offset against a general overhead budget. Internal communications can be set up throughout the organization Continuity may be improved because internal staff probably tend to be more stable in employment than consultancy staff.

Disadvantage of in house Public Relations

Staff can be:

Too close identify with their product offerings Become biased in favor of their organization Have only a narrow range of experience Training maybe on the job rather than specialist, particularly if a person is seconded to Public Relations from another department Be limited in their aspirations, they may see their long term careers elsewhere in the organization

If there is not a full Public Relations department, the function may be allocated to another manager It is far easier to change consultancies than to change full time staff It is difficult to set up a department of the right size.

Advantage of External Public Relations/ Consultant

There is no long term commitment to employed staff. Cost are directly related to the work done. The budget can be agreed in advance. Cash flow is controlled Budgets can quickly be changed as necessary The public Relations people have current experience in the markets Their range of equipment and support services is likely to be better since it has greater use made of it They can provide one or more limited services, such as a central information service or service to do with a specific overseas market

Disadvantage of External Public Relations/ Consultant

Consultants will have limited knowledge of the organization and its products, etc Access is difficult, especially to secure areas Identification is with the consultancy, before the client Staff turnover may be higher than in house Complex or difficult queries will have to be referred to an organizations manager before the media can be briefed.

Public

In Public Relations, Public means a group of people woth a stake in an issue, organization, or idea. ( Fraser P.Seitel, pg 12,the practice of PR ) Public / Target audience are the receiver of our communication activities Some of the Public /Target audiences are obvious and easy to identify, but some of them should be defined first based on the communications needs. Identification of Public / Target Audience should be based on priority, as we can not communicate with the whole relevant target audiences altogether in the same time.

8 Publics
1.

Community :
The neighboring surrounding of the organization

2.

Potential Employee :
Future members of an organization

3.

Employee :
Current or present members of an organization

4.

Suppliers :
external participant within the org.

5.

Money market :
Those who control the financial centers

6.

Distributor :
Channel where product is positioned

7.

Consumer :
Buyers/ users of the product/ service

8.

Opinion Leader :
Reference group whose aim is to influence the process of trade

3 Main Types of Reference Groups

Primary Groups Small and very powerfull, there are a lot of interaction Example: Closed Family 2. Aspirational Groups Where members behave to show that they are certain kinds of people Example: Football Team Supporter, Nokia Clubs, Karimun Clubs 3. Dissociative Groups Those that an individual does not want to join with, does not want to be confused with. Wants to do the opposite
1.

Example of Opinion Leaders

Parents Teachers Doctors Politicians Presenters Journalist and author Musicians Someone admired, for whatever reason

Segmentation, Targeting and Positioning

Segmentations
Is the act of identifying and profiling distinct groups of people who have separate communications needs.
Social Grade ( A, B, C1, C2, D, E ) Geographic ( Which area or region is occupied ) Demographic ( Variables like age, gender, family size, income,

occupation, educations, religion, race, and nationality Geo- demographic ( Based on probability that people tend to live close to each other are similar )

Targeting
Choosing with which publics to communicate Target Market Target Audience

Positioning
Creating an image in the minds of the targets publics.