Public Relations

Related Terms: Community Relations; Press Kits; Press Releases

Public relations describes the various methods a company uses to disseminate messages about its products, services, or overall image to its customers, employees, stockholders, suppliers, or other interested members of the community. The point of public relations is to make the public think favorably about the company and its offerings. Commonly used tools of public relations include news releases, press conferences, speaking engagements, and community service programs.

Although advertising is closely related to public relations—as it too is concerned with promoting and gaining public acceptance for the company's products—the goal of advertising is generating sales, while the goal of public relations is generating good will. The effect of good public relations is to lessen the gap between how an organization sees itself and how others outside the organization perceive it.

Public relations involves two-way communication between an organization and its public. It requires listening to the constituencies on which an organization depends as well as analyzing and understanding the attitudes and behaviors of those audiences. Only then can an organization undertake an effective public relations campaign.

Many small business owners elect to handle the public relations activities for their own companies, while others choose to hire a public relations specialist. Managers of somewhat larger firms, on the other hand, frequently contract with external public relations or advertising agencies to enhance their corporate image. But whatever option is chosen, the head of a company is ultimately responsible for its public relations.

GOALS OF PUBLIC RELATIONS

Some of the main goals of public relations are to create, maintain, and protect the organization's reputation, enhance its prestige, and present a favorable image. Studies have shown that consumers often base their purchase decisions on a company's reputation, so public relations can have a definite impact on sales and revenue. Public relations can be an effective part of a company's overall marketing strategy. In the case of a for-profit company, public relations and marketing should be coordinated to be sure they are working to achieve the same objectives.

Another major public relations goal is to create good will for the organization. This involves such functions as employee relations, stockholder and investor relations, media relations, and community relations. Public relations may function to educate certain audiences about many things relevant to the organization—including the business in general, new legislation, and how to use a particular product—as well as to overcome misconceptions and prejudices. For example, a nonprofit organization may attempt to educate the public regarding a certain point of view, while trade associations may undertake educational programs regarding particular industries and their products and practices.

STEPS IN A PUBLIC RELATIONS CAMPAIGN

Effective public relations requires a knowledge, based on analysis and understanding, of all the factors that influence public attitudes toward the organization. While a specific public relations project or campaign may be undertaken proactively or reactively (to manage some sort of image crisis), the first basic step in either case involves analysis and research to identify all the relevant factors of the situation. In this first step, the organization gains an understanding of its various constituencies and the key factors that are influencing their perceptions of the organization.

In the second step, the organization establishes an overall policy with respect to the campaign. This involves defining goals and desired outcomes, as well as the constraints under which the campaign will operate. It is necessary to establish such policy guidelines in order to evaluate proposed strategies and tactics as well as the overall success of the campaign.

In step three, the organization outlines its strategies and tactics. Using its knowledge of the target audiences and its own established policies, the organization develops specific programs to achieve the desired objectives. Step four involves actual communication with the targeted public. The organization then employs specific public relations techniques, such as press conferences or special events, to reach the intended audience.

Finally, in step five the organization receives feedback from its public. How have they reacted to the public relations campaign? Are there some unexpected developments? In the final step, the organization assesses the program and makes any necessary adjustments.

AREAS OF PUBLIC RELATIONS

Public relations is a multifaceted activity involving different audiences as well as different types of organizations, all with different goals and objectives. As a result, there are several specific areas of public relations.

Product Public Relations

Public relations and marketing work together closely when it comes to promoting a new or existing product or service. Public relations plays an important role in new product introductions by creating awareness, differentiating the product from other similar products, and even changing consumer behavior. Public relations can help introduce new products through staging a variety of special events and handling sensitive situations. For example, when the Prince Matchabelli division of Chesebrough-Pond's USA introduced a new men's cologne, there were twenty-one other men's fragrances being introduced that year. To differentiate its new offering, called Hero, Prince Matchabelli created a National Hero Awards Program honoring authentic male heroes and enlisted the participation of Big Brothers/Big Sisters of America to lend credibility to the program. Similarly, when Coleco introduced its Cabbage Patch Kids dolls, public relations helped increase awareness through licensed tie-in products, trade show exhibits, press parties, and even window displays in Cartier jewelry stores.

Public relations is often called on to give existing products and services a boost by creating or renewing visibility. For example, the California Raisins Advisory Board organized a national tour featuring live performances by the California Dancing Raisins to maintain interest in raisins during a summer-long advertising hiatus. The tour generated national and local publicity through media events, advance publicity, trade promotions, and media interviews with performer Ray Charles. Other public relations programs for existing products involve stimulating secondary demand—as when Campbell Soup Co. increased overall demand for soup by publishing a recipe booklet—or identifying new uses for the product. Public relations can interest the media in familiar products and services in a number of ways, including holding seminars for journalists, staging a special media day, and supplying the media with printed materials ranging from "backgrounders" (in-depth news releases) to booklets and brochures. Changes in existing products offer additional public relations opportunities to focus consumers' attention. An effective public relations campaign can help to properly position a product and overcome negative perceptions on the part of the general public.

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