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Marketing Public Relations: Principles and Practice (2012/01)

Lecture 5The marketing perspective of public

relations: The new partnership

Developed and Presented by

Roy Ying, Msc., B.Comm.

Note: Pictures used in this power point file is for academic Purpose only

DA010 - Professional Diploma in Public Relations - COMM6026EP

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Is PR marketable?

• It’s not a product or a service that you can get people to buy.

• It’s an objective driven exercise based on a core message developed from your company’s Vision, Mission and Value (VMV).

• It is the core message that needs marketing.

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What’s VMV

• Vision – what your company is trying to achieve

• Mission – what your company is all about

• Value – what is important for your company

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Difference between Vision and Mission Statements

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Example of VMV – Coca Cola

• Vision – People: A great place to work.

– Portfolio: Bring to the world a portfolio of quality beverage brands.

– Partners: Be a reasonable citizen that makes a difference.

– Profit: maximize long-term return to shareholders.

– Productivity: Be a highly effective, lean and fast-moving organization.

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Example of VMV – Coca Cola

• Mission

– To refresh the world

– To inspire moments of optimism and happiness

– To create value and make a difference

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Example of VMV – Coca Cola

• Value– Leadership: The courage to shape a better

future

– Collaboration: Leverage collective genius

– Integrity: Be real

– Accountability: If it is to be, it’s up to me

– Passion: Committed in heart and mind

– Diversity: As inclusive as our brands

– Quality: What we do, we do well

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Core messages• They may evolve over time…like slogans

but all derived from the VMV

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PR and Marketing Partnership

How does it work?

• PR division develops the core message.

• The message will be communicated via relevant channels and stakeholders.

• Both PR and Marketing division must form a partnership to ensure congruence in every external activities.

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Class Discussion

• What can go wrong if PR and Marketing are not joined up?

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Remember this list?

• The kind of services a typical PR agency would offer– Media relations

– Brand management

– SEO and social media engagement

– Trade fairs and special events

– Public affairs and community engagement

– CSR

– Crisis and issue management

– Internal communications

– Stakeholder management

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Public affairs

• In Hong Kong, the policy address is key.

• Is Macau also?

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Examples – public affairsMinimum Wage CommissionMembership Composition

HKGCC Clean Air CharterSigned by Donald Tsang

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Example – Remember this?

Q: What about office sector?A: I want your views. Tell us!

Q: What about office sector?A: I want your views. Tell us!

JOINT CHAMBER EVENTINFLUENCE POLICY MEDIA

EXPOSURERESEARCH

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Public affairs

How marketing can help public affairs?

• In the issue of “office land supply shortage”, RICS submitted views to government, but there was a lot of marketing consideration:

– Production of research paper with assistance from marketing team’s industry contacts

– Direct Mailing to relevant stakeholders

– Organization and marketing of high-level events

– An opinion leadership status at that timing was required in promoting a new product

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Corporate Social Responsibility

• Remember! CSR is not about how you give away your money, but rather how you make money from the community.

• CSR Definition by European Commission– A concept whereby companies integrate

social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.

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Stakeholders in CSR

• These are the target audienceyou need to bemarketing yourCSR messagesto…

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Remember the Pepsi Challenge?

• See how the 2011 has changed

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Remember Coca Cola’s Mission?

• Is this just philanthropy (or charity)?

• What is the key message of this CSR film?

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Class Discussion

• McDonald’s CSR Film

• Come up with 3 ideas you would propose to let the consumers know about the CSR work McDonald’s is engaged in?

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Benefits of CSR (if marketed properly)

• Recruit and motivate employees, build organizational loyalty & morale

• Risk management-early identification and prioritization of issues impacting your business and that of suppliers & customers

• Better relations with media and critics of business

• Increase competitiveness

– Attract new customers

– Lower operating costs

– Brand differentiation

– Discover new products or business lines

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Crisis Management

• A successful case study

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What happened?

• In 1982, one individual succeeded in lacing the drug with cyanide. Seven people died as a result, and a widespread panic ensued about how widespread the contamination might be.

• By the end of the episode, everyone knew that Tylenol was associated with the scare. The company's market value fell by $1bn as a result.

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What did J&J do?

• It acted quickly - ordering that Tylenol should be recalled from every outlet - not just those in the state where it had been tampered with. Not only that, but the company decided the product would not be re-established on the shelves until something had been done to provide better product protection.

• As a result, Johnson & Johnson developed the tamperproof packaging that would make it much more difficult for a similar incident to occur in future.

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Cost and Benefit

• The cost was high, but the company won praise for its quick and appropriate action. Having sidestepped the position others have found themselves in - of having been slow to act in the face of consumer concern - they achieved the status of consumer champion.

• Within five months of the disaster, the company had recovered 70% of its market share for the drug - and the fact this went on to improve over time showed that the company had succeeded in preserving the long term value of the brand.

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Crisis Management

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Mini CA 3

• If you are the marketing department of J&J’s Tylenol business division, how would you align your activities with the overall corporate crisis communications strategy?

• Your answer should be focused on the 4Ps.

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What’s not CSR?

• Is giving away money part of a Hutchison and Cheung Kong Holding’s CSR?

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Why not?

• Even if you take Bill Gates as an example, all his charity work is not part of Microsoft’s CSR activities.

• That’s because it’s personal contribution, and has nothing to do Microsoft being a responsible corporate citizen.

• The same goes for Li Ka ShingFoundation….do you know what activities the foundation supports?

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Do the activities relate to HWL?

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How about this?

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Conclusion on CSR

• Philanthropy can only be CSR if it is integrated into the core value of the company in relations to its stakeholders