Chapter 3: Public Relations
Chapter 3
Public Relations
CHAPTER CONTENT
KEY OBJECTIVES
1. Explain what public relations is.
3. List common public relations tools and their functions.
4. Name and discuss what is trending in public relations.
CHAPTER OVERVIEW
This chapter focuses upon the role of public relations in an organization and explores
how goodwill can be developed effectively in a marketing communication program. It
discusses the different types of public relations programs, planning and tools, and also
ways of gauging their effectiveness.
CHAPTER OUTLINE
WHAT IS PUBLIC RELATIONS?
Public relations is a fundamental communications discipline covering a wide range
of functions that helps an organization connect with the people it touches. Public
relations is used to generate goodwill for an organization.
The Public Relations Society of America defines public relations as follows: Public
relations is a strategic communication process that builds mutually beneficial
relationships between organizations and their publics. By publics, we mean all the
Public relations is practiced by a wide range of organizations: companies,
governments, trade and professional associations, nonprofit organizations, the travel
and tourism industry, educational systems, labor unions, politicians, organized sports,
and the media. Most organizations have in-house public relations departments that
handle the organizations’ public relations work, although many also hire outside
public relations agencies.
Public relations is a dynamic, global profession. On one level, it is a tactical function
in that public relations staff produce a variety of communication tools to achieve
corporate image objectives. On a higher level, it is the management function that
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monitors public opinion and advises senior corporate executives on how to achieve
positive relationships with various audiences to effectively manage the organization’s
image and reputation.
Public Opinion
Public relations programs are built on an understanding of public opinion on issues
critical to the organization, such as the company’s impact on the environment and its
local community or workers’ rights and how the company deals with employees.
To design effective public relations programs, the public relations strategist
researches the answers to two primary questions about public opinion. First, which
publics are most important to the organization, now and in the future? Second, what
do these publics think? Particular emphasis falls on understanding the role for each of
the publics of opinion leaders, important people who influence the opinions of
others.
Reputation: Goodwill, Trust, and Integrity
Public goodwill is the greatest asset any organization can have. A well-informed
public with a positive attitude toward an organization is critical to the organization’s
survival. This is why creating goodwill is the primary goal of most public relations
programs.
Sometimes a totally unexpected crisis can threaten an organization’s respect and trust.
Beyond responding to immediate issues, a public relations program that is tuned to
creating goodwill operates as the conscience of the organization. Creating goodwill
demands that both public relations professionals and the clients they represent act
with integrity.
To underscore the importance of acting with integrity as a prerequisite to creating
goodwill, most public relations organizations have created codes of ethics. The Public
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Principle: Reputation is earned based on what you do, not what you say about
yourself.
The value of a good reputation is hard to measure. Although considered a soft asset,
one that is not usually included in a company’s financial statements, it can be
significant in determining company and brand value.
Research has shown that in the face of bad publicity, advertising only fans the flames
and makes the company appear unconcerned. Communicators must find ways to
authentically connect with their audiences.
How Public Relations Contributes to Brand Perception
Public relations, like advertising, contributes significantly to brand perceptions. In
integrated programs, advertising and public relations aim at selected targets with
different but complementary messages. Advertising and public relations specialists
share a joint responsibility to promote a brand, and at times their efforts converge.
Ultimately, the difference between the two is that public relations takes a longer,
broader view of the importance of image and reputation as a corporate competitive
asset and addresses more target audiences. Public relations and advertising also differ
in how they use the media, the level of control they have over message delivery, and
their perceived credibility.
Here are some specific differences between public relations and advertising:
Media use: In contrast to buying advertising time and space, public relations
people seek to persuade media gatekeepers to carry stories about their company.
Gatekeepers include writers, producers, editors, talk-show coordinators, and
newscasters.
Although public relations has a distinguished tradition, it is often mistaken for
publicity, which refers to getting news media coverage. Publicity is focused on
the news media and their audiences, which is just one aspect of public relations,
and its carries no direct media costs.
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Control: In the case of news stories, the public relations strategist is at the mercy
of the media gatekeeper. There is no guarantee that all or even part of a story will
See the Matter of Practice feature in the text for information concerning emerging
employment opportunities in the public relations field.
HOW DOES PUBLIC RELATIONS WORK?
The word relations in public relations refers to relationships with various
stakeholders. In fact, the main subspecialties in the field—public affairs, media
relations, employee relations, and financial relations—call attention to important
Aspects of Public Relations that Focus on Relationships
The key publics addressed by relationship management programs in public relations
are media, employees, members, shareholders, others in the financial community,
government, and the general public. Here are the specialty areas that focus on these
relationship programs:
Media relations. The area that focuses on developing media contacts, that is,
knowing who in the media might be interested in the organization’s story, is
called media relations. A successful relationship between a public relations
Employee relations. Programs that communicate information to employees are
called employee relations. A related program is called internal marketing,
which deals with communication efforts aimed at informing employees about
marketing programs and encouraging their support.
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Financial relations. All of the communication efforts aimed at the financial
community, such as press releases sent to business publications, meetings with
investors and analysts, and the annual report, are referred to as financial
relations.
Public affairs. Corporate communication programs with government and with the
public on issues related to government and regulation are called public affairs.
Public affairs includes lobbying, which occurs when a company provides
information to legislators in order to get their support and vote on a particular bill.
Community relations. The scope of community relations has grown from a focus
on the local community to encompass a larger meaning. This focus has expanded
to include consideration of diverse communities, especially the underrepresented
and underserved.
Consumer relations. One area where advertising and public relations overlap is
the growing field of consumer relations. It is defined as building relationships
with people who buy things in the United States and elsewhere around the globe.
Building sales and brand relationships are major objectives.
Aspects of Public Relations that Focus on Particular Functions
Other areas of public relations, such as corporate reputation management, crisis
management, marketing public relations, and public communication campaigns are
distinctive because of their focus rather than their target audience.
Corporate Reputation Management
The area that focuses on an organization’s image and reputation is called corporate
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Crisis Management
There is no greater test for an organization than how it deals with a crisis. The key to
crisis management is to anticipate the possibility of a disaster and plan how to deal
with the bad news and all the affected publics.
Public Communication Campaigns
Used as a way to change public opinion, public communication campaigns also
discourage socially harmful behaviors, such as driving in areas with air pollution
problems. Sometimes they are engaged in counter-marketing as they try to negate the
impact of other advertising messages. Taken to the global level, public relations
intersects with public diplomacy.
Fundraising
The practice of raising money by collecting donations is called fundraising. It is used
primarily by nonprofits and directed to potential donors. Professional fundraisers
WHAT ARE THE MOST COMMON TYPES OF PUBLIC RELATIONS TOOLS?
Public relations uses a variety of marketing communication tools just as advertising
does. Advertising is particularly useful in sending out corporate image and reputation
programs. Direct marketing is sometimes useful in sending out corporate or
institutional publications. The internet is important because the corporate website is
Planning how to use these tools for a public relations campaign is similar to planning
an advertising or IMC campaign. An acronym for the parts of a strategic plan for
public relations is RPIE, short for Research, Planning, Implementation, and
Evaluation.
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As the media landscape has evolved in the digital age, so has the role of public
relations in integrated marketing. Public relations now plays a central strategic role,
Paid media are traditional measured media, primarily in an advertising format, such
as print and broadcast, in which the sponsoring company or organization pays for the
promotion.
Owned media are those channels owned and controlled by the sponsoring
organizations such as websites, blogs, sponsored events, and publications about the
brand, such as news releases. The company or organization controls the messages but
does not control how or when the message is delivered.
Consumers and mass media, not the brand owners, control the mentions and
comments about the brand in what is known as earned media, which makes it the
Although it’s hard to measure, earned media is undeniably valuable, as long as the
coverage is positive. However, sometimes such coverage can damage a brand’s
reputation. This is why some companies monitor the internet to see what is being said
about them so that they can respond to protect their reputations, if it’s something
negative.
How should organizations respond to negative information on the internet or social
media? Entrepreneur Mark Suster warns about the dangers of overreacting. “If you
Advertising
Public relations programs sometimes employ advertising as a way to create corporate
visibility or increase its goodwill with its various stakeholder audiences. The primary
uses of advertising are house ads, public service announcements, and corporate
advertising.
House Ads
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Public Service Announcements
The ads for charitable and civic organizations that run free of charge on television or
radio or in print media are public service announcements (PSAs). These ads are
prepared just like other print ads or commercials, and in most instances ad agencies
Corporate Advertising
With corporate advertising, a company focuses on its corporate image or
viewpoint. There is less emphasis on selling a particular product unless it is tied in to
a good cause. For that reason, the ad or other campaign materials may originate in the
public relations department rather than the advertising department.
Corporate identity advertising is another type of advertising that firms use to
enhance or maintain their reputation among specific audiences or to establish a level
of awareness of the company’s name and the nature of their business.
Media Relations
Next, we will move away from controlled messages and consider the various tools
and techniques used by media relations specialists to get publicity in the news media
on behalf of a company or a brand.
Media relations is seen as the most important core competency for public relations
professionals. Media relations specialists know media that would be interested in
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News Releases
The news release is the primary medium used to deliver public relations messages to
the various external media. Although the company distributing the news release
controls its original form and content, the media decide what to present and how to
The decision to use any part of a news release at all is based on an editor’s judgment
of its news value. News value is often based on timeliness, proximity, impact, or
human interest.
News releases must be written differently for each medium, accommodating space
and time limitations. Traditional journalism form is followed. The more carefully the
news release is planned and written, the better the chance it has of being accepted and
published as written.
Pitch Letters
Ideas for feature stories, which are human interest stories rather than hard news
announcements, have to be “sold” to editors. This is done using a pitch letter that
Press Conferences
A press conference—an event at which a company spokesperson makes a statement to
media representatives—is one of the riskiest public relations activities because the media
may not see the company’s announcement as being real news. Companies often worry
whether the press will show up for a press conference. Also, they wonder if the press will
ask the right questions or instead will ask questions the company cannot or does not want
to answer.
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Media Tours
A media tour is a press conference on wheels. The traveling spokesperson makes
announcements and speeches, holds press conferences to explain a promotional effort,
and offers interviews.
Publications
Some companies publish material in print and online, often called collateral
material, to support their marketing public relations efforts. Corporate publications,
marketing, and sales promotion departments and their agencies also produce training
materials and sales kits to support particular campaigns.
Other Tools
In addition to advertising, publicity, and publications, public relations practitioners have
various types of materials and activities in their professional toolkits.
Videos, CDs, Podcasts, and Books
Videos and podcasts have become major public relations tools for many companies.
They are an ideal tool for distributing in-depth information about a company or
program. With the advent of simplified electronic publication, corporate books have
also become popular.
Speakers and Photos
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Special Events and Tours
Some companies stage events to get maximum publicity and generate positive
attitudes toward the sponsors by celebrating milestones, such as key anniversaries and
introductions of new products. These are high-visibility activities designed to get
maximum publicity. A classic special event is the Macy’s Thanksgiving Day parade,
a tradition started in 1924. Corporate sponsorship of various sporting events has
evolved into a favorite public relations tactic.
Events can also be important in internal communication. Learning objectives and
employee buy-in are often accomplished through meetings, seminars, and workshops
sponsored by a company, typically in conjunction with training materials and other
Online Communication
While the internet and social media have changed communications forever, they have not
replaced human relationships as the essence of societal communication. Nor have the
new techniques replaced human relationships as the essence of the practice of public
relations, according to public relations practitioner and author Fraser Seitel.
Brand journalism, email, intranets (which connect people within an organization),
External Communication
Corporate websites have become an important part of corporate communication.
These sites can present information about the company and open up avenues for
stakeholders to contact the company. Website newsrooms distribute a company’s
press releases to the media and other interested stakeholders.
Internal Communication
Email is a great way for people at separate work sites to communicate. You can get a
fast reply if people at the other end are checking their email regularly and it is
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Internal company networks have great benefits. Intranets and corporate portals
encourage communication among employees in general and permit them to share
company databases, such as customer records and client information.
WHAT’S TRENDING IN PUBLIC RELATIONS?
2. Visual storytelling will be increasingly important.
4. Educational video content will become more important.
6. Digital security will be a continuing concern.
8. Brand owners will continue to integrate marcom tools to create one consistent voice.
10. Measuring the effectiveness of public relations efforts will continue to evolve as
traditional methods don’t fit digital media.
END-OF-CHAPTER SUPPORT
REVIEW QUESTIONS
3-3. Explain why public opinion is important to the success of public relations.
Public relations programs are built on an understanding of public opinion on issues
critical to the organization, such as the company’s impact on the environment and its
local community or workers’ rights and how the company deals with employees. The
public relations strategist researches the answers to two primary questions about public
opinion to design effective public relations programs. First, which publics are most
important to the organization, now and in the future? Second, what do these publics
think? Public opinion differs from mass opinion in that public opinion examines specific
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Some students will take the point of view that ‘all publicity is good publicity’ and focus
upon the huge amount of free media exposure KFC received as a result of this incident.
TAKE-HOME PROJECTS
3-10. Portfolio Project: Identify a local organization in your community that might
benefit from a public relations plan. Study the organization’s situation, identify a problem
that can be addressed with public relations, and outline a plan to help the organization.
Prepare your proposal in a 3-page (maximum) paper.
Students may want to incorporate some of the following tips for small businesses to
communicate their messages more effectively. They are:
• Wrap your story around a bigger idea. Find a broader context or news hook for your
product or service and show how your company fits into it.
• Host events. These don’t have to be expensive, but small themed events with food and
drink for customers can be a good draw, particularly on streets crowded with multiple
merchants.
• Seek out brand ambassadors. Find customers willing to talk up your product to
others and encourage their word-of-mouth marketing with discounts or first looks at
new products and sales.
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social responsibility or cause marketing? Explain your response. As a team, compile a
brief report that summarizes the strengths of each and how the company behind it has
benefitted.
2. Crisis management is an important part of public relations. There is no greater test for
an organization than how it deals with a crisis. To learn more about this, have one
student in the pair identify a company that was challenged by a crisis and handled it
well, and the other student in the pair identify a company that was also challenged by
a crisis but handled it poorly. As a team, report to your class on the experiences of the
OUTSIDE EXAMPLES
1. Learn more about the role of ethics in public relations by visiting the Public Relations
Society of America online at http://www.prsa.org. From the homepage, type “Ethics”
in the search box and read the code of ethics. What does it tell you about the state of
2. Howard Rubenstein, founder and CEO of Rubenstein Public Relations, Inc., is
considered an elder statesman in the public relations profession. Go to YouTube.com
to watch him in an interview with Douglas Simon. What are the key points Mr.
Rubenstein makes in this interview and in what ways do they reflect the principles