PBRL 270 1st Edition Lecture 3 Outline of Last Lecture I. Public Relations vs. AdvertisingII. Public Relations vs. JournalismIII. Public Relations vs. MarketingIV. IMC – Integrated Marketing CommunicationV. The Growth of Public RelationsVI. Public OpinionOutline of Current Lecture I. Public Relations CompaniesII. IMC – Integrated Marketing CommunicationsIII. OutsourcingIV. AgenciesCurrent LectureI. Public Relations Companies- Where do PR people work?o 40% - Corporationso 27% - PR/Advertising/Marketing/Communication Firmso 14% - Associations, Foundations, Educational Institutionso 8% - Healthcare Organizationso 6% - Governmento 5% - Nonprofit, Religious, Social, Welfare Organizations But, the single largest employer of PR people is the Federal Government- Survey of Practitionerso Writingo Editingo Media Relations & Placemento Special Events (organization)o Speaking & Talkingo Productiono Researcho Planning & Programmingo Trainingo AdministrationThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Public Relations is estimated by many Fortune 500 companies to provide a 184% return on investment (ROI)- Reduce the costs of litigation, boycotts- Prevent loss revenue- Power = communication- Power = c-level reporting- The tip of the iceberg… and beneath; What people think PR is on the surface, andwhat its like underneatho Surface Media Relations Special Events Publicity News Conferences Crisis Communicationo Beneath Strategic Planning Relationship Management Issues Management Government Relations Research Audience Analysis Internal Relations Investor Relations- Large Corporations may be more likely than small firms to include PR in policy because:o Highly competitive environmentso Must be sensitive to public opiniono Establishing corporate identityo More spotlight = more scrutiny - Methods of Paymento Hourly fee – what you charge hourlyo Retainer – money paid up fronto Fixed project fee – what they can pay based on budgeto A combinationII. Integrated Marketing Communications (IMC)- Different fields (advertising, marketing, and PR) can be integrated to meet goals and objectiveso Four Reasons For Integration Downsizing Tighter Budgets Advertising “Clutter” Public & Social Policy IssuesIII. Outsourcing: A Growing Trend- Major trend to outsource a range of services- Fortune 500 companies are spending 25% of budget on outside firms- 90% of them use outside companies to some degree- Sources of friction between PR & Managemento Legalo Human resourceso AdvertisingIV. Agencies- Agencies take many shapeso Solo practitionerso Small, mid-size, regional, or boutiqueo Large agencies (often owned by media conglomerates)o Specialized firms (lobbyists, political consultant)- Agencies vs. PR Departmentso In-house Departments Depth & commitment Institutional knowledge both good and bad Focused attention Often more localized Less time pressureo Agency Breadth of clients Objectivity Worldwide network Pressure to performo Agency Advantages Broad media contacts International reach Variety of skills & expertiseo Agency Disadvantages Superficial grasp of client & problem Lack of full time commitment Need for prolong briefing period Expensive Only knows what client