MKT 3013

Public Relations
Dr PANTEA FOROUDI

[email protected]
Public Relations
Aim of the session
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 Understand key challenges to be faced when a
crisis calling for PR management occurs
 Establish what a crisis is, from a PR (as
opposed to operational) perspective
 Discuss the main strategies and tools used by
PR practitioners when dealing with a crisis
 Develop plans for wide range of issues and
crises
Public
Main PRRelations
purposes/functions
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1) Reputation management

2) Internal communication (corporate comms)

3) Issues management

4) Crisis management

5) Promotion of products and services in indirect

ways
Public
Main PRRelations
purposes/functions
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1) Reputation management
Re-positioning within field of public perception opinion;
combating negative perceptions; presenting
favourable information
2) Internal communication (corporate communications)
in-house journalism, managing employee morale,
preparing a climate for change
3) Issues management
long-term management of public perception, gradual
repositioning within the context, public information
campaigns
Public
Main PRRelations
purposes/functions
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4) Crisis management
being prepared to respond to a sudden, potentially
damaging event; preparing for a crisis
5) Promotion of products and services in
indirect ways
preparing/priming and maintaining markets in
readiness for advertising and other forms of
marketing; helping to maintain brand value;
working in an integrated way with other forms of
marketing
 Public Relations
Processes for Managing
the Life Cycle
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• Issues management
• Risk communications
• Crisis management
• Reputation management

Wilcox et al., 2011

Public Relations
PR techniques
1) Researching
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styles to stakeholder
opinion
release of information, rebutting media
errors
2) Press and media kits
announcements, press releases
3) Events
briefings and conferences, lectures and
seminars, celebrations and parties
4) Endorsement and sponsorship
use of sympathetic third- parties, as brand
tie-ins, appearances at promotional events
Public Relations
Key relevant social
concepts
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• Democratic pluralism: sectors in society

• Competition, differentiation and competitive

advantage in capitalist societies

• Different sectors & social actors: civil society

• Different kinds of organisation

• State and private (privatised) ways of

delivering services
Public Relations
Some Sectors in which
PR takes place:
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1. Community involvement programmes
2. Consumer/commercial PR
3. Business-to-business (B2B) PR
4. Lobbying and public affairs
5. Financial PR
6. IT PR
7. Campaigning organisations/pressure groups
8. General public sector (‘information’) PR
9. Arts and leisure and entertainment/PR and
publicity
Public
PR Relations
1) Community involvement programmes
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developing community partnerships
(typically between companies and publics);
cause-related donations; CSR
2) Consumer/commercial PR
preparing markets for more direct forms of
marketing such as advertising; indirect
promotion of brands
3) Business-to-business (B2B) PR
building corporate reputation with peers and
in the supply chain; working through trade
journals and journalists; maintaining
relations with trade and professional
associations
Public
PR Relations
4) Public affairs (political campaigning)
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communicating information and point-of-view
to people/organisations in positions of power
or influence; national, regional and local
government relations; working to affect
policy environment and actual policies;
maintaining good relations with stakeholders

5) Financial PR
working to maintain trust in financial
products and services; responding to crises
(e.g. short-selling scandals)
Public
PR Relations
6) IT PR
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managing attitudes towards / promoting new
technologies (purchase, use, paced of
change, opportunities and dangers)

7) Campaigning organisations and pressure

groups
building consensus in relation to a particular
campaign (e.g. globalisation, environment,
new motorway)
Public
PR Relations
8) General public sector PR
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health and safety information; crime and risk
campaigns; publicising public services

9) Arts and leisure and entertainment PR &

publicity
promoting concepts of ‘culture’ and
entertainment; working on behalf of
particular artists or performers; protecting
the privacy of celebrity with clients
Public
PR Relations
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Closer look at one sector:
‘commercial or marketing PR’
- the sector closest to mainstream
marketing
Public Relations
Where does
commercial/consumer PR fit
into
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• By encouraging relevant publics to look

favourably on – and act favourably towards -
corporate aims
• By building relationships with relevant
stakeholders (internal or external) to facilitate
corporate/institutional aims
• By enlisting others in the process of
communicating messages, rather than the
principal communicating those messages directly
Public Relations points
Some necessary
about companies
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•Company as a kind of person, with identity,
character, goals, etc: ‘corporate’
•Range of stakeholders, but with a defined, stated
purpose:
•Commercial objectives (including specific
targets)
•Accountability (to board, shareholders)
•Numerous relationships to be managed, including
customer perceptions, staff morale, investor
satisfaction
Public Relations
Commercial/consumer
PR: main functions (1)
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•To help attract and retain customers (cf.
advertising)
•To support efforts to position company and its
products/services in competitive marketplace (cf.
branding)
•To influence legislation and regulation (cf.
lobbying)
•To demonstrate that an organisation is a good
investment and sound trading partner (cf.
reputation building)
Public Relations
Commercial/consumer
PR: main functions
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Also, what about …
•To show that the organisation is environmentally
responsible (cf. CSR)?
•To educate public on relevant issues (cf. issue
management)?
•To repair things when they go wrong (cf. crisis
management)?
Public Relationsinterface
PR / marketing
•Influence
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‘path totext styles (i.e. the stages a
purchase’
consumer follows or reaches on a journey from
initial perception of need, through increased
product awareness, to purchase and consumption)

•PR communications supplement the 4P marketing

mix (product, price, place and promotion)

Think of an example that makes clear the

distinction between PR and advertising in this
context
Public
PR along
Relations
the ‘path to
purchase’
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• At what different stages of the ‘path to purchase’ are
potential consumers affected by messages other
than those coming from the vendor or marketer?

•What kinds of positive or endorsing messages do

they get, and in what sorts of communication?

•Are there also hostile messages (grudges, anti-

product web activists, etc.?)

•What are the main ways in which it is possible to

affect or, sometimes ‘hijack’, such communications?
Public
PR andRelations
Importance of
B2B
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• Customer perception is crucial but not the only
factor.
• What about the contribution of other companies in
the field, or in the direct production, distribution
and marketing chain?
• Who mostly makes ‘comparative advertising’
complaints?

How can B2B and competitor relationships be

managed?
Public
Importance
Relations
of B2B:
media relations angles
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Possibilities Master text stories
company styles apparently from third
parties:
1) New senior appointments
2) New products and services
3) New technology and new processes
4) New contracts
5) New premises
6) New partnerships, mergers, takeovers
Contribution of PR communications to
Public Relations
branding – e.g. who is the apparent
source or designer of the message?
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Brand communicators:

• The product or service itself (differentiation)

• Behaviour of the firm’s staff

• The environment in which the brand is presented

Contribution of PR communications to
Public Relations
branding: what is the distinctive
purpose of the message?
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PR communications:

• Information (and correction of misinformation –

‘rebuttal’)
• Cultivation of reputation, image & profile by oblique
or indirectly commercial means

How much overlap is there between this type of PR

activity and other forms of marketing?
Role of new media: increased and more
Public Relations
rapid influence of third-party comment
on the ‘path to purchase’
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•Journalistic reviews, advertorials (online)
•Consumer reviews, transaction ratings
•Handling of consumer criticism and complaints
•Other product and services comparisons
•Incidental mention on blogs about other topics

How to respond to this new range of sources of

information and opinion?
Reaction 1: mixing genuine consumer
Public Relations
comment with deliberately ‘sourced’
promotion
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Look at any stretch of text on a general consumer

discussion website.

- How independent does the author seem?

- What evidence in the posting can you look to in

making your judgement?
Reaction 2: challenge, and legal
Public
measures
Relations
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•Shouting louder: propagating own messages

and engaging counter-bloggers, etc.

•‘Take-down’ complaints to ISPs; legal action

for trade libel, breach of confidentiality, trade
mark or copyright infringement, etc.
Implications for people wanting to work
Public
in PR?
Relations
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1) Typical profile of reading and interest in
preparing for employment in a given sector
2) Skill set to demonstrate in applying for jobs
3) Possible career paths (many PR
professionals are in ‘second careers’)
4) Specialisation… and over-specialisation?
Is commercial / consumer PR a good
Public Relations
thing, overall?

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Classic idea of a marketplace: free flow of
information about price, quality, availability of
goods and services

- avoids confusion and encourages

competition that forces quality up and
prices down.

•Is consumer PR an effective way of striving

for these values?
•Can problems arise with extensive use of PR
in the marketplace?
 Public Relations
Issue and crisis PR
• An issue • Astyles
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• Addresses potential matters • Addresses existing disastersDeals with
• Deals with ongoing matters acute risks
• Not action-orientated • More action-orientated
• More time to consider a plan • Reactive
• Looks to future • Must be dealt with immediately
• Negative aspects • Clear focus with finite actions and
• publics
Plans a developmental stage
• Pressure is high and short lived
• Key teams drawing on expert
knowledge. • Window of goodwill if it is an accident
• Language is clear and not emotional • Needs senior team to respond
• May never happen • Emotive language used
• Can influence organization’s • Has happened
development • Has an effect on the organization’s
development
Gordon, 2011
 Public
NaturalRelations
environmental
factors
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Gordon, 2011
 Public
5 stepsRelations
– Chase Jones
model
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Identification Analyse trends
Compare to organization’s goals and objectives

Analysis Identify origin of the issues

Review research and actions
How does it affect organization? Review strengths
and weaknesses
Strategy Is the organization reactive?
Can it influence the environment and lead the issue

Action Allocate resources to achieving the action

Evaluation Monitor the situation against desired results, noting

the progression of the issueand its effect

Gordon, 2011
 Public Relations
___Distributing the meeting agenda in
advanced permits those who will attend
the meeting to think in advance about the
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issues.

True

False

Gordon, 2011
 Public Relations
___Distributing the meeting agenda in
advanced permits those who will attend
the meeting to think in advance about the
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issues.

True

False

Gordon, 2011
 Public Relations
____ The purpose of op-ed articles is to
present a variety of views on current
events, government activities, and
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social Master text styles
issues.

True

False

Gordon, 2011
 Public Relations
____ The purpose of op-ed articles is to
present a variety of views on current
events, government activities, and
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social Master text styles
issues.

True

False

Gordon, 2011
 Public Relations
Issues analysis
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Identify issue – PEST

Analyse the risk - probability vs impact

Response of organization

Fallout

Gordon, 2011
 Public Relations
Music industry
earnings at risk
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Gordon, 2011
 Public Relations
Risk benefit
analysis
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• Recording industry – reaching new
markets
High
Low risk
Attract fans
Medium risk
Develop new
High risk
Hide subscriptions in
benefit through markets mobile devices
promotion.
Sustain online
community
Medium Ensure media Sue companies for
benefit play music offering free down loading

Low Reach DVD Make it difficult to

benefit buyers through download
games buyers

Gordon, 2011
 Public
Crisis Relations
Management
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 What is a crisis?  Strategies for
 A lack of crisis planning responding to crises
 Attack the accuser
 How to communication
 Denial
during a crisis
 Excuse
 Justification
 Ingratiation
 Corrective action
 Full apology
Wilcox et al., 2011
 Public
How to Relations
Communicate
in a Crisis
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Gordon, 2011
 Public Relations
Crisis lifecycle
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• Prodromal – warning signs

• Prevention – try to avoid crisis

• Containment – limit damage

• Recovery – return to normal

• Learning – evaluation and prepare for future

Gordon, 2011
 Public Relations
Build relationships
with stakeholders
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• Identify and analyse stakeholders concerns

and communicate goals
• Be inclusive
• Informal and formal discussions
• Negotiate through sharing information
• Continue with relationships and develop
commitment

Gordon, 2011
 Public Relations
Four major internet
crises
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• Reinforcing

• Absurd

• Affecting

• Competence

Gordon, 2011
 Public
The 5CsRelations
effective
communication
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model

Tench and Yeomans, 2009

 Public
CrisisRelations
communications
action plan
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Tench and Yeomans, 2009

Public Communication
Crisis Relations
To keep reporters as allies in a crisis
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• Appoint a trustworthy, authoritative
spokesperson
• Set up a central media information center
• Maintain up-to-the-minute information on
the organisation’s Web site
• Be accessible and responsive
• Be honest
Public Relations
Exercise
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• Effective media relations are particularly
important during a crisis or an emergency.
•
• Do some research on a crisis situation for an
organisation or a company.

• Analyse how well the organisation handled its

media relations.
Public Relations
Successful media relations
during a crisis depend on
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all the following EXCEPT:
A. Appoint a spokesperson the media trusts.

B. Set up a media information center for

journalists.

C. Be accessible 24/7.

D. If you’re not sure of something or don’t have an

answer, ignore the question.
Public Relations
Successful media relations
during a crisis depend on
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all the following EXCEPT:
A. Appoint a spokesperson the media trusts.

B. Set up a media information center for

journalists.

C. Be accessible 24/7.

D. If you’re not sure of something or don’t have an

answer, ignore the question.
Public Relations
Public Relations
Lerbinger’s 8 types of crisis
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Lerbinger (1997) categorised 8 types of crisis
that he attributed to two main underlying causes:

management failures

environmental forces

The 8 types are listed below. For each, identify

who would need PR, why, and how they might
go about managing the crisis in terms of
communication

See Tench and Yeomans unit 20 for further details

Public Relations
Public Relations
Lerbinger’s 8 types of crisis
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1 Natural (for example, the Asian tsunami, which
affected nations, governments,
corporations, businesses and the lives and
social infrastructure of millions; more locally,
recent floods in Cumbria)
Public Relations
Public Relations
Lerbinger’s 8 types of crisis
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2 Technological (Mercedes 'A' Class car had a
design fault and 'rolled over‘; Windows Vista
had problems; i-phone signal; etc)
Public Relations
Public Relations
Lerbinger’s 8 types of crisis
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3 Confrontation (Shell Oil, whose petrol
stations suffered a consumer boycott after the
company wanted to sink an oil platform in the
North Sea [the Brent Spar]; or McDonald’s, who
sued two North London activists for libel after they
distributed leaflets critical of McDonald’s food
quality and business operations [McLibel])
Public Relations
Public Relations
Lerbinger’s 8 types of crisis
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4 Malevolence (product tampering by a private
citizen, like the Tylenol case, or direct action by
animal rights campaigners such as placing
bombs under the cars of executives whose
stores sell cosmetics tested on animals)
Public Relations
Public Relations
Lerbinger’s 8 types of crisis
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5 Skewed management values (Barings Bank
went out of business after managers were
accused of turning a blind eye to a 'rogue'
trader who hid details of his massive financial
losses in the currency markets; many other
banks since then)

 Who? Why? How?

Public Relations
Public Relations
Lerbinger’s 8 types of crisis
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6 Deception (examples include deceiving
employees about the amount of money in
pension fund after the fund had been used by
executives to support the business, a UK
case being that of Robert Maxwell and the
Mirror Group of national newspapers)
Public Relations
Public Relations
Lerbinger’s 8 types of crisis
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7 Management misconduct (Enron, with both
illegal and unethical practices rife in the
senior management)
Public Relations
Public Relations
Lerbinger’s 8 types of crisis
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8 Business and economic (the late 1990s
boom/bust in numerous small IT/technology
companies is an example of how economic
cycles can impact an organisation; Northern
Rock business plan)
Public Relations
Public Relations
Key reference points in a crisis?
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•Details: Get as much information about the incident as
possible.
•Human face: ‘We care’ – sympathy, concern,
understanding; maybe regret; possibly even ‘Sorry’.
•What we are doing about it – especially a thorough
(independent) investigation.
•Reassurance: No further danger; not harmful; what to do if
worried; one in a million; etc.
•Track record The good your company/product does,
overall.
•Further information: When and where further information
will be available. Numbers for information hotline or helpline.
•Background briefs: Details of products, processes,
chemicals, company etc.
Public Relations
Public Relations
Key priority: maintain credibility
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Wherever possible give details and practical examples. If for
example you simply say ‘Our safety standards are among
the highest in the industry’ this will lack credibility. But if you
describe examples of what you do to ensure safety, then
people will start to believe you.
Public Relations
Public Relations
Key priority: maintain credibility
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Seymour and Moore (2000: 142) outline the important role
of rumours in crisis conditions:

•Accept that rumours always generate interest and are

often more attractive than facts.

•Any organisation of 10 or more people will always have

rumours circulating.

•Silence - or a vacuum caused by lack of communication -

will always be filled by rumour and speculation.
Public Relations
Public Relations
Key priority: maintain credibility
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•If a company spokesperson refuses to comment,
what is your reaction?
•What would you think if you’re a journalist asking
questions? Or a customer?

Your response sequence may go something like this:

1) The company chooses to say: 'No comment’

2) The media say: 'The company was unwilling to take part
in this programme:
3) So I infer: 'No smoke without fire - they're hiding
something: they must be guilty!'
For discussion, see Tench & Yeomans, pp.404-5
Public Relations
Public Relations
Talk to the media, rather than
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silent
Public Relations
Public Relations
Crisis management
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text styles preparation as
well as implementation:

Evaluate risk – plan for all eventualities

(contingency planning)

 Assess what kinds of information would need to

be kept confidential, and for what reasons, even
in a crisis

Decide who will respond on behalf of the

organisation, and how; and who will need to be
reminded to keep quiet
Public Relations
Public Relations
And finally, a checklist of what to do:
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1 Define theMaster text styles
real problem.
2 Centralise or at least control information flow.
3 Isolate a crisis team from daily business
concerns.
4 Assume a worst-case planning position.
5 Do not fully depend on one individual.
6 Always resist the combative instinct.
7 Understand why the media are there.
8 Remember all constituents (stakeholders).
9 Contain the problem.
10 Recognise the value of short-term sacrifice.
Public Relations
Drawing on the ideas covered today, outline
how an issue can be prevented from becoming
a crisis.
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•Definition of issue and crisis
•How issues can arise
•The difference between issues management and crisis
management
•The role of the public relations practitioner in issues management
•The positive outcomes that can arise out of successful issues
management
•The Chase Jones model of issues management
•Issues analysis guidelines
•Risk benefit analysis
•The lifecycle of an issue
•Fearn-Banks stages of a crisis
•Greiners organisational growth model
•Dealing with activists
•The impact and potential uses of the internet
 Public Relations
Review
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Close your folders and turn your notes over. On a
blank page/piece of paper, draw a mind map from
memory of the major themes we covered today