Home Page Flashcards Case Studies - Chapters 4 - 6 - Flashcards

Case Studies – Chapters 4 – 6 – Flashcards

Robert Lollar

8 July 2022

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PR Theories PDF

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URL: https://drive.google.com/file/d/0B3ESCxxhdJ8xbnVBTE1YOF9PTms/edit?usp=sharing

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social exchange theory

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uses the economic metaphor of costs and benefits (see your readings)

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diffusion theory

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how people process and accept information ... awareness, interest, evaluation, trial, adoption (see your readings)

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social learning theory

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attempts to explain and predict behavior ... learning new behaviors by observing others - personal example and mass media can be important to receivers acquiring behaviors (see your readings)

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uses and gratifications theory

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people are active users of media and are selective in how and why they use it ... for PR this means that you must realize that multiple channels (and reach) may be required to get the message out (product placement accomplishes this, for example)

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framing theory

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messages and information sent to audiences carry with them a preexisting set of meanings (or frames ... or frames of reference). Framing is an active process of drawing out dominant themes from content. Example: in the US, we are all about individualism ... you may see this reflected in much of the media content created.

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internet of caring things

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regarding individualism.... At heart, human beings have a set of unchanging, fundamental needs and wants. Just a few: Physical health Mental wellbeing Safety and security Connection to loved ones Consumers will lavish love and attention on products, services and experiences that unlock new ways to serve these (and other) imperatives. (trendwatching.com)

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agenda setting theory

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media may not be able to tell people "what to think" ... but, they certainly can tell them "what to think about" ... and if they are "speaking to the choir" (analogy/metaphor) the likelihood of a successful persuasive experience is higher

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systems theory

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this is about relationships ... systems theory looks at organizations as being made up of interrelated parts, adapting and adjusting to changes in the political, economic and social environments in which they operate. Organizations have recognized boudaries with a communication structure (and path/process) which guides the organization's activities

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situational theory

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beginning with stakeholders, you take stock of your audiences ... not all stakeholders are open to communicating with an organization. Grunig, et. al. theorize that publics range from those who actively seek and process information to those who passively receive information and do not necessarily provide feedback or interaction (see readings)

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situational analysis

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this is research aimed at discovering the environment in which you are operating and the social, cultural, economic and legal/ethical constraints you are facing with regard to your stakeholders

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situational analysis outline

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I. the problem II. the customer / stakeholder / company III. the process IV. the solution(s) V. implementation VI. results A deeper, more developed outline: https://docs.google.com/document/d/1GJ482feKDZ1L-e64e8rMxgwMmxOzvtPCW7fZAp2kz3M/edit

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PEST

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a type of situational analysis in which political-legal, economic, socio-cultural, and technological factors are examined in order to chart an organizations long term plans

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SWOT

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strengths / weaknesses / opportunities / threats ... a situational analysis in which internal strengths and weaknesses and external opportunities and threats are evaluated

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RACE

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research, actions, communication, evaluation

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ROPE

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research, objectives, programming, evaluation

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RAISE

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research, action, implementation, strategies, evaluation

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four phases of any campaign

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research, planning, execution, evaluation (PRSA)

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Community Relations

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it is more than just a company making donations, it is involvement in the community. It should be strategic and thereby effective. There are two types of community relations: arms length (good corporate citizen) and becoming a part of the fabric of the community - much deeper (devotion of more than just money & resources ... it is personal involvement)

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arms length

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membership networks, speakers bureaus, available facilities, open houses, programs around holidays, service on boards, participation in events, etc.

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fabric of the community

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constituency relations programs, opinion leader work, advisory boards, employee-volunteer programs, community research, social projects and more

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instant communication

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(in the book)

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global competition / the global village

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(in the book)

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three strategic levels of planning for communication

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defensive / proactive / maintenance

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defensive communication behavior

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(in the book)

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proactive communication behavior

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(in the book)

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maintenance

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(in the book)

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marketing

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for many years, it was considered the way to attract people and their dollars to everything from hospitals to universities and churches ... not to mention consumer goods, services and more

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today - the state of marketing and public relations is

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going through a metamorphisis - they have blurred together with regard to consumer relations strategy and relationship marketing

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marketing and public relations share

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fundamental concepts. Among them are: analyzing market opportunities (research), selecting target markets (publics), developing a marketing mix (communication and action plan), and managing the marketing effort (evaluation)

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PR does four things marketing does not / can not do

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1 - concerned about internal relations and publics; 2 - caring about noncustomer external publics and the environment in which the organization operates; 3 - operates on the policies of human nature, while marketing tends to focus on consumer behavior; 4 - works to stabilize and/or change public opinion in areas other than products

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original public relations roles are

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awareness of a product/service in the first place; knowledge of benefits/advantages of a product/service; reminds and reinforces favorable feelings about a product/service ... and all three are one-way communication models which do not work in today's market

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what does work in today's marketplace / world

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forming user groups or customer service departments to personally build customer loyalty; actively sharing and discussing benefits and advantages of a product/service; adopting customer satisfaction programs in which the entire organization is focused; concentrating publicity and promtion on taking customers from other brands; reputation protection and managment

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Sample question

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What fundamental concepts do marketing and PR share? How do they differ?

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Arms length "good corporate citizen"

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activities like membership networks, speakers bureaus, available facilities, open houses, programs around holidays, service on boards of directors, participation in public events, etc.

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Both "fabric of the community" and "good corporate citizen" (arms length)

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While both types have their advantages, it is generally considered good practice to use a combination of the two. The authors say that community relations can be used as the core of public relations programming because it sets the tone of what the organization stands for in actions.

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community relations (extended definition)

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Seeking to create interest in such information, at least by competitors, activist agencies and others who have reason to broadcast it. There are three strategic levels that need to be planned and blended together for an effective program: Defensive: guarding against negative acts or acts of mission Proactive: being a leader in positive acts that appeal to key publics Maintenance: finding ways to retain relationships with publics not currently key, but still able to influence your reputation by forthright expression of their perceptions of you

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investor relations

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has had a relatively short history, only springing up as an important factor in a corporation's communications in the 1960s. In concept, a publicly owned corporation is based on an ideal of consensus, where shareholders, employees, community neighbors, suppliers and customers all have a voice in its operations. Unfortunately, it is not possible for all who have a stake in the outcome of an enterprise to take an active part in the decision processes of that business entity. Many of the decisions are made by management or board members who run the company.

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the typical corporate financial relations specialist

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appears as moderate or neutral in economic and political philosophy. The position requires skill and objectivity in representing both the average investor and the middle-class citizen, while at the same time representing private enterprise and their views publicly.

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three specific areas where a financial relations practitioner needs to focus

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1. Developing a communications strategy that is appropriate to management goals in investor relations. 2. Preparing public literature such as reports required by law and establishing press contacts. 3. Managing relationships with the financial community, including analyst meetings, tours or visits, etc.

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TGS: what should the public relations executive have counseled TGS officers to do differently, or to communicate publicly, at some point before TGS executives were found to be trading in the stock?

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Ethically, there is really only one option for the public relations executive in this case: advise the TGS officers to go public with their information, once the material facts are established. According to the interpretation of the Code as it applies to financial public relations, all members must adhere to the general policy of making full and timely disclosure of corporate information on behalf of clients or employers. Under this regulation, the public relations executive would have no choice but to counsel TGS officers to make all information available to the public. In addition, the financial public relations interpretation of the code requires members to act promptly to correct false or misleading information or rumors concerning clients' or employers' securities or business.

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What if ... a weekly financial magazine column "Tips and Rumors" regularly got into some people's hands a day before each issue of the magazine came out, and some of the stocks mentioned were suddenly traded heavily and run up in price.

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What would you advise in the magazine office's best practices? What would you advise in the trading office's best practices? The SEC's rule 10-b states that a person may not omit to state a material fact that would have the effect of misleading in connection with the purchase or sale of any security. With that in mind, it is important to note that: a. neither the clerk at the magazine nor the friend at the brokerage firm traded or made any profit. in consideration of the facts presented in this scenario, b. neither the clerk nor the friend had a responsibility to disclose (or withhold) the information in the financial column, as they had no ownership of the information. Is anyone legally liable? Two things to remember ... 1) the responsibility for releasing information in a timely manner 2) protecting it from use by an insider or third part, would lie with the financial column publishers *** In this case, the "owners" of the information printed in the column and the publishers would need (and want) to take precautions to ensure that their material was not appropriated by someone else.

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Was the initial TGS news release about the ore strike at Timmins misleading based on what was known at the time the news was released?

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TGS did not reveal all of the information available, and the statement that was made was extremely vague and noncommittal

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Why would a company that is not totally failing want to declare bankruptcy?

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Companies declare bankruptcy for two reasons, normally. Most prevalent is the need to "re-organize" in the face of debt that can't be paid. For whatever reason, a company's income stream doesn't meet it's need for capital, so Chapter 11 gives the business an opportunity to get its house in order and allow it to stabilize its affairs. In so doing, the company's creditors are more likely to, ultimately, be paid in full. The second cause of Chapter 11 filing is to allow the company to deal with a catastrophic legal verdict. Celotex, Dow-Corning, Johns-Manville, etc. have found this route beneficial after losing legal decisions related to health concerns tied to their products. Many times, meeting these legal obligations would prevent the company from continuing as a functioning business.

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Doesn't the stigma of being bankrupt damage the company's reputation and business?

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It may, but there's more ... No one wants to declare bankruptcy, but more than two million (individuals and businesses) did in 2005. Of course, this might influence consumer behavior. On the plus side, however, most consumers just want a good product at a fair price. A company under the protection of Chapter 11 is probably more able to meet consumers' needs than one struggling to meet its daily obligations.

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How does bankruptcy affect the publicly held company's relationship with the SEC?

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The Securities and Exchange Commission requires "full and complete disclosure of any material fact in a timely manner." Thus, any bankruptcy filing, any petitions for relief, any change in a company's financial structure, any shift in business direction, any change of leadership, etc. would have to be fully disclosed to the investing public and to the SEC. The SEC's prime role is protecting the interests of equity investors, and it is in the best interests of those investors to see the company emerge from bankruptcy as a thriving entity. Therefore, the SEC would not put unreasonable demands on a company in bankruptcy.

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How can a reputable company "take bankruptcy" and avoid its legitimate debts and obligations? Is this good PR?

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Bankruptcy is a final option for any struggling business. Chapter 11 bankruptcy allows a company to re-organize and try to get back on its feet. It rarely involves liquidation or avoidance of legitimate debt. Chapter 7 bankruptcy is much more serious for creditors and equity investors because that is "final" in that the company's assets are liquidated and creditors are paid—usually a percentage—from the proceeds of that liquidation.

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How does communication at a company in bankruptcy differ from that of a healthy company?

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Really ... It doesn't. Good communication in bankruptcy doesn't differ from good communication during good times. Every organization should have an on-going dialogue with key constituent groups or publics. When times are good, ideal communication can slip a bit because the rising tide keeps all ships afloat.

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Was it fair to SDG&E stockholders, who might have benefited financially by selling their stock in the proposed takeover, for other parties to intervene? Why or why not?

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This question brings up the question of what is fair. As discussed in the second chapter, the practice of public relations goes hand in hand with the principles of a democratic society. In this situation the common good was more important than the benefit of the stockholders and management involved in the merger. Unfortunately for stockholders, the majority stakeholders (such as government leaders, consumers and others) spoke and it was against the merger which may have been lucrative for stockholders. In today's changing business world, companies must take into account the effect their actions will have on the whole community, not just the investors, or how much in dividends they will pay out. Public and social responsibility is a given now for companies to continue doing business, not just an option.

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Target / Dayton Hudson had 168,000 employees. Why was it important to keep them informed of the Minnesota legislative effort? How would you have done it?

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It was important to keep all employees informed across the country because those out-of-state employees, as well as Minnesota-based employees, had a stake in the outcome of this legislative effort. If the takeover had been successful, the organization would most likely have changed dramatically in culture and operating style when the Dart Group Corporation took over. By keeping all involved up-to-date with the events as they unfolded, Dayton Hudson was making champions and supporters of its employees all across the country. They felt involved in the situation because the company had clued them in from the beginning. This served to create more of an atmosphere of unity and cohesiveness in the organization.

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Who were the Target / Dart Group Corporation stakeholders?

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Stockholders Legislators Editors and Reporters Employees Management Communities in which Dayton Hudson operates

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Stockholders (Target / Dart Group Corporation)

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may have been wary of this type of organization taking over; fear of loss of profits or increase of profits; not keeping the DHC culture or earning potential. Those willing to sell would not care.

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Legislators (Target / Dart Group Corporation)

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may have been concerned with an organization of this type coming into the state and upsetting the economic balance; fear of job loss and economic impact

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Editors and Reporters (Target / Dart Group Corporation)

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could have positioned stories to further this negative reputation and present Dart as a foe to the state of Minnesota

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Employees (Target / Dart Group Corporation)

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rallied them to direct action to fight against this corporate bully threatening their employer; job loss

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Management (Target / Dart Group Corporation)

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influenced the way in which they reacted to this threat, put them more on guard and defensive

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Communities in which Dayton Hudson operated (Target / Dart Group Corporation)

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negative reputation reportage may have little effect, those who are aware would want to rally for an organization that supports their community; ownership and sense of value to community

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Outline of an annual report

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-- Overall theme in words and graphics (with their rationale) -- Table of contents indicating obligatory information -- Preliminary concepts for cover and layout -- Photography needs or other visual techniques, with costs -- Printing costs, including number of copies -- A timetable with deadlines -- Graphics. Remember your corporate culture. There is danger in being too cute or too glossy. The style and presentation of the cover communicate a considerable amount to the investors before they even open the report.

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consumer relations

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The functions of public relations and marketing have come close together as demonstrated by the dominant customer relations strategy, relationship marketing. Today we know that customers want to be served, not sold, and relationship marketing incorporates public relations principles like personalized, one-on-one dialogue with the marketing of products and services. Integrated Marketing Communication (IMC) further strengthens PR's role. Marketing and public relations share some fundamental concepts, including analyzing market opportunities (research), selecting target markets (publics), developing a marketing mix (communication and action plan) and managing the marketing effort (evaluation).

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Public relations does four things that marketing cannot do...

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Public relations is concerned about internal relations and publics. Public relations cares about noncustomer external publics and the environment in which the organization operates. Public relations operates on the policies of human nature, while marketing focuses on consumer behavior. Public relations may work to stabilize or change public opinion in areas other than products.

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Do marketing and public relations *both* support the sales function?

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Technically, both marketing and public relations support the sales function. The difference is that marketing concentrates on selling, while public relations incorporates building relationships with all stakeholders, including supporting sales to customers.

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Original public relations roles

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To make people aware of the product or service in the first place; knowledgeable about the benefits and advantages of the particular product or service, and constantly reminded and reinforced in favorable feelings toward the product or service. These are all one-way communication vehicles, which we know are ineffective in today's competitive society. More recent activities of public relations include: Forming user groups or customer service departments to personally build customer loyalty. Adopting customer satisfaction programs in which the entire organization is focused on delivering not just a good product or service, but also the quality and personal interactions consumers expect when making a purchase. Concentrating the publicity and promotion activities on taking customers away from competitors (which beer and cigarette makers state as their primary reason for publicity and advertising). Protecting the reputation of the product or service, and of the organization, in a period of consumer activism, government regulation, competitive predation, global marketing and similar conditions which bring a continual bevy of public issues to bear on every organization and industry.

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The situation Firestone faced in 2000 compared with the situation of 1975.

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Quite similar. Tire failure, public controversy, high-profile critics, and some reluctance to make the problem right in the eyes of consumers. In both instances, the outcomes were basically the same— a recall after some delay. In both cases, Firestone tried to pass the buck — to consumers and ultimately to Ford in 2000. The 2000 situation was a little different. Only one vehicle supplier (Ford) was enmeshed in the dilemma whereas the tire failure was across the board in 1975. That enabled Firestone to point fingers at Ford as being the reason the tires failed.

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How does Ford's involvement in 2000 change the scenario?

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Ford's involvement was a two-edged sword for Firestone. On one hand, the fact that the failures were mostly on Ford SUVs raised the question of whether it was the tires that failed or the vehicle. On the other hand, Ford was Firestone's main customer. Does a company want to implicate a good customer directly? Plus, the Firestone and Ford families had been social friends for decades. While that wasn't a direct influence on the decisions being made—the Firestone family had been out of the brand's management for decades—it probably made for some interesting talk around the Thanksgiving table.

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What role did the internet played in Ford & Firestone's communication strategy?

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This is one of those new examples of new communication channels changing PR. Communicating via the internet probably made good sense. Today's consumer doesn't get much of his or her information through historical channels. Newspaper readership is down to about 20 percent of the American public. Nearly half (49%) of Americans get ALL their information from television. Younger audiences depend on the internet and all its tentacles -cell phones, text messages, podcasts, blogs and other mutations of the web. Covering your communication bases with traditional and modern tactics makes good sense. Overplaying one for the other would be a mistake. January 2014: Local TV news continues to be the leading news source for Americans, according to a study released Tuesday by Pew Research Center, "with almost three out of four U.S. adults (71%) watching local television news, compared with 65% viewing network newscasts and 38% cable news over the course of a month, according to our analysis of Nielsen data from February 2013."

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Case Studies – Chapters 4 – 6 – Flashcards

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