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“A corporate brand is more than just the outward manifestation of an organisation – its name, log, visual presentation etc. Rather it is the core values that define it. IMAGE of the brand (image = mixture of appearance and action) EXPERIENCE of the product PERCEPTION of the company FTSE 100 valued £842bn (1998) of which goodwill accounted for 71%. Compare 1988 only 44%. (Reputation is part of goodwill)
FREDDIE STARR STORY Clifford made his name in the UK for his role with client Freddie Starr in one of the most famous British tabloid newspaper headlines of all time. On 13 March 1986 The Sun carried as its main headline: FREDDIE STARR ATE MY HAMSTER. According to the story, Starr had been staying at the home of Vince McCaffrey and his 23-year old girlfriend Lea La Salle in Birchwood, Cheshire when the incident took place. Starr was claimed to allegedly returned home from a performance at a Manchester nightclub in the small hours of the morning and demanded that Lea La Salle make him a sandwich. When she refused, he went into the kitchen and put her pet hamster Supersonic between two slices of bread and proceeded to eat it. This, in more recent times, has been rebutted by Starr, who however in interviews has admitted to the fact that it was very much a much-needed publicity coup, if not factually correct. OJ SIMPSON Orenthal James Simpson (born July 9, 1947, San Francisco, California), publicly known by his initials as O. J., and nicknamed The Juice, is a former college and professional football player and film actor. Although considered one of the greatest running backs of all time, Simpson is most recognizable for being charged with the murder of ex-wife Nicole Brown Simpson and her friend Ronald Goldman in 1994. He was acquitted in criminal court in 1995 after a lengthy, highly publicized trial (often called the "Trial of the Century"). Later, in 1997, Simpson was found liable for their deaths in civil court.
RICHARD BRANSON Virgin group contains grouping of more than 20 companies Combined sales £1.8bn Employs 2,500 people Business interests range from airline and retail business, financial services and small iconic interests e.g. Heaven nightclub, Storm model agency CORE BRAND IDENTITY Based on two attributes: Irreverent and entrepreneurship David vs (british airways) Goliath RICHARD BRANSON as its CEO Launch of Virgin Cola in USA, Branson drove tank on Times Square to capture media attention to challenge brand leaders Coca Cola and Pepsi World record-breaking challenges in boat ‘Virgin Atlantic Challenger II’ in 1986 crossed Atlantic oceon in record time 1987 ‘Virgin Atlantic Flyer’ first hot-air balloon to cross Atlantic Committed £1.6bn over 10 years to tackled climate change september 06
Capt. Chesley B. Sullenberger III landing US Airways Flight 1549 on the Hudson River safely after flying into flock of geese which disabled both engines january 2009
Not the first spin doctor (first coined in Ronald Reagan election campaign 1984) Government (Whitehall and Downing St. employ 1200 PROs = £200m annually Trust in gov at all-time low (39% trusted in 1974; now 16% 2004) Voting at an all time low (20% in local elections and EU elections and 50% national 2006 stats?) Phyllis Report 2003 after Jo Moore/Martin Sixsmith failure (A good day to bury bad news September 11th 2001) recommended changes to the way government communicated Conservative Party leader David Cameron voted ‘Communicator of the Year’ 2006 MP blogs as a way of overcoming traditional comms connections with electorate that don’t work anymore Four kinds of control MEDIA MANAGEMENT Produce soundbites Spin doctoring e.g. Blair’s welfare roadshow INFORMATION MANAGEMENT employ 3,500 gov comms officers, using leaks the lobby IMAGE MANAGEMENT INTERNAL COMMUNICATIONS “The relationship b/n media and politicians is essentially cannibalistic. They feed off eachother but no-one knows who is next on the menu” Bernard Ingham Press Secretary to Margaret Thatcher
PACIFYING THE PUBLIC ‘BACK HOME’ DURING UNPOPULAR OVERSEAS PLACEMENTS DIFFICULTY OF SEEING BEYOND CARNAGE IN AFGHANISTAN Progress by DFID includes: UK gov spent £500m on aid since 2002 5m more children in school, 37% of whom are girls 8000 civil servants in public sector reform programmes 3.5m refugees returned since 2001
9/10 people in GB are worried about climate change Only 20% think they personally can do something about it 59% admit to doing nothing (all 2007 stats)
Hoover ‘Free flights to America’ promotion in 1992 backfired badly. Anyone spending more than £250 on the purchase of a hoover were promised two free flights to America. Research estimated 50,000 people would apply: more than 200,000 did. Couldn’t supply enough of the product: consumers got frustrated and demanded compensation. European division sold off in 1995 as a result of never quite recovering.
Advertising involves paying a medium (TV, radio, newspaper etc.) for airtime or column inches in which to put across a promotional message. 2007 survey by Weber, Shandwickshows brand advocacy (i.e. word of mouth about the power of the brand) 5x more effective than advertising
THE PUBLICITY MODEL. Any publicity is good publicity. General principlesGenerate a stir and media interest1836 bought old negro slave woman named Joice Heth and exhibited her to the public as ‘George Washington’s childhood nursemaid’. She claimed to be 160 years old. He earned up to $1500 per week.When attention dies down, create a scandalWrote forged letters to editors of NY papers denouncing himself as a fraud and others saying what public service the display of Heth was. When Heth died an autopsy said she was 80: Barnum declared himself ‘deeply deeply shocked’ at the disception.Following Barnum a series of colourful, scheming, desperate men acting as press agents for clients. Called by writer Will Irwin ‘the only group of men proud of being called liars’ PUBLIC INFORMATION Ivy Lee formerly a reporter. Established agency to supply accurate news. Invited journalists to the scene of railway accident in 1906 on behalf of their client, the Pennsylvania Railroad company rather than try to cover up story.Approach was ‘set your house in order and then tell the public you have done so’. Hired as counsel to John D Rockefeller Jnr to massage ‘hard’ image because of ruthless monopolistic approach of Standard Oil. Alledgedly told him to carry a pocketful of dimes to give away to children whenever he could be seen (denied).Estimated 50% PR practitioners in UK operate ‘public info’ model TWO-WAY ASYMETRIC Power imbalanced because the intended change is to the audience’s attitudes or behaviour rather than the organisation’s practices Audience research essential: success depends on an understanding of the attitudes and behaviour of the target audience Edward Bernays was the nephew of Sigmund Freud. Involved in building support for WWI using the psychology of persuasive communication. Established first PR education course New York University 1922.Promoting Lucky Strike cigarettes with ‘Reach for a Lucky instead of a sweeet’: sales tripled in 12 months.Favourite approach to indirectly use ‘third party authorities’ to plead for his clients’ causes. E.g. to promote bacon sales for his client he conducted survey of physicians and reported their recommendations that people eat hearty breakfasts. Sent the results to 5,000 physicians along with publicity touting breakfast and eggs as hearty breakfast.
Worldwide spend on the industry estimated 2001 400bn euro (European Public Relations, Education and Research Association) Jan 2004 Denver Post reported that the American livestock industry were about to commission a US$5.5m campaign to promote demand for beef to counter the Mad Cow scare. Context prices fallen 25% in four months. Following Freedom Promotion Act 2002 USA to ensure ‘Public diplomacy as an integral component in the planning and execution of US Foreign Policy’. OfficeGlobal Communications spent estimated $200m on PR blitz against Saddam, including broadcast pro US TV information into the Middle East. Established ‘instant response communications offices in Washington, London and Islamabad. Matthew Freud set up PR company in 1984 when he was 21 years; sold it nine years later for £10m. SURVEY TOP 150 PR CONSULTANCIES 2008 Average growth fee 22% Led by Bell Pottinger Group turnover £198m 467 staff 399 retainer projects None of the top 50 outside London in Cornwall (range from the BIG partnership Glasgow £6m, to Martin Power Communications Bristol 300K)
Top 150 consultancies earnings: over £10m = 3; less than £1m = 62; between £1-2m = 50 I.e. small number large, some medium sized and overwhelming small (less than 5 employees). 51% employ less than 5 people; 26% b/n 6-15. Revenues 1993 £130m risen to £160m 2003 for top 20 PR firms 53% broken down into 41% employed; 10% self employed, 2% other In-house less defined. Large organisations have own departments or functions within marketing, corporate communications etc. 2001 PR Week survey of public and private sector: 11-20 employees8% 6-10 employees17% 3-5 employees37% 1-2 employees29% in-house 28% for companies; 15% in house government; 5% in-house not for profit SALARIES 2005 PR officer £22K PR manager £34K private £28K in-house TRENDS 2007 CIPR TOP 150 CONSULTANCIES More retained work (agencies doing 5-20 briefs each year) Increased integrated PR i.e. using more than one agency Increased Corporate Social Responsibility business Strong performers financial (not including stock crash 07/08) and healthcare Digital tactics strong performers
VOLUNTARY SECTOR CUTTING EDGE Greenpeace has videographers, photographers, bloggers as part of comms teams on board ships e.g. chasing Japanese whaling fleet in Antarctica
STUNTS ATTENTION GRABBERS aka ‘teasers’ E.G. sending journalists brown paper bags for ‘bad hair days’ to promote hair care products E.G. actual toy double decker bus to Guinness Book of Records launch. E.G. Cadbury’s projection of its WHISPER chocolate brand onto St Paul’s Cathedral. E.G. EasyJet booked ten seats on inaugural flight of competitors’ GO plane and handed out promotional materials. E.G. Judd Lander, Music PR trying to get client’s single into Radio One’s playlist floated up in a helium balloon to the meeting (5th floor BBC building) and threw in the single. It got on the playlist. John Rendon, PR consulant to CIA distributing American flags to people of Kuwait City after the seven month seige to make good TV images as soldiers entered the city broadcast back home. To promote National Seafood Week, MP for Grimsby Austin Mitchell changing his name by deed poll to Austin Haddock and being photographed for the media with plastic 6ft prawn…
Public Relations Intro 2014
Public Relations is the planned and sustained
effort to establish and maintain goodwill
and understanding between
an organisation and its publics.
Chartered Institute for Public Relations
KISS AND TELL PUBLIC RELATIONS
•“Freddie Starr eat my hamster”
•David Beckham and his assistant Rebecca Loos
•O.J. Simpson over alledged murdur ex-wife and partner
• The management process responsible for identifying,
anticipating and satisfying consumer requirements
Institute of Marketing
“Advertising presents the most persuasive
possible selling message to the right
prospects for the product or service at the
lowest possible cost.”
– The Institute of Practitioners in Advertising
“Regard your good name as the richest jewel you can possibly
be possessed of – for credit is like fire; when once you have
kindled it you may easily preserve it, but if you once
extinguish it, you will find it an arduous task to rekindle it
again. The way to gain a good reputation is to endeavour
to be what you desire to appear.”
Source: Socrates (469 BC – 399 BC)
SOME KEY CONSIDERATIONS
• Reputation is everything.
• People only buy from companies they like.
• They need to know you to like you.
THE REPUTATION PREMIUM
• Over half (58%) of consumers will pay a premium to the
company they believe has the best reputation (CBI
• 43% will pay a 5% premium
• 29% will pay a 6-10% premium
• 16% will pay a 10% premium
Source: CBI Survey 2008
THE CYNICS GROW MORE NUMEROUS
The profits of large companies help to make things better for
everyone who uses their products and services
*Source: Ipsos MORI Reputation Centre
CHANGING CRITERIA BY WHICH WE
What are the most important factors you take into account
when making a judgement about a company?
Quality of Product/Service
1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Source: MORI Reputation Centre
HOW DID WE GET HERE?
• THE PUBLICITY MODEL
• PUBLIC INFORMATION
• TWO-WAY ASYMMETRIC MODEL
• TWO-WAY SYMMETRICAL MODEL
WORLDWIDE REVENUES OF
TOP 50 FIRMS ($M) *
1995 1996 1997 1998 1999 2000 2001 2002
*Source: Council of Public Relations Firms
EMPLOYMENT IN PR
Estimated 3m people working worldwide
(only 10% members of professional bodies)
More people employed than in advertising
In the UK
7,500 IPR members
PR Consultancies (53%)
Combined turnover estimated at £3bn
MAIN INDUSTRY SECTORS
• Public Affairs
• Local government
• Trade and technical
• Internal communications
• Not-for-profit organisations or charities
• 92 sub-sectors represented (IPR)
Leaflets and flyers