Role of Public Relations in Promotional Mix - Essay Example

Role of Public Relations in Promotional Mix [Restaurant PR] Table of Contents Synopsis Introduction Define promotional mix Importance of promotional mix for a business Advertising Personal Selling Sales Promotion Public Relation Objectives of PR in Promotion Comparative importance of PR Public relation vs. Advertising Advertising Sales promotion Personal selling Analyzing the role of PR in Promotion Advantages in PR approach Cost Factor Best Placement Highest Credibility Reinforcement Maximum Exposure Details Connections Disadvantages of PR Myths about PR Example of Restaurant Business success An example of real PR practice Conclusion Recommendations Bibliography Synopsis Perception is reality! The image you are portraying is what you are. In today’s world where every one of us is bombarded with hundreds of promotional messages each day, it is more or less impossible to pay attention to each and every message these ads is conveying. In this scenario, Public Relation is considered to be a credible replacement, for the achievement of promotional objectives. The report analyzes the comparative role of PR. It is playing a crucial role in getting to the niche market but often neglected in comparison with advertising. The report emphasizes the need to integrate all promotional tools specially PR for effective promotion. It discusses some of the limitations and myths about PR as well. The report recommends the integration of promotional tools: considering the desired objectives of a business. Introduction With the growing awareness and understanding of media, everything is moving from simple to complicated. It is easy to grab attention through a larger paper or air space but not that easy to convince and persuade the target audience for what you want. From decades marketers are using promotional tools but PR is least understood, and consequently it has been limited to routine communication activities. The report analyzes the importance of PR in this continuously changing world. Purpose of this report is to discuss different aspects of PR; comparative advantages, disadvantages, limitations and myths. Role of PR is in-depth and long lasting because it is not just the message which is delivered to the target audience but a consistent process of activities which not only motivate, encourage and stimulate people to buy the product or service but promotes the organization’s image for life time. Define promotional mix A business needs communicate with target audience: to convey its message; to persuade the target audience; to reinforce the idea and to create a good image. Benefits of the product or services have to be communicated to the target audience, in addition to earn profits. The process of conducting all these activities using different tools is called “Promotion”. Marketing communication program of a business which consist of advertising, sales promotion, personal selling and public relation is called “Promotional mix” “Promotion is a process of communication between business and its stakeholders.” Importance of promotional mix for a business No business wants to go unheard. Investments are made to bring money in. Business companies perceive promotional methods as most effective to bring their products or services on the scene, to grab attention of prospective customers, to persuade them to buy their products and so on. Different companies use different components of the promotional mix as tools for achieving company’s specific objectives. The majority of a company's promotional resources are usually spent on these four elements for a simple reason: Companies find these methods as the most effective means to promote their products. Some other promotional techniques are also used to enhance promotional objectives. To generate profits To sustain existing customers To turn potential customers into buyers To build good image (For Product/service and company itself) To win loyalty Advertising Advertising is a paid, non-personal form of communication by an identified sponsor which is used to promote a product, service, idea or a cause. Some of the advertising methods are; newspaper, magazines ads, television commercials, radio spots, banners and logos. Advocacy, informational, institutional, product, persuasive, specialty, comparative, cooperative, point of purchase and reminder advertising are its most common forms. Personal Selling It is a form of persuasive communication between prospective customers and a business representative, designed to influence or stimulate the behavior or purchasing decision. Sales Promotion It is a series of short term activities to stimulate sales which is achieved through contests, discounts, exhibitions, trade shows, games, giveaways, point-of-sales displays, merchandising and special offers. Direct Marketing It is the practice of delivering promotional message to the potential customers directly on an individual basis using direct mail, advertising, or telephone. Public Relation “Public relation is the deliberate, planned and sustained effort to establish and maintain mutual understanding between organization and its stakeholders.” (British Institute of Public Opinion) It is a form of communication that is directly linked with target audience and deals with their issues rather than dealing with products or services. It gains public acceptance and understanding in a very natural way as it uses the publicity methods which don’t directly involve money. Mostly news media and other public interest items are considered to influence people. Public relation always finds a way in the thoughts of people. It’s a process of trust building between organization and its publics (i.e., employees, customers, competitors, voters, stakeholders or masses). Real value of PR is using it to solve a real-life marketing situation for a real product, service, organization, brand, or image. PR can work for any and every industry, from florist to funeral directors, software to soft ice cream. Any organization or individual with a message to deliver or a goal to achieve can benefit from a PR effort (Eric,Robert & llise 2006, p. 36). Specific tools used for public relation are; press release, employee-training, press conference, seminars and exhibitions. Objectives of PR in Promotion Public relation is used to address some broad objectives of promotion including; Raising awareness Creating interest Providing information/Educating stakeholders Promotional trials Influencing/changing behaviors Driving sales Dealing skeptics/crisis Stimulating demands Creating image/Establishing credibility Reinforcement(idea, product, service, image) Comparative importance of PR Public relation vs. Advertising Reis said, “Imagine a scene where sun and the wind are both trying to get a man to remove his coat. Advertising is like the wind. It tries again and again to blow the coat off, but the man just holds on tighter and keeps this head down. On the other hand PR is like the sun. It asks itself, “Hmmm…why do people wear jackets anyway?” Then it shines brightly with all its might to warm the man until he decides to remove his coat.” There are some disadvantages of using other promotional tools than PR. Advertising Advertising is impersonal and it can’t answer the customer’s entire questions. It can’t influence and remove misunderstandings and doubts. It is not very good to persuade customers to make final purchasing decision. Sales promotion Customers may get used to the activity and don’t take it seriously, if used over the long-term. Over use of this activity may damage the brand image. Personal selling It involves high cost of employing a sales force, and other hidden costs. It is not suitable to address the people at large. Analyzing the role of PR in Promotion If you have all the business you will ever want and are rich beyond the dreams of avarice, you may not need public relation (Eric,Robert & llise 2006, p. 35). Today promotion is all about trust building. With the ever growing awareness and exposure of consumers, it has become more complicated. Every one of us knows about the ads on idiot box. We know it’s paid, it’s for promotion and it can be true (not certainly!).PR plays a very powerful role in building a relationship of trust which no other form of promotion offers. “Ultimately, a brand is a perception,” said William Daddi, senior vice president at Magnet Communication in New York. PR accepts the challenge to motivate and stimulate the desired reactions from a significant majority of target audience. A full-fledged process from simple publicity to complex promotions plays a vital role in shaping and establishing desired perceptions about image and creates good will. PR is perceived to be a highly credible form of promotion. One of its major powers is the involvement of a third party influence—the media. It is viewed as an independent party which is supposed to be unbiased. It ensures credibility and doesn’t involve money. For example, a positive and interesting story or feature about the organization in a local newspaper or magazine can have a greater impact on public minds than a full page advertisement in the same newspaper. It is because people understand the reason of an advertisement and consider the news media as impartial. In comparison with other promotional tools, a well planned PR campaign can expose a large market segment to the information and detailed understanding of the product, service or idea. It provides more and more time, space and explanation of the idea being promoted. Sometime a positive story featured in a local newspaper can get attention of other media, thus, the same story spread to more and more people. For publicizing one’s business there is no other better way than PR. It doesn’t involve loads of money directly, unless organization hire PR professionals. It doesn’t suggest that PR is free. It takes lot of effort and planning which is fruitful. PR is often underestimated as a promotion tool. Marketers limit it to getting media coverage for generating publicity, but there is more to public relation than publicity alone. Potential of PR can be better stated through a broad definition of PR, “It is a form of communication with various sectors of the public, to influence their attitudes and opinions, in the interest of promoting a person, product, or idea.” The fact is that PR should be integrated with all other form of promotional instruments, depending on the organization’s objectives, to achieve the desired results. Last but not the least PR addresses the needs and issues of most important stakeholders of a business, employees. Other promotional tools often neglect them as they are not directly linked with generating profits. PR not only helps in resolving their issues but train them to be more productive for business. the best image portrayal Advantages in PR approach Cost Factor PR is much cheaper than any other promotional tool. It may cost a business for printing and organizing an event, but it’s still a lot cheaper than advertising which involves lots of money. Flexible Strategies and Resources PR plan is mostly a series of planned activities, but the plan can be changed and re-shaped during mid-stream. PR allows flexibility in plan in order to focus on the desired reactions. Resources used in PR campaign are also flexible and diverse, which can be changed and integrated in order to make the process more dynamic and result oriented. Life Cycle PR activities not only bring short-term results but also long-term relationship with all publics. (i.e. employee, media, customers, stakeholders, competitors).It yields incomparable results in comparison with advertisement’s life which depends on the placement and timings. Best Placement Advertising can’t help when we want the best and big placement on front page. Only PR can help in getting that position absolutely for nothing as, this position is reserved for news and main events. Highest Credibility PR is established as a tool which generates highest credibility of the organization in the minds of people. People want to be informed; they are interested in knowing what is happening around, therefore, they value the source they are getting information from. PR provides the right instruments to stimulate the right reaction in a highly credible and un-biased way. Reinforcement Reinforcement of the projection of your idea, service or product is automatically done if PR activity is done in a planed manner. Media tend to highlight and repeat whatever is happening and ensure quality. In this way you can provide detailed information of your business through a credible and dynamic source. So, through PR your business can enjoy maximum exposure. Media Network Proper and planned PR activity is appreciated by media people. They understand and encourage the quality work. It becomes a kind of give and take relationship as they need the standard stuff to publish and boost their readership, and you need credible coverage. In PR press should be treated as you would a customer. No story should be placed above the long-term relationship. If editor of reporter don’t want to publish and you have tried every angle to convince them otherwise, let it go. You may want to place other stories in coming days. Preserving relationship is important so that the media will continue to be friendly and receptive when you call for your next idea (Eric,Robert & llise 2006, p. 349) Disadvantages of PR No doubt Public relation holds many advantages for promotion, but there are some reservations about this technique. Marketers don’t have any direct control over whether a message is delivered and where it is placed for public. For instance, organization representative spends many hours arranging and conducting and interview with a reporter, but finds that the organization is not mentioned in article next day. In advertising promotional message is carefully planned and written in a creative manner. Everything is pre-determined; media vehicle, placement and targeted segment of audience so, the impact is precise and controlled. On the other hand PR message is often conveyed through a third person (i.e. reporter) who may distort of make things confusing for public. PR has a potential to yield high return on investment, but it also has the potential to reverse the whole thing (i.e.) negative impact, no impact at all or little coverage in media. There is always a risk of get “bumped” from planned media slot because of breaking news or other critical situation. Myths about PR PR is used to get positive media attention and avoid bad media converge, but PR itself has been the victim of bad press over the years. The wrong perception of PR has been established because of the positive coverage of poor quality products and services through supposedly, credible media! No doubt, it is high time to understand the realistic limitations of Public relation. First of all we should separate myth from reality and establish a clear and true picture of Public relation. There are seven biggest myths about the effectiveness of PR. There is nothing like bad publicity Media coverage doesn’t always mean positive image and a lead generator. Sometimes it works reverse if you business is in crisis or conveying wrong message. Rumors or crisis situation gets worse if not handled properly. Bad promotion can screw up the whole business for a life time as bad news seldom gets better. PR is a form of free advertising PR is not less than any other tool of promotion. It is comparatively cheaper but obviously not free whether you do it yourself or hire some professional help. “Advertising and public relation are two disciplines which deliver different benefits, but can be more cost and result oriented if managed together.(AT & T, United States) PR means getting your name is press. Sole target of a promotion campaign should be generating sales in a way or the other. Good media image and identity is a positive thing, but what is the use if it doesn’t build your business. Newspaper coverage does a little in building your brand. The best ever PR doesn’t require an aggressive media campaign but something more interesting and closer to people. Writing online articles, hosting conferences and organizing events can better serve the purpose. Internet makes PR cheaper and easier You can e-mail information about your business to some of the contacts or post them on niche websites, logs or social networking forums to reach the target market segment. On the other hand, sending press releases on e-mails for free and can waste your cost for writing press release as no body will notice it in media and you have to make follow-calls which will cost you more than the traditional way. PR means an expensive media and detailed strategic plan. It is a false perception that PR involves expensive media and strategic plan. You don’t need to imitate like Coca Cola or Nokia if you are a small business. These companies are no different from their competitors but the thing is they have convinced the people that they are the best. The only thing you should do is, to understand your business needs and objectives and try to build the basic foundation for the future. PR can’t do anything when you have best product or service. Best quality and services alone can not take you to the top. Big names like Nike, WAL-Mart and Microsoft are not big because they are really best; it is but their perceived image which they made people believe with time. Your business worth a better status and PR can take you to the highest you deserve. Good PR can compensate bad quality and cover drawback in your services. No business can give 100%.Everyone including media understand and accept this fact. What they don’t accept is to be fooled and mislead. Some of the businesses think that the bad quality or damage made by other departments can be covered up through a few articles published in newspaper and a few events organized for public. People should remember that PR is the name of shaping perceptions and building trust which can’t stand on the basis of false promises and dishonest intentions. Infect PR activity can worse the situation if it got media attention in some crisis. Example of Restaurant Business success A well planned PR strategy for a restaurant can not be replaced by any kind of promotional activity. It not only informs and attracts your prospective customers but word-of-mouth can persuade other people to visit at least once. . Restaurant PR personalizes your brand and your story An example real PR practice An effective PR campaign introduces your business to the target audience, grab their attention and persuade them to visit your place. Once they are in restaurant, the quality of your service leaves a long lasting impression on their memories. They will not only come but bring more people in. PR allows you to target more than the decided segment of public. On the other hand a billboard ad may not get as much attention because people see it for just few seconds. A series of articles and features about the activities and visits in restaurant, press releases and reviews can do wonders. Hard copy, brochures, online media kits and websites can certainly provide detailed information and understating about your business. It can not only influence reporters and masses but your competitors as well. Credible business image through PR “Advertising you pay for, public relation you pray for.” PR and advertising plays dramatically different roles when it comes to restaurant promotion. Both of these use more or less the same media but handle it in an entirely different manner. The late entertainer once said, “All I know is just what I read in the papers” PR creates a credible image in the minds of people. As your restaurant gets coverage in media; newspaper, talk shows on radio and television, you make people talk about you business. This kind of media coverage attracts potential customers and boosts your credibility. It also generates a healthy competition in market. On the other hand people may doubt the credibility of information provided in a well-placed advertisement. “To protect themselves from the overabundance of ads, consumers filter out most of these messages and rely more on their social networks for information and recommendation”(Rich Goldblatt M Booth & Associates) Restaurant PR is cost effective “The higher the price, the greater the value” It is not always true as, in case of restaurant promotion, PR can generate awareness and a credible image without costing a penny. People believe in some credible newspaper or magazine’s review about your business than an ad on front page. It is much more viable and cost effective than advertising which always breeds doubts in case of restaurant. Restaurant business demands to build a relationship of trust and understanding with people. This is the main reason why a consistent and long term PR plan is irreplaceable in comparison with short-term advertising blitz. Brand loyalty and awareness Al & Laura Ries said in their book, “The birth of a brand is achieved with publicity, not advertising.” Consistent PR efforts raise you above the clutter and put you right in the minds of people. It establishes you as a brand and makes people aware of you and your status in market. It brings you closer to the people as you share their interest and understating. The closer you get with the public the better level of trust you build. Restaurant PR extends the boundaries PR extends your reach from potential customers to the other people who may not be initially targeted. You may raise interest and stimulate people through the story or any other event which was organized for the target public. It helps you in understating the consumer behavior and makes a comfortable and long lasting position for you. Media Relationship In today’s ever changing media environment, raising your media profile is crucial. Everyone is becoming high-tech and internet savvy. By consistent and updated PR efforts, your business develops a special relationship with media people. It is important to provide information to the media considering their needs. Storytelling can be fun and creative in order to gauge attention of readers and thus, media itself. They not only persuade readers and listeners effectively but also build a relationship for future. Once you get desired results from media there is a long way to go as you have laid the foundation stone. Stimulation of qualified sales lead Personalizing things make the impact more powerful. PR activity has more staying power in the minds of people. It is observed that the articles in newspapers and magazines attract more people and inquiries than the ads for the same product or service in the magazine. Feeling of attachment with restaurant can encourage customers to neglect petty issues, if there are a few. Industry/Market position When you get attention of public several times as a source of quality work, they perceive you to be the best in industry. It is natural, we trust printed words. PR creates a place for you in industry as an expert. Media people are opinion makers; they not only provide detailed information about your business but educate people about your background and expertise level. Conclusion Sometimes people confuse PR and advertising, but the truth is that they are quite distinct and while good advertising can bring your business plenty of publicity, there’s nothing like great PR to boost your image in the public eye. There are many reasons to choose PR over other promotional tools, if you have to make a choice. The truth is that combining the two publicity methods is an excellent method for gaining the optimum number of sales. Employees are the most important stakeholders of an organization. PR is the only promotional tool which caters their issues as well. Public relation is not the remedy for bad quality or for covering up flaws and draw backs. Building connections and relationships with the media is invaluable and should definitely be utilized in every business that wants to be successful. PR is like any communications tool. It costs money whether you do it yourself or hire someone to help. One should never think that PR replaces advertising or vice versa. In some cases, getting effective media coverage can cost more than advertising. Recommendations Integration of promotional tools is crucial for achieving desired promotional objectives. Business should try to strike a balance between promotional activities to get optimum results. Meaning of Public relation should expand from mere publicity to real public relation. PR is highly credible, creative and a long term process: it’s not merely a tool for promotion. PR is an art of continuously maintaining relationships and perceptions not a beautiful carpet to hide the bad patches. Bibliography Anthony, Davis 2003, Everything you should know about Public Relations, Kogan page, London. David, Pickton 2000, Advertising and public relations: key elements of the marketing communication mix, Leicester, De Monfort University. Eric, Y.,Robert, B. & Llise B. 2006, Public Relation for Dummies, 2nd edn, Wiley Publishing. Inc, 111 River St. Moi, Ali 2001, Effective public relations,2nd edn, DK, New York. Terence, A shimp 2003, Advertising, promotion & supplemental aspects of integrated marketing communication, 6th edn, Mason, Ohio. Richard, J Semenik 2002,Promotion and integrated marketing communication, Cincinnati, Ohio. William, F Arens 2007, Contemporary advertising,11th edn, McGraw-Hill, New York. 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