Page 381 - Introduction to Business

CHAPTER 10 Developing the Promotion and Distribution Mixes 355

Publicity
Publicity refers to items about a company, its products, or its personnel that appear publicity News items about a company,
in the mass media. The mass media that carry the publicity are not paid for carry- its products, or its personnel that
appear in the mass media
ing the information. Publicity can be negative, as well as positive. As a result, most
large companies in the United States have established public relations depart- public relations Press releases and
ments. These departments put out press releases and use other means directed to other efforts directed to the news media
that portray a company, its products, or
the news media that cast the company, its products, or its personnel in a favorable
its personnel in a favorable light or
light, and also undertake efforts to combat unfavorable publicity that has occurred. combat unfavorable publicity
The public relations department is keenly aware of the various publics with
which a firm must be concerned. These include consumers, consumer groups, the
general public, various levels of government, labor unions, and stockholders. Early
public relations efforts in the United States focused on attempts to obtain legisla-
tion favorable to business (lobbying). The next phase in the evolutionary process
involved the use of planned publicity to generate interest in the company and its
products. The public relations department developed stories about its company,
employees, and products and attempted to get news media to run them. Currently,
public relations departments are stressing the value of research prior to launching
public relations campaigns.
Publicity plays an important role in the promotion mix. Because competitors are
often using the same advertising and similar sales promotion techniques, publicity
offers the general advantage of promotion differentiation, that is, “an opportunity to
shine by coming up with a program that takes the product out of competitive same-
ness and places it on a very special pedestal for the customer to view.” 11
Publicity can contribute to the marketing effort in a number of ways. If you
are not sure who the best prospects are for a new product, a public relations
effort across a wide variety of media is an inexpensive way to determine who the
best prospects are. Publicity can be economically directed to those hard-to-get-
to peripheral markets. For example, a photograph or news release could be sent
to all specialized newspapers in the United States catering to Spanish-speaking
individuals.
Customers are frequently skeptical of product claims. They are likely to be less
skeptical if the product carries the endorsement of an objective third party. Third
party endorsements are essentially achieved by having the implied approval of the
media in which an editorial appears; the editorial provides the product with legiti-
macy. When people interested in a product see a news feature on it, they frequently
get in touch with the company. Thus, good sales leads are provided. And sales calls
are more than likely to result in orders if the prospect has seen something favorable
about the salesperson’s company.
Public relations personnel can help to establish individuals in a company as
experts in various fields. The media may then turn to these experts when they need
technical information. Customers tend to view companies with experts as being
bigger and better.
Minor products frequently do not warrant the use of advertising, personal
selling, or sales promotion. News releases or photos may generate sales for a minor
product and help to elevate it to a better competitive position. Public relations
departments can get interviews for their companies’ top executives, or get them
speaking engagements. These opportunities allow executives to straighten out
misunderstandings, articulate company policies, and discuss company products.
Publicity helps to stretch a company’s promotional dollars through the use of
reprints. These can be disseminated to the various publics that concern an organi-
zation, and can also be distributed to individuals within the company who can

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