MODULE

Public Relations
1. Objectives 2/5

1 2 3

Assessing corporate reputation Evaluating Public Relations

Public relations functions
2. PR functions?
Identify
internal &
external
stakeholders

Prevent or Assess
reduce image corporate
damage reputation

PR
Functions

Creative
Audit
positive
corporate
image-
social
building
responsability
activities
2.1 Identify stakeholders

Stakeholders: a person or a group which vested interest in the

Identify company activities
internal &
external
stakeholders  Employees  Media

 Unions  Local community

 Shareholders  Financial community

 Channel members  Government

PR
Functions
 Customers  Special-interest groups
2.1 identify stakeholders

Stakeholders: a person or a group which vested interest in the

Identify company activities
internal &
external  Internal: shareholders, employees, etc.
stakeholders

 Employees powerful channel

 Receive constant communications
 Work with HR department

 External: government, media, local community

 Company has little or no influence on how they perceive the

PR company
Functions
 Contact points
 Unplanned contact points
2.2 Assess corporate reputation

Assess
 Reputation is fragile, but valuable
corporate
reputation
 Negative view of businesses

 Assess reputation

 Monitor corporate reputation

PR  Less than half have someone assigned
Functions
 2.2 Measuring corporate reputation through a survey

Assess
corporate
reputation

PR
Functions

Feldman, P. M., Bahamonde, R. A., & Velasquez Bellido, I. (2014). A new

approach for measuring corporate reputation. Revista de Administração
de Empresas, 54(1), 53-66.
2.2 Measuring corporate reputation through a survey

Assess
corporate
reputation

PR
Functions

Feldman, P. M., Bahamonde, R. A., & Velasquez Bellido, I. (2014). A new approach for measuring corporate reputation. Revista de
Administração de Empresas, 54(1), 53-66.
2.2 Measuring corporate reputation through the Net promotor Score

 Calculate your Net Promoter Scores using the answer to a single question,
Assess using a 0-10 scale: How likely is it that you would recommend [brand] to a
friend or colleague? This is called the Net Promoter Score question or the
corporate
recommend question.
reputation

 Respondents are grouped as follows:

 Promoters (score 9-10) are loyal enthusiasts who will keep buying and
refer others, fueling growth
 Passives (score 7-8) are satisfied but unenthusiastic customers who
are vulnerable to competitive offerings.
 Detractors (score 0-6) are unhappy customers who can damage your
brand and impede growth through negative word-of-mouth.
PR
Functions
2.2 Measuring corporate reputation through the Net promotor Score

 Subtracting the percentage of Detractors from the percentage of Promoters

Assess yields the Net Promoter Score, which can range from a low of -100 (if every
corporate customer is a Detractor) to a high of 100 (if every customer is a Promoter).
reputation

PR
Functions
2.2 Measuring e-reputation

 Virality coupled with negative sentiments can bring down brand reputation
2.2 Measuring e-reputation
 Managing the reputation accross the media journey

Valence --> Resonance

Source
2.2 Measuring e-reputation

 Message origination

Source
2.2 Measuring e-reputation
 Message resonance

Source
2.2 Measuring e-reputation
 Impact measures via Empower’s Prism Methodology

Source
2.2 Measuring e-reputation
 Media impact leads to reputation enhancers and detractors

Source
2.2 Measuring e-reputation
 Enhancers and detractors feed into “Corporate Brand Equity & Reputation Tracking
(CERT)” Framework

Source
2.2 Measuring e-reputation
 CERT tracking over time

Source
Tracking the social sentiment through tools

 https://brandmentions.com/socialmention/
Tracking the social sentiment through tools

 https://brandmentions.com/socialmention/
Tracking the social sentiment through tools

 https://brandmentions.com/socialmention/
Tracking the social sentiment through tools

 https://brandmentions.com/socialmention/
Important: create some alerts to be always aware about what is going on..

 Social listening is key. Anticipation and proactivity needed

 Google alerts (https://www.google.fr/alerts)

Do not forget to track also the image of important stakeholders (CEO, etc)

 Webmii (https://webmii.com/)
 Internet visibility score based on your presence on social networks, on the
Internet and your Klout index.
 But the tool also offers you the photos that stand out on your name, as well as
the associated keywords. This allows you to verify that there are no suspicious
visuals or negative related searches.
Exercice

 Use : https://brandmentions.com/socialmention/
 Analyze the e-reputation of the brand Nokia
 What strategy to use depending on the type of social media to develop a better Nokia e-
reputation
2.3 Audit corporate social responsibility
 Undertaken by management
L'oreal --> woman empowerment

Audit  Organizations need

corporate  Ethical guidelines for all employees
social
responsibility  Code of ethics
 Ethical hotline

Image destroying activities Image building activities activities

 Discrimination  Empowerment of employees

 Harassment  Charitable contributions
 Pollution  Sponsoring local events
 Misleading communications  Selling environmentally safe products
PR
Functions  Deceptive communications  Outplacement programs
 Offensive communications  Support community events
2.4 Create positive image activities
Green marketing
Create
positive
image
activities

PR
Functions
2.4 Create positive image activities
Cause-related marketing
Create
positive  Communication activities designed to promote a consumer
image good or service characterized by an offer from the firm to
contribute a specified amount to a designated non-profit cause
activities

PR
Functions
2.4 Create positive image activities
Cause-related marketing
Create
positive
image
activities

PR
Functions
2.4 Create positive image activities
Cause-related marketing: popular success story
Create
positive In 2009, Lindt launched a cause marketing
campaign for Autism Speaks. Of course, the
image centerpiece of the campaign is Lindt’s famous
activities chocolate bunny with its signature gold foil and
red bow.

Six years later, Gold Bunny’s for Autism Speaks

has raised over $700,000 and is going strong.

In2006, a partnership started between P&G’s largest brand, Pampers,

and the United Nations Children’s Fund (UNICEF) that has a long-
term goal of eliminating maternal and newborn tetanus (MNT).
PR
Since the partnership began in 2006, Pampers has been helping to
Functions protect 100 million women and their babies from MNT.
2.5 Prevent or reduce image damage
Damage control strategies
Prevent or
reduce  Proactive Strategies
image  Entitling: claim responsibility for positive outcomes
damage  Enhancements: increase the desirable outcome of an event
in the eyes of the public

 Reactive Strategies
 Internet interventions: to combat negative word-of-
mouth
 Crisis management programs: accepting a blame or
apology for a problem
PR
Functions  Impression management techniques: controlling
images projected
2.4 Do we have to care about negative information ?

Iphone 5 ad Iphone 5 spoof ad

 The impact of negative ad parody may be so powerful that it might decrease the share
price of the parodied brand as well as the sales’ volume.
 This was the case with Nestlé which was parodied by Greenpeace. In 2010, Greenpeace
launched a parody of Nestlé’s “Take a break with Kit Kat” ad by attacking the issue of palm
oil contained in the candy. As a result, Nestlé removed the video parody from the YouTube
which then led to higher number of negative comments going viral on both social media
and mass media and ultimately led to lowering the Nestlé stock prices within a matter of
just three days.
2.5 Prevent or reduce image damage
Elements of an Apology Strategy: Crisis management technique
Prevent or
reduce 1.An expression of guilt, embarrassment, or regret.
image
damage
2.Statement recognizing inappropriate behavior and
acceptance of sanctions because of wrong
behavior.
3.Rejection of the inappropriate behavior.
4.Approval of the appropriate behavior and a promise
not to engage in the inappropriate behavior again.
PR
Functions 5.An offer of compensation or penance to correct the
wrong.
2.5 Prevent or reduce image damage
The case of Domino’s pizza 2009
Prevent or
reduce
image
damage

PR
Functions
2.5 Prevent or reduce image damage
The case of Domino’s pizza 2009
Prevent or
reduce
image
damage

PR
Functions
2.5 Prevent or reduce image damage
The case of Domino’s pizza 2009
Prevent or
reduce
image
damage

PR
Functions
2.5 Prevent or reduce image damage
The case of Domino’s pizza 2009
Prevent or
reduce
image
damage

PR
Functions
2.5 Prevent or reduce image damage
The case of Domino’s pizza 2009
Prevent or
reduce
image
damage

PR
Functions
3. Evaluation of Public Relations

 Number of clippings: number of article and information about the company that
have been published in magazines, newspapers, tv, etc.

 Number of impressions: number of subscribers and purchaser of a print medium

or the number of viewers of a broadcast medium in which the company’s name has
been mentioned

 Advertising equivalence technique: finding every place where the company

name was involved

 Comparison to public relations objectives

3. Calculating Public Relations Value and the advertising value equivalency (AVE)

1.Measure the column inches for print and the seconds for radio and
television of media coverage. A newspaper column inch is one column
wide by 1 inch high. Newspaper pages are usually divided into four to
six columns.
3. Calculating Public Relations Value and the advertising value equivalency (AVE)

2. Multiply these figures by the respective medium's advertising rates to get the
advertising value equivalency. AVE indicates what it would have cost to place
an ad of that size or length in that medium. For example, if a newspaper
charges $100 for a one-column-by-4-inch ad and there were 10 similar-sized
columns about your organization in the paper over a month, then the AVE for that
particular coverage is $1,000 (100*10).

3. Calculate the AVE ratio, which equals advertising value equivalency divided by
PR costs.
Use the AVE ratio to track the relative effectiveness of different PR campaigns such as trade shows,
media tours and investor conferences. For example, if you organize a media tour of your facilities,
then costs could include lunch, transportation and the time of company staff. If these costs were
$1,000 and the AVE of the resulting print and television coverage was $2,000, then the AVE ratio
equals 2 (2,000/1,000).
Case study

 New drug faces public relations and marketing challenges