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Marketing and Financial Public Relations
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Introduction:

 

            In this, you will learn the relationship of marketing and finance in public relations, their difference and how they are put together.

 

 

Objectives:

 

1.        Will be able to know the meaning of marketing and finance.

2.        How it is connected to public relations.

3.        Its advantages and disadvantages.

4.        The different marketing strategies.

 

What is marketing?

           

            Marketing refers to promotion and can also pricing, product, placement and distribution when relevant. Promotion can be limited to a specific target group or it can be aimed at the general public. It is also the activity of developing products and services to satisfy customers needs and wants and making them available at the right places, at the right time and in competitive prices. Marketing is an investment that if done wisely, not only pays for itself but allows the business to grow. Marketing strategies differ depending on the product target market and budget, marketing is unlimited by creativity and can go beyond conventional means.

 

What is Finance?

 

            Finance develops skills and knowledge necessary for the management of money. It is concerned with the process, institution, markets and instruments of money among individuals, business and government.

 

Marketing Public Relations

 

            Marketing public relations is a term that has entered the discussion of integrated marketing communications to describe the concept of publicity, which is a traditional name for this function.

 

Functions of Marketing Public Relations

 

1.        Building marketplace excitement before advertising begins especially for new product.

 

2.        Creating news about advertising itself.

Example: Millions of dollars worth of exposure was created for Pepsi during the signing of Michael Jackson a major singing star in the US to perform in ads.

      

3.        Introducing a product with low or no advertising expenditures.

Example: The introduction of new colors of crayons by the crayola division was   successfully promoted just through publicity.

 

4.        Providing added value to products or services for customers.

Example: Butterball turkey set up phone lines for customer wanting to prepare turkey for national holidays. So customers could call in to get advice for preparation.

 

5.        Creating customers-to- brand-bonds

An example of this sort of MPR is the Pillsbury bare-off, where cooks from all over United States compete for large monetary prizes for recipes judged to be the best using Pillsbury product.

 

6.        Influencing opinion leaders among group of people to gather additional information about the product services or firm. These opinion leaders then influence the buying decisions of others in their group.

 

7.  Defending products at risk and giving a reason to buy them.

     Example: McDonald Corporation came under attack by environmental activists because 

     of the perceived environmental unfriendliness of McDonald’s led to redesign their

     packaging.

 

Marketing Public Relations Advantages

 

1.        Credibility – since public relation tools such as press releases and media relations are transmitted to firm’s audiences through mass media such as newspaper or television the information takes on the credibility of the medium carrying the messages.

 

2.        Cost – in relative absolute terms, executing a public relations publicity campaign is less expensive than an advertising campaign.

 

3.        Clutter Avoidance – because public relations information tends to be carried by media as news items, it tend to avoid the clutter of advertising.

 

4.        Targeting Specific Groups – while advertising through mass medium might be thought of as a shotgun approach to communication public relation can be a rifle carefully targeting special interests of specific audiences.

 

Marketing Public relations Disadvantages

 

1.        Perhaps the biggest disadvantage is loss of control – the firm gas no control over when and where the information appears by contrast, advertising can be very carefully controlled.

 

2.        MPR can be criticized because the effect on sales is less obvious than is the effect of advertising.

 

The recent trend is to emphasize the similarities between marketing and public relation and to have them become increasingly intertwined in the workplace. But until 30 years ago, public relation and marketing were usually considered totally separate disciplines. Both Marketing and public relation went through such dramatic growth and evolution during the first half of the 20th century that at least one business historian has referred to this period as their teenage years. As marketing and public relations expanded their spheres of activities and as they became more aggressive in communicating with more and more and ever larger publics: concepts and practices when he wrote:

 

            Marketing and public relations: both are major eternal functions of the firm and both share common ground in regard to product publicity and consumer relations. Marketing exists to sense, serve, and satisfy customer’s needs at a profit. Public relations exist to produce goodwill in company’s various publics so that the publics do not interfere in the firm’s profit marketing ability.

 

 

Differences Of Marketing and Public Relation

Marketing

Public relations

Marketing promotes the transfer of goods and services from the producer and provider to the consumer

Public relations help an organization and its public adapt mutually to each other.

Marketing’s immediate goal is sales

Public relation’s goal is mutual understanding or positioning of the organization with its publics.

Marketing’s implicit goal is profit

Public relation’s implicit goal is positive perception and predispositions.

Marketing’s measure if success is the number of sales and or the revenue it generates.

Public relation’s measure of success is expressed public opinion or either evidence of public support

 

Marketing and Public Relations met Different Needs

            There’s always been some degree of tension and competition between public relations and marketing people.

 

Marketing Public Relations Sample Case

 

            When the second largest French group in the field of telecommunications entered the Indian market, it wanted plan man consulting to leverage on the parent company’s strong brand equity in the mobile market, thereby building credibility by ensuring strong broad and consistent visibility in all media vehicles viz. print, electronic and the web. Also, the client wanted the advisory to design a promotional programmed, which would affect the bottom line of the company, the sales.

 

 

 

Marketing strategies

 

1.        Understanding the market climate and marketing strengths.

2.        Developing a marketing strategy.

3.        Marketing Plan

4.        Implementing Plan

5.        Monitoring the success if the plan.

 

Financial Public Relations

 

            Public relations division of a company charged with cultivating positive investor relations and proper disclosure of information.

 

Investor Relations

 

            A department within a public company that distributes information about the company and its financial performance exists and potential stockholders.

 

Financial Public Relations Includes:

 

a.        Information Analysis

-         to update management on important developments and interpretation of the same to the company and vise versa.

b.        Issues Management

-         to monitor industry trends

c.        Education and Training

- to help manage understand how the mass media operates and its role in the society. Do counseling management to communicate the position to the target public.