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Program Module Name Code
ACPCT1 Public Relations
ACOM162 ACPDP1 Public Relations
ACOM222 ABDEG1 Public Relations
ACOM312
Public Relations Two
Faculty of Arts
Department of Communication
Science
Developed By GM Naidoo
This study guide belongs to
………………………………………………………………………………..
Name
……………………………………
Year
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Note to the student
Welcome to the Communication Science department - Public Relations Class 2009. It is important for you to understand that you are now in a Higher Education institution and your success is determined by yourself. Therefore you must not become distracted but be focused in all your public relations classes together with every other course. You will be exposed to the various skills/ tools that will equip and empower you to become a valuable person in the market place. This study guide has been developed with conjunction with Public Relations Southern Perspective, secondly Handbook for Public Relations and other sources were consulted, however you are encouraged to use the library and the internet to research and read further on public relations. In order for you to gain this experience you must ensure the following:
You must ATTEND ALL my classes/ lectures,
Ensure that you SIGN the class REGISTER
Submit all ASSIGNMENTS and PROJECTS on the due dates and ensure that you keep copies of them.
Ensure that you insert your STUDENT NUMBER & NAME on each page.
Your PRESENTATION must be of a high quality embracing EXCELLENCE.
PARTICIPATE in class sessions.
Ensure that you are a PERSON OF INTEGRITY and every piece of work you submit MUST be your OWN.
Follow MY INSTRUCTIONS.
Submit PROOF of ILLNESS such as a doctor‟s certificate or a death certificate in case of one of your family members pass away. This will be required especially if you miss a scheduled PRACTICAL SESSION, TEST or Exam.
If you encounter any problems or if you need to see me in regards to the course you are requested to make an APPOINTMENT with me. Don‟t hesitate, to ask for help.
Weekly course outline and other information can be accessed online: www.comsci.uzulu.ac.za
Best wishes and every success! GM Naidoo Communication Science ARTS Block Office 608 Email: [email protected]
Prescribed Text books
Primary: Public Relations African Perspectives by
Edited by R Rensburg & M Cant. Second Edition.
ISBN 978 0 7962 2352 4 Publishers: Heinemann
Secondary: Handbook for Public Relations by
Skinner, Von Essen, Mersham and Motau. 8th
Edition. ISBN 978 019 5980226. Publishers: Oxford,
Definition of Public Relations ................................................................................................................... 8
PUBLIC RELATIONS AND RELATIONSHIPS ............................................................................................ 10
Development of the Relational View of Public Relations ........................................................................... 10
Characteristics of Effective Relationships ............................................................................................... 11
BASIC DEFINITIONS: ADVERTISING, MARKETING, PROMOTION, PUBLIC RELATIONS AND PUBLICITY,
AND SALES ............................................................................................................................................ 12
One Definition of Advertising ................................................................................................................. 12
One Definition of Promotion .................................................................................................................. 13
One Definition of Marketing ................................................................................................................... 13
One Definition of Public relations ........................................................................................................... 13
One Definition of Publicity ..................................................................................................................... 13
One Definition of Sales ......................................................................................................................... 13
An Example of the Definitions ................................................................................................................ 14
PUBLIC RELATIONS RESEARCH AND PLANNING ................................................................................... 15
IMPORTANCE OF RESEARCH ............................................................................................................ 15
RESEARCH TYPES ............................................................................................................................. 15
RESEARCH METHODS ....................................................................................................................... 16
Data Collecting Approaches .................................................................................................................. 20
Data Collection Instruments .................................................................................................................. 21
Data Collecting Methods ....................................................................................................................... 22
Design the sampling plan .......................................................................................................................... 23
Random Sampling ................................................................................................................................ 24
Data preparation .................................................................................................................................. 27
Data entry ........................................................................................................................................... 28
PR research on the Internet .................................................................................................................. 29
THE PROCESS OF PUBLIC RELATIONS PLANNING, BUDGETING & PROGRAMMING ............................. 32
PLANNING STARTS WITH A MISSION STATEMENT ............................................................................ 35
COMMUNICATION OBJECTIVES FOR AN EVENT ................................................................................ 35
OBJECTIVES FOR A CAMPAIGN ......................................................................................................... 35
OBJECTIVES FOR A PROGRAMME .................................................................................................... 36
TYPES OF CAMPAIGN ........................................................................................................................ 36
SELECTING CHANNELS AND MEDIA .................................................................................................. 38
OTHER TYPES OF PLANS .................................................................................................................. 38
SETTING A PUBLIC RELATIONS BUDGET........................................................................................... 39
TEN THINGS YOU SHOULD DO .......................................................................................................... 39
FIVE THINGS YOU SHOULD NOT DO .................................................................................................. 40
CASE STUDY: ..................................................................................................................................... 40
WHAT DOES IT COST? HOW TO BUDGET YOUR PR PROGRAMME BY THE NUMBERS ...................... 40
BUDGETING IN PR ................................................................................................................................. 42
CASE STUDY .......................................................................................................................................... 48
MEDIA RELATIONS & BUDGETING ......................................................................................................... 48
Articles of Interest............................................................................................................................... 102
PUBLIC RELATIONS EDUCATION ......................................................................................................... 105
Best practice guidelines ...................................................................................................................... 108
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PUBLIC RELATIONS PLACEMENT WITHIN THE ORGANISATION
Introduction
According to Rensburg and Cant (2009:25) „people establish and maintain relationships with
others. These relationships require various degrees of interaction and interdependence and,
therefore, different levels of social, political and economic exchanges. Modern society consists
of increasingly interdependent, complex, and often conflict-laden relationships.‟
Further, Rensburg and Cant (2009:26) states that every organisation is made up of in
stakeholders in the form of investors, customers, shareholders, intermediaries, employees,
government and local communities. The role of Public Relations is to communicate to the
organisations image and products to these publics. Public relations can be both proactive and a
reactive activity. PR proactively seeks to improve the image of an organisation. When an
organisation receives bad publicity, the PR function attempts to minimise the damage caused
by this negative publicity.
Definition of Public Relations
1. ‘Public Relations are the management through communication of perceptions and strategic
relations between an organisation and its internal and external stakeholders’.
2. The Public Relations Institute of Southern Africa (PRISA) adopted this definition for ‘public
relations is deliberate, planned and sustained effort to establish and maintain mutual
understanding between an organization and its various publics - both internally and
externally’ (Skinner & Von Essen 1998:4-6).
Rensburg and Cant (2009:27) states that in 2002 PRISA also looked at the following:
The first definition is outlined below:
Deliberate: All public relations efforts are deliberate efforts at achieving the specific
aims of an organisation. The areas in which these aims are to be achieving are clearly
defined, as are the publics at which they are aimed. The messages are carefully
evaluated in terms of the overall aims of the organisation. PR is a process of
communicating deliberately with target publics or stakeholders. It seeks to receive
feedback from its target publics and creates the relationships deliberately.
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Planned: The nature of PR ensures that activities are meticulously planned to address
all relevant problems or issues. Many organisations have grave consequences if not
properly addressed. The plans, as well as any other plans, must involve a conscious
evaluation of all spheres of the organisation‟s activities that may have a bearing on its
reputation. These plans must consider the short-medium and long–term objectives of
the organisations.
Sustained: for PR to be meaningful and effective a continuous analysis of the
environment and the ways to communicate with market is required. Once
communication process has been initiated and established between an organisation
and its publics, it must be maintained. This necessitates a sustained effort by the
organisation. First contacts are seldom successful, which emphasises the need for
sustainability.
Establish: the primary aim of PR is to establish a climate of mutual understanding
between an organisation and its publics or stakeholders – new or existing.
Maintain: it is essential that, once a positive relationship has been established, it is
maintained. As the environment in which business and organisations operate is
constantly changing, any positive perception that exists must be nurtured and is
constantly changing, any positive perception that exists must be nurtured and
maintained over time. Maintaining this relationship implies that the organisation must
listen to the feedback received from target publics and other stakeholders, and act on
it.
Mutual understanding: for communication to be effective between an organisation
and its target publics, it is essential that they have a mutual understanding. In this way
agreement and harmony can be reached and a positive relationship can be built.
Publics/ Stakeholders: any group that influences an organisation or its operations or
that is important to an organisation is regarded as a public - or in a term more recently
used – stakeholder group. These groups can be internal, external or both.
Internally and external: The internal publics are groups inside the organisation are
usually its employees and the external publics are groups outside the organisation
such as unions, financial institutions, the media, shareholders and the community.
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PUBLIC RELATIONS AND RELATIONSHIPS
Heath in Rensburg and Cant (2009:51) states that many agree that a greater focus should be placed on
the study and understanding of organisational relationships. Most of the latest research in public
relations has focused on organisation-public relationships. This is a clear indication of future
development of the field (Grunig in Rensburg and Cant 2009:51). The relational perspective of PR
proposes that the primary purpose of PR professionals in the organisation is to build sustainable and a
long term relationships with key stakeholders in the organisation‟s environment. These relationships
should be managed so that the public and the organisation‟s interests are balanced and a mutual
benefit is gained from this relationship.
Relationships also give organisations a competitive advantage. Organisations that are able to
accumulate resources and capabilities that are rare, valuable, non-substitutable, and difficult to imitate
will achieve a competitive advantage over competing firms [organisations] (Dyer & Singh in Rensburg
and Cant (2009:52). Strategic relationships in the organisation‟s environment act as an intangible asset
towards a competitive advantage.
Development of the Relational View of Public Relations
Ledingham in Rensburg and Cant (2009:51) states that there are four pivotal developments that
spurred the emergence of the relational perspective of PR.
1. Recognition of the central role of relationship in public relations. A major shift occurred in
the focus of public relations research. The focus moved away from the organisation, the
stakeholder (or public) or the communication as the unit of analysis, to the relationships that
exist between and because of these key constructs.
2. The re-conceptualisation of PR as a management function. The notion of managing
organisation-public relationships introduced management concepts and processes to the
management of this organisation function.
3. The identification of components and types of relationship that link to various aspects
of public relations as well as relationship management. These two constructs are linked to
public attitudes, perceptions, knowledge and behaviour and relationship measurement
strategies. These construct and the relationship between these constructs were tested and
used for predicting various aspects related to stakeholders, organisational behaviour and
performance.
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4. The construction of relationship models. These models conceptualised the formation,
maintenance and outcomes of organisation-public relationship.
Relationships are distinct phenomena that are separate from the characteristics of the relationship
partners and should be measured as such. On page 55 of your text book you will find various aspects
on relationships defined relationships. Please read through this and familiarise yourself with it.
Characteristics of Effective Relationships
Successful relationships are characterised by mutual benefit. It is where organisations employ tactics to
increase the awareness of stakeholders and then in decision-making. Based on shared meaning – that
results in which enlightened choices being made (Heath in Rensburg and Cant, 2009:57).
Relationships are established by PR practitioners by the use of symmetrical communication to align the
organisation with the stakeholder, include them in decision and balance the power relations in the
relationship. The outcome of this successful relationship includes trust, commitment, and satisfaction
and control mutuality.
Morgan & Hunt in Rensburg and Cant, (2009:58) focused on the trust and commitment from a
relationship marketing perspective and stated that there are five major precursors of relationship
commitment and trust:
Relationship termination costs. When the expected termination cost of the relationship is
high, the ongoing relationship will be viewed as important. Consequently, commitment will be
generated in the relationship. Conversely, when the total cost associated with terminating the
relationship is considered low, a relationship partner may fear being terminated and therefore
explicitly develop commitment in the relationship. As a result, the expectation of total cost in a
relationship produces commitment.
Relationship benefits. Competition in a global market place necessitates an organisation to
continuously seek out products, processes and technologies that add value to their own
offerings. Partner selection is consequently critical in competitive strategy. When relationship
partners deliver highly valued benefits to an organisation, the organisation consequently
commits itself to establishing, developing and maintaining a relationship with such a partner.
Shared values. Shared values are precursors for both relationship commitment and trust, and
refer to the extent which partners have ‘beliefs in common about what behaviours, goals, and
polices are important or unimportant, appropriate or inappropriate, and right or wrong’.
Communication. Communication is a major precursor of trust by assisting in resolving
disputes and aligning the perceptions and expectations of relationship parties.
Opportunistic behaviour. If a party believes that the relationship partner could revert to
opportunistic behaviour or behaviour that is counterproductive and harmful to the partnering
organisation, the trust and commitment in a relationship will decrease.
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Dyer & Singh in Rensburg and Cant, (2009:59) states that there are four specific benefits which can be
generated from relationships that render relational rents including:
Relation-specific assets
Knowledge-sharing routines
Complementary resources/ capabilities and
Effective governance.
Arms-length relationship Relationships where relational rents are generated
Non-specific asset investments Investments in relation-specific assets
Minimal information exchange Substantial knowledge exchange, including the exchange of knowledge that results in joint learning
Separable technological and functional systems in each organisation that characterised by low levels of interdependence.
The combining of complementary, but scarce, resources and capabilities
Low transaction costs and minimal investment in governance mechanisms
Lower transactions costs that competitor alliances (relationships), owing to more effective governance mechanisms
Source: Differences of Arms-length relationship& Relationships where relational rents
BASIC DEFINITIONS: ADVERTISING, MARKETING, PROMOTION, PUBLIC RELATIONS AND
PUBLICITY, AND SALES
(Carter McNamara, MBA, PhD)
It's easy to become confused about these terms: advertising, marketing, promotion, public relations and
publicity, and sales. The terms are often used interchangeably. However, they refer to different -- but
similar activities. Some basic definitions are provided below. A short example is also provided hopefully
to help make the terms more clearly to the reader.
One Definition of Advertising
Advertising is bringing a product (or service) to the attention of potential and current customers.
Advertising is focused on one particular product or service. Thus, an advertising plan for one product
might be very different than that for another product. Advertising is typically done with signs, brochures,
commercials, direct mailings or e-mail messages, personal contact, etc.
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One Definition of Promotion
Promotion keeps the product in the minds of the customer and helps stimulate demand for the product.
Promotion involves ongoing advertising and publicity (mention in the press). The ongoing activities of
advertising, sales and public relations are often considered aspects of promotions.
One Definition of Marketing
Marketing is the wide range of activities involved in making sure that you're continuing to meet the
needs of your customers and getting value in return. Marketing is usually focused on one product or
service. Thus, a marketing plan for one product might be very different than that for another product.
Marketing activities include "inbound marketing," such as market research to find out, for example, what
groups of potential customers exist, what their needs are, which of those needs you can meet, how you
should meet them, etc. Inbound marketing also includes analysing the competition, positioning your
new product or service (finding your market niche), and pricing your products and services. "Outbound
marketing" includes promoting a product through continued advertising, promotions, public relations
and sales.
One Definition of Public relations
Public relations include ongoing activities to ensure the overall company has a strong public image.
Public relations activities include helping the public to understand the company and its products. Often,
public relations are conducted through the media that is, newspapers, television, magazines, etc. As
noted above, public relations are often considered as one of the primary activities included in
promotions.
One Definition of Publicity
Publicity is mention in the media. Organizations usually have little control over the message in the
media, at least, not as they do in advertising. Regarding publicity, reporters and writers decide what will
be said.
One Definition of Sales
Sales involves most or many of the following activities, including cultivating prospective buyers (or
leads) in a market segment; conveying the features, advantages and benefits of a product or service to
the lead; and closing the sale (or coming to agreement on pricing and services). A sales plan for one
product might be very different than that for another product.
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An Example of the Definitions
The following example may help to make the above five concepts more clear. The story comes from the
Reader's Digest, a quote found in "Promoting Issues and Ideas" by M. Booth and Associates, Inc.
(Jennifer M. Seher):
"... If the circus is coming to town and you paint a sign saying 'Circus coming to the Fairground Saturday', that's advertising. If you put the sign on the back of an elephant and walk it into town, that's promotion. If the elephant walks through the mayor's flower bed, that's publicity. And if you get the mayor to laugh about it, that's public relations." If the town's citizens go the circus, you show them the many entertainment booths, explain how much fun they'll have spending money at the booths, answer their questions and ultimately, they spend a lot at the circus, that's sales.
Activity
1. Define Public Relations:
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
…………………………………………………………………………………………………………
2. Explain the role of relationships in organisations?
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
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PUBLIC RELATIONS RESEARCH AND PLANNING
Research plays and important part in PR. It is for this reason that students of PR must understand the
usefulness of research. Lindenmann in Rensburg and Cant, (2009:67) provides the following definition
for PR research:
“Public relations, as the name imply focuses on the entire public relations
process and examines the communications relationships that exist among and
between institutions and their key target audience groups. For the public
relations practitioner or public affairs officer, a useful definition of public
relations research is that it is an essential tool for fact and opinion gathering-a
systematic effort aimed at discovering, confirming and/ or understanding
through objective appraisal the facts or opinions pertaining to a specified
problem, situation, or opportunity”.
IMPORTANCE OF RESEARCH
According to Skinner et al. (2007:31) information and data must be gathered and compiled the facts. It
is also necessary to have knowledge of target audiences. A PR practitioner who understands his or her
audiences – their attitudes, hopes, and fears – will be better formulated messages that appeal
specifically to them.
RESEARCH TYPES
Informal PR research: is not necessarily aimed at the solution of a business problem and is basically
conducted to broaden the knowledge of the researcher. Some of the techniques used in informal
research are ordinary measures, opinion and communication audits, and analysis of publicity broken
down by audience, medium, message, and frequency.
Formal PR research: clearly follows a methodological step-by-step approach, which should result in
reliable information for decision-making. It must also be emphasised that PR, media performance and
better understanding of the target publics. Formal research can be divided into the following two
aspects:
Qualitative research: includes historical and legal research, in-depth interviews, focus
groups, and panels. This category is descriptive and informative but not measurable.
Quantitative research: this type can be conducted in the laboratory or in the field. It may
include content analysis and survey analysis. Quantitative research results in a mathematical
analysis because it produces measurable results.
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RESEARCH METHODS
METHODS CHARACTERISTICS
Individual questionnaires
Questionnaires is read to respondent and he or she answers personally Suitable for limited investigations Takes time to complete and its therefore expensive
Group questionnaires Respondent meet in groups and complete questionnaire If groups co-operates, one of the cheapest methods of collecting data May be difficult to find suitable group representing target market
Telephone questionnaire Trained tele-research telephone respondents. Questionnaire is read & answers are indicated on answer sheet
Suitable for large investigations, regionally or nationally Expensive, but can prove to be a method of collecting accurate data from
specific camps
Competitions Contents are complied in such away that individuals who take the trouble to fill in the questionnaires stand a good chance of winning something
Depends on distribution to specific readers through newspapers and magazines
Advertising costs can be high and response may be no better than postal questionnaire
Focus groups Involves groups of between 10-15 representative of selected target market
Meets in a special venue for about two hours with a discussion leader focusing on specific topic and answering certain prescribed questions
All discussion is recorded and responses analysed. However, focus groups are not always practicable and time consuming
Individual questionnaires
Key role players can be identified & in-depth discussion can be carried out on specific topics. Same agenda is used for all discussion
Can prove expensive and time consuming
Content analysis The nature and number of reports, news flashes, and so on are determined according to specific categories
Able to quantify positive and negative reports in the mass media Easy method of gathering information if media is available for evaluation
Informal discussions May be used initially to determine content interview of a questionnaire or structured interview
Researcher can determine attitudes, levels of knowledge, and behaviour patterns of proposed sample
Validity of results questionable
observations Researchers is positioned so that he or she is able to observe the behaviour target market
Method is quick, cheap but unfortunately has little credibility Subjective and no feedback from audience
Source: Research Methods, Skinner et al. (2007:31)
The following outline is taken from your prescribed text book pages 68 to 88. To gain a more in-
depth understanding it will be advisable for your read through these sections on research.
Step one- Describe the research problem & objectives: Identification & formulation of the
problem to be researched. PR managers have a responsibility to researchers to communicate
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clearly the nature of the opportunity or threat that is relevant to the decision-maker. The
researcher should only consider whether the management problem can be formulated into a
research problem; in other words, determine whether the management problem is
researchable.
o Management questions
o Research questions
o Investigative questions
o Measurement questions
An important part of the problem formulation is SITUATION ANALYSIS. A situation analysis can be
described as the informal gathering of background information to familiarise researchers with research
problem. The essence of the situation analysis is to take stock of your current situation, where the
business organisation is and where it is likely to end up if the current problem continues. Situation
analysis involves an overview of the following environments and factors:
o Secondary data analysis (where existing information and forecasts are investigated)
o Analysis of publics (internal and external publics)
o Public relations strategies (advertising, pricing, intermediaries, products)
o Resources and constraints of the organisation and
o Technologies skills of the organisation.
A PR research objective refers to the specific information that is needed to solve a PR research
programme. Research should consider three basic aspects while stating the research objective:
o The research question: which specifics the exact information that the decision-maker
needs. When referring to case study, the research question could be: „is internal
communication the cause of the decline in employee morale?‟
o The hypothesis: which defined as unproven statement or proposition about the
relationship between two or more variables that is of interest to the researcher?
Therefore it gives a possible solution for the research problem or opportunity. For
example HI: A decrease in advertising expenditure has a negative correlation to sales
of the specific potato chip brand.
o The scope: of the research, this refers to the extent which it is possible to conduct the
research. Researchers should keep in mind who the subjects of the research studies
are (target public) and whether it is possible to reach these subjects. Researchers
should determine whether it is possible to reach the areas under investigation, and
whether the desired level of accuracy can be obtained from the research. The available
resources should also be established and the researcher should determine whether
the value of the gathered information is greater than the costs incurred gathered the
information.
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Source: Steps in the public relations research process, Rensburg and Cant (2009:71)
Research
purpose
Research
questions
Hypothesis
Research
design
Research
Objectives
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Step Two- Research Design
A research describes the plan to be followed to answer the public relations research objectives and
provides the structure or framework to solve a specific problem.
Source: Steps in the public relations research process, Rensburg and Cant (2009:71)
The classification of all available research designs in the PR research methodology is very broad and
includes the following types of research design.
On pages 72 & 73 of your prescribed text book the following is listed, you are required to familiarise
yourself with each research design.
Exploratory research
Descriptive research
Qualitative research
Quantitative research
Post hoc research
Ex post facto research
Longitudinal research
Causal research
Predictive research
Types of designs Exploratory Descriptive Quantitative Post hoc Ex post facto Casual Predictive
Activity 1 Determine the data source
Activity 2
Determine the data collection approaches
Activity 3 Determine the data collection instruments
Activity 4 Determine the data collection methods
Activity 5 Design the sampling plan
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Step Three- Preparing a specific Research Design
The two categories: primary data and the secondary data. The primary data sources are use
to collect information specifically needed for the research problem at hand, while secondary
data exist as historical data which has been collected before, either by the organisation or by
outsiders. Researchers should always begin their research by doing an in-depth analysis of
During the planning of a campaign or a program, part of the analysis of each key public should
include such questions as:
Where do members of our key publics get their information?
Which media do they rely upon to make decisions about what is important and how to
behave?
Which channels provide the two-way communication that enables key publics to provide
information to our organization about their needs and concerns?
Another level of analysis focuses on the characteristics of each medium and their relationship
to the campaign or programme:
Which media allows us to get our point of view across most effectively?
Which media are best suited to the information requirements of our campaign, such as
the presenting of visual images, the need for two-way communication, or the ability to
tell a story in depth?
Which media are most cost-effective for this type of information?
OTHER TYPES OF PLANS
BUDGETS
Operating budget: Forecast the goods and services the organization expects to consumer.
Financial budget: A detailed estimate for the amount and organisation expects to spend
during the budget period and where the funds come from.
PR budget: Administrative costs (salaries, benefits) and programme costs (event,
publications), production costs, suppliers.
Standing Plans: (Policies, Procedures and Rules) Programmable decisions call for standard
and consistent response.
Policies: Guidelines for decision making Procedures: Detailed guidelines for implementing
policy decisions.
Rules: Specify action to be taken in a particular situation
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SETTING A PUBLIC RELATIONS BUDGET
According to Maguire an online PR specialist, (2009: http//:www.CLICKintoPR.com state that
budgets are never big enough. The following straight forward tips provide one a more
effective programme. The following outlines ten things you should do and ten things not to do:
TEN THINGS YOU SHOULD DO
1. Plan. Every business needs a plan, but so often this is a rushed annual task, grudgingly undertaken while enmeshed in day to day activities. This results in this year‟s plan being just like last year‟s, but plus (or often minus) X per cent, with fingers crossed. 2. Take time out to plan properly. Take time to look at the business, look at the trading environment, understand the threats and opportunities and what resources you need to counter them and take the business forward. (SWAT Analysis) 3. Use a proven methodology. Paul Smith, has devised a useful planning tool SOSTAC®, standing for Situation Analysis, Objectives, Strategy, Tactics, Activity and Control. The communication plan, after all, needs to nest into the overall business plan and link to plans for marketing, operations, finance, and so on. 4. Focus on activity not history. List the key activities arising from the current business plan - new products, investments, acquisitions, market development, and so on. Now decide what communications will support these. Specify the required PR activities - how many releases, case studies, features, press conferences, facility visits, events, road shows, exhibitions, product placements - and when these will happen. 5. Integration and balance. PR is the most potent (and cost effective) marketing tool you have, but it cannot support the whole communications programme alone. It needs to be integrated with advertising, web promotion, sales and other activities, respecting what each of these channels can contribute. 6. Prioritise. The good old two dimensional matrixes are useful here. Plot each of the activities against a cost and benefit axis. Use the four quadrants to determine the must do (high benefit, low cost), should do (high benefit, higher cost), like to do (lower benefit, lower cost) and marginal activities (high cost, low benefit). 7. Slaughter a few sacred cows. Somewhere in the programme there are almost certain to be sponsorships, exhibition attendances, long standing advertising commitments that have outlived their usefulness – kill these off and recycle the cash. 8. Decide what resources are required. Now, do you have a full and rich programme of activities or is it more a series of projects? In house resources may meet some of your needs but for others you will need outside help. Draw a clear boundary between in-house and outside tasks.
9. Brief your PR Company. At this stage you are able to give a full brief to your PR Company, telling them what you want to achieve, what you are planning to do and the services you expect them to provide. Any decent PR company should be able to give you a firm cost and suggest alternatives that will be more effective or save your money. 10. Build in feedback. Based on the objectives you set at the start, decide on the most appropriate form of evaluation to help you measure effectiveness and improve performance.
FIVE THINGS YOU SHOULD NOT DO
1. Don’t forget to be flexible. Circumstances change, new opportunities arise. Build contingencies into the budget to allow for this and be prepared to drop more marginal activity to fund new projects. 2. Don’t change the goals. Tactical changes to reflect changes in circumstances are fine, but reorientation of effort to achieve different goals sends mixed messages, creates confusion and undermines confidence. 3. Don’t let history dictate your plan. Change is so rapid in marketing and media that every activity must be carefully evaluated for continuing relevance. 4. Don’t let anyone tell you that you “must have” a capital city agency. The capital has no monopoly on talent. Skilled specialist practitioners operate throughout the world, are accessible via modern technology, have equal access to media and do not carry huge capital city overheads. 5. Don’t accept retainer arrangements. This is an old fashioned payment system where you buy a block of the PR‟s time, usually in day units, to do unspecified tasks. This unfocussed, unprofessional way of working belongs to the days of gin and tonics, bow ties and mysterious “media contacts”. It has no place in modern communication.
CASE STUDY:
WHAT DOES IT COST? HOW TO BUDGET YOUR PR PROGRAMME BY THE NUMBERS
A PR personal it is important that you know how to plan a budget for the PR programme regardless
whether you are working for the company or the company as engaged your PR consultancy. According
to Mike Nikolich, CEO Tech Image Ltd outlines the following guidelines which will no doubt provide
insights how they provide PR service for their clients: (http://www.techimage.com/).
A client‟s goal is to select a public relations agency which can handle a new product launch. The
proposed budgets range from $50,000 to $200,000 (USD). The following questions provide some vital
While it's true that you usually get what you pay for, should you automatically discount the lowest budget (or the highest for that matter)?
Wouldn't it be helpful to have a tool to determine which proposals are priced fairly?
To help compare agencies, you need a benchmark to determine what firms charge for various tasks.
Although hourly rates for agency talent may range from $75 to $350, rates alone don't tell you the full
story. The key to establishing a reasonable public relations budget is to determine what an agency
charges for typical projects and how many hours of creative time it takes to complete these projects.
The following steps are further highlighted by Mike Nikolich, CEO:
When an organization is interested in hiring Tech Image Ltd., our
First step is to send them our brochure and a copy of our pricing guidelines. If the
prospect is comfortable with our prices, we'll work with them to establish a realistic
budget. Once we've determined the budget, we'll develop a comprehensive program.
Our clients appreciate this no-nonsense budgeting approach. After all, you wouldn't
buy a new car without knowing what you'll be charged for cruise control, air
conditioning and other features. Why would you hire an agency without knowing what
you should expect to pay for their services? (You must provide a detail for each cost).
Not all agencies share this philosophy, so don't be surprised if some discussing prices with you before
they submit proposals. Our pricing guidelines are based on 20 years of experience serving clients in the
computer products, digital video, Internet, IT, technology training and telecommunications industries.
These guidelines will help you establish accurate baseline budgets that cover creative fees, plus out-of-
pocket expenses.
The guidelines cover seven traditional public relations program elements:
Press release writing and distribution; Media relations; Case study and feature writing; Media Tours; Press kit development; Trade show PR; and Newsletters.
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In addition, we provide estimated hours for three electronic public relations activities:
Online monitoring; Web Site audits and content updates; and Fax-on-demand servers.
There are two additional services that Tech Image offers: the TIMEÔ (Tech Image Market Evaluation)
audit, a review of a company's messages and its competitive landscapes, and the MICÔ (Message and
Image Coaching) workshop, designed to focus a corporate message for key spokespersons. Ask the
PR firm that is preparing a budget for you what they charge for similar services.
BUDGETING IN PR
Nothing goes for free, so also effective PR does not come cheaply. Certainty of programmes and
sellable ideas invariably ease the task of costing campaigns. An adequate budget is essential to
achieving optimal results. The organisation must, therefore, benefit and get maximum returns from its
spending. Whether the PR Unit is given a particular budget to work with or asked to submit a proposal,
a reasonable, reliable and achievable cost should be made.
Once the objective of the programme, the audience, message, channels of communication and
activities are identified, it is easier to make a realistic budget.
A realistic plan of action must be presented together with the cost of each activity. Unless a budget was
once presented and succeeded, the need to maintain, increase or decrease it should be related to the
financial position and projects of the organisation.
The major areas of costing in PR include:
Prints and production,
Exhibition,
Workshops and seminars,
Media briefings
Conferences,
Advertising,
Transportation,
Sponsorship,
Supplements and media coverage.
Most activities can have fixed costs of expenses, including taxes and services but a mandatory
contingency not exceeding 15% of total cost must be added for any unexpected eventualities. This
may be necessary because there is a clear distinction between direct cost and indirect cost. For
instance, a hall booked for an hour for press briefing may extend to three or more hours, while an
entertainment provision for the briefing of a number of journalists may witness additional attendance of
some of them coming with their crews.
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A good budgeting plan may address the problems, objective, public, strategy, media, message
and anticipated result. There should also be a time frame for each budgeted activity.
But it must always be known that the budget estimate by in-house PR departments must be slightly
different from that of outside consultants‟. This may be so, since in-house practitioners will not consider
such expenses on salaries and equipment, which may be at their disposal.
Sometimes, some programmes are better handled by the in-house or consultation on the demand of
the non-specific aspects of the programme. For instance, while a consultant may demand for a
consultancy fee and hiring of equipment, the in-house may only request for cost of maintenance of such
equipment where available.
It is expected that a well equipped in-house PR Unit must have such facilities as video, photo camera,
public address system, TV and Video Machine for viewing and editing, computer, Tel/Fax, E-mail
and other relevant tools. But the consultants may need to charge for the hiring or the use of such
equipment, which may be an additional burden to an ill-equipped PR department.
Consultancy fees may vary from one firm to the other, depending on their reputation and size. Their
charges could be based on hourly charges for executive time. Monthly or yearly retainership could be
charged for a programme that runs for a year. Some specific programmes, which are done on an ad-
hoc basis, also attract special fees based purely on the volume of work covered.
Whether it is in-house or consultancy, an acceptable and accountable mechanism should be put in
place to monitor cost-effectiveness of the programme which may allow adjustment for total success. An
intelligent resource should be allocated by the management to implement the PR advice.
Consultancy Budget
The charges for consultancy services vary from one organisation to the other. But specifically for a
long-time PR campaign, the considerations for the budget include advisory fees which are charged after
the firm has accepted the service. The consultants charge the expenses to cover the days or hours of
attending meetings, its research and the submission of the report.
Another area is the implementation of the plan. Some in-house staff may take up this stage unless if the
consultant is given the responsibility of implementing the plan as it is recommended in the report
submitted.
Operational costs for the real aspect of the programmes are stated and carried out. These may include
the core PR activities such as issuance of press release, media tour, photography and the use of
equipment (fax, telephone, IT and courier services)
Evaluation level is also important for the consultant to monitor the success of the programme. It carries
out secretariat assignment by opening file for press clips and sending media review to the clients.
The budgets for all the activities above are measured on man-hours or daily activities basis. A typical
annual budget is illustrated below.
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Press Release Feature Articles Press Briefing Photo albums Video Recording In-house publication Meetings Reports Contingencies
3 x 12month x cost value 2 x 12month x cost value 2 x 4quaters x cost value 2 x 4quaters x cost value
2 x 4quarters x cost value 1 x 4quarters x cost value
1x 12month x cost value 1 x 4quarter x cost value
10% of the total
R X XXX R X XXX R X XXX R X XXX R X XXX R X XXX R X XXX R X XXX R X XXX
The cost value may come in different forms. It may be the cost of single or combination of:
Production cost,
Travel expenses,
Hotel accommodation,
Refreshments, Man-hour
Unit price of items
Materials to be used.
Some activities may be undertaken as often as required on a:
Daily,
Weekly,
Fortnightly,
Monthly,
Quarterly,
Biannually,
Yearly basis.
To convince the client in understanding the significance of the programme, technical jargons should be
avoided. Where necessary to disclose some technicalities, it should be attached as appendixes and or
as an annexure.
In-house Budget
The in-house PR practitioner submits annual budget which, after consideration, the fund involved is
released quarterly or monthly to the office to carry out its activities. Some programmes which are
periodical or exceptional and extraordinary are funded at the appropriate time. On the need, request
may be made from the approved budget estimate to take care of events and programmes as they
unfold.
The illustration below is a typical annual budget for a big organisation that has large audiences. The
proposals are in two parts. The first part is the budget defence, while the second part is the breakdown
of the request for consideration and approval.
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Budget Defence
Publications
This is to cover the cost of production/publication of monthly bulletin, yearly handbook, quarterly
magazine, seasonal cards and complimentary cards.
Corporate Items
This is required for the production/procurement of corporate items such as pocket diaries, executive
diaries, calendars and address books. These items will be used as presents or gifts to individuals
and organisations as a form of reciprocation for promoting the organisational statues, as well as seek
goodwill from the recipients.
Media Activities
The amount is needed for extensive media campaign and image building. These are in the areas of
media chat/courtesy calls, press conference hosting/entertainment, research, editing,
publications of articles, video coverage editing & dubbing, photo coverage/album and
entertainment for media reception. It will also include exhibitions and sponsorships.
Equipment
The sum is required for the purchase of relevant equipment for the office such as photocopiers,
cameras, consumables (video cassettes, DVD‟s, films, albums, inks, etc.) and maintenance and
services of media equipment. The essence is to enhance the output of the PR Unit.
Advertisement
The amount is to cover expenses for the placement of adverts on issues that concern the organisation
in the print and electronic media, and to also cover the cost of documentaries and live events in the
electronic media, including interviews, among others.
Editorial Board Meeting
The fund is for providing the entertainment, materials and incidental expenses for the meetings of
the editorial board.
Information Technology
In its drive to show a high level of integrity and commitment to the public, the unit should introduce a
timely and efficient way of information dissemination through modern and advance technology. To
achieve this crucial goal, the development of a website is imperative, where enquiries all over the
world are promptly responded to, through special media technique of a super highway. All publications
and activities will be displayed in the web site for the public to access. These will include press
releases, feature articles and profiles of the management. It will also contain handbooks,
magazines and pictures of activities in specified pages on the Internet. The amount would therefore
cover Website Development, E-mail Installation/Internet Connection, Web Hosting, Domain Name
Registration, Internet Usage Training and Technical Support/maintenance.
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Human Resources Management
The amount is needed to keep personnel in the Unit up-to-date in the field of Public Relations and
Information Technology. The areas include Training in Financial Public Relations & Modern Media
Techniques, Professional Seminars, and Conferences & Workshops in media management and
Annual Dues & Membership of Professional bodies, i.e., PRISA, etc.
Budget Breakdown
Publications
a. Monthly Bulletin Unit Cost x 100 copies x12month = R
b. Quarterly Magazine Unit Cost x 100copie x 4quaters = R
c. Hand book Unit Cost x 1000copies x 1year = R
d. Seasonal Cards Unit Cost x 100copies x 4seasons = R
Subtotal = R
Corporate Items
a. Pocket Diary Unit Cost X 100copies x 1year = R
b. Executive Diary Unit Cost X 100copies x 1year = R
c. Calendars Unit Cost X 100copies x 1year = R
d. Address Book Unit Cost X 100copies x 1year = R
Subtotal = R
Media Activities
a. Media Chats/Courtesy calls Gen. Expenses X 12month = R
b. Press Conferences Gen. Expenses X 2annualy = R
c. Research/Publication of Articles Gen. Expenses X 12month = R
d. Video Coverage (editing/dubbing) Gen. Expenses X 12month = R
e. Photo Coverage Album /Media Gen. Expenses X 12month = R
f. Entertainment/Media Reception Gen. Expenses X 12month = R
Subtotal = R
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Equipment
a. Procurement of Media Equipment = R
b. Consumables (Cassettes, Films, Albums, Inks etc.) = R
c. Maintenance & Services of Media Equipments = R
Subtotal = R
Advertisements/Supplements
a. Newspaper Adverts/supplements Rate X Pages X 12month = R
b. Electronic Media Commercial Rate x Slot X12months = R
Subtotal = R
Information Technology (IT)
a. Web Site Development = R
b. Email Installation/Internet Connection = R
c. Web Hosting = R
d. Domain Name Registration = R
e. Internet Usage Training = R
f. Technical Support/ Maintenance = R
Subtotal = R
Human Resources Management
a Advance Training in Financial Public Relations & Modern Media Techniques = R
b. Professional Seminars, Conferences & Workshops in media management = R
c. Annual Dues & Membership of Professional bodies, i.e., PRISA, etc. = R
Subtotal = R
Contingency
Miscellaneous/ Incidental Expenses 10% of the Total
Subtotal = R
GRAND TOTAL = R
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CASE STUDY
MEDIA RELATIONS & BUDGETING
The following case study provides a particle guide on PR budgeting is conducted for media relations.
This is taken from (http://www.techimage.com/).
Media relations will have the biggest impact on the success or failure of your public relations program.
Despite advances in distribution technology (such as email, WWW servers, search engines and portals,
push technology and fax-on-demand servers), public relations is, and always will be, a relationship
business. Your agency (or Company) must have strong media relations capabilities; their relationships
with editors and reporters will go a long way toward determining the success or failure of your public
relations campaign.
Even the smallest PR programmes should budget at least 25 hours per month for basic media relations.
Larger companies often budget hundreds of hours per month for this activity. A good rule of thumb is to
add up your universe of publications and assign an equal number of hours for media relations activities.
For example, if your company needs to be in regular contact with 100 key reporters, reviewers and
analysts, consider budgeting approximately 100 hours per month. The core media relations budget
should include such tasks as:
Monitoring editorial calendars; Pitching stories to editors; Following up on press releases; Maintaining ongoing contact with key industry analysts; Placing all feature articles and case studies; Tracking product reviews and interview opportunities; and Monitoring key publications, media outlets and online media to create feature
Press releases are the building blocks of any PR programme and a typical two-page release requires
between five and 10 hours of creative time to write and distribute to appropriate media. Distribution
costs, assuming the release will be mailed to 100 media outlets, should not exceed $500.
To keep mailing costs as low as possible, Tech Image normally distributes 50 to75 percent of its
releases via e-mail or fax to a customer list of reporters and editors. We also recommend using the
regional circuits of PR Newswire or Business Wire, rather than the more expensive national circuits.
This will save you money, but still ensure that your releases are posted on all of the major search
engines, portals and online services.
CASE STUDIES AND FEATURE ARTICLES
PR programmes are only as effective as the quality of the material you provide news media and
analysis. Great customer stories are always in demand, particularly ones that show how a product or
service helped a company solve a mission-critical business issue. A typical 1,500-word case study or
feature article will require between 20 and 30 hours of creative time to research and write, including a
minimum of two revisions. Placement costs should be absorbed by the media relations budget.
Photography and travel are additional charges.
Unless the case studies and feature articles will also be used as collateral, you may want to have the
agency boil the stories into shorter 500-word briefs and pitch these to the news media. Once a reporter
expresses interest in the brief, it can be developed into a full-blown feature, or the PR firm can link the
reporter with the customer to create a custom story. By working this way, companies can get much
more mileage out of their PR budgets.
MEDIA TOURS
Few public relations techniques have more impact than face-to-face meetings with key national media.
Every PR programme should have a budget for at least one national media tour per year. A media tour
of four major U.S. cities (such as Boston, New York, Washington, D.C. and San Francisco) requires
about 50 hours of creative time to schedule interviews, develop advance material and briefing books.
Since your account executive will be the person to maintain an on-going relationship with the news
media, it makes sense to have them accompany your spokespersons on a media tour. However, this
will add extra hours of creative time to your media tour budget, plus the related travel and out-of-pocket
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expenses. Tech Image has a flat daily rate for out-of-town activities like tours and trade show support,
to make this item easy to budget.
TRADE SHOW PR
Due to the noise level at most trade shows, we urge our clients to shy away from press conferences at
trade shows. However, we do believe trade shows provide an excellent opportunity for you to meet
face-to-face with key editors. We recommend scheduling interviews with between 15 and 20 reporters
per trade show. The meetings can take place at a quiet corner of the booth or in a nearby conference
room. Budget 50 hours of creative time for the agency to book these appointments, and remember to
factor in the daily rate if an agency representative attends the show.
NEWSLETTERS
An increasing number of high-tech companies are opting for Web-based and email-distributed
newsletters to communicate with their customers and prospects. A typical four-page, 8-1/2 by 11 sized
newsletters requires about 35 hours of copywriting time, plus another 10 hours of desktop publishing
time. Printing, graphics, photography, etc. are additional. Be sure to have a PDF version of the
newsletter available to post to your web site.
ONLINE MONITORING
Internet news groups, chat rooms, search engines, websites, portals and E-zines will provide a
wealth of rumours and news about your company and its competition. Many companies look to public
relations firms to monitor these outlets and provide a weekly executive summary to upper management,
with hotlinks back to key stories. Budget 15 to 35 hours per month for online monitoring.
WEBSITE ARCHIVING PROCESS
You may have a great-looking web site, but when was the last time anyone audited all of your on-line
content for accuracy? We recommend allocating 50 hours to perform a website audit and then
assigning 10 hours per month to track the site and be sure the latest links are posted to relevant search
engines. All releases in the pressroom should be monitored to ensure they feature the latest company
boilerplate. Since the average technology company has a turnover rate of 25 percent or higher, it's also
important to regularly monitor news releases and white papers to determine if the correct
spokespersons are listed. Releases older than 12 months should be archived.
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FAX-ON-DEMAND SERVER
Like the Internet, fax-on-demand servers are streamlining the way companies communicate with editors
and customers. If you're interested in a fax-on-demand server but are discouraged by the high
hardware and programming costs, some PR firms offer turnkey, 800-number, fax-on-demand servers.
Budget for approximately 10 hours of creative time for programming the server, plus $250 in out-of-
pocket expenses. The costs of uploading additional documents should be billed at the agency's hourly
rate.
MARKET EVALUATION
You might know your place in your market, but do you clearly communicate that position throughout
your efforts? A market evaluation audit can help determine if your message is still appropriate for your
current market situation, by comparing a number of factors, including: company message and sales
support materials (collateral, trade show booths, and advertising), press materials and website
messaging. Messages and themes from competitors are also reviewed for a complete evaluation.
This data will be analysed with an eye towards defining differentiation, clarifying cluttered or muddy
themes and recognizing message opportunities (benefit vs. feature, customer focus, etc.). This
becomes the platform for all communications going forward.
MESSAGE AND IMAGE COACHING
Technologists often rely upon their anagram shorthand to explain themselves, which can leave editors
and the general public confused. But many marketers know how powerful an interview can be for
delivering their story to key customers. By fine-tuning company messages before product launches,
media tours, or other significant activities, clients are better able to gain control of an interview and
direct a reporter to the appropriate angle. Message and image coaching workshops are day-long
seminars that force executives to focus their messages, improve their listening and speaking skills,
and reinforce the power of the interview for everything from stock valuations to sales presentations.
A LEAP OF FAITH
Entering a new relationship with a public relations firm should be a very positive experience for both
parties. If an agency is willing to work with you as a team to establish a realistic budget at the beginning
of the relationship, the odds are very good that the two companies will work well together. When
business partners respect and trust each other, everyone benefits. Isn't that what building a relationship
is all about?
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The following are some of the services offered by Tech Image Ltd., "The Media Relations Experts for
Emerging Technologies," provides Intelligence Reports on a variety of public relations topics, including:
Developing Budgets for Public Relations Programs; Product Review Tracking; Sales Lead Tracking; Trade Show Public Relations; and Global Publicity Campaigns.
The above has provides the nuts and bolts that for a PR firm or if you need to engage a PR firm then
these are basically the areas will be covered.
Activity
1. Review the guidelines for traditional PR programme elements:
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
Review the section on Ten things you should do and five things you should
not do.
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PUBLIC AND MEDIA RELATIONS
The following is outline is provided by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC
PR includes ongoing activities to ensure the organization has a strong public image. Public relations
activities include helping the public to understand the organization and its products. Similar to effective
advertising and promotions, effective public relations often depends on designing and implementing a
well-designed public relations plan. The plan often includes description of what you want to convey to
whom, how you plan to convey it, which is responsible for various activities and by when, and how
much money is budgeted to fund these activities. Similar to advertising and promotions, a media plan
and calendar can be very useful, which specifies what media methods that are used and when.
Often, public relations are conducted through the media that is, newspapers, television, magazines,
etc. Publicity is mention in the media. Organizations usually have little control over the message in the
media, at least, not as much as they do in advertising. Regarding publicity, reporters and writers decide
what will be said.
Regarding public relations, consider:
What groups of stakeholders do we want to appeal to and how?
What impressions do you want each of your stakeholders to have?
What communications media do they see or prefer the most?
Names include your investors, family members, banker, lawyer, attorney, business mentors, trusted
business friends, potential customers, competitors (distant ones), potential landlords etc.
WHAT TO AVOID IN YOUR BUSINESS PLAN
Place some reasonable limits on long-term, future projections. (Long-term means over one year.)
Better to stick with short-term objectives and modify the plan as your business progresses. Too often,
long-range planning becomes meaningless because the reality of your business can be different from
your initial concept.
Avoid optimism. In fact, to offset optimism, be extremely conservative in predicting capital
requirements, timelines, sales and profits. Few business plans correctly anticipate how much money
and time will be required.
Do not ignore spelling out what your strategies will be in the event of business adversities.
Use simple language in explaining the issues. Make it easy to read and understand.
Don't depend entirely on the uniqueness of your business or even a patented invention. Success
comes to those who start businesses with great economics and not necessarily great inventions.
BUSINESS PLAN FORMAT
The Business Plan format is a systematic assessment of all the factors critical to your business purpose
and goals. Here are some suggested topics you can tailor into your plan:
Vision Statement: This will be a concise outline of your business purpose and goals.
The People: By far, the most important ingredient for your success will be yourself. Focus on
how your prior experiences will be applicable to your new business. Prepare a résumé of
yourself and one for each person who will be involved with you in starting the business. Be
factual and avoid hype. This part of your Business Plan will be read very carefully by those with
whom you will be having relationships, including lenders, investors and vendors.
However, you cannot be someone who you are not. If you lack the ability to perform a key function,
include this in your business plan. For example, if you lack the ability to train staff, include an
explanation how you will compensate for this deficiency.
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Your Business Profile: Define and describe your intended business and exactly how you plan to go about it. Try to stay focused on the specialized market you intend to serve.
Economic Assessment: Provide a complete assessment of the economic environment
in which your business will become a part. Explain how your business will be
appropriate for the regulatory agencies and demographics with which you will be
dealing. If appropriate, provide demographic studies and traffic flow data normally
available from local planning departments.
Cash flow assessment: Include a one-year cash flow that will incorporate your capital
requirements. Include your assessment of what could go wrong and how you would
plan to handle problems.
STEPS TO A GREAT BUSINESS PLAN
1. A Sound Business Concept: The most common mistake made by entrepreneurs is not
selecting the right business initially. The best way to learn about your prospective business is to
work for someone else in that business before beginning your own. There can be a huge gap
between your concept of a fine business and reality.
2. Understanding of Your Market: A good way to test your understanding is to test market your
product or service before your start. You think you have a great kite that will capture the
imagination of kite fliers throughout the world? Then craft some of them and try selling them
first.
3. A Healthy, Growing and Stable Industry: Remember that some of the great inventions of all
time, like airplanes and cars, did not result in economic benefit for many of those who tried to
exploit these great advances. For example, the cumulative earnings of all airlines since Wilber
Wright flew that first plane are less than zero. (Airline losses have been greater than their
profits.) Success comes to those who find businesses with great economics and not
necessarily great inventions or advances to mankind.
4. Capable Management: Look for people you like and admire who have good ethical values,
have complementary skills and are smarter than you. Plan to hire people who have the skills
that you lack. Define your unique ability and seek out others who turn your weaknesses into
strengths.
5. Able Financial Control: You will learn later the importance of becoming qualified in
accounting, computer software and cash flow management. Most entrepreneurs do not come
from accounting backgrounds and must go back to school to learn these skills. Would you bet
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your savings in a game where you don't know how to keep score? People mistakenly do it in
business all the time.
6. A Consistent Business Focus: As a rule, people who specialize in a product or service will do
better than people who do not specialize. Focus your efforts on something that you can do so
well that you will not be competing solely on the basis of price.
7. A Mindset to Anticipate Change: Don't commit yourself too early. Your first plan should be
written in pencil, not in ink. Keep a fluid mindset and be aggressive in making revisions as
warranted by changing circumstances and expanding knowledge.
Top Ten Do's and Don'ts
TOP TEN DO'S
1. Prepare a complete business plan for any business you are considering.
2. Use the business plan templates furnished in each session.
3. Complete sections of your business plan as you proceed through the course.
4. Research (use search engines) to find business plans that are available on the Internet.
5. Package your business plan in an attractive kit as a selling tool.
6. Submit your business plan to experts in your intended business for their advice.
7. Spell out your strategies on how you intend to handle adversities.
8. Spell out the strengths and weaknesses of your management team.
9. Include a monthly one-year cash flow projection.
10. Freely and frequently modify your business plans to account for changing conditions.
TOP TEN DON'TS
1. Be optimistic (on the high side) in estimating future sales.
2. Be optimistic (on the low side) in estimating future costs.
3. Disregard or discount weaknesses in your plan. Spell them out.
4. Stress long-term projections. Better to focus on projections for your first year.
5. Depend entirely on the uniqueness of your business or the success of an invention.
6. Project yourself as someone you're not. Be brutally realistic.
7. Be everything to everybody. Highly focused specialists usually do best.
8. Proceed without adequate financial and accounting know-how.
9. Base your business plan on a wonderful concept. Test it first.
10. Skip the step of preparing a business plan before starting.
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Activity
1. What is a business plan?
……………………………………………………………………………………………………………………
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…………………………………….………………..……………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
2. What are the important areas that one should consider when developing a business plan?
According to Rensburg and Cant (2009:236) the theory of CSR is a recurring theme in business today.
CSR in business agenda suggest that it is a multilevel concept; its meaning depends on various
perspectives and relationships and it changes in response to social trends. CSR is a well-known
expression for what, in the past, has been a collection of different, and yet related, terms: corporate
philanthropy, citizenship, triple bottom line and corporate social performance.
DEFINING CORPORATE SOCIAL RESPONSIBILITY
Whether the term is corporate social responsibility, corporate social investment, sustainable
development or corporate citizenship, these activities are motivated and underpinned by
organisation‟s vision, mission, policies and values. Many ingredients are part of this recipe; inter alia,
visionary leadership and solid communication. Public relations is clearly the function best positioned to
play a key in the formulation of any strategy to facilitate, coordinate and implement the activities
necessaries to realise an organisation‟s CSR responsibility.
BRIEF HISTORY ON CORPORATE SOCIAL INVESTMENT
According to Skinner et al. (2006:276) CSI in South Africa has had a short dynamic history. Very little
was recorded before 1972:
However, since the Sullivan Principles in 1977 more focus and interest was given in the 1990‟s to assist the new Government. Employee involvement, formally, informally or on a voluntary basis was encouraged and even rewarded. The ad hoc donations have moved away into more specified sectors within expressed criteria.
The hand-out philosophy is being moved into more of a developmental approach and sustainability.
This necessitates a new approach to corporate social investment. In order for this to be become
effective, it requires partnership building with communities and other role-players, and increased
networking and communicating between corporate donors in order to maximize the impact on the CSI
development.
In recent times the corporate sector began to publish more information about their CSI activities. More
articles are noticed in main stream press. However, some of these articles are viewed as public
relations announcements and trumpeting projects that companies have funded. In 1991 the weekly Mail
& Guardian launched a supplemented titled Investing in the Future which analysed the trends in CSI.
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CHARACTERISTICS OF CSR
Voluntary – voluntary activities that go beyond those prescribed by law. Going the extra mile.
Internalising or managing externalities – much CSR activity deals with managing
externalities: calculating the social and economic impacts, reducing the health impacts of
materials.
Multiple stakeholder orientation – considers a range of interests and impacts among a
variety of different stakeholders other than just shareholders.
Alignment of social and economic responsibilities – the business case for CSR: how can
firms benefit from being socially responsible?
Practices and values – underpinned by a philosophy or set of values; this dimension is the
reason why the subject raises so much disagreement.
CSR AND PUBLIC RELATIONS
There are literally hundreds of definitions of PR, perhaps owing to the rapid evolvement of the disciple
in recent history. CSR has increasingly become (and has been seen as) a management function. One
definition of PR summaries the activity as planned, deliberate communication directed towards
targeted stakeholders with the purpose of achieving an understanding.
According to Rensburg and Cant (2009:236) CSR has become important to public relations because
such programme offer stakeholders. CSR communication falls within the PR practitioner‟s portfolio
because it affects an organisation‟s image and reputation. PR practitioners are increasingly waking up
to these realities and are capitalising on the opportunity, because it highlights to stakeholders exactly
what type of organisation they are dealing with.
PR facilitates both the activity and the process of communication and understanding to the benefit to all
stakeholders. This emphasises the importance of two way communication and the requirements to
advocate for the public interest while also counselling management. These obligations for both
management and public sometimes are conflict and creates internal and incompatibility between the
organisations‟ strategic intent and CSR programmes (Rensburg and Cant 2009:236).
They further state that CSR programmes may be symmetrical, which are subsequent publicity-driven
initiatives are directed towards influential stakeholders for the purpose of enhancing reputation. In
wealthier countries CSR programmes has to make greater contributions to corporate reputation than
brand image. It is said that in developed countries, CSR-related activities account for 49% of
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organisation image compared to the 35% for human resources management and 10% for financial
management.
According to Rensburg and Cant (2009:237) CSR can and does, bring brand enhancement benefits to
business and it is an investment against the day when a crisis occurs and the organisation needs all the
goodwill it can muster. An organisation that is seen as having a genuine, long-term relationship with its
stakeholders and the community is less likely to be regarded as simply indulging in the „exercise of
public relations‟.
CORPORATE SOCIAL INVESTMENT (CSI)
Corporate South Africa has embarked on CSI to advance governance and responsibility towards their
environs. As ethical standards change and commitments to corporate social investment grow, the role
of PR in business has become more clearly defined as helping corporations to do the right thing - as
well as to say the right thing. Corporate South Africa has taken CSI beyond a just charitable exercise
and has established CSI as an integral part of their operational policy. Mersham et al. (1995:86) state
that social investment deals with the allocation of finance to advance peoples‟ lives socially and
economically. De Wet (2006:32) states that a host of South African companies are moving swiftly
across the continent of Africa. Africa requires assistance in the social backlog, with education,
HIV/Aids and the development of infrastructure. This requires the combined efforts of government,
business and civil society to implement sustainable initiatives that improve the well-being of all
sectors of society.
Public Relations and CSI
PR is a conscious effort in providing information and creating goodwill, influence, gaining
understanding and propagating the message to the audience. Public Relations is a process that
entails an organization‟s ability to strategically listen to, appreciate, and respond to those persons
whose mutually beneficial relationships with the organization are necessary if it is to achieve its
missions and values (2008: http://en.wikipedia.org/wiki/Public_relations). Skinner et al. (2006:4) defines
PR as the management, through communication, of perceptions and developing strategic
relationships between an organization‟s internal and external stakeholders.
Cutlip et al. (2002:235) state in the past, many business leaders resisted the notion that their
corporations should seek to fulfil social responsibilities beyond their work situations, earning a profit
granted on a case-by-case basis. Within the new framework, if all the requirements are met, the
Commissioner is obliged to approve the PBO for tax exemption; in accordance with the Katz
Commission recommendations, objective eligibility criteria imposed by statute have replaced the
subjectivity of the old system.
Specific Provisions Highlighted - Important Improvements
Distinction between Institutions and Funds
The old law drew an artificial distinction between “institutions” qualifying for exemption and “funds”.
Several legislative restrictions were imposed on funds, which in practice were arbitrarily applied to
institutions as well.
The Amendment Act abolishes this artificial distinction and the definition of “public benefit activity” now
covers the provision of funds to approved PBOs and associations of persons carrying on public benefit
activities, whether approved for tax exemption or not.
Trading Activities
In the past income tax exempt funds were by law prohibited from trading, but as was the practice with
many of these fund-specific requirements, this prohibition was imposed on exempt institutions as well.
[7] The new allows for tax exempt trading activity, within certain stipulated parameters provided for in
the Amendment Act. Accordingly, the new law exempts from tax, income derived from economic
activities conducted by a PBO within the ambit of one or more of the following tests:
A de minimus rule/”mechanical test”: Gross income from trade, up to a maximum of the greater of 15 per cent of gross receipts or R25 000
The “relatedness test”: Income derived from “related” trading activities, mainly directed at cost recovery and which do not cause unfair competition in relation to taxable entities.
Certain “Unrelated trading activities”: these are permitted if of an occasional nature and substantially carried out with voluntary assistance without remuneration.
Specifically exempted activities: Income derived from certain trading activities or business undertakings approved by the Minister.
In the context of the funding crisis, the self-financing capability of the non-profit sector is of critical
importance to its long-term viability. The taxation of the business/ trading activities of PBOs plays a
crucial role in the development of financial sustainability. The extent to which PBOs are taxed on their
income from economic activities in many cases makes the difference between closure and continued
existence of the organisation.[8] Therefore, whilst the new formulation of trading rules may not be ideal,
they do to the extent that trading income is exempted from tax, encourage a move amongst PBOs
commercials, films and multimedia – as well as being your partner for PR. Profit from more than 15 years
experience in sports marketing for the realisation of purposeful measures at the European Championship 2008:
event orientated public relations in support of established measures
Multilevel events / event series in the context of the European championship (e. g. customer event, road shows, football cups etc.
Individual incentive journey to the EURO (incl. travel, accommodation, tickets and supporting programme)
Eye-catching special advertising formats partly with editorial bonding in TV-, print and online section
Effective give-always for your clients, business partner, sale person, external worker, as prize at a lottery, in line with events (e. g. special publication as a EURO 2008 Timer in corporate design
Event focused micro site on the internet (e. g. live ticker, schedule format, lottery etc.) Creative attendance of a euro engagement with pr clips, trailer, video new releases etc.
With individual coordinated and purposive measures we widen and extend the impression of your EURO engagement. For consulting we are at your disposal any time.
Creating exciting and unforgettable moments - this is what MC achieves with
national and international events and incentives. We will take care of the
entire logistic operation, giving you access to a contractually secured hotel
contingent of 20,000 hotel rooms in over 600 hotels, not to mention a wide
range of event locations throughout Germany! Benefit from our years of experience and let us plan and
implement your events – beginning with sport incentives at top sport events as the EURO 2008, the Olympic
Games and Formula 1 and continue with individual events like sailing regatta, football match series, road shows
etc.
For this, MEDIA CONSULTA organised and implemented in the summer of 2007, the market introducing of the
new Vodafone service “Vodafone live! – the real internet” media workshops in Hamburg and Munich.
Furthermore there has been press event at the Formula 1 Grand Prix at the Nürburgring involving Formula 1
shooting star Lewis Hamilton, host Kai Ebel and ten ambitious offspring racer kids at the age of 10 to 13.
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Another of our key assets is youth and music marketing. Here, MC produces
individually tailored youth marketing concepts for companies and brands –
whether above-the-line or below-the-line. This includes organising shows for
sales promotion, developing and producing music videos and sponsoring
bands. Young people are open to new trends and brands and are important
sources of advice within their social environment when it comes to purchase
decisions. Due to their know-how in many product areas such as electronics,
music, travel and clothing, they often have an important part to play in
purchase decisions within the family and household context. Judgement and
taste are formed at an early age: approx. 50% of teenagers decide on their
own appearance and preferred products by the time they are 14 years old.
Two years later this increases to 80%. Brands and products which are not known or have not been “learned” by
the age of 16 require five times as much advertising to achieve a similar degree of familiarity among the over 25-
year-olds. Young people aged between 14 and 25 have some 25 billion euros a year to spend on their favourite
products. The 16–19-year-olds alone have around 190 euros to spend per month. MC is happy to provide sound
expertise in the field of youth marketing which is based on representative and regularly conducted market
research.
Young people are an important source of advice to their parents in making purchasing decisions and they have
considerable purchasing power themselves. This is why youth and music marketing are two of the central pillars
of MEDIA CONSULTA Sport & Entertainment. We create tailor-made youth marketing concepts which are
precisely geared towards the target group. We have extensive experience in organising shows for sales
promotion, developing and producing music videos and sponsoring bands. This allows us to confront two major
challenges of the brand industry: brand loyalties which are formed early on in life and appealing consistently to
the 14 – 25 target groups.
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PUBLIC RELATIONS EDUCATION
INTRODUCTION
Communication management and PR as a qualification in the competitive and global market of the
twenty-first century demands a thorough understanding and knowledge of disciplines such as
communication, research, psychology and business practices. The framework takes the form of an
education model and an approach to experiential learning in PR education and training, which
originated in Africa. The education model, developed by Ferreira (2004), is generic globalisation model,
which sets out prescriptions regarding communication management and PR curricula and the
functioning of departments offering those curricula. A discussion of the role of experiential learning is a
learning approach and its application on the education and training of communication management and
PR practitioners.
Experiential Learning is an essential component on the education and training process aimed at
ensuring that students are able to combined theory and practice, are capable of solving problems in a
needed to contribute to positive change.
The shifting role of the profession calls changes in communication management and PR education to
prepare future practitioners for the strategic skills and paradigm shift needed in a globalising context.
Added to this are recent developments in information and communication technology that demand new
competencies. To provide communication management and PR educations that is future- orientated
and globally relevant, institutions offering this education need to base their curricula on investigation of
not only the local, but also the global environment and PR field. This implies that international
benchmarking should be built into the curricula of communication management and PR programmes.
A theoretical perspective of the globalisation model
The generic-globalisation model is based on the assumption that globalisation is an inevitable force,
and that tertiary institutions need to adopt a global mindset to remain competitive in the global arena.
The model is based on an approach to globalisation relating to that of the so-called Global Sceptic.
The generic globalisation mode model is based on a holistic and normative conceptualisation of the
concept globalisation as reflected in Ferreira‟s definition as vision for the management of globalisation
towards a constructive end:
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‘ Globalisation refers to a movement towards greater global integration in all spheres of society
– political, economic, technological, socio-cultural, educational, spiritual and recreational – with
the ultimate aim of uniting the world community in enhanced mutual understanding,
cooperation and respect for diversity, facilitating effective communication and other
transactions for the benefits of all’.
This perspective implies that, rather than resisting its influence, tertiary institutions should implement
proactive measures to integrate existing local systems globally, while they strive to preserve local
diversity and nation building. The model is based on the following assumptions with regard to
globalisation:
Each of the elements of the new context of globalisation – including a socially distributed
knowledge production system and dynamic competition – influences higher education.
A reciprocal influence exists between globalisation and higher education. While the latter is
influenced by the forces of globalisation, it also plays a pivotal role in managing the process of
globalisation and preparing society to adapt to it, by assisting in the evolution of global
economic activity, knowledge distribution and democratisation of political system, and by
reflecting how the process affects society.
Tertiary institutions need to implement change management and pursue entrepreneurship,
form strategic alliances, keep up with technological changes, adopt a global mindset and
renewed education programmes to prepare the community for new global and technological
demands.
The model views communication management and PR education departments and programmes as
dynamic, open systems functioning within larger complex, dynamic, sometimes chaotic systems. It is
based on the assumption that communication management and PR education departments should
function as learning organisations to ensure constant adaptation to the larger systems in which they
operate.
Outline of the generic globalisation model
It is not purpose of the globalisation model to provide a communication management and PR curriculum
in terms of the modular and outcomes formal required for courses, such be regarded as a general
framework. It is accepted that variation is possible within this general framework, and that different
institutions could adapt the recommended curriculum to the specific demands of their individual regions.
In terms of educational levels, the globalisation model as a whole, therefore, reflects the range of
competencies that a communication management and PR practitioner qualified at the highest level- for
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example a further research degree- would have attained. As far as depth is concerned, other than the
latter specification, the globalisation model does not attempt to recommend which particular
competencies should be mastered at which particular level of education.
On pages 125 of the your prescribed book study the diagram on the Wheel of Education which
illustrates the great scope for PR
General recommendations
On pages 126/7 of your prescribed book there are a list of general recommendations. Look at
each one of these and ensure you understand this in light to PR education.
Experiential Learning
Experiential learning can be defined as follows:
‘… a holistic approach to learning that includes the learner, learner context and the
methodology used to create knowledge … a process whereby knowledge is created through
the transformation of experience.’
Experiential learning is an important component in the education and training of communication and PR
practitioners the value of internships have been valuable form of experiential learning. Its assist
students with integrating theory and practice, it helps them to acquire skills such as problem-solving
and critical thinking. It also enhances personal growth; it leads to self-awareness and contributes to
student‟s effectiveness in groups. Internships also act as a stepping stone into the industry for students
who meet an organisation‟s requirements. Knowledge and skills together with attitudes lead to
competencies required by students upon qualifying from a higher education institution. All of these
competencies contribute to a student being able to contribute positively to an organisation and to
society.
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Experiential Learning Characteristics
On pages 130/1 of your prescribed book you find the various characteristics for experiential learning
listed. Read through to gain a good understanding on this.
Experiential Learning Techniques
On pages 132/3 of your prescribed book you find the various techniques for experiential learning
listed below. Read and summarise the following:
Simulations
Experiential exercise and practical assignments
Internships
Work integrated learning (WIL)
Cooperative education
Stakeholders involved
The educator, facilitator and mentors
The community
The communication management and public relations industry
Best practice guidelines
Best practice guidelines are offered to assist educators, students and experiential learning partners to
optimise the value of experiential learning activities. These guidelines deal with aspects such as a
student-centred approach, the role of educators, the curriculum, and the impact of the educational
environment and the importance of experiential learning partners.
On pages 135/6 of your prescribed book you find the best practice guidelines are listed. Read and
summarise the following:
a student-centred approach
curriculum,
educational development
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Activity
1. What is the value of experiential learning for PR education?
………………………………………………………………………………………………………………
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2. Explain the importance of experiential learning partnerships?
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3. Review the generic globalisation model on page 128/130.