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Overview of Public Relations

A proper PR campaign, both public and financial, is usually customized to meet the specific needs of the client. A PR firm must know precisely how to capitalize upon both the media and investment community coverage it generates for its clients. While Public Relations and Financial Relations may seem to be a natural combination, few agenciesoffer expertise in both areas. Financial Relations is a very specialized area, requiring a knowledge of the field, expertise, numerous contacts, and prompt, detailed follow-through.

It is essential that growing companies, especially companies that are either public or have intentions of a future public offering, continuously cultivate their image among customers, investors, the media and the general public. A company's image is shaped by such ongoing programs. A PR program introduces the company to key editors, writers, reporters and broadcasters representing a vast range of media outlets-locally, regionally and nationally. Publicity in magazines or newspapers, is considered an endorsement from the media and is far more credible and cost effective than advertising. The Financial Relations program introduces and informs the financial community and others about the company. This targeted audience include stockbrokers, financial analysts, financial and other publications, shareholders and the general public. While a good Financial PR program also stems from a public company's legal obligation to make timely disclosure of material information, a process typically handled through news releases and annual or quarterly reports, companies are increasingly addressing more practical reasons for creating and sustaining market interest in their stock. Major reasons for this are to (a) increase liquidity for existing and future shareholders (b) position the company for future financing and (c) to enhance the company's business and sales opportunities.

Proper PR requires creating and implementing communications programs for companies seeking to increase their profile in the media and/or investment communities. To some extent, these PR programs and communication efforts must be integrated for maximum benefit and exposure. Public and investor relations is a two-pronged approach that not only invigorates corporate identities and generates awareness, but attracts potential investors and new business. The PR campaign must identify and package a client's story and second, have the channels to distribute that story to audiences that can make a difference.

Although the above definition of Public Relations is very simplified, effective Public Relations covers such a wide range, a simple definition is difficult.  Publicity involves an on-going program for supplying information that is factual, interesting, and newsworthy to media not controlled by the company, such as television, radio, magazines, newspapers, and trade journals.  When slide shows, speeches, posters, brochures, newsletters, billboards, direct mail, and advertising are used, the company then controls how and when a message is used, and this is "promotion".  When time or space is purchased it is "advertising".  A well thought-out PR program might, in some way, involve advertising and promotion but the goal of the PR program is to disseminate important information about your company to the general press for exposure to a broad audience.

The first step in developing a PR program is to determine the goals.  Several company objectives may be reached through publicity.  Possibility objectives are as follows:

1. To improve sales.
2. To increase earnings.
3. To convey the company's message to the community.
4. To broaden the base of ownership of the company's securities and to assure the proper valuation in the marketplace.
5. To secure the a respected position for the company in its parent industry.
6. To establish, maintain and constantly reinforce the company's relationship with all segments of the media.
7. To counteract misconceptions about the company, product, service, etc.
8. To protect the company against frivolous lawsuits.

One PR program may be designed to accomplish one single goal while another is designed for a completely different goal.  While one program is designed to reach the general public through newspapers and other media for the purpose of increasing sales and earnings, another PR program is designed to inform a particular group of the strength of the company's patents in order to discourage a frivolous lawsuit.

Once goals are determined, priorities need to be established and the PR program developed.

Corporate public relations encompasses the following:

1. Researching, evaluating and conducting, on a continuing basis, programs of communication and action to achieve informed public understanding necessary to the success of an organization's goals.  Such programs may include marketing, new product development and release, financial, employees, community or government relations, etc.
2. Anticipating, analyzing and interpreting public opinion, attitudes and issues which might impact, for good or ill, the operations and plans for the company.
3. Counseling company management at all levels with regard to policy decisions, courses of action and communications.  This involves considering public ramifications and the organization's social or citizenship and shareholder responsibilities.
4. Planning and implementing the company's efforts to influence or change public policy.
5. Setting objectives, planning, budgeting, recruiting and training staff, developing a consistent PR program - in short, managing the resources needed to perform all of the above and implementing the program in a professional and timely manner.

Good public relations requires knowledge and experience in the professional practice of  communications arts, psychology, social psychology, sociology, political science, economics and the principles of management and ethics.  Technical knowledge and skills are required for opinion research, public issues analysis, media relations, direct mail, institutional advertising, publications, films/video productions, special events, speeches and presentation.

In helping to define and implement policy, the public relations practitioner utilizes a variety of professional communication skills and plays an integrative role both within the organization and between the organization and the external environment.  It involves not just taking advantage of opportunities which become available, as well as being innovative in creating PR opportunities.

Following are some of the areas which may be involved with a Public Relations program:

1. Strategic Public Relations Planning and Implementation
2. Corporate Identity Programs
3. Media Relations
4. News Releases
5. Trade Magazine Articles
6. Media Kits
7. Marketing Support
8. Marketing Materials
9. Story Placement
10. Research
11. Marketing Communications: Brochures, Mailers, Fact Sheets, Etc.
12. Product Publicity Campaigns
13. Product Literature
14. New Product Introduction
15. New Name Launches
16. Crisis Management
17. CEO Profiles
18. Ghost Writing
19. Video & Slide Presentations
20. CD Rom Presentations
21. Press Conferences
22. Special Events and Promotions
23. Newsletters: Writing and Production

As can be seen, many of the single subjects listed above would require time and expertise.  A professional PR firm can take the burden off of management and do a professional, thorough job, usually, at less cost to the company than requiring staff or management performing the job.