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АННОТИРОВАНИЯ И РЕФЕРИРОВАНИЯ 1

Target Stores

1. Target yesterday beat Wall Street expectations when it delivered a 21.1 percent rise in quarterly earnings. Gains in Target's credit card business, as well as both its Target Stores division and Marshall Field's stores, offset a small drop in pre-tax profit at the Mervyn's department store chain. Target has cultivated a more upmarket and style-conscious image than other discount retailers. It is the third-largest general retailer in the US by revenues.

2. Target yesterday said it saw continued price pressure from rival Wal-Mart. For the fourth quarter, Target's profit rose to $832m, or 91 cents a share, compared with. $688m, or 75 cents a share, a year ago. Analysts had expected Target to earn 87 cents a share, according to Reuters Research. Revenues for the quarter rose by 10.7 percent to $15.57bn from $14.06bn, while same-store sales - from stores open at least a year - rose by 4.9 percent. Target said pre-tax profit soared by 18.5 percent at Target Stores.

3. At the department stores, which have been ailing, pre-tax profit jumped by 15.6 percent at Marshall Field's but fell 0.3 percent at Mervyn's. Credit card operations added $168m to pre-tax profit in the recent quarter, up 11.7 percent from a year ago. For the full year, Target's profits were $1.84bn, or $2 a share, up 11.4 percent from $1.65bn, or $1.81 a share, the year before. Revenues rose 9.7 percent to $48.16bn from $43.91bn, driven by new stores, a 2.9 percent rise in same-store sales and growth in credit revenues.

2

ASA

In Britain the Advertising Standards Authority controls advertising. It is not a government agency, it is run and paid for by the advertising industry. But why do advertisers want their advertisements controlled? If advertisements were allowed to tell lies, if, for example, a product or service did not live up to the claims made about it in an advertisement, consumers may not buy that product or service again. The experience may also make consumers doubt the trustworthiness of all advertising. However, if people trust what they are told in ads, they will be more willing to buy goods and services being advertised.

In the years before the Advertising Standards Authority many advertisements made false claims and false promises. A famous case was in 1893 with the Carbolic Smoke Ball Company. Their advertisement claimed that the Carbolic Smoke Ball would prevent you from catching influenza. It supported this promise with an offer of £100 for anyone who caught influenza after using the Carbolic Smoke Ball. In a famous case, Mrs Carhill caught influenza after using the ball and claimed the £100 (a lot of money in those days). The company then claimed the advertisement was not a serious offer and refused to pay the reward. But Mrs Carhill took the company to court, which decided she was right and said the advertisers had to pay the money. This case set the precedent for much of the consumer protection law in relation to advertising that exists today.

The ASA is concerned with advertisements which do not tell actual lies, but also with advertisements which are misleading. For example, a company which makes a fruit drink called Ribena produced a special low-sugar version which it called Ribena Tooth Kind. In response to complaints that this ad misleadingly implied the product benefited oral hygiene, the advertisers sent the ASA evidence they said proved the product contained natural fruit sugars, that it was lower than ordinary soft drinks in fruit acids, and that it had been formulated to minimise the impact of acid on dental tissue loss. The advertisers said they added calcium, which combined with fruit acids helped to reduce the risk of the acid attacking tooth enamel.

After taking expert advice, the ASA concluded that this poster, and in particular the image of Ribena Tooth Kind instead of tooth brush bristles, without a qualifying statement, wrongly implied Ribena Tooth Kind actively benefited oral health.

There are basically four reasons why people advertise which can be summarised by the acronym “DRIP”: Differentiate a company’s products from those of their competitors.

Reassure and remind consumers of the benefits of the products or services. Inform people about an advertiser’s products, services or cause. Persuade people that they should believe what they see in the advertisement and to take action in light of it.

3

easyJet

easyJet, one of Europe’s leading low-cost airlines, has recently bought Go, the low cost airline created by British Airways, for £374 million.

Is this yet another sign of the fundamental changes taking place in European air transport? Is this going to change the ‘luxurious’ image of air travel which has existed since the 1930s?

easyJet owes its existence to the development of ‘open skies’ in Europe. Before 1987 European air travel was effectively carved up by the national flag-carriers which considered the air routes between major European cities to be their own permanent fiefdoms.

Under the old regime flying schedules, fares and even the number of passengers that each national airline could carry were negotiated between governments in highly uncompetitive ‘bilateral’ agreements. Competition from other airlines was almost unheard of. It is no coincidence that the concept of air travel as the preserve of the rich and famous is a hangover partly from this era.

That was all changed when the European Commission introduced its three-phase ten-year reform process in 1987. Today any airline holding a valid Air Operators Certificate in the European Union cannot be prevented from operating on any route within the European Union, including flights within another country.

easyJet started in March 1995 with low-cost flights from London’s Luton airport to Glasgow and Edinburgh in Scotland supported by an advertising campaign “Making flying as affordable as a pair of jeans - £29 one way”. After adding another route to Aberdeen (also in Scotland), easyJet began its first international service to Amsterdam. Routes to Nice and Barcelona were added before the end of 1996. In April 1997 easyJet launched its website, easyJet.com to provide information about the airline and in the following year to take online bookings. This has been an enormous success. Now nearly 90% of all passenger bookings are made online.

In 1995, the first operating year, easyJet carried 30,000 passengers. In 2001, the passenger numbers had increased to 7,664,000 giving the company £40,100,000 profit on a revenue of nearly £357million. Now easyJet has purchased Go with 4,270,000 passengers. This will give easyJet a total of nearly 12 million passengers per year.

easyJet was started by a young 28 year-old entrepreneur. It operates in a relaxed ‘no ties’, informal, paperless office. But this is not a ‘rags-to-riches’ story. easyJet was founded by Stelios Haji-Ioannou, the son of a family of Cypriot origin who own Troodos shipping. Stelios, whose first venture was Stelmar Tankers which operates 36 tankers, follows in the tradition of Greek shipping magnates like Aristotle Onassis.

easyJet is largely owned by members of the Haji-Ioannou family. They are reported to be planning to sell shares in the company to raises £100 million but this will still leave them with a controlling interest in the company.

4

Kodak

What can we learn from looking at the histories of successful companies? In the case of Kodak (more correctly Eastman Kodak) we can see the value of formulating good business principles from the very beginning. Care for the customer and for employees is not a 'luxury' to be adopted when the company can afford it. These principles are fundamental to the growth and success of the business and need to be established at the beginning.

The story of Eastman Kodak also tells us something about how companies need to react to new technologies. The history of business is littered with stories of companies which have crumbled and failed through changes in technology or in markets. The story of Eastman Kodak is a story in which technological change is not seen as a threat, it is embraced and welcomed because it offers new opportunities.

Today, Eastman Kodak ranks as a premier multinational corporation and one of the 25 largest companies in the United States.

In 1879, London was the centre of the photographic and business world. Photography had started in France with Nicephore Niepce's first photograph from nature in 1826.

These ideas were soon taken up by Daguerre with the patenting of the Daguerrotype system of photographs on metal plates. In Britain, Henry Fox Talbot developed a system of producing photographs on glass plates which could then be printed on paper. In 1844, the first photographically illustrated book 'The Pencil of Nature' by Henry Fox Talbot was published by Longman in London. Lewis Carol, the author of Alice in Wonderland was an early photographer.

In 1879, George Eastman travelled to London to patent a machine for making glass photographic plates. Two years later, with a business partner, Henry A. Strong, he formed the Eastman Dry Plate Company. In 1883 Eastman startled the photographic world with the first 'rolls' of film. In 1888, he launched the first 'Kodak' camera which was pre-loaded with enough 'film' for 100 exposures. Today, we think of the 'disposable camera' as being a modern invention, yet the first Kodak was launched with the slogan 'You press the button, we do the rest.' The Kodak camera cost $25. When the customer had used the 100 exposures, the whole camera was returned to the company where prints were made and a new film inserted in the camera. The 100 prints and newly preloaded camera were returned to the customer for the price of just $10!

Eastman had four basic principles for business: mass production at low cost, international distribution, extensive advertising, a focus on the customer. Eastman saw these four principles as being closely related. Mass production could not be justified without international distribution, which, in turn, needed the support of strong advertising. From the beginning, he gave the company the belief that fulfilling the customers' needs and desires is the only road to corporate success.

By 1896, thirteen years after its launch, the 100,000th Kodak camera was produced, a success which speaks volumes for the power of good advertising when it is supported by a good product and customer service. In 1891, Eastman set up his first overseas factory and distribution centre in Harrow, England just outside London. In 1900, Eastman had factories and distribution centres in France, Germany, Italy and other European countries. A factory in Japan was under consideration. In the same year, Eastman introduced the first 'Brownie' camera at a price of just one dollar!

Eastman Kodak was largely responsible for popularising the 'hobby' of photography and putting this technology into the hands of ordinary people. Eastman had collaborated with Thomas Edison on the development of film, cameras and projectors for moving films. In 1923, Eastman made a simple clockwork-powered movie. In 1935 Kodachrome was launched as the first successful colour film for amateurs to make colour slides and 16mm movie films. In 1942, Kodacolor, the first true colour negative film (for making prints) was introduced. Traditional photography is based on the science of exposing light-sensitive silver halide salts to light. This basic chemistry remained the only way of producing images for many years. But new technologies started to challenge this basic industry. The first was video, so Kodak started to produce and market video cassettes in 1984 in 8mm, Betamax and VHS formats. In the same year, they broke into another market which would become an even greater threat. They announced a full range of flexible floppy disks for personal computers.

5

Branding in Commerce

In British Common Law, one of the basic principles is expressed in the Latin phrase ‘caveat emptor’ let the buyer beware. What this doctrine means is that, in any commercial situation, it is the responsibility of the buyer (not the seller) to make sure that the thing they are buying is of good quality and is working properly. The seller is not obliged to refund the price paid, or replace the product if the buyer discovers that the product is faulty. Over many centuries, this basic principle has been limited by other laws. Today, if you try to sell a product for doing a particular job, the law suggests that there is an implied warranty that the product is ‘fit for purpose’.

In 1300 King Edward I of England ordered that all items made of gold or silver, should be tested by the Goldsmith’s Guild of London. The Goldsmith’s Guild stamped a mark (a hallmark) on the item which proved that it was made of real gold, or real silver. Later, extra marks which showed the manufacturer, the date and city of testing and the purity of the gold or silver were added. These were the first ‘official’ quality symbols which were stamped on to products.

It is not easy to make soap. Soap manufacturers boiled oils and fats from animals and vegetables. They combined them with other chemicals to make soap. Soap from a good manufacturer is perfectly safe, but, in the past, many soaps were dangerous and damaged the skin or the clothes that were being washed.

When people lived in small family or village groups, they would usually buy products from people they knew and trusted. Later, people moved from the country to larger cities, where they could not possibly know all of the people in that city. They started to buy from shops rather than buying from family friends. Soap manufacturers started to produce small ‘cakes’ or ‘bars’ of soap. If you went to a shop to buy a bar of soap, you did not know who had made the soap and you did not know if the soap was safe or dangerous.

Some soap manufacturers started to make their bars of soap in special moulds, which marked the name of the manufacturer in the block of soap. They hoped that by marking their products in this way, they could convince the customers that their soap was safe to use. In this way, soap became one of the first ‘branded’ commercial products. Pears, soap manufacturer persuaded Lily Langtry, a famous actress to provide a testimonial for Pears Soap saying “Since using Pears soap, I have discarded all others.” This signed statement was printed on posters showing the actress who was famous for her beautiful skin. This is one of the very early examples of celebrity endorsement of a product. The first brands simply put a name on a product, it identified the product. A new fountain pen was not just a fountain pen, it is a Parker Pen. The first marketers, tried to associate certain ideas with the name of the product. Lily Langtry’s endorsement of Pears Soap suggested that customers who used Pears Soap could become as attractive as Lily Langtry. Cosmetics, which are simple, chemical products, are bought because of packaging and advertising rather than the actual quality of the product. Thomas A Barratt, one of the early advertising directors for Pears Soap said “Any fool can make soap. It needs a clever man to sell it.”

Another important aspect of Lily Langtry’s endorsement “Since using Pears soap, I have discarded all others.” is loyalty - in the phrase ‘discarded all others’. Miss Langtry is not only saying that she uses Pears Soap. She is saying she will continue to use Pears Soap. She will not use any other soap. Any company which is developing a brand also wishes to develop brand loyalty. A slogan is a short phrase written by an advertiser which attempts to define the qualities of a product. Avis says “We try harder.” The Independent newspaper says, “It is. Are you?” Nike says, “Just do it.” Slogans, have also been used successfully by politicians. Harold Macmillan, the British Prime Minister, became associated with the phrase, “You’ve never had it so good.” The right-wing US Presidential candidate Barry Goldwater used the slogan “In your heart, you know he’s right.” Lyndon Johnson, opposing Goldwater, gave the reply, “In your guts, you know he’s nuts.” Later, another candidate, Walter Mondale, used a slogan from advertisements for a hamburger chain. Criticising the amount of meat in other hamburgers, the advertiser asked “Where’s the beef?” In a debate with his opponent, Gary Hart, Walter Mondale said, “You talk a lot about your ‘new ideas’, but I ask myself, “Where’s the beef?”

6

Case Study: Brand Lifebuoy

Born: 1895

History: Owned by Unilever Plc., the parent company of Hindustan Unilever Ltd

Status: Has 18% market share in the bathing soaps category.

Brand story: Lifebuoy landed on Indian shores in 1895, when the country was in the grip of a plague epidemic.

With its positioning as a powerful germicidal and disinfectant, and with a strong carbolic smell, it was what the nation was looking for. But the health advantage waned over time as competitors came out with soaps that promised both health and beauty.

The 1970s were challenging times for the brand, especially in the rural markets, its mainstay. “The biggest challenge was to break the mould and do clutter-breaking advertising,” says Manoj Tapadia, creative director at Lowe India, the ad vertising agency for Lifebuoy.

It was around 2002 that the product moved from being a hard soap to a mild soap that delivered a significantly superior bathing experience. The new soap had a refreshing fragrance and its overall positioning changed, painting its promise of health in softer, more versatile and responsible hues for the entire family.

The packaging was also changed: The rugged looking packs were soon replaced with a softer pinkish cover. This was followed by a series of ads highlighting the soap’s germ fighting benefits.

Lifebuoy had become a family soap with hygiene as its core promise. “For a soap that had been relegated to toilets, Lifebuoy has gathered new adherents in an age where more consumers are getting concerned about germs and cleanliness,” says Arvind Sahay, professor of marketing at the Indian Institute of Management, Ahmedabad. “Lifebuoy has 112 years of existence in India and has constantly reinvigorated itself. In the last five years, it has touched nearly 100 million Indians across 44,000 villages,” says Srikanth Srinivasamadhavan, category head, personal wash, HUL.

Right from the early days, the brand has preferred effective communication to celebrities. An exception is its recent, limited exposure campaign with cricketer Yuvraj Singh.

7

Penguin Books

Penguin is one of the most recognized brands in the world of publishing. Penguin started as part of the Bodley Head publishing company in 1935, so this year Penguin celebrates its 70th birthday.

In 1935, if you wanted to read a good book, you had to have either a lot of money or a library card. Cheap paperbacks were available but they were of very poor quality – the paper and printing were poor and the quality of the text was poor.

“Allen Lane did not invent the paperback, but he did realise its potential.” One weekend in 1935, Allen Lane travelled from London to Exeter where he would have a meeting with Agatha Christie, the writer of crime stories. In 1935 the train journey to Exeter took more than four hours. When Allen Lane was at Exeter Station for his return journey, he was looking for something to read on the train. All he could find were popular magazines and reprints of Victorian novels.

With nothing to read during the journey, Allen Lane thought about the publishing business and his problems at Exeter station. He decided to produce a series of cheap, modern books which might be suitable for travellers. Back in his office he explained his idea to his secretary Joan Coles and asked her to suggest a name for the series. He said he wanted something ‘dignified but flippant’, perhaps the name of an animal or bird. Joan Coles suggested a penguin. An artist was sent to London Zoo to do some sketches of penguins. Soon one of the most popular logos was created.

The first Penguin books were a risky business venture. In 1935 most serious books cost about 8 shillings. Allen Lane wanted to sell his books for sixpence – one sixteenth of the price of a normal hard cover book.

Allen Lane told the Bookseller magazine in 1938: “I would be the first to admit that there is no fortune in this series for anyone concerned. … These Penguins are a means of converting book borrowers into book buyers.”

Allen Lane was referring to the fact that many readers borrowed their books from public libraries. They did not buy books for themselves.

Well, the first Penguins were a great success. Within twelve months Penguin had sold a staggering 3 million paperback books.

Allen Lane claimed he was not surprised by the success. “There are many who despair at what they regard as the low level of people’s intelligence. We, however, believed in the existence in this country of a vast reading public for intelligent books at a low price.”

In 1937 Penguin Books moved to new offices and a warehouse at Harmondsworth, near what is now Heathrow Airport. From this enormous warehouse, they could distribute books to railways stations and shops around Britain.

As World War II drew closer Penguin published special books to inform and educate the public. Searchlight on Spain and What Hitler Wants achieved record-breaking sales. After the war started Aircraft Recognition was a popular handbook for both the military and civilians. Through the war, despite shortages of paper, Penguin continued to publish.

Penguin books made up for the shortage of entertainment during the war years. In the years after the war had ended Penguin continued to publish controversial books. In 1960 Penguin Books was charged under the Obscene Publications for publishing Lady Chatterley’s Lover, a novel by D. H. Lawrence. This novel contains detailed descriptions of sexual games between Lady Chatterley and her gamekeeper Mellors. In the court, the prosecuting lawyer asked the jury ‘if this is a book you would let your wife, your daughter or even your servants to read.’ The jury (who probably had no servants) clearly thought the prosecution was out-of-date and decided in favour of Penguin Books. In six weeks, Penguin sold 2 million copies of Lady Chatterley’s Lover.

Penguin has continued to be one of the most successful publishers in Britain . As it celebrates its 70th birthday, tributes have come from many parts of the world. “Penguin has done more for the education and cultural uplift of the country than all the universities and their teachers combined. “Penguin paperbacks offer high culture at low cost.”

“I went to a good school and two good universities, but I learnt more from Penguin than from any teacher or lecturer.”

8

Corporate Culture

The fundamental reason for Toyota's success in the global marketplace lies in its corporate philosophy – the set of rules and attitudes that govern the use of its resources. Toyota have successfully penetrated global markets and established a world-wide presence by virtue of its productivity. The company's approach to both product development and distribution is very consumer-friendly and market-driven. Toyota's philosophy of empowering its workers is the centrepiece of a human resources management system that fosters creativity, continuous improvement, and innovation by encouraging employee participation, and that likewise engenders high levels of employee loyalty. Knowing that a workplace with high morale and job satisfaction is more likely to produce reliable, high-quality products at affordable prices, Toyota have institutionalized many successful workforce practices. Toyota has done so not only in its own plants but also in supplier plants that were experiencing problems.

Although many car manufacturers have earned a reputation for building high-quality cars, they have been unable to overcome Toyota's advantages in human resource management, supplier networks and distribution systems in the highly competitive car market. Much of Toyota's success in the world markets is attributed directly to the synergistic performance of its policies in human resources management and supply-chain networks.

9

Public Relations Across Cultures

by Neil Payne

The Public Relations (PR) industry is responsible for creating and maintaining relationships between clients and customers. Through areas such as brand management, advertising, media relations and crisis management, PR practitioners seek to foster interest, trust and belief in a product or company. PR practitioners are aware of how best to carry this out when dealing within their own nations and cultures, however, when dealing with a foreign audience it is critical that cross cultural differences are recognised. By way of illustrating the impact cross cultural awareness can have on the success or failure of a PR campaign a brief example can be cited: Pepsodent tried to sell its toothpaste in Southeast Asia by emphasizing that it "whitens your teeth." They found out that the local natives chew betel nuts to blacken their teeth because they found it attractive. Had the PR company behind this campaign analysed the cross cultural issues related to Pepsodent's product, the failure of this PR campaign could have been avoided.

Cross cultural differences can make or break a PR campaign. It is therefore crucial that PR practitioners dealing with PR campaigns that incorporate a cross cultural element analyse likely cross cultural differences. A few key areas shall be highlighted in order to help PR practitioners begin to consider how culture may affect future projects.

In order for a PR campaign to be successful abroad, an appreciation of the target language and its cultural nuances is necessary. The PR and advertising industries are littered with examples of poor translations and a lack of cross cultural understanding leading to PR failure. For example, when Ford launched the 'Pinto' in Brazil they were puzzled as to why sales were dead. Fortunately they found out that Brazilians did not want to be seen driving a car meaning 'small male genitals' and promptly changed the name.

Translation of documents, slogans and literature must be checked and double checked for meanings and cross cultural nuances. This should not only take place between languages but also within languages. Even in English there are cross cultural differences in meanings. For example, the airline UAL headlined an article about Paul Hogan, star of Crocodile Dundee, with, "Paul Hogan Camps it up" which unfortunately in the UK and Australia is slang for "flaunting homosexuality".

Areas where the spoken word is used in PR, such as press conferences or interviews, should be prepared for within a cross cultural framework. In short, speaking styles and the content used differs across cultures.

British and American communication styles are described as 'explicit', meaning messages are conveyed solely through words. Correlating background information is deemed necessary and divulged, ambiguity is avoided and spoken words have literal meaning. In many other cultures, communication is 'implicit'. The message listeners are likely to interpret is based on factors such as who is speaking, the context and non-verbal cues. Spoken words do not fully convey the whole story as listeners are expected to read between the lines.

With relation to content, speakers must be aware of the cross cultural differences in humour, metaphors, aphorisms and anecdotes. In addition, references to topics such as politics and/or religion can be a very sensitive issue in other cultures.

When the spoken word is used the cross cultural distinctions of the target culture must be incorporated in order to help the speaker appeal to and identify with the audience. Press releases, features and copywriting all require a certain amount of cross cultural sensitivity when being applied abroad. Journalistic traditions, writing styles, news worthiness, delivery systems and whether a 'free press' exists are all areas that will affect how the written word is tailored.

In addition, the most important point, from a cross cultural perspective, is how to write in a way that engages the readers in that society or culture. Some cultures may prefer colourful and inspirational writing, others factual and objective. Some may be motivated by language that incorporates a religious or moral tone, others by a money-orientated or materialistic one.

When writing, the first step should always be to look at and integrate the cross cultural particulars of the target audience.

PR practitioners employ many different communication channels when trying to circulate information relating to their campaign. The main channels of communication in the UK or America are the radio, the press, TV, internet and public spaces. However, these channels may not always be applicable abroad.

In many countries the radio, TV or newspapers may not be the primary source of information. Literacy rates may be poor and/or radios may be expensive. In Africa, only 1.4% of the population have access to the internet. Even where such channels of communication do exist, such as TV, some methods used by PR practitioners, namely guerrilla marketing, would be interpreted differently in foreign countries. For example, interrupting live TV may be laughed at in the UK but in other countries it would be seen as irresponsible and rebellious.

The usual channels of communication in some countries would simply have no effect in terms of PR. In such countries, local alternatives need to be sought such as religious leaders, tribal chiefs, school teachers or NGO's. Information coming from such figures will not only reach the audience but be perceived as more credible than if it were from foreigners.

The use of publicity materials in PR campaigns such as logos, slogans, pictures, colours and designs must all be cross culturally examined. Pictures of seemingly innocuous things in one culture could mean something different in another. For example, a company advertised eyeglasses in Thailand by featuring a variety of cute animals wearing glasses. The ad failed as animals are considered to be a low form of life in Thailand and no self respecting Thai would wear anything worn by animals. Similarly, logos or symbols are culturally sensitive. A soft drink was introduced into Arab countries with an attractive label that had a six-pointed star on it. The Arabs interpreted this as pro-Israeli and refused to buy it.

The above cited areas are but a few of those that require decent cross cultural assessment by PR practitioners if they wish their international and cross cultural campaigns to succeed. The aim of implementing a cross cultural analysis in PR is to build campaigns that target the audience as best as possible, meaning appealing to their world view while avoiding offense.

10

Babel PR

Babel PR is made up of a team of people that love what they do. Few public relations agencies can offer the same high level experience in the technology, media and telecoms sectors but what makes us stand out, and what ultimately delivers great results for our clients, is the passion we bring to the task. Since our launch in 2006 we've grown considerably and we now serve a wide range of business and consumer focussed companies in the technology, media and telecoms sectors.

We're often working for companies with completely new products and services, or those that use complex technology but we're known for our ability to get the message across in language that the target market understands. We focus on what the customer wants to buy, whether that's a solution to a business or personal need, a competitive advantage, a lifestyle or an image. It's an approach that always delivers results.

Babel is a European PR agency operating in the telecoms, media and technology sectors. We design and implement PR campaigns that generate the right coverage, build brand awareness and deliver new business. The Babel team are enthusiastic specialists with a deep understanding of the sectors they serve as well as the expertise, the relationships and the experience to make it happen.

Babel use a variety of public relations tactics specific to the client requirement and so no two Babel campaigns are ever the same.

Their clients range from major public companies operating across multiple geographies to start-ups focussing on a single market. What they have in common is a desire for public relations services that produce tangible results.

At the end of 2006 the UK's media and telecoms regulator announced proposals to auction the radio spectrum that will be made available as a result of the current switch from analogue to digital television transmission. That situation immediately placed under threat the possibility of the public service broadcasters delivering high definition TV on the Freeview platform and the plans of manufacturers and retailers.

The HDforAll group was formed by the public service broadcasters, retailers and manufacturers to raise the issue amongst the public. Babel PR was appointed to provide a focal point for the campaign and to bring together the interests of the members in a coherent national campaign. Babel prepared the core messaging for the group, defined the issues to be addressed, developed a public facing web site and brought together industry and consumer research.

Significant support amongst the industry and public was mobilised and comprehensive coverage of the issues was achieved across the full range of print and broadcast media. The positive outcomes included Ofcom being instructed to re-examine the underlying assumptions of its proposals with the result that Freeview viewers will now receive an HD service.

11

The Plank Center

The Plank Center for Leadership in Public Relations seeks to advance leadership values and skills in public relations and bridge the gap between education and practice.

Established by the University of Alabama in 2005 and led by a national advisory board of distinguished educators and practitioners, the Center uses a variety of approaches and activities to support its mission. These include awards and recognition programs, scholarships, speaker programs, publications, scholarly and professional papers, workshops and symposia, research grants, and the collection of histories and papers of leaders in the field.

The Plank Center is named for Betsy Plank, a 1944 graduate of the University of Alabama (UA), who attained national and international stature during a distinguished career in corporate and agency public relations. Often referred to in the U.S. as the “first lady” of public relations, she was the first woman to head a division of Illinois Bell, now Ameritech, and the first woman to preside over the Public Relations Society of America (PRSA). She also was a founding member of PRSA’s College of Fellows, an honorary group of national leaders in public relations.

Plank also was the first person to receive PRSA’s top two awards: the Gold Anvil, as the nation’s outstanding professional, and the Lund Award for civic and community service. In addition, in 2000 she received the Distinguished Lifetime Achievement Award from the Arthur W. Page Society, an association of the nation’s top corporate public relations executives. The College of Communication & Information Sciences at UA inducted Plank into its Communication Hall of Fame and named its Distinguished Achievement Award for her.

Plank was a long-time supporter and advocate for public relations students and the Public Relations Student Society of America, which has named its annual scholarships for her. She was a pioneer in public relations education, having co-chaired the 1987 national commission to develop guidelines for the undergraduate public relations curriculum, served on accrediting teams at many universities, and spoken to numerous student groups and public relations classes. Plank was chair of the Center's advisory board until her death in May 2010.

The Center awards research projects that enhance understanding of factors that contribute to effective and ethical leadership in public relations.

12

The New Age of Global Marketing

For decades, hundreds of corporations based in the United States have been engaged in international business operations including marketing, advertising, and public relations. These activities swelled to unprecedented proportions during the 1990s, largely because of new communications technologies, development of 24-hour financial markets almost worldwide, the lowering of trade barriers, growth of sophisticated foreign competition in traditionally "American" markets, and shrinking cultural differences bringing the "global village" ever closer to reality.

Today almost one third of all U.S. corporate profits are generated through international business. In the case of Coca-Cola, probably the best-known brand name in the world, inter­national sales account for 80 percent of the company's operating profit.

At the same time, overseas investors are moving into American industry. It is not uncommon for 15 to 20 percent of a U.S. company's stock to be held abroad. The United Kingdom, for example, has a direct foreign investment in the United States exceeding $122 billion, followed by Japan and the Netherlands with nearly half that sum each, according to the U.S. Department of Commerce.

Public relations is an essential ingredient in the global megamarketing mix being cre­ated. The 15 largest public relations organizations now generate more than 40 percent of their fees outside the United States. Giant companies such as Burson-Marsteller, Hill and Knowlton, and Shandwick earn about half of their fees abroad. Because of fax machines, e-mail, online services, and the Internet, boutique firms are challenging the big agencies for international business.

Fueling the new age of global marketing are satellite television, computer networks, electronic mail, fax, fiber optics, cellular telephone systems, and emerging technologies such as integrated services digital networks (ISDN) allowing users to send voice, data, graphics, and video over existing copper cables. For example, Hill and Knowlton has its own satellite transmission facilities, and the General Electric Company has formed an inter­national telecommunications network enabling employees to communicate worldwide, using voice, video, and computer data, simply by dialing seven digits on a telephone. Using three satellite systems, Cable News Network (CNN) is viewed by more than 200 million people in more than 140 countries. A number of newspapers and magazines are reaching millions with international editions. Reader's Digest, to cite one instance, distributes about 11.5 million copies abroad 4 national editions in more than a dozen languages.

Differences in language, laws, and cultural mores among countries (to be discussed shortly) pose serious problems. There also is a need for both managers and employees to learn to think and act in global terms as quickly as possible. Already, Burson-Marsteller, with offices in many countries, has been spending more than $1 million a year on training tapes and traveling teams of trainers and seminars to foster a uniform approach to client projects.

Much of the new business jousting took place on West European terrain, where a nearly unified European Community (EC) attracted enormous attention. Although hampered by recession in the early 1990s, public relations expenditures increased significantly. The growth was precipitated in part by expansion of commercial television resulting from wide­spread privatization, the desire of viewers for more varied programming, satellite technology, and slowly developing EC business patterns. Satellite TV reached well over 30 million

Fueling the new age of global marketing are satellite television, computer networks, electronic mail, fax, fiber optics, cellular telephone systems, and emerging technologies such as integrated services digital networks (ISDN) allowing users to send voice, data, graphics, and video over existing copper cables. For example, Hill and Knowlton has its own satellite transmission facilities, and the General Electric Company has formed an international telecommunications network enabling employees to communicate worldwide, using voice, video, and computer data, simply by dialing seven digits on a telephone. Using three satellite systems, Cable News Network (CNN) is viewed by more than 200 million people in more than 140 countries. A number of newspapers and magazines are reaching millions with international editions. Reader's Digest, to cite one instance, distributes about 11.5 million copies abroad - 44 national editions in more than a dozen languages.

Differences in language, laws, and cultural mores among countries (to be discussed shortly) pose serious problems. There also is a need for both managers and employees to learn to think and act in global terms as quickly as possible. Already, Burson-Marsteller, with offices in many countries, has been spending more than $1 million a year on training tapes and traveling teams of trainers and seminars to foster a uniform approach to client projects.

Much of the new business jousting took place on West European terrain, where a nearly unified European Community (EC) attracted enormous attention. Although hampered by recession in the early 1990s, public relations expenditures increased significantly. The growth was precipitated in part by expansion of commercial television resulting from wide­spread privatization, the desire of viewers for more varied programming, satellite technology, and slowly developing EC business patterns.

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Job Outlook

Keen competition will likely continue for entry-level public relations jobs as the number of qualified applicants is expected to exceed the number of job openings. Opportunities should be best for individuals who combine a college degree in journalism, public relations, advertising, or another communications-related field with relevant work experience. Public relations work experience as an intern is an asset in competing for entry-level jobs. Applicants without the appropriate educational background or work experience will face the toughest obstacles.

Employment of public relations specialists is expected to increase faster than the average for all occupations through 2008. The need for good public relations in an increasingly competitive business environment should spur demand for public relations specialists in organizations of all sizes. Employment in public relations firms should grow as firms hire contractors to provide public relations services rather than support full-time staff. In addition to growth, numerous job opportunities should result from the need to replace public relations specialists who take other jobs or who leave the occupation altogether.

Median annual earnings for salaried public relations specialists were $34,550 in 1998. The middle 50 percent earned between $26,430 and $46,330; the lowest 10 percent earned less than $21,050, and the top 10 percent earned more than $71,360. Median annual earnings in the industries employing the largest numbers of public relations specialists in 1997 were: Management and Public Relations - $35,100 ; State Government, Except Education and Hospitals - 32,100; Colleges and Universities -30,600.

According to a salary survey conducted for the Public Relations Society of America, the overall median salary in public relations was about $49,100. Salaries in public relations ranged from less than $22,800 to more than $141,400. There was little difference between the median salaries for account executives in public relations firms, corporations, government, health care, or nonprofit organizationsall ranged from over $32,000 to nearly $34,000.

Public relations specialists in the Federal Government in nonsupervisory, supervisory, and managerial positions averaged about $56,700 a year in 1999.

Please note that the earnings and salary data listed here is usually from government sources and may be dated, so please make adjustments accordingly. If you would like to access current salary data for literally thousands of occupations, check out our new Salary Calculator.

Related Occupations. Public relations specialists create favorable attitudes among various organizations, special interest groups, and the public through effective communication. Other workers with similar jobs include fund raisers; lobbyists; advertising, marketing, and promotion managers; and police officers involved in community relations.

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Public Relations Officer

Public relations (PR) is about managing reputation. This career field aims to gain understanding and support for clients as well as to influence opinion and behaviour.

PR officers use all forms of media and communication to build, maintain and manage the reputation of organisations ranging from public bodies or services to businesses and voluntary organisations. They communicate key messages, often using third party endorsements, to defined target audiences in order to establish and maintain goodwill and understanding between an organisation and its public.

PR officers monitor publicity and conduct research to find out the concerns and expectations of an organisation's stakeholders. They then report and explain the findings to its management.

Typical work activities.

A public relations (PR) officer often works in-house and can be found in both the private and public sectors: from the utility and media sectors to voluntary and not-for-profit organisations. Some PR officers may be based in consultancies.

The role is very varied and will depend on the organisation and sector. Tasks typically involve:

planning, developing and implementing PR strategies;

liaising with colleagues and key spokespeople;

liaising with and answering enquiries from media, individuals and other organisations, often via telephone and email;

researching, writing and distributing press releases to targeted media;

collating and analysing media coverage;

writing and editing in-house magazines, case studies, speeches, articles and annual reports;

preparing and supervising the production of publicity brochures, handouts, direct mail leaflets, promotional videos, photographs, films and multimedia programmes;

devising and coordinating photo opportunities;

organising events including press conferences, exhibitions, open days and press tours;

maintaining and updating information on the organisation's website;

sourcing and managing speaking and sponsorship opportunities;

commissioning market research;

fostering community relations through events such as open days and through involvement in community initiatives;

managing the PR aspect of a potential crisis situation.

The Goals of Communication.

Communication is the implementation of a decision, the process and the means by which objectives are achieved. A program's strategies and tactics may take the form of news releases, news conferences, special events, brochures, speeches, bumper stickers, newsletters, rallies, posters, and the like.

The goals of the communication process are to inform, persuade, motivate, or achieve mutual understanding. To be an effective communicator, a person must have basic knowledge of (1) what constitutes communication and how people receive messages, (2) how people process information and change their perceptions, and (3) what kinds of media and communication tools are most appropriate for a particular message.

Concerning the last point, Kirk Hallahan of Colorado State University makes the point that today's communication revolution has given public relations professionals a full range of communication tools and media, and the traditional approach of simply obtaining publicity in the mass media—newspapers, magazines, radio, and television—is no longer sufficient, if it ever was. He writes, "PR program planners need to re-exam their traditional approaches to the practice and think about media broadly and strategically. PR media planners must now address some of the same questions that confront advisers. What media best meet a program's objectives? How can media be combined to enhance program effectiveness? What media are most efficient to reach key audience?"

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So You Want to Work in Public Relations

by Liz Ford

The Guardian, Saturday 9 June 2007

A career in public relations is not for the faint-hearted - or for anyone hoping to make big money straight after university. Competition for jobs is fierce and you need plenty of enthusiasm and confidence if you want to successfully sell a client's product to journalists or pitch for new business.

There are two distinct areas of PR in which to work - in-house for an organisation, or at an agency, where you will be handling a range of clients. It can be glamorous - organising parties, mingling with celebrities - and rewarding, but expect to work hard for initially little financial gain. Starting salaries outside London can be as low as £12,000, although they average £18,000 in the capital. That said, a career in PR does offer variety - two days are rarely the same.

Part of any PR job is talking to the media, so graduates need a certain degree of confidence. It's not a career for wallflowers. The job is all about multitasking. In an agency environment you might be working on a number of accounts, but individual clients need to feel they are your No 1 priority at all times. You will be juggling lots of different tasks in one go, while working to journalists' and clients' deadlines.

We've just been through the recruitment process and something I look for is good basic writing skills. You don't need to come into the role knowing how to structure press releases or a feature synopsis, but you should have basic levels of punctuation and grammar. Everything else can be taught. You have got to have a bit of a thick skin and be able to take constructive criticism from clients, colleagues and journalists.

I can't stress enough how important it is to get some sort of PR experience if you want to apply for jobs in this area. There are a shocking number of graduates who have no experience. They write in saying they want to work in PR, but I ask, "How do you know?" Work experience not only shows that you understand what the job is about, but also that you have made the effort and researched it, and are not just applying on a whim.

The Chartered Institute of Public Relations (CIPR) has a list of approved courses at institutions that provide degrees in PR in the UK. There is a commonality in what these courses teach. CIPR prepares students for the working world by covering topics such as professional practice, marketing communication, writing skills and campaign planning and evaluation. This is usually complemented by some form of work experience or project that will enable students to get an insight into the real world.

Students are taught about the general business environment - how business operates, how media operates and, particularly now, how new media operates. A module on finance was included to be CIPR-approved. The graduates should have some appreciation of profit and loss and accounts. Quite often students will go on to set up their own businesses.

The industry takes graduates from all kinds of disciplines, but what you get from someone who has graduated with a good PR degree, is someone ready to hit the ground running. They will have the basic skills required and through their course will have had some contact with industry.

It's a hard industry to break into if you haven't got any relevant experience. Students need to get out there and get something to put on their CVs, so that when they start applying for jobs they will be in a relatively strong position.

A graduate Alexander Shah, 26, account manager, Luchford APM PR agency says: “I never planned to work in PR. I'd set my heart on a career in advertising, but changed my mind after a stint of work experience at the cashmere label TSE. I'm currently working in the fashion division at Luchford APM, a PR agency that specialises in luxury brands. Before that I worked at the fashion PR agency Modus Publicity. Initially getting into the industry was probably the toughest process. I secured a work placement at TSE as a result of my persistent applications for a role which did not exist, and even then it was unpaid. However, the contacts I made and things I learned there were rewarding. I've done a variety of different jobs in PR - some glamorous, some tedious. I've helped to organise fashion shows and worked closely with celebrities on parties and launches, but I've also had to pack goody bags in freezing conditions with only a broken-down heater for company. You have to take the rough with the smooth. When I first started out I had to work for free for a year as a means of building up my experience working with a reputable company. And even when you get a job, PR doesn't pay all that well initially”.

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Vickers PLC - a Very Brief Case Study

The development of financial public relations at Vickers PLC from the mid-1980s provides a good example of the benefits of having a clear financial public relations strategy in good times and bad.

This famous name in British engineering is now a medium-sized company with an interesting portfolio of companies including Rolls-Royce Cars and Vickers Defence Systems, the UK's only manufacturer of main battle tanks. In the mid-1980s, Vickers was still recovering from the nationalization of its shipbuilding and aircraft business in the mid- 1970s, but following its merger with Rolls-Royce Motor Cars and under the guidance of its new chief executive, David Plastow, was just developing its strategy of concentrating on a limited number of areas of engineering and technological excellence. Its public relations and investor relations strategy was also developed at this time and given particular impetus by the Big Bang in the City.

The communications strategy devised by management and the in-house public relations director was simple: to ensure an understanding of the company's business strategy and its aim of re-focusing its somewhat diverse businesses. A key aim of the programme was to achieve a thorough familiarity with the company's senior management - and its ability to deliver the goods -among a clearly defined specialist City audience. No attempt was made either then or since to explain to the public the confusing situation whereby Vickers owned Rolfs-Royce Motor Cars rather than Rolls-Royce PLC, that the Vickers Shipyard in Barrow no longer belonged to Vickers. Or that Vickers which has been historically famous for aircraft manufacture since the days of Alcock and Brown and the Vickers Vimmy, the Wellington and not to mention the Spitfire, no longer manufactures aircraft. The in-house public relations department was set up to both manage media relations and investor relations in a coordinated fashion and to develop an understanding of the company's followers, whether they are journalists, investment analysts or institutional fund managers. The department of eight or so people divided the work into three main areas - media relations, investor relations and the rest, including internal communications, events and publications. The director of public relations personally took on the responsibility for investor relations, with the number two being the media relations specialist. They carried out all the public relations functions, including the running of a press office, but their prime responsibility was as an advisor to the chief executive and finance director. They were supported by ad hoc consultancy advice. If the strategy was simple, the tactics were even simpler: to take the opportunity of acquisitions and disposals, results announcements and the high profile of the chief executive to put across the company's messages, either via the press or directly to analysts and fund managers. It was important, however, that these opportunities were taken against an established background of understanding. The initial part of the public relations programme involved organizing briefings usually on a one-to-one basis for the chairman, the finance director or the director of public relations as appropriate with key journalists, analysts and other key City players whose opinions would be sought in the City. The importance of the chief executive, Sir David Plastow, in all of this cannot be over-estimated. A natural communicator and a man who clearly understood the need for proper public relations, he already had a good reputation in the City for being a straight talker and someone who did not disappoint shareholders. It is all too easy for corporate and financial public relations to become focused around the personality of one person, but people like to see companies with clear leadership and to be run by one or two people who are demonstrably in charge. In David Plastow, Vickers had a very good man to put forward.

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Ethics and Public Relations

by Shannon A. Bowen, Ph.D.

Executive Summary

The central purpose of this article is to provide an overview of ethics in public relations. I review the evolution of public relations ethics, the current state of practice, and the thoughts of ethicists. Definitions will be provided and key areas of evolution and debate within the field will be addressed. Implications for practitioners are discussed, including the research showing that a strong sense of ethics and of how to arrive at ethical decisions can enhance the career prospects of public relations professionals. Recommendations for public relations practitioners are made, including topics such as gaining access to an organization’s top decision makers, promotion to an ethical counselor role, on-the-job ethics training or ethics study, and approaches to ethical analyses. Finally, practical guidelines for dealing with ethics will be offered, followed by an annotated bibliography with suggestions for further reading.

http://www.instituteforpr.org/essential_knowledge/detail/ethics_and_public_relations/

Defining Ethics

The Internet Encyclopedia of Philosophy explains: “The field of ethics, also called moral philosophy, involves systematizing, defending, and recommending concepts of right and wrong behavior” (http://www.iep.utm.edu/e/ethics.htm). Definitions of ethics normally have in common the elements of requiring some form of systematic analysis, distinguishing right from wrong, and determining the nature of what should be valued. In the public relations discipline, ethics includes values such as honesty, openness, loyalty, fair-mindedness, respect, integrity, and forthright communication. This definition of public relations ethics goes far beyond the olden days of “flacking for space” or spinning some persuasive message, but this view is not shared by everyone.

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Types of Public Relations Tools

As we noted in the Public Relations tutorial, the challenges faced in doing PR will lead many marketers to hire professionals to handle these activities. Whether marketers do their own PR or seek outside help, it is important they be familiar with the tools available for public relations.

Media Relations

Historically the core of public relations, media relations, includes all efforts to publicize products or the company to members of the press — TV and Radio, newspaper, magazine, newsletter and Internet. In garnering media coverage, PR professionals work with the media to place stories about products, companies and company spokespeople. This is done by developing interesting and relevant story angles that are pitched to the media. It is important to remember that media placements come with good stories and no payment is made to the media for placements. In fact, in order to maintain the highest level of credibility, many news organizations bar reporters from accepting even the smallest gifts (e.g., free pencils with product logo) from companies.

Key tools used in media relations include:

Press Kits - Include written information such as a news release, organization background, key spokesperson biographies and other supporting materials that provide information useful to reporters.

Audio or Video News Releases - These are prerecorded features distributed to news media that may be included within media programming. For instance, a local news report about amusement parks may include portions of a video news release from a national amusement park company.

Matte Release - Some media, especially small local newspapers, may accept articles written by companies often as filler material when their publication lacks sufficient content. PR professionals submit matte releases through syndicated services (i.e., services that supply content to many media outlets) or directly to targeted media via email, fax or snail mail.

Website Press Room - While hard copies of materials are used and preferred by some media, marketers are well served by an online press room that caters to media needs and provides company contact information.

Media Tour

Some new products can be successfully publicized when launched with a media tour. On a media tour a company spokesperson travels to key cities to introduce a new product by being booked on TV and radio talk shows and conducting interviews with print and Internet reporters or influencers (e.g., bloggers). The spokesperson can be a company employee or someone hired by the company, perhaps a celebrity or "expert" who has credibility with the target audience. One common use of the media tour is the book tour, where an author travels around the country to promote a newly released book.

Newsletters

Marketers who have captured names and addresses of customers and potential customers can use a newsletter for regular contact with their targeted audience. Newsletters can be directed at trade customers, final consumers or business buyers and can be distributed either by regular mail or electronic means (i.e., e-newsletters delivered via email or RSS feed). Marketers using newsletters strive to provide content of interest to customers as well as information on products and promotions.

Special Events

These run the gamut from receptions to elegant dinners to stunts. Special events can be designed to reach a specific narrow target audience, such as individuals interested in college savings plans to major events like a strawberry festival designed to promote tourism and regional agriculture. Stunts, such as building the world’s largest ice cream sundae during National Ice Cream month captures the attention of an audience in the immediate area, but also attracts the attention of mass media such as TV news and major newspapers, which provide broad reach. The Oscar Mayer Weiner mobile is a classic example, providing a recognizable icon that travels the country garnering attention wherever it visits. As with all PR programs, special event planners must work hard to ensure the program planned conveys the correct message and image to the target audience.

Speaking Engagements

Speaking before industry conventions, trade association meetings, and other groups provides an opportunity for company experts to demonstrate their expertise to potential clients/customers. Generally these opportunities are not explicitly for company or product promotion; rather they are a chance to talk on a topic of interest to potential customers and serve to highlight the speaker’s expertise in a field. Often the only mention of the company or its products is in the speaker biography. Nevertheless, the right speaking engagement puts the company in front of a good target audience and offers networking opportunities for generating customer leads.

Sponsorships

Companies and brands use sponsorships to help build goodwill and brand recognition by associating with an event or group. Marketers can examine sponsorship opportunities to find those that reach target groups, fit within a specified budget and provide sponsorship benefits that suit the marketer’s objectives. There are numerous local, regional, national and international sponsorship opportunities ranging from a local art center or theatre to the Olympics. Most organizations seeking company sponsors provide information on the variety of sponsorship levels which include data on event audience, exposure opportunities, which can include signage, T-shirts, public announcements and numerous other opportunities, receptions and much more. Marketers can use this information to help match sponsorship opportunities with the company’s objectives.

Employee Communications

For many companies communicating regularly with employees is important in keeping employees informed of corporate programs, sales incentives, personnel issues, as well as keeping them updated on new products and programs. Companies use a variety of means to communicate with employees, including Intranet, email, online and print newsletters. In larger firms an in-house PR department often works in conjunction with the Human Resources Department to develop employee communications.

Community Relations and Philanthropy

For many companies fostering good relations with key audiences includes building strong relationships with their regional community. Companies implement programs supportive of the community ranging from supporting local organizations and institutions (e.g., arts organizations, community activities, parks) to conducting educational workshops (e.g., for teachers, parents) to donating product for community events and charitable fundraisers. The goal is generally to develop a positive relationship with members of the community (i.e., be known as a good neighbor). Effective community relations can help a company weather it meets bad publicity or a crisis situation that can unexpectedly arise due to a problem with a product, unethical behavior by management, or even by false rumors. Some companies also make an effort to contribute to charitable organizations, often organizations that have some relationship to the company’s mission or to a key principal of the company.