Managing advertising, sales promotion and public relations: In marketing, what is public relations (PR) and how does it support a company’s communication efforts?

Difficulty: Easy

Correct Answer: Public relations is the planned effort to build and maintain a favourable image and good relations with various publics through unpaid or earned media, events, and communication programs

Explanation:


Introduction / Context:
Public relations (PR) is an important part of the promotional mix, distinct from advertising and sales promotion. It focuses on influencing opinions and building a positive reputation for an organisation and its brands. PR works mainly through earned or unpaid media and through relationship building, rather than paid advertising. This question checks understanding of the basic definition and role of public relations in marketing.


Given Data / Assumptions:

  • Companies interact with multiple publics such as customers, employees, investors, media, government, and communities.
  • Public relations activities may include press releases, press conferences, sponsorships, events, and community relations programs.
  • PR aims at long term goodwill rather than immediate sales spikes.
  • It relies heavily on credibility of independent media coverage.


Concept / Approach:
In marketing, public relations is the planned and sustained effort to establish and maintain mutual understanding between an organisation and its publics. It supports marketing by building a favourable image, handling crises, introducing new products to the media, and supporting brand stories. Unlike advertising, where the company buys space or time, PR typically earns coverage through newsworthiness and relationships. Effective PR can be more credible than paid ads because messages are carried through independent sources such as journalists or community leaders.


Step-by-Step Solution:
Step 1: Recall that PR is about reputation, image, and relationships with stakeholders. Step 2: Note that PR uses tools like news releases, media briefings, special events, sponsorships, and community initiatives. Step 3: Recognise the difference from sales promotion, which offers short term incentives, and from advertising, which involves paid, controlled messages. Step 4: Compare the options to identify which one describes PR as planned image building through unpaid or earned media and communication programs. Step 5: Select the option that correctly defines public relations in this way.


Verification / Alternative check:
Imagine a company launching a new product. If it publishes advertisements in newspapers and television, that is advertising. If it organises a press conference, invites journalists, issues news releases, and sponsors a local event to create goodwill and media coverage, those are PR activities. These do not involve paying for ad space but instead rely on relationships and news value. This distinction confirms the essence of PR described in the correct option.


Why Other Options Are Wrong:
Option b describes sales promotion, which focuses on short term price incentives. Option c reduces PR to purchasing advertising, which is actually the definition of advertising, not PR. Option d refers to internal sales planning and quota setting, which is part of sales management and not public relations.


Common Pitfalls:
One pitfall is to underestimate PR and treat it only as crisis management instead of an ongoing reputation building function. Another mistake is to confuse PR with advertising because both involve communication. Marketers should remember that PR is about earned visibility, relationships, and credibility, while advertising is paid and controlled. Both can work together in integrated campaigns.


Final Answer:
Public relations in marketing is the planned effort to build and maintain a favourable image and good relations with various publics through unpaid or earned media, events, and communication programs.

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