Èñòî÷íèê:Social Innovation:Concepts, research fields and international trends
Despite the fact that public relations were used long time ago, but professionally they were considered only at the end of XX century. The practice of public relations is common in the world, its importance on business prospects and its efficiency was assessed, but this area is in the stage of development in Lithuania. Public relations allow gaining of public confidence in the company, to earn consumers‘ loyalty, to solve company and public related conflicts, to form a positive image of any company, they increase the popularity of goods and organization, demonstrate social responsibility of any company. The area of public relations is very broad. An increasing professionalism of services providers, experience of services recipients, a lot of new products in the market make it necessary to use public relations in different areas, such as: planning of company‘s strategy, marketing communication, crises management, etc. The study of different sources of public relations in Lithuania allows to state that the expansion of public relations within the level of companies is fragmentary and the essence as well as their importance is poorly understood yet.
Problematic issue. Public relations in Lithuania are relatively new means of communication with public.Some enterprises acknowledge the importance of public relations, but they do not plan this activity or this activity is only episodical, conditioned only by current situation. A big handicap of public relations expansion is insufficient mastering of the concept of public relations.
The results of the empirical research carried out in 2005 speak of the necessity of public relations content recognition and the importance of purposeful planning of this activity related to companies‘activities. (Rumbutis, 2005). That is why the goal of this article is to highlight the content of decisions related to the planning of public relations. Research object – planning of decisions related to public relations.
The raised goal determined the following research tasks:
1. To ground the importance of public relations to company’s activities.
2. To name the essence of public relations.
3. To ground the necessity of public relations planning.
4. Having performed the study on scientific public relations, to present the consistency of public relations planning.
Importance and essence of public relations More and more companies, state institutions and nonprofit organizations understand that it is beside the purpose to dissociate from public or its separate groups as well as from the settled opinion and to behave only upon personal interests, when competition of Lithuanian companies is increasing and integration into the world economy together with the power increase of private sectors is concerned.
Positive public opinion, friendliness towards company and trust in its actions may be an important condition of company‘s successful activities. Such attitude is stimulated by a constantly increasing tension in the market – a number of competitors is quickly increasing in different business sectors, goods find a number of substitutes, there are more selection related opportunities to consumers.
An increasing quantity of information delivered to consumers and better selection opportunities increase the asymmetry of information – chances of consumers selection are decreasing, when selection of goods that may satisfy their needs most of all is concerned. The need of complex marketing means becomes urgent – advertising or individual sales may not ensure company‘s success in the market, because with the increase of advertising scale, the resistance of consumers to such information increases too. Besides, when economic status of consumers is increasing, they pay more and more attention to external factors related to goods and purchasing process itself. A company that is trying to build consumers‘trust must maintain intensive relationship with different interested groups– organizations that defend consumers‘and employees‘interests, state institutions related to decisionmaking, community representatives, etc.
F. Kotler (2003), D. L. Wilcox (2003), F. Brassington and S. Pettitt (2000), S. M. Cutlip (2000), J. Blythe (2003), L. Sliburyte (2001) and according to other scientists, in order to successfully develop one‘s business, it is necessary to maintain constant relationship with public and separate public groups, it is necessary to know public opinion on relevant issues of any company, public needs and needs of separate public groups and their interests and to plan their actions properly.
Such information and relationship is necessary in order to create and strengthen public trust and friendliness towards any company, to increase public interest, to gain public understanding and approval related to company‘s activities, to influence public opinion related to relevant issues of any company, to solve conflicts between company and public efficiently and to maintain a positive image in the society. Despite the fact that the benefits of public relations are obvious, but according to the data of the empirical research carried out in 2005 in Lithuania, companies pay too little attention to public relations related activities. 90 % of respondents define public relations narrowly and loosely (I. Rumbutis, 2005). This is one of the reasons, why the planning of public relations related decisions is fragmental in Lithuanian companies and it is not efficient.
In order to highlight the essence of public relations, we invoke the opinions of different scientists. J.T.Russell and W.R.Lane (2002) state that public relations are company‘ s relations with different organizations, public layers and individuals that allows creating of a positive image of company and favorable conditions to its activities. D. Simkin (1997) states that public relations are planned,well-natured and mutual relations between an organization and its purposive public. J. E. Gruning and T. Hunt (1984) define public relations as the function of management between any organization and its public. According to P. Kotler (2003), public relations is one of the most complex and uncommon elements of promotion. This element is an exceptional one, because its results may be noticed only after a period of time. The benefits of public relations are hard to measure and only approximate calculations are possible, having eliminated possible side effects (Hon, 1998). The assessment of the final result is difficult, because public relations are not a finite process, it is vice versa: it is constantly being developed and shaped. According to the experts of public relations such as J. Blythe (2003), L. C. Hon (1998), S. Harrison (2000) and V.Gudoniene (2004), their effectiveness is assessed having compared the results of public relations programme with the goals determined in that programme.
All this determines another feature of public relations – a constant and consistent work in this area is needed, because one day-length projects will be fruitless. The process of public relations maintenance is a long-termed one and it must be pursued according to a detailed plan. The essence of public relations is defined as maintenance of close relations between an organization and its purposive audience, but W.G. Zikmund and M. d‘Amico (1993) state that public relations, in many cases, are used instead other elements of promotion – advertising, individual sales, promotion of sales. On the other hand, public relations may be intended for promotion of products, people, localities, ideas, activities, organizations and even nations. (Kotler, 2003). They may be used in order to increase familiarity of any object known and to form public opinion about that object. H. L. Zankl (1975) affirms that public relations is a very broad sphere of activities that covers the creation of every favorable condition of activities to company and their promotion and emphasizes the following important functions: informing, communication, management, image creation, co-ordination, promotion of sales, stabilization, consistency.
Due to the variety of functions and all other features mentioned, public relations are a complex way of opinion formation about company, the results of which are hardly correctable. That is why public relations must be planned in order to achieve maximum efficiency. All discussed activities are based on information transfer through different communication channels, with the participation of middlemen, whose decisions related to information transfer, may be influenced by company least of all. Naturally, carefree public relations may negatively influence any company‘s activities.
Having summed up the presented opinions of the scientists, we may affirm that a very important factor is company‘s image and almost all actions related to public relations are this factor orientated. This factor is preconditioned by abstract public opinion or opinion of some 68 public groups about particular company. A very broad use of public relations and its efficiency in the long run, positions public relations as one of the main forms of marketing communication necessary to any company, which is trying to gain consumers‘ trust, when increasing the familiarity of that particular company or its brand and when trying to find out decisions in crises-like situations. The features of public relations functioning require extraordinary concentration and responsibility, when decision planning of public relations is concerned.
Consistency of public relations planning The necessity of public relations planning is determined by the use of peculiarities of public relations, the variety of possible means of communication, disturbances within information transfer channel. The planning of public relations covers several stages. Different authors indicate a little bit different stages of planning, but the essence of public relations planning remains the same: planning must cover not only tactical actions intended for public relations, but strategic decisions too, the ones that are related to common company missions, goals and strategy.
S. M. Cutlip (2000) divides the entire process into 4 main stages; each of them consists of several minor activities:
1. Problem definition. The most important aspect of this stage – problem identification. It is necessary to formulate the problem, before proceeding with the planning process that would allow selecting adequate means of problem solving.
2. Planning and programming. The programme base is formed in this stage – goals and tasks are defined, purposive auditorium is defined here too. This is a basic stage of programme formation, which defines further planning stages and their trends.
3. Execution and communication. The strategy of public relations is prepared in this stage, which covers all future actions and its execution methodology.
4. Programme assessment. A plan of programme assessment is made in this stage and its feedback is ensured. This stage also defines programme corrections (programme correction methodology and limitations).
S. M. Cutlip (2000) treats strategy formation not as an essential element of the entire programme, which determines other stages of programme planning, but more likely like tactical means and regards it as tactical activity– a stage of programme execution. S. Harrison (2000) presents a rather unconventional process of public relations planning; she treats public relations through communication with public prism. This author presents the process of public relations planning as transmission of a message, so that is why the planning process regards the stages of message creation and message communication methodology as separate stages. S. Harrison (2000) highlights the importance of this strategy; she describes the first planning stage as formation of strategic relations. Goals are formulated in this stage and they are based on the determined communication strategy.
D. L. Wilcox (2003) recommends referring to the process of 8 stages planning. This author highlights:
1. Situational analysis. Situational analysis covers traditional trends of marketing environment analysis: external environment, internal environment, company‘s benefits and shortcomings, etc. This is the initial planning stage of public relations, which names the problem and the importance of its solution to particular company. Having performed situational analysis, company‘s relations with customers and public are determined, possible influence of public relations on these relations is considered too.
2. Determination of goals. This stage is important, because the determined goals of public relations, related to any activity or company, determine further stages of planning.– strategy, tactics, etc. The determined goals must be inter-related to the results of the performed situational analysis; they must be real, achievable and measurable. The goals of public relations must match common company mission, its strategy and goals.
3. Determination of purposive auditorium. Public relations is an element of promotion, they are inter-linked with proper auditorium. So, that is why identification of purposive auditorium is an inevitable stage of public relations planning. Only in exceptional cases, campaign of public relations may be “all public“orientated. Purposive auditorium may be named by such characteristics as age, income, social status, education, possession of particular goods, place of residence,etc. Very often, purposive auditorium is formed from several levels: initial auditorium is highlighted (main consumers of organizational services or goods), secondary auditorium (people that are potential consumers of organizational goods or services).
F.Brassington, S.Pettitt (2000) highlight these 2 main purposive groups:
• Financial groups. They consist of shareholders, investors, banks and other financial institutions.
• Commercial groups. They consist of suppliers, clients, other partners and competitors.
• Authorities. They are governmental structures, including structures of the highest level as well as institutions of the lowest governmental level, political parties.
• Mass-media groups. These are all forms of mass-media representatives, who may make tendentious information about particular company public and its influence may be very strong.
• Internal groups of company. Very often, public relations are applicable to external public groups, but one may never ignore company‘s employees and organizational structures (firstly – trade unions) – company‘s internal groups.
• Public. This is the group, which covers all other groups, common provisions of which influence minor groups interested in company‘s activities.
In Lithuania, public relations mostly try to inform a larger part of public, without concretizing purposive groups of particular company (Rumbutis, 2005). This 69 shows that public relations are usually used in order to increase the familiarity of particular company‘s brand and its goods and only in certain cases this activity is used for formation of close relations with purposive groups (commercial, mass-media, governmental and other).
4. Strategy. Strategy defines primary programme guidelines that must be considered in all planning stages (Wilcox, 2003). Depending on public relations‘goals, one general or several different goals orientated strategies may be formed. R.A. Fatchutdinov (2000) affirms that the strategy selected depends not only on company‘s general strategy, public relations goals and other objective reasons, but also on the formers of the strategy themselves. The formation of public relations is very often grounded by the models of public relations highlighted by J.E. Gruning and T. Hunt (1984)
A model of press agency /publication or one- way asymmetry. The essence of this model is generation of propaganda related information that may attract public attention. By using this model, company does not raise long-term promotion of public relations. Such public relations related activities are the easiest one, because they are not related to company‘s strategy and are regarded as a short-term tactical element. Information asymmetry (which in this model is interpreted as not very accurate information provided to consumer) is not treated as a negative factor related to company‘s image and is regarded as one of the elements that may increase demand.
Informing of public. This model is one- way symmetry. In case of his model, the same means of public relations as those of the first model are used, but the purpose of their usage and the form itself is different. In this case, the goal of public relations is not an increase of demand, but informing of public. Articles in massmedia and support by experienced press-agencies, are used for that purpose.
A two- way model of asymmetry is based on scientific, research grounded, persuasion methods that allow changing public opinion and thus avoiding changes in particular organization. Every endeavor is made in order to achieve a two-way communication, various means of public relations are used, and side activities (advertising, marketing, etc.) are included in the strategic plan. In case of a two- way symmetry model every effort is made in order to change organizational and public opinions, attitudes and behaviour, thus managing the relation between these two subjects. A two-way symmetry is trying to achieve long-term goals with public and the base of it is creation of mutual understanding. The two aspects are very important for the use of this model– insurance of mutual communication (importance of feedback) and information accuracy. The practice of public relations in Lithuania in many cases corresponds the two- way symmetry model, which is regarded as the model that matches the concept of public relations best of all and ensures the most efficient communication with purposive groups. (Rumbutis, 2005). The model of one-way symmetry is also very often used and company‘ s communication based on this model does not create feedback opportunity.
The first three models determine only transformation of public attitude towards organization – information is transmitted to public, which must form a proper attitude towards organization or its activities. The fourth model, a model of two- way symmetry, includes organization itself into the process of changing. In this case, public opinion as well as organizational attitude towards public and its relevant factors also changes. (Shin, 2004). Within the context of present-day marketing, which is consumer and the importance of mutual co-working orientated, the base of public relations strategy must be a two-way model of symmetry, which matches the concept of public relations best of all and may ensure the best and efficient communication with purposive groups.
5. Tactics. Tactics is generally grounded during strategy formation by the determined guidelines of public relations related activities and may be assessed as a stage of strategy concretizing, where the level of public relations programme execution is reached.
6. Creation of a timetable-schedule. This covers 3 main elements: intended time of public relations campaign launch and the sequence of actions. A timetable is closely related to tactical decisions of public relations. It is very important to avoid unwanted duplicated means relations, which may double the costs incurred for the attainment of the same result in the process of timetable creation. It is also recommended to avoid unwanted gaps of relations with public in the course of actions that may eliminate some public relations related to the programme effect.
7. Budgeting. Very often, budget of public relations is very subjective. Its size is determined by particular company‘s management and its attitude towards the need of public relations and the availability of financial resources or by the abilities of particular marketing director to ensure company‘s management to allot financial resources. All this is related to difficulties when determining an accurate impact public relations may play on company‘ s financial results. Most frequently used ways of budgeting are these: 1) guessing based on theory of chances; 2) traditions; 3) financial status of company ( Wells and Burnett, 2000).
Budget determines what public relations related actions companies may undertake, that is why budgeting is critical when a planning stage of public relations is concerned. Very often, budget of public relations is divided into 2 parts– staff labour-related expenditure and extra expenditure. The first part of budget is related to personnel activities and it does not require direct expenditure – it is assessed as labour-intensive that is why some kind of resources calculation subjectivity does exist. The second part of budget can be calculated exactly, because it includes indistinctive expenditure related to common organizational activities that is directly related to public activities. (Wilcox and others. 2003).
The size of communication with public budget also depends upon activity area. Manufacturing companies, whose main clients are large enterprises, usually allot fewer resources for communication with public, because the most efficient method of promotion for such companies is individual sales. Companies engaged at retail 70 sales, allot a lot more resources for communication with public, because they are efficient enough to familiarize potential consumers with goods and to persuade them to purchase goods (Wells and Burnett, 2000).
8. Programme assessment. According to J. Blythe (2003), L.C. Hon (1998), S. Harrison (2000), V.Gudoniene (2004), the efficiency of communication with public is assessed having compared their programme‘s results with the goals determined in that programme. V.Gudoniene (2004) highlights these results related to communication with public assessment components: Assessment of specific goals and tasks. Implementation of communication with public must include its goals. The elements of communication with public are very difficult to distinguish from marketing and advertising actions, that is why it is necessary to assess not the actions of complex communication with public, but every element separately too.
Assessment of quick and obvious results of public relations. Quick and obvious results related to public relations activities show how organization presents itself and what attention it receives. Quantity and quality may be assessed as well.
Assessment of results-outcome related to public relations. It is established whether purposive groups received a message intended to them, if they paid attention to it, if they understood it, if they reacted to it somehow? Also, checking is made whether messages changed any attitude, opinion or behavior.
Assessment of business or organizational activities. The assessed efficiency of public relations must be related to general goals of organization, its tasks and results (increase of sales, profitability, market share, etc.). This stage of public relations is directly related to other stages. That is why it is possible to point out the quality of separate stages or the entire programme preparation and its implementation when the efficiency of public relations programme is being assessed.
D. L. Wilcox (2003) recommended the stages of public relations related programme and they are rather precise, understandable and adoptive. Besides, D. L. Wilcox (2003) along with S. M. Cutlip (2000) project feedback as the final stage of the planning process that would allow to assess customers‘ needs and demands more accurately.
Having summed up all the above, we may affirm that due to hardly correctable results of public relations, benefits in the long-term perspective, complex determination of public relations efficiency, the process of planning in public relations obtains a very important role. The planning of public relations is necessary, it is essential to determine the actions and their sequence. Planning must not be episodical; every stage should be properly planned: starting from essential decision- making and ending up with the assessment of public relations programme.
Conclusions
1. The study of literature sources on scientific relations with public allows to state that the importance of public relations on company‘s activities unfolds itself by increasing the familiarity of goods or company brand, by obtaining customers‘ loyalty, by creating company‘s image, by solving conflicts between company and public, by demonstrating company‘s social responsibility and the final result of it is an increasing competitiveness of company and increasing sales.
2. Having summarized the attitudes of F. Kotler, D. L. Wilcox, S. M. Cutlip, J. E. Gruning and T. Hunt, D. Simkin, J.T.Russell as well W.R.Lane, public relations may be defined as an element of promotion, which is based on company‘s intention to create good-natured and mutual understanding based relations with customers, naming the increase of company‘s familiarity as the main goal. But public relations do not have a common definition and this complicates identification of public relations within the system of company‘s processes and aggravates the process of their planning.
3. Theoretical studies allow to state that the plan of public relations must be treated as the base of public relations execution. Public relations are named as long-term and purposeful activity, which can not be episodical. Only suitable plan of public relations may guarantee projected results of any company by the means of public communication. Due to hardly correctable results of public relations, benefits in the long-term perspective, complex determination of public relations efficiency, the process of planning in public relations obtains a very important role.
4. The planning of public relations is necessary, it is essential to determine the actions of public relations and to adjust their sequence. It is very important that their planning is not episodical, but every stage is properly planned. Having performed the study of literature sources on scientific relations with public, we may name this sequence of public relations planning:
• Situational analysis
• Determination of goals
• Determination of purposive auditorium
• Strategy preparation
• Determination of tactics
• Adjustment of a schedule-timetable
• Budgeting
• Programme assessment.
Analysis of scientific public relations currently is in the stage of growth, it is likely, that in future, scientific base of this area will be more developed and it will generate new decisions to companies in the area of public relations and more adoptive features of particular markets or its public relations.
Links:
ENGINEERING ECONOMICS. 2005. No 5 (45)