Public Relations Strategies: Planned and Crisis Public Relations (VCE SSCE Business Management): Revision Notes
Public Relations Strategies: Planned and Crisis Public Relations
Understanding public relations strategies
Public relations (PR) involves managing communication between a business and its various publics (customers, stakeholders, media, and community). Businesses use two main types of PR strategies: planned public relations for proactive communication and crisis public relations for reactive management of unfavorable situations.
Effective PR strategies serve as the foundation for how a business is perceived by the public. Without proper PR management, even high-quality products or services can fail due to reputation issues or poor communication.
Effective PR strategies are essential for:
- Building and maintaining a positive business reputation
- Increasing brand exposure and awareness
- Managing stakeholder relationships
- Protecting the business during challenging times
Planned public relations
Planned public relations refers to proactive strategies where businesses control the timing, message, and delivery of their communications. By planning PR activities in advance, businesses can ensure publicity is positive and increases their public profile.
Purpose and integration with marketing
Planned PR allows businesses to maximize opportunities they can control. These strategies work alongside marketing activities and should be carefully coordinated to ensure consistent messaging across all channels.
Critical Integration Considerations:
When integrating PR with marketing, businesses must consider:
- PR should lead product or service launches to build anticipation
- The message must be clear and appropriate for the audience
- PR activities need to reach multiple audiences and stakeholders, not just customers
- Additional research beyond product information may be necessary
- Senior managers and brand managers should attend media events
- Building ongoing relationships with media is essential for long-term success
Many businesses employ PR consultants or have dedicated PR departments to manage these strategies professionally.
Methods of planned public relations
Free publicity
Businesses can generate free publicity by issuing communications about specific events or functions. When media outlets run these stories, the business receives exposure without paying for advertising.
Practical Application: Real Estate Agency Launch
A new real estate agency might combine a paid advertisement with a story in the local newspaper featuring the business opening and employee profiles. This approach provides both paid and earned media coverage, maximizing exposure whilst building community connections through personal stories about the team.
Developing relationships with the community
Building positive community relationships involves opening business operations to public view. This transparency helps build trust and understanding.
Examples of community engagement:
- A local gym might hold an open house allowing potential members to tour facilities
- Retirement villages often host open days for prospective residents
- Factories may open their sites to address community concerns about environmental impact
These activities demonstrate the business's commitment to the community and provide opportunities for direct engagement.
Public information
Public information includes data and activities designed to benefit the public whilst simultaneously promoting the business. This approach provides genuine value whilst building goodwill.
Real-World Application: Traffic Information Systems
Freeways around Melbourne display travel time information and traffic conditions. This service helps motorists plan their journeys whilst creating positive publicity for the organizations providing the information. The public receives valuable, practical information whilst developing positive associations with the sponsoring organizations.
Media releases
A media release is a formal statement issued to media outlets to inform them about new products, major announcements, or significant changes. PR officers craft these releases to influence media coverage and generate favorable publicity.
Media releases serve multiple purposes:
- Announce new product launches
- Communicate major business changes
- Respond to industry developments
- Position the business as an industry leader
Social media has transformed how media releases are distributed. Businesses can now share releases quickly and directly with customers and the general public, bypassing traditional media gatekeepers whilst still maintaining professional standards.
Brochures, pamphlets and newsletters
Although these involve some production costs, printed materials provide relatively inexpensive communication with the public and stakeholders.
Common uses include:
- Profiling staff members to humanize the business
- Discussing business changes and developments
- Promoting upcoming events
- Highlighting new products or services
These materials create tangible connections with audiences and can be distributed widely at low cost.
Social media platforms
Most businesses now use social media as a primary PR tool due to its significant advantages:
- Instant and timely information release
- Relatively inexpensive to implement
- Reaches large audiences quickly regardless of business size
- Enables two-way communication with stakeholders
- Allows rapid response to issues or questions
Businesses with social media expertise can effectively manage their reputation and ensure favorable information circulates about their brand.
Open days and tours
Opening business premises to the public presents opportunities to improve or reinforce corporate image. These events allow people to see the business in operation and develop understanding of its activities.
Examples across different sectors:
- Schools, TAFEs, and universities hold open days for prospective students and families
- Manufacturing facilities may offer factory tours
- Service businesses might host behind-the-scenes events
These direct experiences create stronger connections than traditional advertising alone.
Seminars and conferences
Conferences and seminars allow businesses to train staff or inform customers and potential customers about products, services, or industry developments.
Advantages of this approach:
- Information can be presented visually for better comprehension
- Participants can ask questions and engage directly
- Usually attracts genuinely interested parties
- Disseminates information quickly to wide audiences
- Positions the business as an industry expert
These events work particularly well for complex products or services requiring detailed explanation.
Sponsorship
Sponsorship creates awareness and positive brand associations by supporting activities that matter to target audiences. Businesses provide financial support in return for naming rights, merchandising opportunities, and brand exposure.
Common sponsorship categories:
- Sporting events: Australian Tennis Open, AFL Grand Final, local sporting clubs
- Arts organizations: Opera Australia, Australian Ballet
- Charitable causes: The Smith Family partnership with Officeworks' Back to School Appeal
Sponsorship aligns the business with positive community activities and values, building goodwill and brand recognition.
Current trends in public relations
PR practices continue to evolve with technology and changing stakeholder expectations:
- Senior management controls messages: Leadership takes direct responsibility for PR communications
- Social media increasing in importance: Digital platforms become primary PR channels
- Online reputation critical: Businesses must actively manage their digital presence
- Policies and processes formalized: Structured approaches replace ad-hoc responses
- Innovative product promotion: New creative methods for reaching audiences
- Targeting influential individuals: Focus on people who can amplify messages to wider audiences
The Digital Transformation of PR
The shift toward digital PR represents more than just a change in medium. It requires businesses to adapt to faster communication cycles, more transparent operations, and greater accountability. Organizations that resist these changes risk becoming irrelevant in the modern marketplace.
Crisis management in public relations
Crisis public relations occurs when a crisis or major issue arises that requires immediate response and brand management. Unlike planned PR, crisis PR is reactive and must be implemented swiftly.
What constitutes a crisis?
A crisis is an unfavorable set of circumstances or difficult situation that places immediate public attention on a business. Crises typically involve:
- Accidents or safety incidents
- Equipment failure affecting operations or customers
- Product recalls due to defects or contamination
- Poor service or quality issues
- Legal or ethical violations
Crises attract intense media scrutiny because they often have strong human elements, making careful crisis management essential. The speed and transparency of response often matters more than the crisis itself in determining long-term reputational impact.
Why crisis management matters
Poor crisis management can severely damage a business's reputation with long-lasting implications for customer relationships. The consequences of mishandling crises include:
- Threats to public safety
- Significant financial losses
- Irreparable reputational damage
- Loss of customer trust
- Legal proceedings
- Potential business failure
Effective crisis management minimizes these impacts and may even create opportunities for improvement.
Crisis management plan
An effective crisis management plan considers three strategic approaches:
- Prevent the crisis from happening initially through risk analysis and mitigation
- Resolve the crisis quickly before it escalates into a larger problem
- Seek opportunities to learn, improve, and address deeper structural issues
Prevention
Prevention is the most effective crisis management strategy. Businesses should:
- Regularly analyze operations and products to identify potential risks
- Develop strategies to minimize or avoid identified risks
- Implement safety protocols and quality controls
- Train employees on crisis prevention procedures
Response
If prevention fails, businesses must minimize crisis impact through:
- Keeping employees informed to reduce stress and maintain morale
- Prioritizing public safety above all other concerns
- Controlling the narrative by raising issues before media discovers them
- Acting swiftly and transparently
- Maintaining honest, well-coordinated communication
The Golden Rule of Crisis Response:
Businesses should always prioritize transparency and swift action over protecting short-term reputation. Attempts to hide or minimize crises typically backfire spectacularly in the age of social media and 24-hour news cycles.
Learning and development
Crises can provide valuable learning opportunities when businesses:
- Assess how and why the crisis occurred
- Develop better plans and procedures
- Address deeper structural issues
- Implement improvements based on lessons learned
Elements of an effective crisis management plan
Essential Crisis Management Components
| Element | Explanation |
|---|---|
| Key contacts | Outline individual responsibilities, include relevant forms, and identify a crisis team representing different business sections (e.g., finance, human resources) |
| 'Face' of the business | Designate a consistent spokesperson for the crisis duration to ensure messaging remains uniform |
| Detailed plan | Create a comprehensive reference guide enabling timely responses to various crisis scenarios |
| Strategies determined | List implementable strategies including apologies, victim compensation (if relevant), reminders of previous positive contributions, and praise for crisis responders |
Examples of crisis PR failures
Case Study: Volkswagen Emissions Scandal (2015)
Volkswagen promoted vehicles in the United States as low-emission, but the US Environmental Protection Agency discovered software allowing cars to detect emissions testing and manipulate results.
The Crisis: This breach of consumer trust through false advertising damaged Volkswagen's worldwide reputation and raised fears about impacts on the German economy.
The Impact: The company lost customer trust globally, demonstrating how technical deception can destroy years of brand building. The scandal showed that even major multinational corporations cannot escape consequences when they deliberately mislead consumers.
Case Study: Pepsi and Kendall Jenner Advertisement
Pepsi launched a campaign featuring model Kendall Jenner joining a protest and handing a police officer a Pepsi. Released shortly after major protests against racial inequality and police brutality in the USA, the ad was criticized as insensitive product promotion exploiting serious social issues.
The Response: Pepsi apologized and withdrew the campaign, but the damage to brand perception had already occurred. This case demonstrates the importance of cultural sensitivity and understanding the social context when creating promotional content.
Case Study: easyJet Customer Service Failure
When a passenger posted a photo of an elderly woman sitting on a backless seat during an easyJet flight, the airline asked the passenger to delete the tweet and discuss the matter privately.
The Backlash: This response generated significant online backlash, demonstrating that businesses cannot hide customer service failures and must address them transparently. The attempt to suppress information made the situation worse than the original incident.
Case Study: Tesla Cybertruck Unveiling
Tesla described its new truck as bulletproof before the official launch. During the live reveal, the company attempted to demonstrate the truck's strength by throwing metal balls at the glass, which shattered twice.
The Outcome: Whilst this didn't cause lasting brand damage, it highlighted the importance of thoroughly testing products before public demonstrations. Tesla's strong existing reputation helped the company weather this embarrassment.
Maintaining positive customer relationships
Businesses must actively work to maintain positive relationships with their customer base. Poor PR management makes this difficult and can irreparably damage reputation.
Importance of customer service
Research demonstrates that customer service significantly influences business success:
Critical Customer Service Statistics:
- Over 50% of customers stopped buying from companies due to poor pandemic communications
- 20% left businesses when call wait times became too long
- Similar numbers switched to competitors when they couldn't get responses
- 14% abandoned companies due to insensitive communications
- Nearly 80% say customer service influences their relationship with brands
These statistics demonstrate that customer service is not just a support function—it's a critical business driver that directly impacts revenue and reputation.
Customer expectations
Modern customers expect personalized experiences:
- Around 75% of 18-34 year-olds are more likely to purchase after personalized experiences
- Over 55% expect brands to understand their values
- 52% want companies to know them as individuals
- Most (56%) don't believe customer service matches brand reputation
However, only 14% of Australians expect any personalization, suggesting businesses have opportunities to exceed expectations.
Common customer service failures
The main customer complaints include:
- Long wait times to speak with representatives
- Queries being passed around without resolution
- Scripted and automated responses
- Responses lacking actual problem resolution
These failures drive customers to competitors and damage long-term business relationships. In today's competitive marketplace, customer service excellence is not optional—it's essential for survival.
Implications of neglecting PR relationships
When businesses fail to maintain PR relationships, they face situations beyond their control. The consequences can be severe and long-lasting.
Poor PR strategies include:
- Poor timing: Publicity doesn't coincide with product or service releases
- Poorly worded releases: Media outlets find the business less credible
- No follow-up: Failing to ensure media releases are published in a timely manner
- Insufficient research: Not understanding target markets or message recipients
- Reactive rather than proactive approach: Always responding to problems rather than preventing them
Case Study: Virgin Australia Cultural Misstep
Virgin Australia announced it would publicly honor military personnel on flights, following practices in the United States. The company reversed this decision one day later after misreading Australian culture.
The Lesson: The incident demonstrated that importing practices from other markets without understanding local culture can damage reputation. What works in one cultural context may be inappropriate or uncomfortable in another.
Essential PR maintenance strategies
To avoid negative consequences, businesses must ensure:
- A comprehensive strategy exists for managing public relations and media
- Open communication channels operate with customers and stakeholders
- The business is proactive and responsive to crises or issues
- Relationships with media, customers, and community are continuously developed and maintained
Consequences of reputation loss
The Irreversible Nature of Reputation Damage:
Once business reputation is lost, it may never be fully recovered. The impacts include:
- Customer base erosion as people choose competitors
- Difficulty attracting new customers
- Reduced employee morale and retention
- Challenges securing business partnerships
- Potential financial collapse
Investing in strong PR relationships protects against these severe outcomes. Prevention is always more cost-effective than reputation repair.
Remember!
Key Concepts to Remember:
Core PR Strategies:
- Planned PR allows businesses to proactively control their public image through strategies like media releases, sponsorship, social media, and community engagement
- Crisis PR requires swift, honest, and well-coordinated responses to unfavorable situations to minimize reputational damage
- An effective crisis management plan includes key contacts, designated spokesperson, detailed procedures, and predetermined response strategies
Customer Relationship Management:
- Maintaining positive customer relationships through excellent service is essential
- Poor customer experiences drive people to competitors
- Neglecting PR relationships can result in irreparable reputation damage, customer loss, and potential business failure
Key Terminology:
- Planned public relations: Proactive communication strategies controlled by the business
- Crisis public relations: Reactive strategies when a crisis or major issue arises requiring brand management
- Crisis: Unfavorable circumstances placing immediate public attention on a business
- Media release: Formal statement to media about products, announcements, or changes
- Sponsorship: Financial support in exchange for naming rights and brand exposure
- Stakeholders: Groups with interest in business operations (customers, employees, community, suppliers)
Critical Frameworks:
- Crisis response options: Prevent → Resolve → Seek opportunities
- Crisis plan elements: Key contacts + Face of business + Detailed plan + Predetermined strategies