Public Relations (Edexcel IGCSE Business)

The value of positive public relations

Spec point — 4.3.4 · public relations – improving company image/brand

• Public relations (PR) involves a business building relationships with the public, promoting a positive image for the business or brand as a whole and managing their reputation in the media

Public relations approaches

*PR activities include sponsorship, media relations, public events community outreach activities and publicity stunts *

1. Sponsorship

• Aligning a businesses brand with an event, group or cause that reflects its values is a common form of public relations

  • E.g Financial providers including Cinch, IG and Metro Bank sponsor England's international cricket team as the sport reflects values of fairness and exemplary conduct

• High-profile sponsorship increases visibility of a businesses logo and other branding elements, and can enhance the business's reputation and credibility

2. Media relations

• Press conferences involve inviting media representatives to attend and ask questions at a dedicated event where a key business announcement is made, such as a new product launch

  • E.g. Apple invites high-profile international journalists to its regular new product launches

• Press releases are announcements of key business decisions or developments that are sent to media outlets such as newspapers, industry journals and broadcasters

  • Businesses expect journalists to make use of press releases to write favourable news reports

3. Community outreach

• Supporting organisations in the local community with donations or other resources can improve the reputation of a business within the area in which it operates

  • E.g. McDonalds's Ronald McDonald House Charity provides short-term accommodation for families with children undergoing medical procedures in hospitals across the UK

4. Publicity stunts

• These are eye-catching events or activities designed to attract media coverage that draws attention to a brand

  • E.g. In 2018 Elon Musk's SpaceX programme launched a Tesla Roadster car into space

5. Public events

• Some businesses hold open days where visitors, such as key customers or suppliers, can find out about a business by speaking to key personnel and experiencing facilities first-hand

• It is an opportunity for businesses to showcase the aspects in which it takes pride

  • E.g. Universities and private schools hold regular open days where visitors receive campus tours and have the opportunity to speak to teaching and pastoral staff

Benefits and drawbacks of public relations

Exam Hint In the exam you could be asked to explain how PR could help to improve a business's reputation. Focus on an example of a reputational issue a business may be trying to solve to structure your response.

Example

PR may help a business that has behaved in an environmentally irresponsible way [1] make amends with stakeholders by issuing press releases or holding a press conference [1] where a senior executive sincerely apologises and explains how the problem will be solved [1].