How to Measure PR’s Contribution to Corporate Objectives Donna Coletti Worldwide Media Relations Director Texas Instruments 1
Successful Communicators Think Like Business Managers How do they do this? Understand their companies vision, objectives, business priorities, strategies and culture Understand their management’s expectations of PR and its role Understand the market environment in which their company operates Understand the competition and anticipate their actions Know their stakeholders (target audiences) and what is important to them Know why stakeholders take specific actions Relate PR results to business objectives 2
How do Companies Measure Success? Revenue Gross profit margin Operating margin Sales/increased sales Market growth/market leadership/market share New products/services and their quality, feature or technology leadership Number of customers, number of new customers, quality of customers Consideration and preference for company’s products and services Market cap, stock price Attracting and retaining best employees 3
Use Company’s Metrics a as Launching Pad for Co Communicat ation o s ns Plann n i ning Think like a business manager, with a communications hat Prioritize PR activities against company objectives Develop programs with the objective of helping the company reach its objectives (always have a target outcome by stakeholder) Think of editors as a channel to the final stakeholder Develop PR metrics which correlate to company objectives/goals Develop programs which encompass the entire competitive landscape and how competitors will react 4
Wh Who Ar Are Y o Your Ta T r arget A Audienc nces and What Is Their Relations nship To Each Othe her? Early Education Consumers Retail Outlets Portfolio Managers/Investors Communities Business Leaders Business Press Financial Analysts P Market Analysts a Purchasing th Small to Mid-Size Customers of Potential Employees I eference Trade Press nf Market Analysts lu Universities en Regulatory Committees/ Government ce Major Customers Path of R Distribution/ Channel Partners Sales Org. Employees Source: Regis McKenna 5
What is Important to Sp S e pecific A u Audiences Employees: Top Notch Pay/BenefitsGood ManagementCareer Opportunities Customers: Products Improve their life/makethem successfulTrustworthy/Easy to do business with Retail Outlets: Attracts customers to store Regulatory Agencies/ Compliance Government: Communities: Good corporate citizen Makes community better place to work and live 6
Elements of Strong Messages Relevant to target audiences Distinctive from competition Credible to target audiences Compelling (makes them take action) Show value to audience (speak to your audience, not yourself) 7
The Communications Toolkit Marketing Strategies Invade New Neutralize Introduce Increase Penetrate Increase Pe Penetrat ate Market Competitors New Products Preference Key Accounts Market Size Mass Market Segments Com ommunications ns St Strategies Tactics Media Marketing Direct Distributor or Application Conference Newsletters Telemarketing Documentat ation Relations Events Mail Program ams Notes Pa Papers Video Electronic Advertising Seminars Tradeshows Sample kits Internet Research Tapes Info Radio/Video Joint Industry y Contributed Speaking Editorial Editorial Editoral Press Tour Editorial News Customer Analyst Articles Press Tour Engagements Interviews Boards Documents Releases Comm/ Briefings Targe get Markets 8
Developing n g Measur urable PR Obj bjectives and Strategies Measurable objectives are specific milestones that measure progress toward achievement of a goal. Objectives must: 1) address the desired communication or behavioral outcome; 2) designate the public or publics among whom the behavioral outcome is to be recognized; 3) specify the expected level of attainment or accomplishment; and 4) identify the timeframe in which those attainments or accomplishments are to occur. 9
Developing g M Measurab able PR R Objectives and Strategies Strategies are the thoughtful, planned general approach to the tactics ultimately undertaken. Strategies do not indicate specific actions to be taken to achieve objectives. There can be multiple strategies for each objective. Tactics are the specific activities conducted to implement strategies. Tactics involve the use of specific personnel, time, cost and other organizational resources. 10
A Co C m ommunications ns Mat atrix for Each Stakeho holder One Size Does Not Fit All 11
A Co C m ommunications ns Mat atrix for Each Stakeho holder One Size Does Not Fit All 12
Measuring PR Results against Company Objectives 13
Determining Measurement Technique Match measurement technique to resources ($/people) Remember that measurement and evaluation does not have to be expensive y Soft sounding surveys are an inexpensive way to weigh editor’s perceptions y Quantitative/message tracking can be done in-house Keep in mind that key is to use measurement to find out something important to management Providing Value Add to Management will help build a case for a measurement and evaluation budget 14
Methods of Measurement & Evaluation for PR In-house quantitative/message tracking using Excel to plot graphs and charts PR agency research tools y Quantitative y Qualitative (tone, messages, article type, quoted) Media Research Firm y Competitive tracking studies to measure quantitative and qualitative indices y Trend analysis of specific indices Research Firms y Perceptions of target audiences beyond media using a variety of methods including questionnaires, focus groups, sampling, etc. 15
Texas Instruments Press Coverage Analysis:October – December 1999 TI’s share remained constant at 30% Share of mentions (percentage) among top competitors each quarter 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 Competitor A Competitor C Competitor E Competitor B Competitor D 16
Texas Instruments Press Coverage Analysis:October – December 1999 Recent quar arters we were mar arked by spike kes in TI coverage 120 TI Nearest Competitor 100 80 60 40 20 0 Jul ’97 ov ’97 ar ’98 ay ’98 Jul ’98 ov ’98 ar ’99 ay ’99 Jul ’99 ov ’99 Sep ’97 N Jan ’98 M M Sep ’98 N Jan ’99 M M Sep ’99 N 17
Texas Instruments Press Coverage Analysis:October – December 1999 TI s saw t top positioning o n on all issues Number of times competitors were favorably positioned on the attributes that create consideration and preference TI Competitor A Competitor B Competitor C Competitor D Competitor E 0 20 40 60 80 100 120 140 Attribute A Attribute E Attribute B Attribute F Attribute C Attribute G Attribute D Attribute H 18
Quantitative/Qualitative Performance Map 100 on key issues) Texas Instruments ed osition es p Competitor A Competitor B alitative (tim u Competitor C Q Competitor D 0 100 Quantitative (number of articles) 19
Texas Instruments Press Coverage Analysis:October – December 1999 All top competitors improve ved their position oning Number of articles positioning top competitors on all issues each quarter 140 120 100 80 60 40 20 0 4Q98 1Q99 2Q99 3Q99 4Q99 Competitor A Competitor C Competitor D Competitor B TI 20
Texas Instruments Press Coverage Analysis:October – December 1999 Most frequently mentioned products in each quarter 3Q99 4Q99 Competitor A – Product #1 TI -Product #1 TI Product #1 TI – Product #2 Competitor B TI -Product #3 TI Product #2 TI – Product #4 Competitor C TI – Product #5 Competitor D Competitor A Product #1 Competitor E Competitor B Product #1 Competitor F Competitor C Product #1 TI Product #6 Product #6 TI Family Totals (mentions) Competitor A – Product #2 Product #7 Product #1 – 115 Competitor G Competitor A Product #2 Product #2 – 78 Competitor H Product #3 – 22 Competitor A Product #3 TI Product #3 Product #4 – 6 Competitor A Product #4 Competitor I Product #5 – 5 Product #8 TI Product #4 Product #6 -12 Competitor B Product #2 TI Product #5 Product #7 – 17 Competitor D Competitor J 0 10 20 30 0 5 10 15 20 25 21
Texas Instruments Press Coverage Analysis:October – December 1999 Messag age communi nication w a was flat Number of articles communicating messages for TI each quarter 504540353025201510 50 4Q98 1Q99 2Q99 3Q99 4Q99 Message #1 Message #2 Message #3 Message #4 22
Texas Instruments Press Coverage Analysis:October – December 1999 No competitor ors threat atened d TI TI message communication Number of times TI messages were communicated by each competitor this period TI Competitor A Competitor B Competitor C 0 5 10 15 20 Message #1 Message #2 Message #3 Message #4 23
Use Company’s Metrics a as Launching Pad for Co Communicat ation o s ns Plann n i ning Think like a business manager, with a communications hat Prioritize PR activities against company objectives Develop programs with the objective of helping the company reach its objectives (always have a target outcome by stakeholder) Think of editors as a channel to the final stakeholder Develop PR metrics which correlate to company objectives/goals Develop programs which encompass the entire competitive landscape and how competitors will react 24