Costs for public relations *

Research an important tool in public-relations work

An important tool in developing a successful public-relations program is research. By means of research, on a scale compatible with the size and the scope of the program, the public-relations situation is mapped out. The various "publics" to which appeal is to be made are determined, and consideration is given to the specific public-relations problems involved in dealing with these publics. Certain public-relations objectives are established and divided into two classifications. One consists of those objectives which an attempt will be made to attain immediately. The other consists of those which will be approached over a period of time.

This analysis of the situation and the projected plan of action in carrying out the public-relations program are put. into writing. The immediate and long-range objects are set down. One by one the problems are listed and described. One by one the projected plans of action by which these problems are to be met are set forth. In addition, a schedule or time-table is established, showing the logical chronological order in which each of the projected plans will be put into action, and how they will be dovetailed into the over-all program.

Establishing, a public-relations department

If a company is large enough and the extent of its public-relations work warrants it, the company will establish a public-relations department to devise and put into action its public-relations program. If the company is wise, it will appoint as head of this department an executive of sufficient rank and substance to participate in the formulation of policies and to see to it that the enterprise's public-relations program is carried through.

Under such an executive, the public-relations department may take one or two general forms. Under one form, the department is so constituted as to function in capacities purely advisory, regardless of whether or not "outside" public-relations counsel is employed. Under the other form, the department is so constituted that it not only acts as an advisor to the management in the formulation of public-relations policies, but also prepares and disseminates the material with which the public-relations program is to be implemented. Under this form, also, "outside" public-relations counsel may or may not be employed.

If a company decides to establish a purely advisory public-relations department, the department may be fairly small. Its duties will consist only of "sitting in" on general-policy matters and formulating and supervising the public-relations program. The actual production of public-relations material will be "farmed out" to specialists. A typical public-relation operation of this kind is that of Cities Service, which has elected to supervise its program by means of a small public-relations staff and to assign specific functions, such as the preparation of special literature, to free-lance artists and writers.

If a company decides to establish the second and more all-embracing form of public-relations department, it will need to staff the department with a larger number of persons, some of whom will need to have had experience and training in certain specialized fields. In a typical, big-corporation public-relations department of this kind, there may be as many as 150 workers.

Qualifications of a public-relations worker. In the case of either form of public-relations department, and both forms are in fairly general use, the public-relations worker needs to have certain qualifications. One of these qualifications is the ability to convey ideas. Because of the need for this qualification, it often happens that people who make good public-relations workers are people who have had experience in editorial work on the editorial staffs of newspapers, magazines or trade papers, or in the operating functions of radio.

Another highly useful qualification for a public-relations worker to have is an understanding of the "practical" side of modern-day business or, at least, the broader outlines of economics. A third qualification is some understanding of psychology, with the ability to gauge how people will react to the stimuli and influences that impinge upon them. Finally, and of great importance is good judgment, which enables a public-relations worker to arrive at a decision objectively. This is a qualification, however, which has to be strengthened and fortified by experience.

Nevertheless, regardless of the fact that all of a company's public-relations workers may have the necessary qualifications, the company may find that it is good policy to make use of "outside" public-relations services.

"Outside" public-relations counsel

Available to business enterprises are the services of public-relations firms manned and equipped to offer counsel and, in some instances, to produce public-relations material. Whether or not a company engages outside counsel, it ought at least to look into the question of what such counsel can do for it. The company ought to consider the advantage of bringing to bear upon its problems a detached and objective point of view–a point of view that can see inside and outside the client's immediate problems. Pertinent to the consideration of the objective point of view is an old saying in the legal profession to the effect that "the lawyer who is his own attorney has a fool for a client."

"Outside" versus "inside" public-relations workers

Why is it that many corporations and other organizations retain "outside" public-relations counsel, though often they are at the same time staffed with competent public-relations workers inside the organization? Why, particularly, is this so when the men inside are at least as efficient and intelligent as the people on the staff of the public-relations counsel that is retained? The reason is that it is extremely difficult for people working inside an organization to retain, project, and "sell" an objective point of view to their superiors and even their equals in the same company. To make this point clearer, the army parallel may be used. No matter what errors in an army a Major or Captain may see, he is not free to present the whole facts to the General and step over the heads and the ranks of the Lieutenant-Colonels and Colonels. The reasons are obvious. The same human truism holds true in the civilian world.

Another factor to consider is that "residence" inside a company, and consequent dependency upon the company for advancement and survival make it difficult for anyone but the exceptional and carefree individual to "see straight" when it comes to a truthful view and appraisal of the company and its relations to its publics. The "outside" counsel, on the other hand, like the civilian retained by the Army, has the immeasurable benefit of an objective point of view, and the impersonality of no intimacy with personnel. Therefore, in the measure of his intelligence and experience, the "outside" counsel can see a picture that is far more complete than the picture seen by anyone inside the firm.

Very often, it is this truthful, outside point of view that a company buys when it retains public-relations counsel. It is this complete vision encompassing the relationship of a company to its interior and exterior "publics" that can furnish the guidance necessary not only to a company's prosperity, but often to survival. In the life of today, it is only through an "outsider" that an average business enterprise can obtain a true picture of its place in the World. Without such an unprejudiced picture, it is as difficult for a company to steer a correct course, as it would be for a ship's helmsman to direct his vessel if he did not have the advantage of a clear picture of the ocean, the sky and the currents. Cooped up in the forecastle, he could never get this picture which it is so essential for him to have.

Importance of "inside" workers

Regardless of the advantages of engaging "outside" counsel, the "inside" public-relations worker still remains important. He is as necessary as a reporter is to a newspaper, a simile which may be carried further to provide a picture of balanced activity in public relations. Thus, the "outside" public-relations counsel may be likened to the editor, rather aloof in his eyrie, but forming his judgments from the news given to him by the reporters covering the various "beats," such as the police stations, hospitals, railroad stations, air terminals, and courts. On the basis of this continual flow of information, the editor decides what news to use, and how to "play" it. The editor retains a certain Jovian objectivity, but his judgments depend always upon the intimate reports furnished to him by his legmen. He is the deciding brain, they are the eyes and the ears, and all are mutually interdependent.

This is the ideal set-up for handling public-relations work successfully. While ideals are seldom achieved, business is beginning to realize more and more the importance of the balanced point of view, the importance of clear vision.

Institutional advertising

In carrying on a public-relations program, a company may decide to integrate into it a campaign of paid-for institutional advertising as was done, for example, by the Southern Railway System, and is frequently resorted to by many other enterprises. To prepare such a campaign and to "place" the advertising in appropriate media, the company may turn to the advertising agency which it has already retained for its product advertising. On the other hand, it may engage an agency specifically for the specific assignment. Because of an advertising agency's creative talents and its knowledge of advertising media, paid-for advertising is a phase of public education which it is best to put in the hands of an agency to plan and carry through.

Brochures

In commemoration of a corporate anniversary, or for any one of a number of other purposes, a company may decide to publish something distinctive and at least reasonably permanent. For example, in connection with a company's "open-house" program, it may produce a brochure that will serve not only as an impressive presentation of the company's story, but also as a souvenir for its visitors to take home with them. This was done by Merck and Company which produced a handsome piece of literature entitled "Merck Family Day Welcome." In a like manner, Lukens Steel welcomed its visitors and caused them to remember the occasion by means of a brochure called a "Visit to Lukens." Weirton Steel brought out a brochure known as "Weirton, Symbol of America at Work."

In some instances, projects as ambitious as these can be assigned to personnel within the organization. In other instances, these projects are assigned to "outside" agencies, such as, for instance, printing establishments which are manned and equipped to do the entire job, from the planning and writing to seeing the finished job off the press.

Full-length books

Under the imprints of business enterprises, industries, associations, and other interests, full-length books may be published as a part of a public-relations program. Usually, such a book is so important that the enterprise publishing it has it prepared by outside talent. The author may be a writer of recognized standing in the book or magazine field. He may be a well-known economist, or an eminent historian.

The reality of "ghosts"

Sometimes, a book is published by a corporation which carries, as the name of its author, the name of some spokesman or representative of the enterprise about which the book is written. For example, he may be the chairman of the board or the president, who, in either case, is not a professional writer. Such a book is usually prepared by a professional writer who, in exchange for an adequate fee, is willing to do the writing and to permit someone else to appear as the author and to receive the credit as such. Such writers are known as ghost-writers and, in addition to books, they do other kinds of writing, such as magazine articles for instance, for other people to sign. Ghostwriting is often the reason why an article is well written when it is signed by a man who is known for his proficiency in other fields than authorship.

Ghost-writing of speeches

A business man may deliver a memorable address at a dinner or a convention, but give the impression that even he is somewhat amazed that such wisdom and such eloquence could emanate from him. In such a case, it is fairly safe to assume that the speech is the work of a ghost-writer.

The fact is that ghost-writing has become a specialty in the public-relations field. In almost any large city, there is at least one ghost-writing bureau, complete with a suite of offices, an attractive receptionist, a president, at least one vice-president, and a staff of writers ready to ghost-write for a fee anything that anyone may require.

A ghost-written speech is likely to fall flat, however, if it is given by an individual who makes it obvious from his delivery that he did not write the speech himself. It is an irritating experience for an audience to listen to a speaker read a manuscript which he apparently never previously had in his hands. A speaker's grim fixation on the paper, his stumbling over words, are usually sure indications that he is relying on someone else's writing.

A ghost-written speech can be successfully presented only if a man has taken the trouble to assimilate the text of his manuscript. A man who did this with great skill and effect was an industrialist, now dead, who had a good instinct for public relations and who hired as a ghost-writer one of the pioneers of the public-relations profession. This industrialist sometimes began a talk this way: "I have here a speech written for me by so-and-so" ( naming his public-relations man) . "With your permission, I am going to put it away and just talk to you from my heart." Then he would stuff a paper in his pocket. The speech which he delivered, however, as well as even his heart-to-heart introduction, was memorized from the manuscript that had been written by the ghost in the public-relations organization.

Ethics of ghost-writing

Recently, in a case before the Supreme Court of the United States, two of its justices called the "ghost-writer" a legal fraud. Nevertheless, an out-of-court view of the practice of ghostwriting might be that it is not essentially different from the accepted practice by which a lawyer states a client's legal case in appropriate courtroom phraseology. Readable and persuasive writing calls not only for a firm belief in the honesty of one's position; it calls for a certain skill. Felicity of expression is not a common quality, and it demands at least as much talent and experience as the law, architecture, package design, or any of a dozen comparable arts and crafts.

It is generally understood, in the light of history, that Alexander Hamilton, among his many other important contributions to the founding of the republic, did a little ghost-writing for George Washington, whose personal letters reveal an insecurity of spelling and grammar, but whose state papers are models of literacy. Other Presidents, down to the present time, have relied, without much attempt at dissimulation, on the abilities of other people, including lawyers, to put words into effective arrangements for them. It is clear that, for many people, hiring a ghost-writer is no more morally wrong than hiring a lawyer, an accountant, or a horticultural expert to practice a specialty on one's behalf. 13. Surveys and polls. Available to a concern's public-relations department are the services of specialists in research. Research of value to a business enterprise may, for example, take the form of market analysis. It may map out those regions and specific areas in which products or services may be marketed most economically and most profitably. It may indicate those areas in which competition is gaining and in which, if a company deems it worth the cost and effort, it may well spend more money in advertising or in "missionary" merchandising work. Research may also indicate that a company should modernize its models or its packages.

Research of value to a business enterprise may, in other instances, take the form of the compilation and interpretation of statistics. It may also chart the directions in which an enterprise may hope to expand, and hence may indicate the directions which the enterprise should explore, product-wise and public-relations-wise.

Thus, when the Frank H. Lee Company decided to convert its business from "private" brands –an arrangement under which a retailer sold Lee hats under the retailer's own label–to national distribution under the brand name of Lee, research mapped out such major areas of inquiry as the following:

• What can be expected to happen to the overall volume of Lee sales?
• What lines of strategy can best be followed to bring about public recognition and acceptance of the Lee brand?

Assembling and evaluating public opinion

In addition to the kinds of research mentioned above, research can be of value to a business enterprise in the form of assembling and evaluating public opinion. Here are the public-relations worker's immediate interests. Opinions are his stock-in-trade. In connection with research, take for instance, the case of institutional advertising which has sometimes been used for the purpose of "selling" the profit system –the American system of free, competitive enterprise. In contemplating an institutional advertising campaign of this nature, a company will want to know how it can best make such advertising effective. It is here that opinion research may be of value by helping the company to decide what to say and how to say it.

Reporting on the findings of his organization on the effectiveness of certain types of institutional advertising, Dr. George Gallup, president of the American Institute of Public Opinion, concludes that, first, much of the copy is over the ordinary reader's head; and that, second, much of the copy looks dull and unattractive to most readers, regardless of their intellectual capacities. On the basis of this conclusion, it is apparent that if a company undertakes to employ advertising to educate the public in economics, it must keep its copy simple and interesting.

Costs of "outside" public-relations services

The fees which a company must pay for "outside" public-relations services depend upon a number of factors. One of these factors is time. Thus, if a company engages public-relations counsel, the fee that this counsel will charge will depend, at least in part, upon the man-hours of time that the company, as a client, will require. If the counsel provides both advice and production, the fee that the employing company will pay will consist generally of three components:

1. A stated monthly or yearly amount, usually regarded as a retainer
2. Additional amounts covering the costs of the production work plus a fee for planning and supervising that work
3. The "out-of-pocket" expenses incidental to servicing its client's account

Similarly, if a company commissions an "outside" printing establishment to produce a printed piece of public-relations literature, the printing concern will include in its bill a man-hour charge for its designers, copywriters, compositors, engravers, pressmen, bindery employees, and all other craftsmen who work on the project. It will include, also, charges for overhead, paper stock, and, if the print shop is to do the mailing, charges for addressing and postage.

Finally, the printing establishment will add to its bill a reasonable percentage for its profit. In determining the fee to be paid to the ghost-writer who writes the brochures, the president's speeches, the annual reports to stockholders, the special articles for magazines and newspapers, and the full-length books, the time required to do the job will be one consideration while another consideration will involve the following:

• The author's standing—his worth in the literary marketplace. If he is a magazine writer, his fee should at least equal the space rates that the magazines pay him. If he is a recognized book-author, his fee should at least equal the minimum royalty that one of his books brings him.
• The author's skill—his literary craftsmanship and "know-how," as well as his ability to do a creditable job and deliver it on time.

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