Public Relations (Edexcel IGCSE Business)

Revision Note

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

The Value of Positive Public Relations

  • 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

Diagram: Public Relations Approaches

4--approaches-to-public-relations-

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 & Drawbacks of Public Relations

Benefits

Drawbacks

  • Can enhance a business's reputation and credibility

  • Often cost-effective when compared to advertising or personal selling

  • May achieve a wide reach as imaginative PR activity is frequently shared on social media

  • PR can be time-consuming and is difficult to measure the direct impact of PR activities on profits

  • Specialist - and expensive - PR companies can often achieve the best results

 

Examiner Tips and Tricks

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].

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.