Why is public relations an important form of communication about ...

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Why is public relations an important form of communication about a company? Discuss negative public relations, and give an example.

Question 2

Motorola buys silicone, which is used in its chip-making process. Motorola produces microchips for use within a wide variety of products for other firms, such as Ford, GM, and Samsung. Motorola is a buyer in a(n) ____ market.
 A) producer
  B) government
  C) reseller
  D) construction
  E) institutional

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Answer to Question 1

Public relations is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Maintaining a positive relationship with one or more stakeholders can affect a firm's current sales and profits, as well as its long-term survival. Public relations uses a variety of tools, including annual reports, brochures, event sponsorship, and sponsorship of socially responsible programs aimed at protecting the environment or helping disadvantaged individuals. The goal of public relations is to create and enhance a positive image of the organization. Other tools arise from the use of publicity, which is a component of public relations. Publicity is nonpersonal communication in news-story form about an organization or its products, or both, transmitted through a mass medium at no charge.
Unpleasant situations and negative events, such as product tampering or an environmental disaster, may generate unfavorable public relations for an organization. For instance, Abercrombie & Fitch faced a public relations nightmare after previous comments from its CEO surfaced indicating that the company did not make clothes for heavier, older, or uncool people. This caused a considerable backlash for consumers offended by the CEO's comments. To minimize the damaging effects of unfavorable coverage, effective marketers have policies and procedures in place to help manage any public relations problems. Public relations should not be viewed as a set of tools to be used only during crises. To get the most from public relations, an organization should have someone responsible for public relations either internally or externally and should have an ongoing public relations program.

Answer to Question 2

A