While the PRCA welcomes Philip Kotler’s endorsement of “innovative PR-led strategies”, it’s sweeping of him to dismiss much of “advertising” as a “waste of money”. Advertising, like PR, has its place in delivering creative, effective, measurable outcomes.
However, there’s some resonance to Kotler’s view on “innovative” public relations. With research from Aon suggesting that physical assets represent less than 25 per cent of the worth of most organisations, intangible asset management is now the key challenge for companies.
The perception of a firm’s management, brands and performance by shareholders/fund managers, analysts, regulators and customers make up the lion’s share of its market value. This is why PR should be a part of business strategy and marketing plans.