Page 642 - Encyclopedia of Business and Finance

eobf_P 7/5/06 3:18 PM Page 619

Promotion

Sporting events, such as the FoodCity 500 NASCAR race seen here, are popular venues for advertising. © SAM SHARPE/THE SHARPE
IMAGE/CORBIS

client base is likely to result in both lost sales and Government officials. Maintaining a positive public
lost market share. image is also important because government
Employees. The most valuable asset a company has is agencies and offices (e.g., Federal Trade Commis-
its employees. Therefore, it is essential that sion, Federal Communication Commission)
employees believe in their company. Public rela- monitor the media and have regulatory oversight
tions communications are extremely important in over company activities. Positive stories in the
ensuring that employees receive information media obviously help promote a positive image
about the company before outside media receive to government regulators, which reduces the
and report the information. A good example of chance of being investigated and possibly fined.
providing superior public relations would be to The opposite is also true as stories about client
inform company employees that a small reduc- complaints or other dishonest practices or poten-
tion in the work force is required but that a full tially illegal actions will draw the government’s
severance package will be provided for laid-off attention and probably some sort of investiga-
employees. Although this news is not positive, tion—something that no company wants. An
the employees are hearing about it first from the investigation can drag on for months, even years,
company and are also aware that they will be providing even more negative publicity. Even if
receiving assistance from the company. If the government regulators find no wrongdoing,
employees read or see negative reports about the the public is still likely to be skeptical because the
employer without a credible public relations company was investigated. Therefore, every com-
explanations, they may find other work or reduce pany must make its best effort to answer any
their productivity because of low morale. questions that regulators have regarding negative

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 619