Marketing Communications - Chapter 18 ppsx

© 2010 South-Western, a part of Cengage Learning
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Eighth Edition
Marketing-Oriented Public Relations
and Word-of-Mouth Management
CHAPTER
18
1. Appreciate the nature and role of marketing public
relations (MPR).
2. Discern the differences between proactive and
reactive MPR.
3. Comprehend the types of commercial rumors and
how to control them.
4. Appreciate the importance of word-of-mouth (WOM)
influence.
5. Understand the role of marketing public relations in
creating favorable WOM and building brand buzz.
Chapter Objectives
After reading this chapter you should be able to:
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 18–2
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 18–3
Public Relations and Integrated Marcom
Public Relations and Integrated Marcom
•
General Public Relations (PR)
General Public Relations (PR)


Is an organizational activity involved with fostering
Is an organizational activity involved with fostering
goodwill between a firm and all of its various publics
goodwill between a firm and all of its various publics

Employees, suppliers, stockholders, governments, the
Employees, suppliers, stockholders, governments, the
public, labor groups, citizen action groups, and consumers
public, labor groups, citizen action groups, and consumers
•
Marketing Public Relations (MPR)
Marketing Public Relations (MPR)

Involves an organization’s interactions with actual or
Involves an organization’s interactions with actual or
prospective customers
prospective customers

Performs an increasingly important marcom function
Performs an increasingly important marcom function
for both B2C and B2B firms
for both B2C and B2B firms

Are more credible and less expensive in comparison
Are more credible and less expensive in comparison
with advertisements
with advertisements
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 18–4

MPR versus Advertising
MPR versus Advertising
•
PR (or MPR) in Integrated Marcom
PR (or MPR) in Integrated Marcom

Has been the subject of much debate
Has been the subject of much debate

Has traditionally been specialized and limited
Has traditionally been specialized and limited

Has credibility that can be used to introduce new
Has credibility that can be used to introduce new
products using little advertising
products using little advertising

Works best for capturing the attention of the media
Works best for capturing the attention of the media
when introducing new and innovative products
when introducing new and innovative products
•
Drawbacks to MPR
Drawbacks to MPR

Not all products can rely on publicity
Not all products can rely on publicity

Free publicity lasts only as long as the product is
Free publicity lasts only as long as the product is

newsworthy
newsworthy
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Cengage Learning. All rights
reserved. 18–5
Marketing-Oriented Public Relations (MPR)
Marketing-Oriented Public Relations (MPR)
•
Proactive MPR
Proactive MPR

Is a tool for communicating a brand’s merits
Is a tool for communicating a brand’s merits

Is used in conjunction with other marcom tools such
Is used in conjunction with other marcom tools such
as advertising and sales promotions
as advertising and sales promotions

Is dictated by a firm’s marketing objectives
Is dictated by a firm’s marketing objectives

Is offensively oriented and opportunity seeking
Is offensively oriented and opportunity seeking
•
Reactive MPR
Reactive MPR

Is the conduct of public relations in response to
Is the conduct of public relations in response to

outside influences
outside influences

Provides a quick response to repair firm’s reputation,
Provides a quick response to repair firm’s reputation,
prevent market erosion, and regain lost sales
prevent market erosion, and regain lost sales
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 18–6
Forms of Proactive MPR
Forms of Proactive MPR
Product
Product
Releases
Releases
•
Announce new products
Announce new products
•
Provide relevant information, features and benefit
Provide relevant information, features and benefit
•
Audiovisual product releases (video news releases,
Audiovisual product releases (video news releases,
or VNRs) gained wide usage
or VNRs) gained wide usage
Executive-
Executive-
Statement

Statement
(News)
(News)
Releases
Releases
•
Quoting CEOs and other corporate executives
Quoting CEOs and other corporate executives
•
May address a wide variety of issues
May address a wide variety of issues
•
Published in the news section
Published in the news section
•
Carry a significant degree of credibility
Carry a significant degree of credibility
Feature
Feature
Articles
Articles
•
Detailed descriptions of products or other
Detailed descriptions of products or other
newsworthy programs
newsworthy programs
•
Written for immediate publications or airing
Written for immediate publications or airing
•

Inexpensive to prepare
Inexpensive to prepare
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reserved. 18–7
Reactive MPR and Crisis Management
Reactive MPR and Crisis Management
•
Reactive MPR
Reactive MPR

Addresses factors in a
Addresses factors in a
product’s defects and failures
product’s defects and failures

Provides responses to
Provides responses to
unanticipated market events
unanticipated market events
•
Crisis Management
Crisis Management

Provides quick and positive
Provides quick and positive
responses to negative publicity
responses to negative publicity
to reassure consumers and
to reassure consumers and

lessen the damage following
lessen the damage following
negative publicity
negative publicity
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Cengage Learning. All rights
reserved. 18–8
The Special Case of Rumors
The Special Case of Rumors
and Urban Legends
and Urban Legends
Commercial
Rumors
Conspiracy
Rumors
Contamination
Rumors
Types of Rumors
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Cengage Learning. All rights
reserved. 18–9
What Is the Best Way to Handle a Rumor?
What Is the Best Way to Handle a Rumor?
•
Antirumor Campaign Activities:
Antirumor Campaign Activities:
1.
1.
Deciding on the specific points in the rumor that
Deciding on the specific points in the rumor that

need to be refuted
need to be refuted
2.
2.
Emphasizing that the conspiracy or contamination
Emphasizing that the conspiracy or contamination
rumor is untrue and unfair
rumor is untrue and unfair
3.
3.
Picking appropriate media and vehicles for
Picking appropriate media and vehicles for
delivering the antirumor message
delivering the antirumor message
4.
4.
Selecting a credible spokesperson
Selecting a credible spokesperson
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 18–10
Word-of-Mouth Influence
Word-of-Mouth Influence
•
Word-of-Mouth (WOM)
Word-of-Mouth (WOM)

Is both complex and difficult for brand managers to
Is both complex and difficult for brand managers to
attempt to control

attempt to control
•
Factors Affecting WOM’s Influence
Factors Affecting WOM’s Influence

Tie strength of interpersonal relationships of persons
Tie strength of interpersonal relationships of persons
in B2C and/or B2B social networks
in B2C and/or B2B social networks

How well marketing communicators use advertising
How well marketing communicators use advertising
and “buzz” efforts to stimulate positive WOM
and “buzz” efforts to stimulate positive WOM

The amount of prestige accorded by others to
The amount of prestige accorded by others to
opinion
opinion
leaders
leaders
and
and
markets mavens
markets mavens
who act as informers,
who act as informers,
persuaders, and confirmers
persuaders, and confirmers
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Cengage Learning. All rights
reserved. 18–11
Preventing Negative WOM
Preventing Negative WOM
•
Manufacturers
Manufacturers

Providing detailed warranty and complaint-procedure
Providing detailed warranty and complaint-procedure
information on labels or in package inserts
information on labels or in package inserts
•
Retailers
Retailers

Employees with positive attitudes
Employees with positive attitudes

Store signs and inserts in monthly billings
Store signs and inserts in monthly billings

Offer toll-free numbers and e-mail addresses
Offer toll-free numbers and e-mail addresses
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 18–12
Creating Buzz
Creating Buzz
•

Buzz Creation
Buzz Creation

Is the systematic and organized effort to encourage
Is the systematic and organized effort to encourage
people to talk favorably about a particular brand—
people to talk favorably about a particular brand—
either over the fence or over the Internet—and to
either over the fence or over the Internet—and to
recommend its usage to others who are part of their
recommend its usage to others who are part of their
social network
social network
•
Proactive Efforts
Proactive Efforts

Guerrilla marketing
Guerrilla marketing

Viral marketing
Viral marketing

Diffusion marketing
Diffusion marketing

Street marketing
Street marketing
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Cengage Learning. All rights

reserved. 18–13
Generating Buzz Is Akin
Generating Buzz Is Akin
to Creating an Epidemic
to Creating an Epidemic
Law of the Few
Stickiness Factor
Power of Context
Rules for Reaching
the Buzz
Tipping Point
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Cengage Learning. All rights
reserved. 18–14
Igniting Explosive Self-Generating Demand
Igniting Explosive Self-Generating Demand
Principles of an
Explosive Self-Generating
Demand (ESGD)
Structure
Select and Seed
the Vanguard
Design Unique
or Visible Product
Ration
Supply
Nurture the
Grass Roots
Tap the Power
of Lists

Use Celebrity
Icons