Chapter 20

1. Chapter 20 Public Relations, Influencer Marketing, and Corporate Advertising PPT 20-1 © 2009 South-Western, a part of Cengage Learning

2. Introductory Scenario: The Buzz Biz P & G created “Buzz” for Crest with: • Public relations—Celebrities were lined up to take the “Quiz”—MTV, boy band personalities. • Online—Banners ads promoted the quiz and appeared on Facebook, MySpace, etc. • Events and Publicity—Partnered with Vibe.com to host a speed dating event in Times Square. • Print ads and posters. Posters appeared in restrooms of night spots. PPT 20-2

3. Public Relations The marketing and management communications function that deals with a firm’s public issues. • Objectives: • Promote goodwill • Promote a product or service • Prepare internal communications • Counteract negative publicity • Lobby • Give advice and counsel PPT 20-3

4. A New Era forPublic Relations? • Firms are using PR in new and different ways to create visibility and image for a brand by getting people to “talk” about the brand. • BUT… • PR is NOT the tool for establishing brands in the market. • PR lacks the strategic control needed to establish a brand within the segment in the manner desired by a firm. • It is true that corporate execs want more “action” and visibility from promotion. PR is now more prominent in many IBP campaigns as consumer tire of mass media advertising. • Good PR can create a positive social “epidemic.” PPT 20-4

5. Ad in Context Example Microsoft turned to “warm and fuzzy” corporate advertising to combat the negative publicity of a Department of Justice case against the firm. PPT 20-5

6. Public Relations and Damage Control • Intel—Caused its own PR crisis by not responding to concerns about the performance of the Pentium chip. • Taco Bell and the PR “curse” of social networking. • Wal-Mart in nearly constant damage control. PPT 20-6

7. Objectives of Public Relations • Promote goodwill • Promote a product or service • Prepare internal communications • Counteract negative publicity • Lobby • Give advice and counsel PPT 20-7

8. Tools of Public Relations • Press releases • Feature stories • Company newsletters • Interviews and press conferences • Sponsored events • Publicity PPT 20-8

9. Public Relations Strategies • Proactive PR strategy • Guided by marketing objectives • Publicize a company and its brands • Take an offensive rather than defensive posture • Reactive PR strategy • Dictated by external influences • Focuses on problems, not opportunities • Requires defensive measures PPT 20-9

10. Proactive Strategies • Public relations audit • Public relations plan • Current situation analysis • Program objectives • Program rationale • Communications vehicles • Message content PPT 20-10

11. Reactive Strategies • Public relations audit • Identification of vulnerabilities PPT 20-11

12. Influencer Marketing • A series of personalized marketing PR techniques directed at individuals or groups who have the credibility and capability to drive positive word of mouth in a broader and salient segment of the population. • The idea is to give the influencer something positive to talk about with respect to firms and brands. PPT 20-12

13. Professional Influencer Programs • Targeting professionals (doctors, therapists, lawyers, accountants, etc.) with positive PR messages with goal of having these “professionals” influence their clients attitude toward a brand. • “Seeding the conversation” between the professionals and their clients. • Tactics include trade show displays, direct mail communications, and personal selling calls—all IBP techniques. • The process provides professionals with “intellectual currency.” PPT 20-13

14. Peer to Peer Influencer Programs • Targeting social networks with positive messages about a brand to pass along through their social networks. • The programs provide “social currency” within peer networks. • Buzz and Viral Marketing. • Buzz marketing is creating an event or experience that yields conversations that include the brand. • Viral marketing is the process of consumers marketing to consumers via: • the Web (e.g., via blogs or forwarding YouTube links) or through personal contact. simulated by a firm marketing a brand. • The idea behind both buzz and viral marketing strategies is to target a handful of carefully chosen trendsetters or connectors as your influencers, and let them spread the word. • Cultivating Connectors • The sophisticated process of cultivating peer to peer influencers to positively tout a firm’s brand. • Procter & Gamble has enrolled 600,000 “connectors” in its Vocalpoint program—mostly women with wide social networks. PPT 20-14

15. Corporate Advertising • Designed to establish a favorable attitude toward a company as a whole. • Objectives: • Build the image of the firm • Boost employee morale or attract new employees • Communicate an organization’s views • Position the firm’s products • Play a role in integrated brand promotion PPT 20-15

16. Ad in Context Example Corporate advertising features the firm rather than one of the firm’s brands. PPT 20-16

17. Types of Corporate Advertising • Corporate image advertising: Create a favorable predisposition toward the firm—not designed to affect sales. • Advocacy advertising: Establish the firm’s position on important social, political or environmental issues. • Cause-related advertising: Features a firm’s affiliation with an important social cause. • Green Marketing: Corporate efforts that embrace a cause or a program in support of the environment. PPT 20-17

18. Ad in Context Example Drinking and driving is an important social issue featured in corporate cause-related advertising. PPT 20-18