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

2 PPT 20-2 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.

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 for Public 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 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 Ad in Context Example

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

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