Transcript Integrated Marketing Communications 8e.

INTEGRATED MARKETING
COMMUNICATIONS
IN ADVERTISING AND PROMOTION
CHAPTER 18
Marketing-Oriented Public Relations
and Word-of-Mouth Management
© 2010 South-Western, a part of Cengage Learning
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Eighth Edition
Chapter Objectives
After reading this chapter you should be able to:
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.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–2
Public Relations and Integrated Marcom
• General Public Relations (PR)
 Is an organizational activity involved with fostering
goodwill between a firm and all of its various publics

Employees, suppliers, stockholders, governments, the public,
labor groups, citizen action groups, and consumers
• Marketing Public Relations (MPR)
 Involves an organization’s interactions with actual or
prospective customers
 Performs an increasingly important marcom function
for both B2C and B2B firms
 Are more credible and less expensive in comparison
with advertisements
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–3
MPR versus Advertising
• PR (or MPR) in Integrated Marcom
 Has been the subject of much debate
 Has traditionally been specialized and limited
 Has credibility that can be used to introduce new
products using little advertising
 Works best for capturing the attention of the media
when introducing new and innovative products
• Drawbacks to MPR
 Not all products can rely on publicity
 Free publicity lasts only as long as the product is
newsworthy
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–4
Marketing-Oriented Public Relations (MPR)
• Proactive MPR
 Is a tool for communicating a brand’s merits
 Is used in conjunction with other marcom tools such
as advertising and sales promotions
 Is dictated by a firm’s marketing objectives
 Is offensively oriented and opportunity seeking
• Reactive MPR
 Is the conduct of public relations in response to
outside influences
 Provides a quick response to repair firm’s reputation,
prevent market erosion, and regain lost sales
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–5
Forms of Proactive MPR
Product
Releases
• Announce new products
• Provide relevant information, features and benefit
• Audiovisual product releases (video news releases,
or VNRs) gained wide usage
ExecutiveStatement
(News)
Releases
•
•
•
•
Feature
Articles
• Detailed descriptions of products or other
newsworthy programs
• Written for immediate publications or airing
• Inexpensive to prepare
Quoting CEOs and other corporate executives
May address a wide variety of issues
Published in the news section
Carry a significant degree of credibility
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–6
Reactive MPR and Crisis Management
• Reactive MPR
 Addresses factors in a
product’s defects and failures
 Provides responses to
unanticipated market events
• Crisis Management
 Provides quick and positive
responses to negative publicity
to reassure consumers and
lessen the damage following
negative publicity
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–7
The Special Case of Rumors
and Urban Legends
Types of Rumors
Commercial
Rumors
Conspiracy
Rumors
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Contamination
Rumors
18–8
What Is the Best Way to Handle a Rumor?
• Antirumor Campaign Activities:
1. Deciding on the specific points in the rumor that
need to be refuted
2. Emphasizing that the conspiracy or contamination
rumor is untrue and unfair
3. Picking appropriate media and vehicles for
delivering the antirumor message
4. Selecting a credible spokesperson
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–9
Word-of-Mouth Influence
• Word-of-Mouth (WOM)
 Is both complex and difficult for brand managers to
attempt to control
• Factors Affecting WOM’s Influence
 Tie strength of interpersonal relationships of persons
in B2C and/or B2B social networks
 How well marketing communicators use advertising
and “buzz” efforts to stimulate positive WOM
 The amount of prestige accorded by others to opinion
leaders and markets mavens who act as informers,
persuaders, and confirmers
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–10
Preventing Negative WOM
• Manufacturers
 Providing detailed warranty and complaint-procedure
information on labels or in package inserts
• Retailers
 Employees with positive attitudes
 Store signs and inserts in monthly billings
 Offer toll-free numbers and e-mail addresses
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–11
Creating Buzz
• Buzz Creation
 Is the systematic and organized effort to encourage
people to talk favorably about a particular brand—
either over the fence or over the Internet—and to
recommend its usage to others who are part of their
social network
• Proactive Efforts
 Guerrilla marketing
 Viral marketing
 Diffusion marketing
 Street marketing
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–12
Generating Buzz Is Akin
to Creating an Epidemic
Rules for Reaching
the Buzz
Tipping Point
Law of the Few
Stickiness Factor
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Power of Context
18–13
Igniting Explosive Self-Generating Demand
Design Unique
or Visible Product
Ration
Supply
Select and Seed
the Vanguard
Principles of an
Explosive Self-Generating
Demand (ESGD)
Structure
Tap the Power
of Lists
Use Celebrity
Icons
Nurture the
Grass Roots
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
18–14