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- MarketingOriented Public Relations
CHAPTER 18
and WordofMouth Management
© 2010 South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook
All rights reserved. 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
Is
goodwill between a firm and all of its various publics
goodwill
Employees, suppliers, stockholders, governments, the
Employees,
public, labor groups, citizen action groups, and consumers
public,
• Marketing Public Relations (MPR)
Involves an organization’s interactions with actual or
Involves
prospective customers
prospective
Performs an increasingly important marcom function
Performs
for both B2C and B2B firms
for
© 2 Are more credible part of
010 South-Western, a and less expensive in comparison
Are
with advertisements
with
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
Has
products using little advertising
products
Works best for capturing the attention of the media
Works
when introducing new and innovative products
when
• Drawbacks to MPR
Not all products can rely on publicity
© 2 Free publicity lasts only as long as the product is
Free
010 South-Western, a part of
newsworthy
newsworthy
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
Is
as advertising and sales promotions
as
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
Is
outside influences
Provides a quick response to repair firm’s reputation,
Provides
© 2010 South-Western, a part of
prevent market erosion, and regain lost sales
prevent
Cengage Learning. All rights
reserved. 18–5
- Forms of Proactive MPR
• Announce new products
Product
Product
Releases
Releases • Provide relevant information, features and benefit
• Audiovisual product releases (video news releases,
Audiovisual
or VNRs) gained wide usage
or
•
Executive- Quoting CEOs and other corporate executives
•
Statement May address a wide variety of issues
Statement
(News) • Published in the news section
Releases
Releases • Carry a significant degree of credibility
• Detailed descriptions of products or other
Feature
Feature Detailed
Articles newsworthy programs
Articles
• Written for immediate publications or airing
• Inexpensive of
© 2010 South-Western, a partto prepare
Cengage Learning. All rights
reserved. 18–6
- Reactive MPR and Crisis Management
• Reactive MPR
Addresses factors in a
Addresses
product’s defects and failures
product’s
Provides responses to
Provides
unanticipated market events
unanticipated
• Crisis Management
Provides quick and positive
Provides
responses to negative publicity
to reassure consumers and
lessen the damage following
© 2010egative publicity part of
n South-Western, a
negative
Cengage Learning. All rights
reserved. 18–7
- The Special Case of Rumors
The
and Urban Legends
and
Types of Rumors
Conspiracy
Commercial Contamination
Rumors
Rumors Rumors
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 18–8
- What Is the Best Way to Handle a Rumor?
• Antirumor Campaign Activities:
1. Deciding on the specific points in the rumor that
Deciding
need to be refuted
need
2. Emphasizing that the conspiracy or contamination
Emphasizing
rumor is untrue and unfair
rumor
3. Picking appropriate media and vehicles for
Picking
delivering the antirumor message
delivering
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
Is
attempt to control
attempt
• Factors Affecting WOM’s Influence
Tie strength of interpersonal relationships of persons
Tie
in B2C and/or B2B social networks
in
How well marketing communicators use advertising
How
and “buzz” efforts to stimulate positive WOM
and
The amount of prestige accorded by others to opinion
The
leaders and markets mavens who act as informers,
leaders markets
© 2010 South-Western, a part of
persuaders, and confirmers
persuaders,
Cengage Learning. All rights
reserved. 18–10
- Preventing Negative WOM
• Manufacturers
Providing detailed warranty and complaint-procedure
Providing
information on labels or in package inserts
information
• 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
Is
people to talk favorably about a particular brand—
people
either over the fence or over the Internet—and to
either
recommend its usage to others who are part of their
social network
social
• 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
Generating
to Creating an Epidemic
to
Rules for Reaching
the Buzz
Tipping Point
Stickiness Factor
Law of the Few Power of Context
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 18–13
- Igniting Explosive Self-Generating Demand
Design Unique
or Visible Product
Ration
Select and Seed
Supply
the Vanguard
Principles of an
Explosive Self-Generating
Demand (ESGD)
Structure
Tap the Power
Use Celebrity
of Lists
Icons
Nurture the
Grass Roots
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 18–14
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