© 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 Objecves 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 © 2010 South-Western, a part of 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 © 2010 South-Western, a part of Cengage Learning. All rights 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 © 2010 South-Western, a part of 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 © 2010 South-Western, a part of 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 [...]...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 18–11 Creating Buzz • Buzz Creation  Is the systematic and organized effort... Street marketing © 2010 South-Western, a part of 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 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)... 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 18–14 . 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. 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. South-Western, a part of Cengage Learning. All rights reserved. 18–14 Igniting Explosive Self-Generating Demand Igniting Explosive Self-Generating Demand Principles of an Explosive Self-Generating Demand