Marketing-Oriented Public Relations and Word-of-Mouth Management CHAPTER   18
<ul><li>Appreciate the nature and role of marketing public relations (MPR). </li></ul><ul><li>Discern the differences betw...
Public Relations and Integrated Marcom <ul><li>General Public Relations (PR) </li></ul><ul><ul><li>Is an organizational ac...
MPR versus Advertising <ul><li>PR (or MPR) in Integrated Marcom </li></ul><ul><ul><li>Has been the subject of much debate ...
Marketing-Oriented Public Relations (MPR) <ul><li>Proactive MPR </li></ul><ul><ul><li>Is a tool for communicating a brand’...
Forms of Proactive MPR <ul><li>Detailed descriptions of products or other newsworthy programs  </li></ul><ul><li>Written f...
Reactive MPR and Crisis Management <ul><li>Reactive MPR </li></ul><ul><ul><li>Addresses factors in a  product’s defects an...
The Special Case of Rumors  and Urban Legends Commercial Rumors Conspiracy Rumors Contamination Rumors Types of Rumors
What Is the Best Way to Handle a Rumor? <ul><li>Antirumor Campaign Activities: </li></ul><ul><ul><li>Deciding on the speci...
Word-of-Mouth Influence <ul><li>Word-of-Mouth (WOM) </li></ul><ul><ul><li>Is both complex and difficult for brand managers...
Preventing Negative WOM <ul><li>Manufacturers </li></ul><ul><ul><li>Providing detailed warranty and complaint-procedure in...
Creating Buzz <ul><li>Buzz Creation </li></ul><ul><ul><li>Is the systematic and organized effort to encourage people to ta...
Generating Buzz Is Akin  to Creating an Epidemic Law of the Few Stickiness Factor Power of Context Rules for Reaching  the...
Igniting Explosive Self-Generating Demand Principles of an  Explosive Self-Generating Demand (ESGD)  Structure Select and ...
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Chapter 18

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Chapter 18

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

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