1. Understanding the Functions of Marketing and PR
Use this work book to help you explain the functions of marketing and public relations.
You should ensure you use additional examples to support your explanations.
Marketing
Explain what market research is, how it can be carried out and why it could be
important.
Market research is generally very important to a lot of companies/organizations – this is
because it gives companies important information in relation to things such as: market
need, size and competition. Without this, it would be quite difficult for a company to be
competitive with others that aim for the same or similar target audience/market, thus
meaning that market research ensures the company maintains a good level of
competitiveness, which in turn will keep it thriving.
Market research is an organized effort to collect information on markets or
customers/consumers – this is done to gain insight and keep the company moving
forward and up to date, also ensuring that it doesn’t crash and burn, also ensures
they’re aware of what the market/audience needs/wants so they can make changes
that apply to them – also keeps an eye on other companies/competition so they can
stay up to date and produce products that are on par with rivals.
The way that market research is usually carried out can vary; there are a few different
methods when it comes to the gathering and dissection of information on people or
organizations, whether that be statistical or analytical methods, such as: Secondary
Market Research which is using existing research/data to answer questions, this is
often free and easy to find, depending on how easy it is to find existing research that
could be applied to the project at hand; it can be as simple as twitter responses.
There are more common methods which are generally primary research, such as:
Surveys, Focus Groups (Gathering a group of people who fit a target demographic to
have a discussion – usually guided by a moderator of sorts with the goal of getting the
group to discuss the topic amongst themselves – notes are taken, by the company or
group) or through interviews (much like focus groups, instead of a group it’s a one on
one discussion betwixt the participant and the moderator, these can be fairly free
flowing conversations or they can be very specific questions.)
Explain market analysis. Why is it done and who could carry it out for you?
Market analysis is similar to market research yet it aims at an entirely different area.
Market analysis studies the attractiveness of a certain market, it assesses: strengths,
weaknesses, opportunities and potential threats. It’s also known as a ‘documented
investigation of a market that is used to inform a firm’s planning activities.’ It’s usually
based around decisions for: purchase, promotional activities, work force
contraction/expansion and so on.
Market analysis has a series of elements that a company needs to keep on top of in
order to thrive and survive, it’s what is primarily used during market analysis, these
include: Market size, market trends, market growth rate, market opportunity, market
profitability, industry cost structure, distribution channels, success factors and
applications. All of these contribute to keeping a company on top of competition, help
with planning strategies, make decisions based on gathered Intel, predict future data,
2. find potential opportunities and keep on top of the needs of consumers, therefore
market analysis is done to help further improve the company and keep it modern and
active within it’s own market.
Chances are, a company would have their own market analyst, their job is: gathering
and interpreting information/data for the business/company, which gives them the
power to make recommendations (based on these findings) via communicating with the
clients, they generally make the presentations of these findings to present to clients so
they know where a company stands.
Source for initial information
(http://en.wikipedia.org/wiki/Market_analysis)
Source for market analyst job:
(https://www.marketresearchcareers.com/jdmarketresearchanalyst.aspx)
Explain marketing strategy using examples.
Marketing strategy is about increasing sales and ensuring an ever-lasting competitive
advantage – this also means analyzing the initial situation of a company, evaluating
market oriented strategies will contribute to the companies goals and/or objectives.
These strategies are: internal environments (marketing mix, performance analysis and
strategic constraints), external environments (customer analysis, competitor analysis
and target market analysis) and possibly environments that might cause problems for
success (technological, economic, cultural and political/legal.)
For example, the Colloquy Grog Shop is a bar/coffee shop where single people can
meet. They ensure that they exist to attract and maintain customers. For marketing mix,
they chose the following approaches: pricing – the pricing scheme is based on standard
industry prices. Distribution – all services and products will be distributed from the
shops retail space. Advertising and promotion – the most successful advertising will be
with Willamette Weekly. For their performance analysis, they use a sales forecast –
using a chart and a table to show their expected earnings based on previous data –
much like market analysis.
For external environments, when it comes to customer/target market analysis they
break their customers down in to two groups, ‘singles’ and ‘non-singles.’ They conclude
that the larger group is the singles and therefore the demographics are as follows:
Single – self-evident. Professional – this characteristic is intuitive since the underlying
3. element of Colloquy Grog Shop is thoughtful conversation, and most professionals
appreciate thought-provoking conversation. Income over $40,000 – this to a large
degree is correlated to the fact that they are professional. Age 25-45 – is the largest
group of singles looking for companions, which is the target market.
Competitor analysis: bars – there are many different types of bars or taverns. However,
none of them have the business mission to bring together singles. Coffee shops –
typically an easy-going social setting that does lend itself for people to meet others.
Coffee shops rarely have any type of organized activities to bring singles together.
Other events/activities aimed at bringing together singles – One activity/phenomenon
that has started in New York City and moved to a few other larger cities is an activity
that has a long rectangular table that always has one seat opposing the other. People
sit down with females on one side and males on the other to chat. Another activity
might be some sort of outdoor activity like hiking or rafting and it is organized as a
singles event. Colloquy Grog Shop predicts singles will abandon, or at least
supplement, their current method of meeting people with the Grog Shop’s activities as
they are thoughtfully designed to achieve the goal of introducing like-minded
individuals.
Colloquy Grog Shop Source:
http://www.mplans.com/coffee_bar_marketing_plan/situation_analysis_fc.php
Why is advertising so important to an organization? Use examples to help you explain.
Advertising is important because it’s the best way to communicate to the consumers, it
gives them information about brands that are available in the market and a variety of
products that would be useful to them. It’s also for everybody, it’s not just one aimed at
one target audience. There are four different objectives of advertising, this is:
Trial – companies that have just started up generally work for this objective – it’s the
one which involves convincing customers to buy the product that has been newly
introduced in to the market. The advertisers use modern, attractive ads to entice
customers, for example: bringing out a new advertisement for the whole family i.e. Sky
Movies, where a ‘family set off on a whistle-stop movie tour, transformed into animated
versions of themselves along the way’ this featured films such as: LEGO movie,
Amazing Spider-man 2, Frozen and Muppets, which primarily applies to younger
audiences, but also family, if there are younger audiences, it’s bound to be in a family
situation, since it’s around Christmas, it’s a perfect opportunity to sell products like this
so it can be used as a form of present.
Continuity – keeping existing customers interested in the product. Advertisers will
usually bring something new in the product, for example: Apple upgrading their phones
a few times every year, this always brings back a reliable demographic, especially
4. when the company upgrades something like: camera quality, initial design, faster
connection, better battery life, increased storage and so on.
Brand switch – this objective is based on companies who intend to attract the
customers of their competitors. The advertisers try to convince customers to switch
from the existing brand they are using to their companies product, for example:
Supermarkets always compete with the others; ASDA usually uses a comparison
advertisement to try attract the competitions customers, it can work and there can be an
influx in customers or the competition can create an advertisement that makes their
products look lame in comparison.
5. Switching back – for the company who wants their previous customers back, this would
be the customers that fell for the brand switch objective, therefore the advertisers use
different ways to get their customers back, this includes: discount sales, new
advertisements and things like re designing packaging in the hope that their once
faithful customers will return to them.
There are a few reasons why advertising is so important, for example, today it plays a
very important role of this ages competition, it’s something that has become somewhat
of a necessity in some peoples day to day life, whether it’s the producer, the traders or
6. the customer themselves. For customers, these are the people who buy the products
only after being made aware of where the products are readily available. If the product
isn’t advertised, no customers will know what products are actually available and thus
will not buy the product, whether it be for their benefit or not. Advertising also helps
them find the best for themselves, their kids or their families.
Advertising is also very important for the seller/companies who produce/sell them.
Advertising helps increase sales, helps producers of the companies to know the
competition and plan to match with their levels, if any company would like to launch a
new product in the market, advertising will definitely get the product out there, it also
gains customer loyalty and the demand for the product tends to keep on reciprocating
thanks to advertising.
It’s also very important for society, it helps to educate people. There are a bunch of
social issues which advertising tends to deal with, such as: child abuse with Childline
advertisements, drink driving, smoking, safety, money saving, important health
information, animal cruelty awareness such as the RPSCA adverts or Dogs Trust,
general information and so on – therefore advertising plays a very important role in
society.
Sky movies advertisement source:
(http://www.sky.com/tv/channel/skymovies/video/step-into-the-adventure-with-the-new-
sky-movies-christmas-advert)
Apple iPhone Update source: (https://www.apple.com/iphone-5s/powerful/)
ASDA comparison photograph source: (http://www.retail-
week.com/attachments.aspx?js=yes&height=auto&width=724&storycode=5030243&att
ype=P&atcode=1255168)
Variation in Packaging designs source: http://www.orioncreative.com.au/wp-
content/uploads/2014/01/samboys-concept1-171x250.jpg
What is brand promotion and what methods could you use to promote a brand?
Brand promotion is a common strategy used by companies to gather more publicity and
get their products out there with more sales. They focus on a variety of areas that will
help keep their company competitive and successful – this can vary, depending on if
they’re having difficulties with any particular areas.
It’s important to increase product sales, they company ensure this by making the
customers aware of products they sell and what quality they are expected to be sold in,
it is imperative not to use false advertising when trying to do this, this can cause
repercussions that might have a devastating effect later on. They also measure peoples
brand awareness by using a promotion method which involves: surveys or general
shopping experience surveys to receive feedback on customer service, products and
areas to improve on after every sale.
They also measure customer loyalty by becoming competitive with products – making
sure that they are of a higher quality or a better price to ensure customers don’t
become more attracted to competitors products instead, for example: mascara
manufacturers can focus on one key selling point, i.e. ‘longer lashes’ whereas others
might choose to expand and talk about increased volume or shine, this keeps the
customers keen and may even attract new ones. This is also the brand switch objective
as mentioned in the advertisement section. The main idea is, the business shows off
7. the merchandise, customers see value in the key selling point; have a good purchasing
experience and decide to come back.
Another thing they focus on is sales, the previous points: ‘customer loyalty and product
awareness’ connects to profits, awareness and loyalty mean an increase in sales,
because of this increase; there are larger financial gains which means more
improvements or projects to entice customers, not only do they see this as innovative
but it also improves stock prices overall.
The last thing they focus on is overall value, this is stuff like maintaining the image, for
example: if certain figures (sales for example) aren’t as high as they were before, it
should be the company’s sole purpose to improve that.
There are a few different methods of brand promotion, these are: contests – for
example there is the ‘New Gadget for a New Year’ advert with the chance to win a
gadget, the choices are between a KOMANDO tablet, security camera, dual lens dash
cam and an Epson printer, this is often seen as an exciting way to win free stuff –
especially by consumers, it also means that the company receives a bit more
recognition and the consumer might choose to buy other products from the same
company if they’re impressed with the results of the free one, they might even
recommend it to friends.
There is also the use of social media to get products out there or make younger
generations aware of a product, they could post a lot of statuses with new offers and
valuable information or they could use humour to attract old and new customers – much
like Taco Bell uses on their Twitter account, they regularly make jokes with famous
people or just make general jokes – this receives a lot of attention from customers and
potential customers, especially on Twitter and other social media websites where posts
can be easily shared.
8. Taco Bell & Dillon Francis Twitter source: (http://firstwefeast.com/eat/dj-dillon-francis-
love-affair-taco-bell/)
Contest example source: (http://www.komando.com/contests)
PR
What are some of the key principles involved in managing the message?
When creating a message for any form of public relations, its important to create a story
around a product, person or company that continues to stay consistent, this also
influences whether the product is seen in a good or bad light. One of the key principles
is ’communicate what you know, when you know it’ – this means it’s important to know
exactly what you need to say and when it needs to be said, it’s also ensuring that the
readers don’t receive any sort of information that could confuse readers or cause doubt
when it comes to purchasing choices or any other kind of impact it could have on the
company/person/product if something contradictory was said.
Another key principle is to not be afraid to say, “I don’t know” as long as you follow it up
with “…but I’ll find out and get back to you as soon as I do.” This ensures a strong form
of communication whilst proving to the reader that the company/person is innovative
and willing to find out the information the readers require.
‘Reinforce what is staying the same as you discuss what may be changing’ is another
9. key principle, it’s important when talking about changes being made to a
product/company that the message clearly explains what is staying the same and what
is potentially changing so there are no major changes or problems that could affect the
company or consumer.
What is positive publicity? Find an example of it to help explain.
Negative publicity occurs when a company/person attracts a lot of media attention after
doing something they shouldn't have or getting caught in the act - this can be disastrous
for them and they could lose sales, customer loyalty and could potentially run their
company in to the ground.
When a company/person receives positive publicity, it would be after they pulled some
kind of stunt which got them a lot of media coverage, due to this, the company receives
an influx in sales, consumer loyalty and general publicity altogether. Here are a few
examples of stunts that have brought about positive publicity for companies:
Message in a bottle (1959): Guinness dropped 150,000 bottles with 'messages' from
no other than King Neptune in each, in to the ocean. They did this to raise awareness
and hoped that people combing the beach would stumble upon one and spread the
word.
Guinness source: (http://www.guinntiques.com/thebottledrop.aspx)
Human Chain for Charity (1986): More than 7 million people in the USA joined arms
to form a chain - it stretched across 16 states - this was to raise money for the hungry
and the homeless. Everyone involved had to pay $10 for a spot in the line, even
10. president Reagan joined in.
Source: (http://en.wikipedia.org/wiki/Hands_Across_America)
Racing to Victory: 1900's France there was a newspaper - The Bicycle - which broke
up in to another newspaper - the Car - to gain dominance in the newspaper industry
and broaden it's market. They organized a bicycle race, which covered over 1500 miles;
this was the first Tour de France. Because the bicycle race is still a modern success
and event, the company ended up with 6x as many followers as they previously
expected to gain.
Source:(http://en.wikipedia.org/wiki/1903_Tour_de_France)
11. In public relations terms, what is spin? Find an example to help you with your response.
Spin is a form of propaganda; it's a misleading persuasion tool used by companies to
twist the truth in to making something look better or worse than it actually is. It's usually
defined by: exaggeration, euphemisms, inaccuracies and excessively emotional
appeals.
For example: during an episode of the comical animated sitcom, the Simpsons - a 3
eyed fish was found in a water source by Mr. Burns' power plant, where chemical waste
was being dumped, the plot develops and soon Burns’ becomes desperate to take over
health and safety so that he can change/edit the regulations to keep himself safe, so he
decides runs for governor. He hires a campaign team which includes: a spin doctor
(provides a favorable view on an item in the news), a joke writer, make-up man, muck
raker, mud slinger and a garbologist (the study of material discarded by society to
reveal social/cultural patterns) these are like the lowest of the low in political views.
Despite the spin doctor affectionately naming the fish 'Blinky' so it appears more
loveable and friendly whilst it spins the actual hazard in to a positive light and then
coming up with the defense that the fish is an ‘evolutionary necessity' - Marge Simpson
manages to 'out spin' them and actually serves Blinky to Mr. Burns during his televised
dinner where he publically spits the fish out in disgust!
Overall, despite the actually health and safety risks present; Mr. Burns and his team
tried to spin the 3 eyed fish in to a good light even though it really wasn’t - the truth
being that the hazardous chemicals being pumped in to the water where Blinky was
found had begun to actively mutate organisms it came in to contact with - therefore
there was a risk for humans too.
12. http://www.truthliesdeceptioncoverups.info/2013/05/spotting-spin-some-tricks-of-
trade.html
source
Why might a person or a company engage in damage limitation? Using an example will
improve your grade.
Damage limitation is 'the process of limiting the damaging effects of an action or
mistake' the government uses damage limitation to avoid the effects of scandal and it's
also the attempt in war to use careful planning to avoid unnecessary death.
It's basically taking steps and precautions when it comes to people or companies, this
could include: minimizing damage by creating a positive culture and training employees
on how to properly use social media.
Monitoring social media 24/7, for example: A McAfree flagged one of Chitika's ad's and
the network endured a bunch of McAfree antivirus alerts - Daniel Ruby - the marketing
director of Chitika actually found out from their publishers on a social networking site,
Twitter.
Chitika responded to concerned users via twitter - they kept them up to date with steps
on how to fix the problem - this takes us in to the next step:
Reply to the social media world: once, during a meeting of Ignite Phoenix in Tempe,
Arizona (which was attended by over 600 people), a few par takers had their cars
towed because they had parked it on a private lot. The social media response was
immediate and the story spread like wild fire. (It went from Twitter to mainstream TV
within a day.) The city worked with organizers to resolve the issue and tweeted
responses - because it was fast and it saved their reputation quite a lot and kept the
consumers happy and consistent.
A company would use damage limitation to make sure they have a contingency plan in
case a public speaker, a social media post or an action goes bad - the plan should also
include steps to ensuring this doesn't happen in the first place, that's why a
person/company would engage in damage limitation.
Source: (http://mashable.com/2009/07/09/social-media-damage-control/)
13. What benefit could there be to an organization to create an event? Use an example of a
marketing or PR event to support your responses.
The Strategic Internal Communications 10th Annual 1-day-conference (27/Nov/14) in
London is an event created by a media organization that:
• Provides companies with advice/actions to further develop internal
communications and ensure a united, committed and high performing work force
• Provides in depth case studies, practical solutions and vital strategies to drive
employee engagement.
The conference explores issues such as:
• Communicating companies values, culture and purpose
• Innovative techniques on enhancing staff engagement like: story telling and
visual communications, building managers leadership capability
• Traditional vs. digital - joining channels effectively
The event is seen as 'not-to-be-missed'
Events benefit organizations because it not only gets the company out there but also
14. shares company ideas with other organizations whilst also receiving feedback which is
beneficial in both ways. This new information can then be used to make the
organization a better place for employees, visitors and other members of staff; whilst
offering the same to other ally organizations. Events can also improve important
relationships and also bring a more passionate work force - especially as the Strategic
Internal Communications conference offers.
Source: (http://www.prweek.com/uk/strategic-internal-comms)
What is lobbying and who is most likely to be influenced by it?
Lobbying is often aimed at political bodies, this is because lobbying is the influence
over these bodies to put forward an idea/legislation or change a law in favor of their
company.
A 'lobbyist' is a 'paid persuader whose job is to influence the decisions of the
government.' Usually they offer money or freebies to sweeten the deal.
For example: the former vice president of Monsanto (a publicly traded American
multinational agrochemical and agricultural biotechnology corporation) is now an
adviser to US Food and Drug Administration. Turns out the former vice president plan
to sell genetically modified crops to a body that advises on food safety.
Therefore, politicians are the most heavily influenced because they are who get
generally targeted, there's never one type of body that is particularly aimed at because
there is a large variety of different lobbyists who need the influence for their own
reasons.
Source: (http://www.theguardian.com/politics/2014/mar/12/lobbying-10-ways-
corprations-influence-government)
Source for Monsanto: (http://newint.org/features/2011/01/01/10-worst-corporate-
lobbyists/)