• Proactive PR New product releases Executive statement releases• Reactive PR Crisis response and management• Rumours and urban legends
Proactive PR • Main role: product introductions or revisions • Consumers are less likely to question the motivation underlying an editorial-type endorsement. • Product release Provide relevant information of the new or existing product by editor of third party media channels. • Executive-statement releases News releases quotes executives’ statements, address company’s internal issues.
Reactive PR• It is how organization act in relation to the negative publicity or accident.• The reaction of the organization effects on brand image.• When done effectively, reactive MPR can virtually save a brand or company.
Case study: Cumbria Train Crash • Sir Richard cut short a family holiday to see the scene of the accident and visit the hospitals treating those injured. (shows timely respect and personal care of victims)
Cumbria Train Crash • He hailed the driver of the Virgin train, Ian Black, who was badly injured in the crash, as a hero. v staff-friendly culture of organization. v promote the bravery of Virgin employee. • The train itself was magnificent - its built like a tank. v promotion of virgin train’s safety.
Rumour’s and Urban Legends • Consumers interest involves only those rumours that involve products, brands, store, or other objects of the marketing practice. (Iphone 5 or galaxy S 2 ? Should I wait or buy it now?) v Commercial rumours v Conspiracy rumours v Contamination rumours
The decline of Mass Market • Marketing primarily focuses on consumers • Conventional approach 1. Development 2. Research 3. Advertising 4. Branding
The decline of Mass Market Marketing = Advertising big bucksPepsi-Cola spends $100 million to launch PepsioneAndersen Consulting spends $150 million tolaunch its new name, AccentureBell Atlantic spends $140 million to launch its newname Verinzon
The decline of Mass Market • Advertising lacks credibility 79 67 63 59 47 37 22 17 11 10 9 Nurses Pharmacists Medical Clergy Judges Bankers Business Lawyers Insurance Adver<sing Car Doctors Execu<ves Salesman Prac<<oners Salesman
Customer Focused Marketing • IMC Elements Public Advertising relations Marketing
Public Relations Approach• The PR approach • Development • Research • Planning • Communication • Evaluation
Public Relations • Public relations focus on: *Employees *Stockholders *News media *Others
Public Relations • Public relations = Publicity • Body Shop • Starbucks • Wall-Mart • Viagra
“A good Public Relations campaign or momentis something that feels like news rather than anadvertising”
Richard Branson PR moments Mr Branson displaying his Mr Branson arriving at a press feminine side at the unveiling conference for his space travel of Vie, Virgins range of venture, Virgin Galactica cosmetics and toiletries
Richard Branson PR moments Mr Branson baring his backside to mark the arrival of Virgin Atlantic in Canada
Richard Branson PR moments Richard Branson dressed up as a Bride to launch their new product line Virgin Bride in 1996.
Reactive PR by Virgin • Every company has dissatisfied customers • In 2009, a customer complaint letter was circulated and published around the world regarding Virgin Airlines in-flight catering services.
Complaint Picture 1• The passenger described this as a “sponge with green paste.”• In his letter he says “Look at this Richard just look at it.” “What have I done to deserve this?”
Complaint Picture 2• Regarding this image he wrote, “Answer me this Richard, what sort of animal would serve a desert with peas in it?”
Complaint Picture 3• The customer likened opening the main meal to receiving a hamster for Christmas.• He writes, “It’s your hamster in the box and it’s not breathing. That’s how I felt when I peeled back the foil and saw this.”
Complaint Picture 4• “I needed a sugar hit. Luckily there was a small cookie provided. It had caught my eye earlier due to it’s baffling presentation.”• “It appeared to be in an evidence bag.”
How did Virgin Deal with the NegativePR? • Richard Branson personally called the passenger• Issued the following statement: “While we investigated his complaint seriously, and following Richard Branson’s phone call we’ve invited him to our catering house to select the next range of meals and wines we serve on board. Then we can ensure his personal taste is well and truly catered for.”
Presented and created by Aishath Lamya Ibrahim 17228537 Haifa Mohamed Al-Harbi 16008251 Fernando Moreno Rodriques 16390948 Yujie Guo 16416814 Students from Latrobe University, Melbourne Australia IMC Subject 3rd September 2011
References • The Age News. Costco Readies First Australian Outlets. Accessed on 25th Aug 2011. from http://www.theage.com.au/small-business/smallbiz-marketing/costco-readies-first-australian- outlets-20090721-droq.html • BBC News. One Dead In Cumbria Train Crash. Accessed on 25th Aug 2011. from http://news.bbc.co.uk/2/hi/uk_news/6391633.stm • BBC News. It Is A Very Sad Day- Branson. Accessed on 25th Aug 2011 from http://news.bbc.co.uk/2/hi/uk_news/6392935.stm • Chitty. W, Barker. N & Shimp. T A. 2008. “Integrated Marketing. Communications, 2ed. Cengage Learning: South Melbourne. • Campaign Live. Campaign Media Awards 2000 – Best one off stunt. Accessed on 30th August 2011 from http://www.campaignlive.co.uk/news/17912/?DCMP=ILC-SEARCH • Telegraph, Virgin on the Ridiculous. Accessed on 30th August 2011 from http://www.telegraph.co.uk/travel/picturegalleries/4371078/Virgin-on-the-ridiculous-Sir-Richard- Bransons-publicity-campaigns.html • Telegraph. Worlds best Passenger Complaint Letter. Accessed on 30th August 2011 from http://www.telegraph.co.uk/travel/travelnews/4344890/Virgin-the-worlds-best-passenger- complaint-letter.html • Telegraph. Virgin Complaint Letter. Accessed on 30th August 2011 from http://www.telegraph.co.uk/travel/travelnews/4371036/Virgin-complaint-letter-Author-of-Virgin- letter-offered-chance-as-airlines-food-tester.html • YouTube. Richard Branson on Marketing and Business. Accessed on 30th August 2011 from http://www.youtube.com/watch?v=8dhbqOlvx2U&feature=related
You are welcome to contact Nigel Bairstow at B2BWhiteboard your source of B2B Asia / Pacificmarketing advicehttp://www.linkedin.com/pub/nigel-bairstow/6/41b/726http://twitter.com/#!/b2bwhiteboardhttp://www.b2b.whiteboard.com