© 2010 South-Western, a part of Cengage LearningAll rights reserved.© 2010 South-Western, a part of Cengage LearningAll rights reserved.

PowerPoint Presentation by Charlie CookThe University of West Alabama

PowerPoint Presentation by Charlie CookThe University of West Alabama

Eighth Edition

Marketing-Oriented Public Relations and Word-of-Mouth Management

Marketing-Oriented Public Relations and Word-of-Mouth Management

CHAPTER 18CHAPTER 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.

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 ObjectivesAfter reading this chapter you should be able to:Chapter ObjectivesAfter 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 MarcomPublic 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 publicsgoodwill 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 consumerspublic, 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 customersprospective customers Performs an increasingly important marcom function Performs an increasingly important marcom function

for both B2C and B2B firmsfor both B2C and B2B firms Are more credible and less expensive in comparison Are more credible and less expensive in comparison

with advertisementswith advertisements

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 18–4

MPR versus AdvertisingMPR versus Advertising

• PR (or MPR) in Integrated MarcomPR (or MPR) in Integrated Marcom Has been the subject of much debateHas been the subject of much debate

Has traditionally been specialized and limitedHas 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 advertisingproducts 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 productswhen introducing new and innovative products

• Drawbacks to MPRDrawbacks to MPR Not all products can rely on publicityNot 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 newsworthynewsworthy

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 18–5

Marketing-Oriented Public Relations (MPR)Marketing-Oriented Public Relations (MPR)

• Proactive MPRProactive MPR Is a tool for communicating a brand’s meritsIs 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 promotionsas advertising and sales promotions Is dictated by a firm’s marketing objectivesIs dictated by a firm’s marketing objectives Is offensively oriented and opportunity seekingIs offensively oriented and opportunity seeking

• Reactive MPRReactive 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 salesprevent market erosion, and regain lost sales

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 18–6

Forms of Proactive MPRForms of Proactive MPR

Product Product ReleasesReleases

• Announce new productsAnnounce new products• Provide relevant information, features and benefitProvide relevant information, features and benefit• Audiovisual product releases (video news releases, Audiovisual product releases (video news releases,

or VNRs) gained wide usageor VNRs) gained wide usage

Executive-Executive-

Statement Statement (News) (News) ReleasesReleases

• Quoting CEOs and other corporate executivesQuoting CEOs and other corporate executives• May address a wide variety of issuesMay address a wide variety of issues• Published in the news sectionPublished in the news section• Carry a significant degree of credibilityCarry a significant degree of credibility

Feature Feature ArticlesArticles

• Detailed descriptions of products or other Detailed descriptions of products or other newsworthy programs newsworthy programs

• Written for immediate publications or airingWritten for immediate publications or airing• Inexpensive to prepareInexpensive to prepare

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Reactive MPR and Crisis ManagementReactive MPR and Crisis Management

• Reactive MPRReactive MPR Addresses factors in a Addresses factors in a

product’s defects and failuresproduct’s defects and failures

Provides responses to Provides responses to unanticipated market eventsunanticipated market events

• Crisis ManagementCrisis 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 publicitynegative 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 Legendsand Urban Legends

CommercialRumors

ConspiracyRumors

ContaminationRumors

Types of Rumors

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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 refutedneed to be refuted

2.2. Emphasizing that the conspiracy or contamination Emphasizing that the conspiracy or contamination rumor is untrue and unfairrumor is untrue and unfair

3.3. Picking appropriate media and vehicles for delivering Picking appropriate media and vehicles for delivering the antirumor messagethe antirumor message

4.4. Selecting a credible spokespersonSelecting a credible spokesperson

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 18–10

Word-of-Mouth InfluenceWord-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 controlattempt to control

• Factors Affecting WOM’s InfluenceFactors Affecting WOM’s Influence Tie strength of interpersonal relationships of persons Tie strength of interpersonal relationships of persons

in B2C and/or B2B social networksin B2C and/or B2B social networks

How well marketing communicators use advertising How well marketing communicators use advertising and “buzz” efforts to stimulate positive WOMand “buzz” efforts to stimulate positive WOM

The amount of prestige accorded by others to The amount of prestige accorded by others to opinion opinion leadersleaders and and markets mavensmarkets mavens who act as informers, who act as informers, persuaders, and confirmerspersuaders, and confirmers

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 18–11

Preventing Negative WOMPreventing Negative WOM

• ManufacturersManufacturers Providing detailed warranty and complaint-procedure Providing detailed warranty and complaint-procedure

information on labels or in package insertsinformation on labels or in package inserts

• RetailersRetailers Employees with positive attitudesEmployees with positive attitudes Store signs and inserts in monthly billingsStore signs and inserts in monthly billings Offer toll-free numbers and e-mail addressesOffer toll-free numbers and e-mail addresses

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 18–12

Creating BuzzCreating Buzz

• Buzz CreationBuzz Creation Is the systematic and organized effort to encourage Is the systematic and organized effort to encourage

people to talk favorably about a particular brand—people to talk favorably about a particular brand—either over the fence or over the Internet—and to either over the fence or over the Internet—and to recommend its usage to others who are part of their recommend its usage to others who are part of their social networksocial network

• Proactive EffortsProactive Efforts Guerrilla marketingGuerrilla marketing Viral marketingViral marketing Diffusion marketingDiffusion marketing Street marketingStreet marketing

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Generating Buzz Is Akin Generating Buzz Is Akin to Creating an Epidemicto Creating an Epidemic

Law of the Few Stickiness Factor Power of Context

Rules for Reaching the Buzz

Tipping Point

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Igniting Explosive Self-Generating DemandIgniting Explosive Self-Generating Demand

Principles of an Explosive Self-Generating

Demand (ESGD) Structure

Select and Seed the Vanguard

Design Unique or Visible Product

RationSupply

Nurture the Grass Roots

Tap the Powerof Lists

Use CelebrityIcons