Exam 18: Public Relations Influencer Marketing and Corporate Advertising

A pharmaceutical company manufactures several antidepressant and anti-anxiety medications that are widely prescribed by physicians.Its executives know that among the millions of consumers using their medication, one or two adverse reactions by the media can have a very damaging effect on its reputation.In public relations, this is called .

A canned soup manufacturer has prepared questionnaires for its employees and customers.The questions are about how the people view its brands, the profits it is making, current market trends for canned soup, and the employee activities of the company.Through these questionnaires, it hopes to collect positive, newsworthy information that it can use later.The company is in the process of:

When marketers are considering cause-related advertising, it should be stressed that this type of advertising works best when a company:

The focal point of public relations objectives is sales and profits.

The Internet has now made it possible for companies to be hypocritical about environmental issues and hide their true motives.

Scenario 18-3 For some years now, enterprising individuals have gotten their own ideas, forums, and entertainment programs out in front of the public with no help from big tech firms, media conglomerates, or ad agencies.They simply posted their creations on the Internet.It began with blogs, moved to podcasts, expanded to social networks, moved on to YouTube videos, and transferred to Twitter.Audience members can download these technological tidbits-text, visual, and audio formats-to their laptops as well as to cell phones, Blackberries, iPods, iPads, and every other mobile gadget that hits the market.Eventually, public relations companies started getting into the act. -(Scenario 18-3) A high-tech firm creates special effects and computer-generated content for Hollywood movies. _{Its PR people prepare intriguing 60-second videos about its role in three blockbuster action movies released this} Year and posts them on YouTube.The firm is using a type of consumers.

Press releases are preferred over other tools of public relations because it prevents journalists from editing the news release.

A company allows its workers to take off on one afternoon, every month, to volunteer at a nonprofit organization of their choice.The company sends out a press release that explains this program to the media.This is an example of a reactive public relations strategy.

Corporate advertising is gaining favor worldwide as well-known firms and established companies invest in this form of promotion.

Compared to other influencers, professional influencers are usually:

Public relations strategies can be broadly categorized as either:

Negative publicity stems from external forces outside a firm's control and not from a company's internal activities or decisions.

Viral marketing involves professionals or experts promoting a brand to consumers in-person.

The objectives of corporate advertising include boosting employee morale and attracting new employees.

Newsletters can be distributed to important constituents in a community, such as government officials or the chamber of commerce.

At present, the field of public relations does much more than its traditional role of managing goodwill with a company's stakeholders and customers.

Scenario 18-5 An old adage states that all publicity is good publicity.However, Professors Jonah Berger of the Wharton School, and Alan Sorensen and Scott Rasmussen of Stanford found that there is such a thing as bad publicity.The colleagues studied the relationship between bad publicity and its impact on music albums, books, and movies.In 2010, they published their findings in a journal called Marketing Science.After studying cases involving the late Michael Jackson, Russell Crowe, and various authors; the colleagues concluded that negative publicity can increase product sales.Michael Jackson sold more albums after receiving negative media attention, and films starring Russell Crowe received higher rankings following an incident in which he allegedly threw a cell phone at a hotel employee.These high-profile stars actually thrived after receiving substantial amounts of negative publicity.However, in many low profile cases, negative publicity hurt sales and product reception.The three colleagues conducted an analysis of The New York Times' reviews and book sales, and found that negative reviews hurt sales of books by well-established authors, but helped sales of books by relatively unknown authors.After conducting the study, the authors found that conventional wisdom is wrong: not all publicity is good publicity.But they did show that negative publicity can sometimes be positive; it all depends on existing-product awareness. (Ned Smith, "Can Bad Buzz Be Good?" Business News Daily, November 1, 2010) -(Scenario 18-5) Which of the following factors contributes to the fact that we have entered a new era of public relations?

A reactive public relations strategy is a tool designed for firms to take quick and thoughtful action at the first sign of negative publicity.

Scenario 18-1 The brewing companies in the U.S.love to use public relations to keep their company names in the minds of Americans and to promote their many brands of beer and ale.Both traditional and innovative public relations activities-using both traditional and innovative media-help to promote a positive public image, create brand awareness, highlight the product line, and act as cost-effective ways to enhance the overall IBP campaign.And these brewers use a variety of objectives and tools that support the field of public relations. -(Scenario 18-1) A news article on projected plant closings in Milwaukee has been going around the city.The manager of one of the Milwaukee brewing plants is approached by some of his subordinates who are concerned about retaining their jobs.He sees the need for a public relations response since his plant is not one among those that are closing.Which of the following is his objective in doing this?

Scenario 18-4 In the summer of 2010, basketball star LeBron James found himself in the middle of a PR nightmare when he decided to turn his decision regarding his future team into an hour­long spot on ESPN, which was entitled, "The Decision." Almost immediately, fans and critics alike began to express their distaste for the way the multi­ millionaire handled the situation.Many fans' opinions of the star were greatly altered and James' positive public image appeared to be shattered.Perhaps, even worse than the damage to his image, the Lebron James "brand" began to take a hit when his jerseys were pulled from many stores and websites, and thousands of fans vowed they would never buy James' line of shoes ever again.Several months later, James began repairing his public image.James, who endorses Nike products, came out with a controversial commercial that was believed to evoke sympathy.However, many others felt the commercial mocked the negative reaction expressed over "The Decision," and was intended to re­brand the star as a rebel.Either way, LeBron James has a long way to go before he can re-again his title as one of the most beloved players in the NBA. -(Scenario 18-4) This is an unfortunate case of negative public relations.Which of the following is the classic role of public relations?