Exam 18: Public Relations, Influencer Marketing, and Corporate Advertising

As opposed to a news release, a feature story

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 an article in 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 lower 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 their 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) When publicity is positive it tends to

Rumors are running rampant through a company that a competitor is going to buy out the firm and fire half of its workers.To reduce the anxiety of its workforce, the company could embark on a PR effort that involves which of the main objectives of public relations?

A nationwide coffee retailer runs ads and posts signs in its coffee shops noting that cups are made from recyclable materials and coffees are organically grown by free-market producers.What kind of marketing element does this involve?

Today's politicians essentially cannot benefit from public relations in any way, because the tone of publicity in political life is very difficult to manage.

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 hour-long spot on ESPN, which interestingly enough 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 retailers' stores and websites, and thousands of fans vowed they would never buy James' line of shoes ever again. Several months later, James began the process of repairing his public image. James, who endorses Nike products, came out with a controversial commercial some believe was intended 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 bit of a rebel. Either way, LeBron James appears to have a long way to go before he can once again be recognized as one of the most beloved players in the NBA. -(Scenario 18-4) This is an unfortunate case of negative public relations. According to the text, what is the classic role of public relations?

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.And it just keeps going.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 Midwest publisher launches a series of young adult books featuring witches, devils, and vampires.Several conservative church groups in Georgia, Alabama, and Mississippi stage protests and burn the books in videotaped media events, after which a number of nearby libraries ban the books.The publisher sets up a Facebook page to gather signatures in opposition of book-burning and book-banning and in support of free speech and free enterprise in a free society.It encourages visitors to put an emphasis on literacy, education, and open libraries.The publisher's Facebook page is a form of ____.

Many contemporary companies now seek out "connectors" to assist with their public relations efforts.Connectors can be described as people who

Corporate advertising is not always targeted at the consumer.

The wildly successful Charmin IBP effort began in 2000 as a campaign to

Stockholders, suppliers, employees, government entities, citizen action groups, and the general public can all be considered ____ in the world of public relations.

The text points out that the Internet has changed the game in the world of green marketing in one very specific way.What is it?

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

Promoting a product or service.Press releases or events that increase public awareness of a firm's brands can be pursued through public relations.

Scenario 18-2 A young man decides to become a mass producer of quality T-shirts.His small factory located in Oregon begins by promoting itself as hiring excellent seamstresses, offering a pleasant working environment, paying decent salaries, and, most importantly, giving the public an opportunity to buy clothing that is truly "made in America." The company eventually adds other clothing items, opens three brick-and-mortar retail stores in several large cities, and expands to online shopping.Over the years, the firm grows and prospers due to its reputation as an American manufacturer, a fair employer, and an opponent of the traditional view of "sweatshops." And along the way, it deals with a few public relations issues. -(Scenario 18-2) Over the years, he has learned that positive word-of-mouth advertising helps.He now enlists the testimony of seamstresses who have been with him for years, customers who won't buy any casual clothing but his, and even high-end designers who praise his business integrity and product quality.What is he involved in now?

Peer-to-peer influencer programs have a different tone than those involving professionals in that they focus more on

Cause-related marketing is becoming increasingly common, largely because research shows that

Buzz marketing involves creating an event or experience that leads to conversations about the brand.

Scenario 18-2 A young man decides to become a mass producer of quality T-shirts.His small factory located in Oregon begins by promoting itself as hiring excellent seamstresses, offering a pleasant working environment, paying decent salaries, and, most importantly, giving the public an opportunity to buy clothing that is truly "made in America." The company eventually adds other clothing items, opens three brick-and-mortar retail stores in several large cities, and expands to online shopping.Over the years, the firm grows and prospers due to its reputation as an American manufacturer, a fair employer, and an opponent of the traditional view of "sweatshops." And along the way, it deals with a few public relations issues. -(Scenario 18-2) The conflict passes, things settle down, and he goes on to build his business-knowing that a rash of bad publicity could have done him in early on, before he even got started.Now he knows that he is part of an industry with many questionable players.And he is aware that the chance of being associated with sweatshops, illegal hiring, or other unsavory aspects of business must be anticipated.In this way, he has

Compared to other influencers, professional influencers are usually