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

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Scenario 18-4 Celebrity 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 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 viewers felt the commercial mocked the negative reaction expressed over "The Decision," and was intended to re-brand the star as a rebel. Either way, LeBron James has a long way to go before he can regain his title as one of the most beloved players in the NBA. -(Scenario 18-4)One reason LeBron James and his team did not expect such negative backlash following "The Decision" was because he donated the $3 million generated by the television spot to a number of children's charities.Although it may not have been effective in this instance,through this sponsorship,James and his team hoped to: 

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Public relations is the one tool that can accomplish a tough and often unpleasant task of damage control for a company.Explain and give at least two real-life examples of this process.

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Damage control is the task that only public relations can handle.Even the most careful,ethical,and organized companies will probably have to face negative publicity at some point-a product defect,a recall,a hazard,an accident,a public health issue,an employee scandal,etc.Issues can arise from internal problems that have been neglected or left unsolved,or from external forces that have risen and are completely out of the company's control.This is where damage control comes in.Public relations departments or directors can do several things to calm nerves and cool tempers.They need to focus on the company's reputation and the preservation of the brand.But first,they need to give honest information,speak directly to the public,apologize,spell out the problem,their plan to solve it,and offer something to the public or the customers to make-up for the mistake.There are things that they should not do,such as hide from the media,refuse to speak to the public,or insist they are right or innocent.One of the first things they normally do is to contact the media and hold a press conference so they can address the issue,answer questions,and show that they are handling the situation.Press releases often come shortly afterwards,and even new ad messages may be created.Most importantly,PR personnel should be prepared in advance with accurate data and clear information at hand,even before "bad news" hits.

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 large brewing company has its public relations staff create an interactive website aimed at men and women in their 20s and early 30s.It offers interesting facts about the history of beer,the making of beer,the definition of various brewing terms,the difference between hops and malt,etc.It includes games like crossword puzzles,word jumbles,and trivia contests related to beer.The objective of such PR initiatives is to: 

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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? 

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In peer-to-peer programs,the idea is to give influencers something fun or provocative to talk about; there is an emphasis on social currency.

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Developing connector databases,finding the conversation starters,tracking the buzz online and off- that's the new era of influencer marketing.

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Scenario 18-2 A young man decides to become a mass producer of T-shirts. His small factory located in Oregon begins promoting itself by hiring excellent seamstresses, offering a pleasant working environment, decent salaries, and giving the public an opportunity to buy clothes that are 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." However, along the way, it deals with a few public relationsissues too. -(Scenario 18-2)Shortly after this young man launched his business,a local newspaper runs a series of investigative reports on crowded,dimly lit,and unventilated sweatshops along the West Coast that hire illegal immigrants.His business is mentioned,though only in a list of firms that employ seamstresses,not in the list of those accused of wrongdoing.Still,he feels the need to write a letter to the editor as well as put out press releases to clarify his position and describe his business ethics.In terms of public relations,which of the following is he doing? 

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

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As opposed to a news release,a feature story: 

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Gatorade enjoys positive publicity when an athlete gets "dunked" with the sport drink after a big win and it is on social media or television.

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Influencer marketing could be considered a special case of public relations.

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Influencer marketing involves individuals or groups who: 

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Apple is a company that has historically relied on corporate campaigns to support its numerous subbrands.

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Among all the public relations tools that a company might use,which of the following focuses specifically on employees? 

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An auto marketer runs a commercial that implies how the car is good for the environment but the implicit and vague mention of it is questionable.Which of the following is the auto marketer using? 

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Describe the objectives and features of influencer marketing.Define at least three types that are in use today.

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Advocacy advertising focuses on enhancing the overall image of a firm among important constituents-typically customers,employees,and the general public.

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

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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: 

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Which of the following is true of a proactive public relations strategy? 

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