Deck 17: Public Relations, Publicity, and Corporate Advertising

Question 1

Some marketers consider corporate advertising a waste of time and money. What are some of the reasons they feel this way? Take a position pro or con corporate advertising and defend it. (LO3)

Answer 1

Because corporate image advertising does not specifically promote a product or service, critics contend that it is a waste of time and money. They argue that the company must be having problems that need to be addressed, or that it is a self-indulgence designed to satisfy the egos of top management. They further contend that consumers are not interested in this form of advertising, and the monies would be better spent on ads that might generate sales. Opponents cite studies showing that corporate ads are of less interest to consumers than other forms of advertising.
Corporate image advertising is used for a variety of purposes. Besides general image ads and sponsorships, companies use corporate image ads to appeal to stock holders and investors, recruit and inform the public as to their actions. In addition, advocacy and issue ads are used to address issues that might directly impact the organization in a potentially negative way.
There is a role for corporate image advertising, just as there is a role for other forms of image advertising. Marketers need to create a positive image of their organizations in the minds of consumers, and this form of advertising is effective in doing so.

Question 2

Explain how social networks can both help and hurt companies in regard to publicity. (LO1)

Answer 2

Do to their viral nature, social networks can spread both positive and negative publicity even faster than the traditional channels themselves can. Consider a situation in which something negative happens to you. You go on Facebook and let all of your friends know, they, in turn let their friends know, and the momentum builds. Particularly in the case of negative publicity, information is passed along to many others and quickly.
Twitter also allows for rapid dissemination of information. Companies monitor Twitter daily, knowing that if someone Tweets negative things about them, it will lead to multiple exposures which may be harmful to the organization. An example is the case where one airline passenger Tweeted management to complain, and a competitor, seeing the Tweet offered the consumer the opportunity to try their airline as a substitute.
There have also been videos uploaded to You Tube and other sites mocking companies, or passing along the negative publicity they have encountered to others.
Of course, the same holds true for positive publicity, which social networks can pass on as well. However, like the song goes "everyone likes dirty laundry", and the likelihood that the information will go viral has less of a chance, unless it is very unique.

Question 3

Discuss some of the advantages and disadvantages of public relations. Now do the same for MPRs. (LO3).

Answer 3

Pages 582-583 list the advantages and disadvantages of public relations. Advantages include:
a.          Credibility-due to its perceived news intent (versus selling), pr may have higher credibility than many marketing messages
b.         Cost-pr costs less than marketing messages, due to the lack of media costs
c.          Lack of clutter-longer articles, separation from ads and new content help avoid clutter
d.         Lead generation-pr, if effectively targeted, can generate leads ranging from financial investments to sales to participation in  or support of the cause
e.          Ability to reach specific groups-through effective targeting, and due to its news value, pr messages may get through to groups advertising cannot
f.          Image building-corporate advertising, cause and advocacy advertising, and pr activities in general may help establish a positive image in the mind of receivers
The major disadvantages of public relations are the lack of control over the message and guarantee that it will appear in the media at all. Thus, the intended communication never takes place.
Marketers can effectively employ pr activities and eliminate the disadvantages. Corporate, advocacy and cause advertising are paid for, and will get the message and media sought delivered. At the same time, they maintain many of the advantages, as there is no perceived intent to sell. Likewise, sponsorships can be effectively used to get the message delivered. Many companies now formally design-in pr programs as part of their IMC program to increase effectiveness.

Question 4

Why do companies get involved in event sponsorships? Is this an effective strategy? Give examples of event sponsorships that were successful and some that were not.

Question 5

As noted in the chapter lead-in, many companies have suffered from the consequences of negative publicity. Discuss what companies might do to ward off the negative impact of bad press. How well did the companies in the lead-in fare?

Question 6

Research studies have indicated that cause marketing can actually lead to an increased intention to purchase a brand. Explain why this is the case and provide examples that you feel may pertain.

Question 7

Putting one's name on a stadium can be an expensive proposition, and the prices continue to increase. Discuss whether this would be a good investment for a company, and why or why not. Give examples of companies for which this might be a good investment.

Question 8

The chapter discusses cause marketing, advocacy advertising, and issue ads. Explain the differences between these forms of communication and give examples of each.

Question 9

Social media have had a profound impact on the power of publicity. Explain what this means and whether you believe it to be true or not. Provide examples to support your position.

Question 10

Describe the conflict between traditional PR agencies and those that see PR as more of a marketing function. Cite reasons why each of these groups holds the position it does. Who is right?