MODULE 4
MODULE 4
Relations,
Publicity and
Direct
Marketing
Module 4
Syllabus
Module 4: Public Relations, Publicity and Direct Marketing
Determination
Determination and
and evaluation
evaluation of
of
public
public attitudes
attitudes
Identification
Identification of
of policies
policies and
and
PR
PR procedures
procedures
Development
Development and
and execution
execution of
of
the
the program
program
Traditional PR Perspective
Customers
Customers
Community
Community Investors
Investors
Public
Public Relations
Relations
Department
Department
Suppliers
Suppliers Government
Government
Employees
Employees
Modern approach--- Integration of PR into the
Promotional Mix
Either marketing or public relations Separate Functions
can be the dominant function; both
can be equal but separate functions; Marketing Public
or the two can perform the same Department Relations
roles.
While each of these designs has its
merits, in this text we consider public
Coordinated and Equal
relations an IMC program element.
This means that its broad role must
include traditional responsibilities. Marketing Public
Department Relations
Whether public relations takes on a
traditional role or a more marketing-
oriented one, PR activities are still Integrated
tied to specific communications
objectives. Marketing Public
Department Relations
Assessing public attitudes and
creating a favorable corporate image
are no less important than promoting
products or services directly.
Marketing Public Relations Functions
MPR adds value to the integrated marketing program in a number of ways:
Improving ROI
Advantages
A cost-effective way to
Breaks though the clutter
reach the market
Highly targeted way to Circumvents resistance to
conduct public relations sales efforts
Endorsements by Improved media
independent third parties involvement w/customers
Creates influence among
Achievement of credibility
opinion leaders
Makes advertising
Improved ROI
messages more credible
Benefits of MPR
Disadvantages
Promotion is the voice of your company which send out your brand’s
message loud and clear to the audience. Various media platforms can be
used to promote your company and brand. They include television, radio,
shopping outlets, billboards, magazines, and social media.
The nature of promotion is that it's usually offered for a limited time. If
you're launching a new soft drink, and you offer a free case to anyone who
buys the classic variety, that deal won't last forever. After you introduce
people to your new product, you want them to start paying for it.
Importance of promotion
The importance of a promotion strategy depends on your objectives.
Promotions can accomplish several different goals:
Boost brand awareness.
Convince people to try a new product at least once.
Provide information. If your product is new, promotion can make people aware
of its benefits and why it's better than the competition.
Increase customer use. Frequent-flyer programs are an example of this kind of
promotion. A traveler who uses Delta or American Airlines over and over can
qualify for free flights down the road. Using a credit card tied to the airline
gives customers more miles.
Tools of promotion
Tools of promotion
Advertising
Advertising is defined as any form of paid communication or promotion for
product, service and idea. Advertisement is not only used by companies but in
many cases by museum, government and charitable organizations.
Sales Promotion
Promotion is an incentive tool used to drive up short term sales. Promotion can
be launched directed at consumer or trade. The focus of advertising to create
reason for purchase the focus of promotion is to create an incentive to buy.
Consumer incentives could be samples, coupons, free trial and demonstration.
Public Relations
Companies cannot survive in isolation they need to have a constant interaction with
customers, employees and different stakeholders. This servicing of relation is done by
the public relation office. The major function of the public relation office is to handle
press releases, support product publicity, create and maintain the corporate image,
handle matters with lawmakers, guide management with respect to public issues
Direct Marketing
The communication establishes through a direct channel without using any
intermediaries is referred to as direct marketing. Direct marketing can be used to
deliver message or service. Direct marketing has shown tremendous growth in recent
years.
Personal selling
It is where businesses use people (the "sales force") to sell the
product after meeting face-to-face with the customer. The sellers
promote the product through their attitude, appearance and
specialist product knowledge. They aim to inform and encourage
the customer to buy, or at least trial the product
PUSH & PULL STRATEGIRS
push strategy
directs communication efforts at channel members
many products, such as business products, are
promoted with a push strategy, involving personal
selling and use of trade promotions
pull strategy
directs promotion at the end consumer
most consumer products would rely more heavily on a
pull strategy
– where promotion is directed at the consumer to
stimulate demand
Example: Facebook: Using Push
and Pull within the Same Tool
Facebook continues to be one of the most popular social media sites with 1.94 billion monthly
users worldwide (March, 2017). As a platform, Facebook provides an easy to understand model of
how to create a complementary balance of push and pull marketing strategies. For example,
drawing users to your page can take a combined approach.
Push Strategy: Facebook Advertising and Boosted Posts
One of the necessary tenants of push marketing is to know your audience. Once you have
established your audience you can target them through Facebook advertising and boosted posts.
Facebook allows you to specifically target users by age, demographic, location, socio-economic
status, and interests. An ad that runs in a potential customers feed will push them to your
Facebook page and/or website to make a purchase.
Pull Strategy: Search Engine Optimization
Potential customers who have a need will search keywords. If you have a robust Facebook About
description and an active presence on Facebook, top hits will pull users to your Facebook page.
Publicity
Generating news about a product or service in the media
Publicity is the deliberate attempt to manage the public's
perception of a subject.
The subjects of publicity include people (for example, politicians
and performing artists), goods and services, organizations of all
kinds, and works of art or entertainment.
Nature of publicity
PUBLICITY IS THE MOVEMENT OF INFORMATION WITH THE EFFECT OF
INCREASING PUBLIC AWARENESS OF A SUBJECT
INVOLVES THE GENERATION OF NEWS ABOUT A COMPANY,
PRODUCT, SERVICE, BRAND OR PERSON IN VARIOUS MEDIA.
IT IS A SUBSET OF THE PUBLIC RELATIONS EFFORT.
SHORT-TERM FOCUS
NOT ALWAYS UNDER THE CONTROL OF THE FIRM
CAN BE NEGATIVE AS WELL AS POSITIVE
NON-PAID COMMUNICATION
What it is ?
Publicity is the free mention of a product or company
Differs from advertising because a company does not pay for the
exposure, it gets in the media
Major disadvantage is that companies have lack of control on it
Examples of Publicity
Sponsorship
A testimonial
Someone’s analysis or prediction
Some methods of getting publicity
Creating “Buzz”
Famous by Association
Tip from Julia Allison (journalist) “Whenever someone takes a picture of me, I always try to
stand next to someone famous..”
Making An Announcement
Launch, Investment, Opening of an office, impressive statistics, new product with hot new
features
Other options/Goodie
A funny story
Be part of a trend
Mystery or something impressive
Purpose of publicity
Favorable publicity increase the credibility and result in building
faith in the product or company where as unfavorable publicity
will result in creating doubt in the mind of people for the product
or the company.
Favourable publicity increase the demand and unfavorable
publicity decrease the demand.
Effects of bad publicity
Negative Publicity
DEALING WITH NEGATIVE
Do s
PUBLICITY
Open all Communication lines
Select a spoke person
Be Empathetic
Stay Calm
Don’t s
Hesitation
Litigation
Retaliation
Confrontation
Obfuscation (unclear)
PUBLICITY TECHNIQUES
Continous Public Relation Activities
Local Community Involvement
Newsletters, Newspapers and Company magazines
Media Relations
Employees Relations
Shareholders and financial community relations
Pre-planned, Short-term activities
News, Press Conferences
Ceremonies, opening and events
Announcements
Unpredictable, Short-term activities
Handling Negative Publicity
Media Interviews
OUTCOMES OF PUBLICITY
Attention
Visibility
Market Share
Recognition
Branding
ADVANTAGES
It Is Credible
It is Cost Effective
Often generates High Frequency of exposure
DISADVANTAGES
Less Control
Less accuracy
Few releases published
Advertising vs publicity
Integrating advertising and
Publicity
In the past, most practitioners would select and use either
advertising or public relations to get their messages out
depending on which seemed most appropriate for the prevailing
circumstances. In some instances, they may have even used both,
but it wasn't a common practice and there was no evidence that
pointed to it being particularly effective. In the last few years,
that's started to change.
The most common circumstances involve routine amounts of positive or neutral
news stories. In situations like this, complementary or supporting advertising works
with the news coverage to produce an even more positive impact on public attitudes.
The same is true when there is an unusually large amount of positive news
coverage. There's a more positive impact on public attitudes with advertising than
there is without it, but the added impact of the advertising, while positive, is significantly
less forceful in this type of situation.
On the other hand, when there is an unusual amount of negative news coverage,
"incremental advertising doesn't have a positive incremental impact and may even have
a negative one." Perhaps, and this is only my speculation, this occurs because the
audience perceives the advertising as an attempt to overshadow or compensate for the
negative news. But, whatever the reason, the best suggestion based on currently
available evidence might be to reduce, not increase, advertising during times when your
organization is getting bad press.
The best ways of using advertising and media relations to reinforce one another remain to
be determined. But, in the meantime, the IPR study author Bruce Jeffries-Fox suggests,
"that partnerships between media relations and advertising would save money and pack a
bigger punch. ... Messages from both worlds combine in the minds of consumers."
Defining Direct Marketing
• Direct marketing is a system of marketing by which
organizations communicate directly with target customers to
generate a response or transaction. This response may take the
form of an inquiry, a purchase, or a even a vote.
Direct marketing is one of the fastest-growing forms of promotion,
and for many marketers it is rapidly becoming the medium of
choice for reaching consumers.
Direct marketing uses a set of direct-response media, including
direct mail, telemarketing, interactive TV, print, the Internet, and
other media. These media are the tools by which direct marketers
implement the communications process
Direct Marketing Defined
The
Thetotal
totalof
ofactivities
activitiesby
bywhich
whichthe
theseller
sellerdirects
directsefforts
effortsto
toaatarget
targetaudience
audience
using
usingone
oneorormore
moremedia
mediafor
forthe
thepurpose
purposeofofsoliciting
solicitingaaresponse
responsebybyphone,
phone,
mail,
mail,or
orpersonal
personalvisit
visitfrom
fromaaprospect
prospector
orcustomer
customer
TV
TV Selling
Selling
Radio
Radio
Direct
Direct Mail
Mail
Telemarketing
Telemarketing
Direct
Direct Selling
Selling Magazine
Magazine and
and Newspaper
Newspaper
Example: direct
marketing
The Growth of Direct Marketing
Reasons
Consumer Credit cards:- there are now more than 1 billion
credit cards, this makes it feasible for consumers to purchase both
low and high tickets items through direct response channels and
assure sellers that they will be paid.
The changing structure society and the market:- success of
direct marketing is that so many Americans are now “money rich
and time poor”. Home entertainment has reduced the time
available for shopping and has increased the attractiveness of
direct purchases.
Technological advances:- the rapid technological advancement
of the electronic media and the internet has made it easier for
consumers to shop and for marketers to be successful in reaching
the desired target markets.
Improve
Improve Selection
Selection of
of Market
Market
Segments
Segments
Stimulate
Stimulate Repeat
Repeat Purchases
Purchases
Objectives
Objectives
Cross-selling
Cross-selling Other
Other Products
Products
Customer
Customer Relationship
Relationship
Management
Management
Determining the Effectiveness of
the Database
The more information about customer that can be contained in
the database, the more effective it will be, a commonly employed
method for this purpose is the RFM scoring method (Recency,
Frequency, Monetary transactions)
Direct-Marketing Strategies and
Media
1) In the One-step approach the medium is used directly to obtain
an order. In which viewer is urged to phone a toll-free number to
place an order immediately.
Selective
Selective reach
reach
Segmentation
Segmentation capabilities
capabilities
Frequency
Frequency potential
potential
Flexibility
Flexibility
Timing
Timing
Personalization
Personalization
Costs
Costs
Measures
Measures of
of effectiveness
effectiveness
1) Selective Reach:- DM lets the advertiser reach a large number of people and reduces or
eliminate waste coverage.
Segmentation capabilities:- lists may allow segmentation on the basis of geographic area,
occupation, demographics, and job title to mention few. 3
Frequency:- depending up on the medium used. It may be possible to build frequency levels.
Consumers may be annoyed to receive the same mail repeatedly
4) Testing:- DM allows for a strong ability to test the effectiveness of the overall program as well
as specific elements.
5) Timing:- many media requires long range planning and have long closing dates, direct
response advertising can be much more timely.
6) Personalization:- no other medium can personalize the message as well as direct media.
Parents with children at different age levels can be approached, with their child name included in
the appeal.
7) Costs:- while the CPM for direct mail may be very high on an absolute and a relative basis, its
ability to specifically target the audience and eliminate waste coverage reduces the actual CPM.
8) Measures of effectiveness:- no other medium can measure the effectiveness of its efforts as
well as direct response. Feed back is often immediate and allows accurate
Direct Marketing Disadvantages
Accuracy
Accuracy
Image
Image Content
Content
factors
factors support
support
Do
Do Not
Not Rising
Rising
Contact
Contact lists
lists costs
costs
Image factors:- mail segmentation of this industry is often referred to as junk mail. Many
people believe unsolicited mail promotes junk products and other dislikes.
2) Accuracy:- people move, change occupations, and so on and if the lists are not kept
current selectivity will decrease.
3) Content support:- In direct response advertising, mood creation is limited to the
surrounding program and/or editorial content. Direct mail and online services are unlikely
to create a desirable mood.
4) Rising costs:- as postal rates increases direct mail profits are immediately and directly
impacted. The same is true for print costs, which drives up the costs of mailers and
catalogs.
5) Do not contact lists:- do not call lists now exist for both land and cell phones. A do not
contact list in which consumers can choose not to receive junk mail is under consideration