Power of Public Relations

Overview

The actions of a corporation, store,

government, individual, in promoting goodwill

between itself and the public, the community, employees, customers,

etc.

•  Maintaining the organization’s relations with its publics.

•  Explaining the organization’s policy through communication media.

The Importance of Public Relations

Internal External

Individuals Stakeholders

Audiences

What does Public Mean?

Role of PR Practitioners

•  Proactive PR New product releases Executive statement releases •  Reactive PR Crisis response and management •  Rumours and urban

legends

•  Main role: product introductions or revisions •  Consumers are less likely to question the motivation

underlying an editorial-type endorsement.

•  Product release Provide relevant information of the new or existing

product by editor of third party media channels. •  Executive-statement releases News releases quotes executives’ statements,

address company’s internal issues.

Proactive PR

•  It is how organization act in relation to the negative publicity or accident.

•  The reaction of the organization effects on brand image.

•  When done effectively, reactive MPR can virtually save a brand or company.

Reactive PR

•  Sir Richard cut short a family holiday to see the scene of the accident and visit the hospitals treating those injured.

(shows timely respect and personal care of victims)

Case study: Cumbria Train Crash

•  He hailed the driver of the Virgin train, Ian Black, who was badly injured in the crash, as a hero.

v  staff-friendly culture of organization. v  promote the bravery of Virgin employee.

•  The train itself was magnificent - it's built like a

tank. v  promotion of virgin train’s safety.

Cumbria Train Crash

•  Consumers interest involves only those rumours that involve products, brands, store, or other objects of the marketing practice.

(Iphone 5 or galaxy S 2 ? Should I wait or buy it now?)

v Commercial rumours v Conspiracy rumours v Contamination rumours

Rumour’s and Urban Legends

•  Marketing primarily focuses on consumers •  Conventional approach

1.  Development 2.  Research 3.  Advertising 4.  Branding

The decline of Mass Market

Marketing = Advertising big bucks Pepsi-Cola spends $100 million to launch Pepsi one Andersen Consulting spends $150 million to launch its new name, Accenture Bell Atlantic spends $140 million to launch its new name Verinzon

The decline of Mass Market

•  Advertising lacks credibility 79  

67  63  

59  

47  

37  

22  17  

11   10   9  

Nurses   Pharmacists   Medical  Doctors  

Clergy   Judges   Bankers   Business  Execu<ves  

Lawyers   Insurance  Salesman  

Adver<sing  Prac<<oners  

Car  Salesman  

The decline of Mass Market

•  IMC Elements

Advertising

Marketing

Public relations

Customer Focused Marketing

•  The PR approach • Development • Research • Planning • Communication • Evaluation

Public Relations Approach

•  Public relations focus on: *Employees *Stockholders *News media *Others

Public Relations

•  Public relations = Publicity •  Body Shop •  Starbucks •  Wall-Mart •  Viagra

Public Relations

“A good Public Relations campaign or moment is something that feels like news rather than an advertising”

Mr Branson displaying his feminine side at the unveiling of Vie, Virgin's range of cosmetics and toiletries

Mr Branson arriving at a press conference for his space travel venture, Virgin Galactica

Richard Branson PR moments

Mr Branson baring his backside to mark the arrival of Virgin Atlantic in Canada

Richard Branson PR moments

Richard Branson dressed up as a Bride to launch their new product line Virgin Bride in 1996.

Richard Branson PR moments

•  Every company has dissatisfied customers •  In 2009, a customer complaint letter was

circulated and published around the world regarding Virgin Airlines in-flight catering services.

Reactive PR by Virgin

Complaint Picture 1

•  The passenger described this as a “sponge with green paste.”

•  In his letter he says “Look at this Richard just look at it.” “What have I done to deserve this?”

Complaint Picture 2

•  Regarding this image he wrote, “Answer me this Richard, what sort of animal would serve a desert with peas in it?”

Complaint Picture 3

•  The customer likened opening the main meal to receiving a hamster for Christmas.

•  He writes, “It’s your hamster in the box and it’s not breathing. That’s how I felt when I peeled back the foil and saw this.”

Complaint Picture 4

•  “I needed a sugar hit. Luckily there was a small cookie provided. It had caught my eye earlier due to it’s baffling presentation.”

•  “It appeared to be in an evidence bag.”

•  Richard Branson personally cal led the passenger

•  Issued the following statement:

“While we investigated his complaint seriously, and fol lowing Richard Branson’s phone call we’ve invited him to our catering house to select the next range of meals and wines we serve on board. Then we can ensure his personal taste is well and truly catered for.”

How did Virgin Deal with the Negative PR?

Presented and created by

Aishath Lamya Ibrahim 17228537 Haifa Mohamed Al-Harbi 16008251

Fernando Moreno Rodriques 16390948 Yujie Guo 16416814

Students from Latrobe University,

Melbourne Australia IMC Subject

3rd September 2011

•  The Age News. Costco Readies First Australian Outlets. Accessed on 25th Aug 2011. from http://www.theage.com.au/small-business/smallbiz-marketing/costco-readies-first-australian-outlets-20090721-droq.html

•  BBC News. One Dead In Cumbria Train Crash. Accessed on 25th Aug 2011. from http://news.bbc.co.uk/2/hi/uk_news/6391633.stm

•  BBC News. It Is A Very Sad Day- Branson. Accessed on 25th Aug 2011 from http://news.bbc.co.uk/2/hi/uk_news/6392935.stm

•  Chitty. W, Barker. N & Shimp. T A. 2008. “Integrated Marketing. Communications, 2ed. Cengage Learning: South Melbourne.

•  Campaign Live. Campaign Media Awards 2000 – Best one off stunt. Accessed on 30th August 2011 from http://www.campaignlive.co.uk/news/17912/?DCMP=ILC-SEARCH

•  Telegraph, Virgin on the Ridiculous. Accessed on 30th August 2011 from http://www.telegraph.co.uk/travel/picturegalleries/4371078/Virgin-on-the-ridiculous-Sir-Richard-Bransons-publicity-campaigns.html

•  Telegraph. Worlds best Passenger Complaint Letter. Accessed on 30th August 2011 from http://www.telegraph.co.uk/travel/travelnews/4344890/Virgin-the-worlds-best-passenger-complaint-letter.html

•  Telegraph. Virgin Complaint Letter. Accessed on 30th August 2011 from http://www.telegraph.co.uk/travel/travelnews/4371036/Virgin-complaint-letter-Author-of-Virgin-letter-offered-chance-as-airlines-food-tester.html

•  YouTube. Richard Branson on Marketing and Business. Accessed on 30th August 2011 from http://www.youtube.com/watch?v=8dhbqOlvx2U&feature=related

References

You are welcome to contact Nigel Bairstow at B2B Whiteboard your source of B2B Asia / Pacific marketing advice http://www.linkedin.com/pub/nigel-bairstow/6/41b/726 http://www.b2b.whiteboard.com

http://twitter.com/#!/b2bwhiteboard