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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.
The Importance of Public Relations
 •  Maintaining the organization’s relations
    with its publics.
 •  Explaining the organization’s policy
    through communication media.
Internal   External
What does Public Mean?

                  Audiences

    Individuals               Stakeholders
Role of PR Practitioners
•  Proactive PR
  New product releases
  Executive statement releases

•  Reactive PR
  Crisis response and management

•  Rumours and urban
   legends
Proactive PR
 •  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.
Reactive 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.
Case study: Cumbria Train Crash
 •  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)
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.
Rumour’s and Urban Legends
 •  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
The decline of Mass Market

 •  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	
     Clergy	
     Judges	
     Bankers	
      Business	
     Lawyers	
     Insurance	
   Adver<sing	
      Car	
  
                               Doctors	
                                             Execu<ves	
                   Salesman	
   Prac<<oners	
   Salesman	
  
Customer Focused Marketing

 •  IMC Elements


               Public
                           Advertising
              relations




                     Marketing
Public Relations Approach

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

 •  Public relations focus on:

                             *Employees
                             *Stockholders
                             *News media
                             *Others
Public Relations

 •  Public relations = Publicity
      •  Body Shop
      •  Starbucks
      •  Wall-Mart
      •  Viagra
“A good Public Relations campaign or moment
is something that feels like news rather than an
advertising”
Richard Branson PR moments




  Mr Branson displaying his        Mr Branson arriving at a press
  feminine side at the unveiling   conference for his space travel
  of Vie, Virgin's range of        venture, Virgin Galactica
  cosmetics and toiletries
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.
Reactive PR by Virgin

 •  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.
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.”
How did Virgin Deal with the Negative
PR?
     •  Richard Branson personally called the
        passenger
•     Issued the following statement:

         “While we investigated his complaint
      seriously, and following 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.”
Power of Public Relations
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
References
 •    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
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://twitter.com/#!/b2bwhiteboard

http://www.b2b.whiteboard.com

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Power of Public Relations

  • 1. Power of Public Relations Overview
  • 2. The actions of a corporation, store, government, individual, in promoting goodwill between itself and the public, the community, employees, customers, etc.
  • 3. The Importance of Public Relations •  Maintaining the organization’s relations with its publics. •  Explaining the organization’s policy through communication media.
  • 4. Internal External
  • 5. What does Public Mean? Audiences Individuals Stakeholders
  • 6. Role of PR Practitioners
  • 7. •  Proactive PR New product releases Executive statement releases •  Reactive PR Crisis response and management •  Rumours and urban legends
  • 8. Proactive PR •  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.
  • 9. Reactive 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.
  • 10. Case study: Cumbria Train Crash •  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)
  • 11. 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.
  • 12. Rumour’s and Urban Legends •  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
  • 13. The decline of Mass Market •  Marketing primarily focuses on consumers •  Conventional approach 1.  Development 2.  Research 3.  Advertising 4.  Branding
  • 14. 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
  • 15. The decline of Mass Market •  Advertising lacks credibility 79   67   63   59   47   37   22   17   11   10   9   Nurses   Pharmacists   Medical   Clergy   Judges   Bankers   Business   Lawyers   Insurance   Adver<sing   Car   Doctors   Execu<ves   Salesman   Prac<<oners   Salesman  
  • 16. Customer Focused Marketing •  IMC Elements Public Advertising relations Marketing
  • 17. Public Relations Approach •  The PR approach •  Development •  Research •  Planning •  Communication •  Evaluation
  • 18. Public Relations •  Public relations focus on: *Employees *Stockholders *News media *Others
  • 19. Public Relations •  Public relations = Publicity •  Body Shop •  Starbucks •  Wall-Mart •  Viagra
  • 20. “A good Public Relations campaign or moment is something that feels like news rather than an advertising”
  • 21. Richard Branson PR moments Mr Branson displaying his Mr Branson arriving at a press feminine side at the unveiling conference for his space travel of Vie, Virgin's range of venture, Virgin Galactica cosmetics and toiletries
  • 22. Richard Branson PR moments Mr Branson baring his backside to mark the arrival of Virgin Atlantic in Canada
  • 23. Richard Branson PR moments Richard Branson dressed up as a Bride to launch their new product line Virgin Bride in 1996.
  • 24. Reactive PR by Virgin •  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.
  • 25. 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?”
  • 26. Complaint Picture 2 •  Regarding this image he wrote, “Answer me this Richard, what sort of animal would serve a desert with peas in it?”
  • 27. 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.”
  • 28. 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.”
  • 29. How did Virgin Deal with the Negative PR? •  Richard Branson personally called the passenger •  Issued the following statement: “While we investigated his complaint seriously, and following 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.”
  • 31. 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
  • 32. References •  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
  • 33. 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://twitter.com/#!/b2bwhiteboard http://www.b2b.whiteboard.com