MarketingManagement.pdf

(vip2019) #1
information and communications to build goodwill. When negative publicity hap-
pens, the PR department acts as a troubleshooter. The best PR departments spend time
counseling top management to adopt positive programs and to eliminate question-
able practices so that negative publicity does not arise in the first place. They perform
the following five functions:


  1. Press relations:Presenting news and information about the organization in the
    most positive light.

  2. Product publicity:Sponsoring efforts to publicize specific products.

  3. Corporate communication:Promoting understanding of the organization
    through internal and external communications.

  4. Lobbying:Dealing with legislators and government officials to promote or de-
    feat legislation and regulation.

  5. Counseling:Advising management about public issues and company positions
    and image. This includes advising in the event of a product mishap.^65


MARKETING PUBLIC RELATIONS


Marketing managers and PR specialists do not always talk the same language. Mar-
keting managers are much more bottom-line oriented, whereas PR practitioners see
their job as preparing and disseminating communications. But these differences are
disappearing. Many companies are turning to marketing public relations(MPR) to di-
rectly support corporate or product promotion and image making. Thus MPR, like fi-
nancial PR and community PR, serves a special constituency, namely the marketing
department.^66
The old name for MPR was publicity, which was seen as the task of securing edi-
torial space—as opposed to paid space—in print and broadcast media to promote or
“hype” a product, service, idea, place, person, or organization. But MPR goes beyond
simple publicity and plays an important role in the following tasks:

■ Assisting in the launch of new products:The amazing commercial success of toys
such as Teenage Mutant Ninja Turtles, Mighty Morphin’ Power Rangers, and
Beanie Babies owes a great deal to clever publicity.
■ Assisting in repositioning a mature product:New York City had extremely bad press
in the 1970s until the “I Love New York” campaign began.
■ Building interest in a product category:Companies and trade associations have used
MPR to rebuild interest in declining commodities such as eggs, milk, beef, and
potatoes and to expand consumption of such products as tea, pork, and orange
juice.
■ Influencing specific target groups:McDonald’s sponsors special neighborhood
events in Latino and African American communities to build goodwill.
■ Defending products that have encountered public problems:Johnson & Johnson’s
masterly use of MPR was a major factor in saving Tylenol from extinction fol-
lowing two incidents in which poison-tainted Tylenol capsules were found.
■ Building the corporate image in a way that reflects favorably on its products:Iacocca’s
speeches and his autobiography created a whole new winning image for the
Chrysler Corporation.

As the power of mass advertising weakens, marketing managers are turning more
to MPR. In a survey of 286 U.S. marketing managers, three-fourths reported that their
companies used MPR. They found it particularly effective in building awareness and
brand knowledge, for both new and established products. MPR is also effective in
blanketing local communities and reaching specific ethnic and other groups. In sev-
eral cases, MPR proved more cost effective than advertising. Nevertheless, it must be
planned jointly with advertising. MPR needs a larger budget, and the money might
have to come from advertising.^67 In addition, marketing managers need to acquire
more skill in using PR resources. Gillette is a trendsetter here: Each brand manager is
required to have a budget line for MPR and to justify notusing it.

part five
Managing and
Delivering Marketing

(^606) Programs

Free download pdf