MarketingManagement.pdf

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Clearly, creative public relations can affect public awareness at a fraction of the
cost of advertising. The company does not pay for the space or time obtained in the
media. It pays only for a staff to develop and circulate the stories and manage certain
events. If the company develops an interesting story, it could be picked up by the
news media and be worth millions of dollars in equivalent advertising. The Body Shop,
for example, has spent very little money on advertising; its success has been almost
entirely due to publicity. MPR carries more credibility than advertising. Some experts
say that consumers are five times more likely to be influenced by editorial copy than
by advertising.
Here are two examples of the creative use of MPR:


■ Intel and the Pentium Chip When users of Intel’s Pentium computer chip
began to notice a problem with it in 1994, the company refused to replace
the chip unless the computer users could prove they needed their comput-
ers for complex mathematical operations (the only operations affected by the
flaw). Following an uproar of consumer dissatisfaction, Intel’s MPR people
came to the rescue by using a “one-two punch,” following up intense one-
on-one marketing to corporate and retail Pentium users with the introduc-
tion of a worldwide network of Pentium-replacement service centers (offering
free replacements on request). Intel tried to reach customers one-on-one,
whether they were large customers or individual users. The company did this
by mobilizing huge numbers of people inside the company, putting them on
phone lines to talk to anybody concerned, and by flying marketing teams all
over the country to visit corporate accounts and replace Pentium chips. To
reach individual consumers, Intel even placed its own employees inside re-
tail stores in the weeks before Christmas of 1994. As a result of the intense
MPR campaign, Intel was able to rescue its reputation, which had been seri-
ously jeopardized just a few weeks earlier.^68


■ Microsoft and Windows 95 Microsoft’s campaign launching Windows 95
was an MPR success story. No paid ads for Windows 95 had appeared by Au-
gust 24, 1995, the launch day. Yet everyone knew about it! The Wall Street
Journalestimated that 3,000 headlines, 6,852 stories, and over 3 million words
were dedicated to Windows 95 from July 1 to August 24. Microsoft teams
around the world executed attention-grabbing publicity. Microsoft hung a
600-foot Windows 95 banner from Toronto’s CN Tower. The Empire State
Building in New York was bathed in the red, yellow, and green colors of the
Windows 95 logo. Microsoft paid The London Timesto distribute free its en-
tire daily run of 1.5 million copies to the public. By the end of the first week,
U.S. sales alone were $108 million, not bad for a $90 product. The lesson is
clear: Good advance PR can be much more effective than millions of dollars
spent on advertising.


MAJOR DECISIONS IN MARKETING PR


In considering when and how to use MPR, management must establish the market-
ing objectives, choose the PR messages and vehicles, implement the plan carefully,
and evaluate the results. The main tools of MPR are described in Table 5.12.^69


Establishing the Marketing Objectives
MPR can contribute to the following objectives:


■ Build awareness:MPR can place stories in the media to bring attention to a prod-
uct, service, person, organization, or idea.


■ Build credibility:MPR can add credibility by communicating the message in an
editorial context.


■ Stimulate the sales force and dealers:MPR can help boost sales force and dealer en-
thusiasm. Stories about a new product before it is launched will help the sales
force sell it to retailers.^607

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