AK21103

Principles of Public Relations

Lecture 3: Marketing, Advertising,

Reputation Management
 Marketing, Advertising & Reputation

Marketing Advertising Reputation

• What and why

marketing matters?
• Market-led companies • What is a Corporate
• Product-led
• Advertising: Reputation?
companies Good or Evil?
• Marketing Mix • PR and Reputation
• Social Marketing
• Guerrilla / ambush
• PR vs Advertising
• ‘Wrong industry’
marketing
• Viral marketing
and Reputation
management

Marketing Public Relations

 Marketing –
What and why marketing matters?

American Marketing Association’ “Marketing is the process of

planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services”

UK Chartered Institute of Marketing – “Marketing is the

management process which identifies, anticipates and supplies
customer requirements efficiently and profitably’

Highlight two fundamental points about marketing;

i) Important role at the highest level of company, as part of

management process;

ii) The need to listen and response

 Marketing –
What and why marketing matters?

The focus for marketing is delivering sales.

PR focus on building and maintaining a range of relationships with an

organization’s stakeholders (customer, employees, investors, neighbours,
special interest groups as well as government

Marketing: ‘This is how we will get the purchasers of our goods and
services to buy and advertising and PR are among the tools we will use to
attract and interest potential purchasers’
 Market-led companies Product-led companies

• Consumers at the heart of

• Expect customer to go to
their business.
them
• Listening, changing and
• Believe in reputation alone
adapting products
is enough to attract
customer
• Anticipate market trends
and changing consumer
• No business can live on
patterns
past glories
• Dynamic reputations,
• PR / Advertising play
capable of responding to
crucial role in
different trends as well as
communicating change.
to lead.
 Marketing Mix

• First used in 1964 by Professor Neil Borden, Professor of

Advertising at Harvard Business School

• Known as the 4P’s – Product, Price, Place & Promotion

• Promotion – Promotional Mix (depending on type of

product);
i) Advertising,
ii) Sales Promotion (How the product is displayed)
iii) Sales Management (How sales force operates)
iv) PR & Direct Marketing
 Social Marketing / Cause-related
marketing

• Marketing which aims to change social behaviour.

• “The explicit use of marketing skills to help translate

present social action efforts into more effectively designed
and communicated programs that elicit desired audience
response” (Kotler & Zaltman, 1971:5)
Guerrilla / Ambush Marketing Viral Marketing

• Use the power of social

• Developed by Jay Conrad
media / networks to
Levinson, Guerilla
produce an increase in
Marketing (1984)
brand awareness
• Attempts to get maximum
• Self-replicating process
results from minimal
which spreads like a
resources.
computer virus
• Energy and imagination,
targeting consumer in
• Drumming Gorilla –
unexpected places with
Cadbury. Viewed over 10
unusual tactics
million times on YouTube.
Ambush marketing
 Advertising

• Advertising present the most persuasive argument possible

selling message to the right prospects for the product or service
at the lowest possible cost – Institute of Practitioners in
Advertising

• Advertising (Based on survey conducted by ASA, 2002);

- Source of Information for new products/services;
- Significance source of entertainment;
- Part of everyday culture
 Marketing Public Relations / Marketing
Communication (Marcomm) /
Intergrated Marketing Communication

• PR that specifically supports sales activity.

• To gain awareness and build sales through relationships

between consumers and brands. PR as essential part in
marketing activity.

• MPR/Marcomm/IMC adds value to advertising campaigns.

• Traditional marketing theory – PR & Advertising are only
subdivision

• Modern marketing require the concentrated effort of all three

to survive the ever changing, competitive market.
 Corporate Reputation

The evaluation (respect, esteem, estimation) in which an

organization’s image is held by people (Dowling, 1994:18)

The collective representation of multiple constituencies’ images of a

company built up over time and based on a company’s identity
programs, its performance and how constituencies have perceived
its behaviour’ (Argenti & Druckenmiller, 2004:369)
What is your perception
looking at these two
vehicles?

Think, how and where did

you get your perception?
 Acquiring Good Reputation & The roles of PR

• Responsibility: Supporting worthy causes, demonstrating

environmental responsibility, community/societal responsibility

• Communications: Transparency, full disclosure & Openness to

dialogue

• Product and services: Offering high quality and innovation, as

well as customer satisfaction

• Talent: Rewarding employees fairly; promoting diversity

• Financial metrics: Demonstrating financial soundness, long term

investment value

• Leadership: Established by the CEO and Senior team. Showing

good governance and ethical conduct
 Developing good reputation

• Quality of Product

• Good customer relationship

• Strong corporate governance and leadership – instilling good work

culture

• Developing media profile

• Excellent community relations

‘Wrong Industry’ & Reputation management
 ‘Wrong Industry’ & Reputation management

• Fast food – blamed for obesity, environmental damage

• Tobacco – harmful to health; sale and promotion viewed by many

as dubious business

• Alcohol – the rise of binge-drinking (high consumption of alcohol),

rise of anti-social behaviour

• Oils & Gas

• Pharmaceuticals – unethical, animal testing, high price of drugs