Chapter 13 – Public Relations, Influencer Marketing, Social Media, and Corporate
Advertising
TRUE/FALSE
1. The primary focus of public relations is to use unpaid media to create communications that will
ultimately result in increased sales.
2. Public relations is a marketing and management function focusing on communications that foster
goodwill between a firm and its constituents.
3. Promoting a product through press releases or events is a public relations tactic to increase sales.
4. One possible target of a public relations effort is politicians.
5. A company that specializes in community recycling opens a recycling center in a town that has never
had access to a recycling center before. The company invites a reporter from the local newspaper to do
an exclusive story on the center. The advantage of this tactic, as opposed to sending out a press release,
is that the story is more controllable.
6. A benefit of press releases is that the news media cannot edit any part of the press release.
7. The major problem associated with the use of news conferences as a public relations tool is that they
are no longer seen as credible.
8. A proactive public relations strategy is a tool designed to take an aggressive stand at the first sign of
negative publicity.
9. A company allows its workers to take one afternoon off each month to volunteer at the nonprofit
organization of their choice. The company sends out a press release that explains this program to the
media. This is considered a proactive public relations strategy.
10. A large oil company undertakes an extensive research effort designed to identify opportunities for the
company to present itself in a positive light. This research effort is called a public relations audit.
11. A public relations plan identifies the objectives and activities related to the public relations
communications issued by a firm.
12. The British beef industry was rocked by reports of mad cow disease in its herds. To deal with the
concerns raised, the industry had to adopt a reactive public relations strategy.
13. Think of influencer marketing as a set of conversations involving an influencer, a consumer, and a
brand.
14. When pet food brands provide product samples and informational brochures to veterinarians to give to
pet owners who visit them they are doing corporate image marketing.
15. Influencer programs directed at professionals must be handled with care as these individuals take their
roles very seriously.
16. The people enrolled by manufacturers such as P&G for an influencer program in which they are given
brand news and expected to share it with their social network are called facilitators.
17. The intent of corporate advertising is to make sure that all of a company’s products are seen in a
common, positive manner.
18. Advocacy advertising is an attempt to establish an organizations position on important social, political
or environmental issues.
19. Corporate advertising is designed to promote a specific brand.
20. If American Express sponsors a campaign to restore the Statue of Liberty, it is using advocacy
advertising.
MULTIPLE CHOICE
1. Which of the following was the underlying consumer insight driving Crest Extreme’s successful
campaign to young women?
a.
They feared tooth decay.
b.
An occasional bad hair day is acceptable; an occasional bad breath day is totally
unacceptable.
c.
Social success with peers and members of the opposite sex depends on a cleaner, whiter
smile.
d.
Complexion quality is enhanced by smile quality
2. The classic role of public relations is
a.
the use of unpaid media to convey a message that is traditionally carried by paid media.
b.
to minimize any and all negative messages about a company.
c.
to foster goodwill between a firm and its constituent groups.
d.
the use of personal contact with media figures, with the goal of presenting products,
services, or business organizations in the best possible light.
3. Which of the following primary objectives of public relations involves dealing with government
officials and pending legislation?
a.
promoting goodwill
c.
counteracting negative publicity
b.
preparing internal communications
d.
lobbying
4. One of the factors ushering in a “new era” for public relations is
a.
our world is intensely commercial today, stories about marketing and consumer
psychology
b.
the consumer is increasingly in control in a brand obsessed world
c.
consumers are spreading the word about brands in ways never before available, like the
Internet and Blogs
d.
all of these are factors fostering a new era in public relations
5. An advertisement paid for by the Mississippi Department of Tourism is placed in Living Blues
magazine. It invites blues aficionados to drive Highway 61 through the heart of the Mississippi Delta
to discover the feeling of juke joints and cotton fields. This is an example of a public relations effort
with the objective of
a.
promoting goodwill.
b.
promoting a brand or service.
c.
lobbying.
d.
none of these—it is not a public relations effort, it is advertising.
6. Which of the statements is true of feature stories?
a.
They offer a single journalist an opportunity to do a lengthy piece on some aspect of a
company that it wants the public to know
b.
The journalist who does a feature gets exclusive rights to the information
c.
The feature story is more controllable by the company than is a press release
d.
All of these statements are true of feature stories as PR tools
7. Which of the following is not a tool of public relations?
a.
Press release
c.
Company newsletter
b.
Feature story
d.
Infomercial
8. A leading sporting goods company calls a press conference to announce that the winner of the
National Football League‘s Most Valuable Player Award has signed a contract to endorse the
company’s products. The advantage of using a press conference, as opposed to other public relations
tools, is that a press conference
a.
virtually forces the national media to cover the story.
b.
is easier to integrate into an IMC program.
c.
can be perceived only as a proactive tool.
d.
has added credibility and an air of importance.
9. For the most part, it’s very difficult to strategically control publicity efforts. In this respect, such efforts
are very similar to
a.
press conferences.
c.
event sponsorship.
b.
company newsletters.
d.
press releases.
10. A ____ is guided by marketing objectives and takes an offensive rather than defensive posture in
public relations process.
a.
publicity campaign
c.
corporate advertising strategy
b.
reactive public relations strategy
d.
proactive public relations strategy
11. A public relations plan should consider:
a.
rationale for how public relations will play relative to other communication efforts
b.
information summaries from a public relations audit
c.
message content that has been carefully researched
d.
all of the above elements
12. Which of the following is an important element of a reactive public relations strategy?
a.
a current situation analysis
c.
identification of program rationale
b.
development of program objectives
d.
identification of vulnerabilities
13. A local chapter of the Red Cross undergoes a public relations audit. The result of this audit should
a.
assess the degree of positive and negative media coverage the Red Cross received over the
past year.
b.
prepare the Red Cross for both proactive and reactive strategies.
c.
tell the Red Cross whether or not it needs to hire an outside public relations firm.
d.
compare the cost of public relations efforts with commensurate advertising efforts.
14. Recognizing where a firm’s weaknesses lie as part of its public relations audit is termed
a.
identifying vulnerabilities
c.
fault finding
b.
damage control
d.
blame setting
15. The public relations activity that is dictated by influences outside the control of the company, focuses
on problems to be solved, and requires a company to take defensive measures is a
a.
proactive public relations strategy.
c.
public relations audit.
b.
reactive public relations strategy.
d.
public relations plan.
16. Influencer marketing refers to
a.
the impact of branded marketing programs on public opinion
b.
how a firm or an individual can identify and then manage aspects of communication in an
integrated and synergistic manner
c.
“Let’s give them something to talk about!”
d.
personalized marketing techniques directed at individuals or groups who have the
credibility and capability to drive positive word of mouth to the larger population
17. When pet owners receive product samples and informative brochures describing the nutritional
benefits of particular brands of pet food this is primarily
a.
a service of their veterinarian
b.
coincidence
c.
an effort of a brand marketer to use influencer marketing effectively
d.
a effort of pet advocates
18. What are connectors?
a.
Metaphors that link a brand with a subculture
b.
Women who go door to door to identify a brand’s constituents
c.
Often but not necessarily women with large social networks enlisted to be part of an
influencer program (like Vocalpoint)
d.
Bloggers
19. The goal of corporate advertising is to
a.
establish a favorable image for a company as a whole.
b.
create a positive profile for the people owning or managing a company.
c.
to inform people of the full range of products that the company offers.
d.
to inform people of the full range of products that the company offers, and to establish
favorable attitudes toward these products.
20. Which of the following is commonly considered an objective of corporate advertising?
a.
to build the image of the firm among customers and shareholders
b.
to boost employee morale
c.
to communicate an organization’s views on social issues
d.
all of these are objectives of corporate advertising
21. Not all media are created equal when it comes to corporate advertising. Two media particularly well
suited to corporate advertising efforts are
a.
television and the World Wide Web.
c.
television and radio.
b.
television and magazines.
d.
radio and outdoor.
22. Which of the following is an objective for corporate advertising?
a.
Boost employee morale
b.
Attract new employees
c.
Communicate an organization’s views on social, political, or environmental issues
d.
All of these can be an objective for corporate advertising
23. Waste Management ran an advertisement that told the story of how it managed some of the waste it
collected. The headline was “We’ve been known to send some people’s garbage right back to their
house.” The copy explained that Waste Management collects clean burning methane gas from one of
its landfills. The gas is used to fuel the turbines that run power generators that provide electricity for
homes. This is an example of
a.
corporate image advertising.
c.
public relations.
b.
product advertising.
d.
cause-related advertising.
24. Phillips Petroleum ran an advertisement with the headline “Every year, one of our investments has an
average return of 15 million.” The visual is a photograph of a duck landing on a lake. The copy
explains that Phillips is helping to save endangered wetlands in several south-central and southwestern
states. This is an example of
a.
an advocacy ad.
c.
a cause-related ad.
b.
a consumer goods ad.
d.
a public relations effort.
25. If the managers of a business decide to use cause-related marketing, they should keep in mind that a
recent Roper Starch Worldwide study showed that 58 percent of consumers
a.
cannot associate even one company with a cause it supports.
b.
typically are against any cause that a big business is in favor of.
c.
believe that the only reason a company supports a cause is to enhance the company’s
image.
d.
say that they are not concerned with social causes.
Scenario 13-1
Miller Brewing makes several brands of beer, in particular Miller Genuine Draft and Miller Light.
They consider public relations – ongoing activities to ensure the organization has a strong public image
and includes helping the public to understand the organization and its product – to be a cost effective
component of their overall brand promotion Similar to effective advertising and promotions, effective
public relations depends on designing and implementing a well-designed public relations plan. The
plan includes description of what you want to convey to whom, how you plan to convey it, who is
responsible for various activities and by when, and how much money is budgeted to fund these
activities.
Public relations frequently include use of traditional media, that is, newspapers, television, magazines,
etc. as part of the plan. Miller has a Marketing Communications manager whose responsibility it is to
ensure that all the public relations initiatives are consistent with and supportive of Miller’s brand
advertising efforts.
26. (Scenario 13-1) Ketchum Public Relations has designed a website, the MGD Tap Room, for Miller
Genuine Draft beer. It provides general information on beer, on Miller brands and topics of interest to
a demographic group of 20 to 30 year olds. This site seems to have set ____ as its primary objective.
a.
promoting goodwill
c.
delivering an internal communication
b.
promoting a brand or service
d.
counteracting negative publicity
27. (Scenario 13-1) If Miller’s website was devoted primarily to enlisting brand loyalists’ support for the
Miller “Drink responsibly for your children” initiative to raise awareness of fetal alcohol syndrome
then its purpose would be different from brand promotion. Its purpose would be to
a.
counteract negative publicity for its brands
b.
promote brand goodwill
c.
lobby Congress against raising taxes on alcoholic beverages
d.
disseminate such health information among Miller employees
28. (Scenario 13-1) Formerly Miller viewed public relations in a more traditional way – using reactive
strategies and tactics. This meant that they
a.
Responded to influences outside the control of the company, requiring defensive
measures.
b.
Faced issues first with defensive measures, then switched to offensive measures.
c.
Began each project driven by public relations objectives for strengthening the brand’s
image.
d.
Rarely spend their entire annual public relations budget, shifting it to advertising instead
29. (Scenario 13-1) Miller has recently recruited two up and coming Southside Chicago groups who are
trying to popularize what they call “Blues Rap” in the Wise Fools pub located in the heart of one of
Chicago’s young urban professional neighborhoods. These musicians are provided with coupons for
free drinks of the new “Miller Lime” boutique beer and expected to talk about the “hipness” of lime
beer and the Miller brand and hand the coupons out between sets. What is Miller doing?
a.
sampling
c.
personal public relations
b.
influencer marketing
d.
beer advocacy
Scenario 13-2
You are the owner of a huge paper goods company. You head into company headquarters one morning
and no one greets you as you walk down the halls. In fact, people seem to be actively avoiding you.
Immediately you sense something is wrong, because on a normal morning, there’s a steady stream of
people brownnosing and kowtowing to you. You get to your office and your suspicions are confirmed.
A nationally circulated newspaper with an article circled in red sits on your desk.
The article announces that radical environmentalists have chained themselves to trees in a forest in
northern Wisconsin. It seems they are trying to protect an endangered animal, which virtually no one
has ever heard of, from a logging operation. Some of the animals have already been killed by the
heavy equipment the loggers use. You scan the article and see the problem. It’s a forest that your
company owns, and the environmentalists are in a standoff with the managers of your logging division.
The logging operation is critical to the success of your company, and if the environmentalists win the
support of the general public, including many in your workforce, your company’s profits will nose-
dive. It is bad enough that this morning you look like killers of defenseless little creatures. You
immediately phone your public relations agency and call a meeting.
30. (Scenario 13-2) Your public relations agency has been very helpful in the past. Through its efforts,
your company is perceived by consumers as a good corporate citizen – at least up until this morning.
This perception was most likely achieved through a series of efforts with ____ as the objective.
a.
promoting products or services
c.
promoting goodwill
b.
correcting internal misinformation
d.
counteracting negative publicity
31. (Scenario 13-2) A series of press releases about the positive projects that your company is currently
involved in is considered. However, ultimately you decide against it because
a.
press releases are better at combating negative information than conveying positive
information.
b.
press releases can’t be integrated with other communication efforts.
c.
press releases can be distributed to only a single, exclusive media outlet.
d.
there’s no control over how the media will interpret the press releases.
32. (Scenario 13-2) The situation is not as bad as it could be, because your public relations agency had
already identified environmental issues as a weak area for your company. As a result, the agency had
been in contact with important constituent groups before the furor erupted. A weak area is referred to
as ____ by people in the public relations industry.
a.
an Achilles’ heel
c.
a red spot
b.
a vulnerability
d.
a negative opportunity
33. (Scenario 13-2) You suggest that, to reinforce your company’s image as a civic-minded corporate
citizen, your company enlist the public support of the President of the local chapter of the Sierra Club,
who knows how much you have done to avoid harming the environment in the past few years. You
are now engaging in
a.
co-optation
b.
typically are against any cause that a big business is in favor of.
c.
influencer marketing
d.
legislative reform
Scenario 13-3
The lobbying program administered by the Wisconsin Ethics Board is the only program in the country
that provides citizens information about the businesses and organizations trying to influence the
legislature, what they are lobbying about, and the time and money each is devoting to these matters.
Organizations employing lobbyists recently reported to the Ethics Board their lobbying expenditures
for 2003.The organization that reported spending the most on lobbying activities during the first year
of the 2003-2004 legislative session was Wisconsin Education Association Council who spent
$1,083,487, which had been recently criticized in the public press.
34. (Scenario 13-3) Wisconsin Education Association Council was using public relations to achieve the
primary objective of
a.
lobbying.
c.
preparing internal communications.
b.
promoting a product.
d.
counteracting negative publicity.
35. (Scenario 13-3) Wisconsin Education Association Council sent the press an expensive, highly
attractive eight page package that explained the organizations position on education issues. The
disadvantage of this approach, as opposed to offering a media outlet an exclusive feature story, was
that
a.
the press could have charged advertising rates to run the press release.
b.
the press release gave a low degree of control over the final story.
c.
a press release is effective only when used as a proactive strategy.
d.
a press release takes far more planning than an exclusive interview.
36. (Scenario 13-3) Reacting to negative news reports, Wisconsin Education Association Council used
what type of public relations strategy?
a.
image management
c.
topspin
b.
proactive
d.
reactive
37. (Scenario 13-3) Advertising by Wisconsin Education Association Council to establish the company’s
position on this political situation, stating the company’s side of the story is considered:
a.
corporate image advertising.
c.
cause-related advertising.
b.
advocacy advertising.
d.
product advertisements.
Scenario 13-4
Munters Moisture Control Services is an organization that responds to businesses and institutional
customers that have had their facilities damaged by moisture from floods or water leaks. In most cases,
the moisture problem is completely unexpected by the customer and thus they need to contact Munters
and hire them on very short notice. In addition, the cost of clean up and repair of water damage is
typically much higher than customers ever expect, unless they have had previous experience with such
calamities.
As a result, some customers and even communities view Munters with some disdain. Often, they feel
as if this firm is preying on the misfortune of others. Nevertheless, the largest bank in town was very
satisfied with the job Munters did for them after a recent flood from the nearby river. Clearly, Munters
must be very careful to see that public relations and corporate advertising are handled appropriately.
38. (Scenario 13-4) Because some people in the community describe the firm as “vultures” that prey on the
misfortunes of others, the primary objective of Munters’ public relations efforts is likely to be:
a.
promoting services
c.
counteracting negative publicity
b.
preparing internal communications
d.
lobbying
39. (Scenario 13-4) Munters now employs a recently graduated marketing major from the local business
school. She studied the Munter’s situation in a class on PR. Now she suggests that Munter’s shift to a
____ strategy by launching a public relations initiative in advance of the next flood season.
a.
aggressive
c.
charitable
b.
proactive
d.
reactive
40. (Scenario 13-4) Over the years, Munters has learned that advertising of disaster services is not
effective because most people will think they will never be affected by floods. As a result, Munters
hopes to change the focus of communication to positive information about how the firm helped fix a
terrible situation. Their new marketing graduate suggests that they enlist the testimony of the president
of the bank who thought they were invaluable after the last flood. This executive will tout the benefits
of what Munters does for the community during emergencies. Munters is doing what?
a.
publicity marketing
c.
sponsorship marketing
b.
influencer marketing
d.
internal marketing
41. (Scenario 13-4) When Munters responds to news reports of their customer activities after a flood, any
communication strategy they might use is dictated by influences outside of the control of the company.
Fortunately they are somewhat prepared as they have already identified their vulnerability. Which of
the following best describes the communications strategy they will execute?
a.
publicity campaign
c.
corporate advertising strategy
b.
reactive public relations strategy
d.
proactive public relations strategy
Scenario 13-5
General Dynamics produces jet fighters, submarines, and other high tech defense equipment for the
United States government, as well as for a handful of foreign governments that are approved to
purchase such weapons. General Dynamics has several communications challenges. The firm must
make its presence known to decision makers in the military and in government. It must also engender
support from the public in a way that causes voters to contact their legislators to support funding for
programs that require products manufactured by General Dynamics.
42. (Scenario 13-5) Most voters do not know what firms produce jet fighters for the U.S. Air Force and
Navy. General Dynamic thinks that some level of awareness of this is important so that Congressional
support for the firm’s operations remains high. Which of the following objectives of public relations
should General Dynamics be focusing on to achieve this communication objective?
a.
promoting a product or service
c.
counteracting negative publicity
b.
preparing internal communications
d.
lobbying
43. (Scenario 13-5) Since all of the revenue generated through the sale of submarines comes from Federal
tax dollars, General Dynamics must actively communicate with government officials regarding
pending legislation and budget allocations. If they employ a recently retired general to bear witness to
the excellent equipment and service support of General Dynamics at consumer town meetings in
congressional districts whose representatives can influence this legislation what are they doing?
a.
promoting good will
c.
counteracting negative publicity
b.
influencer marketing
d.
lobbying
44. (Scenario 13-5) Much of the work that General Dynamics does on a day-to-day basis is highly
classified. As a result, the firm must be very careful when it identifies characteristics of the firm or
aspects of the firm’s activities that are positive and newsworthy. Which of the following tools is best
suited to help accomplish this task?
a.
a public relations audit
c.
a public relations plan
b.
a marketing plan
d.
a media plan
45. (Scenario 13-5) During national election seasons, General Dynamics will feature advertisements on
television news programs such as Face the Nation and Meet the Press. The message from these ads is
that America must be careful to maintain a strong defense in the face of changing world political
scenarios. Which of the following best describes this type of communication?
a.
public relations
c.
cause-related advertising
b.
publicity
d.
advocacy advertising
ESSAY
1. The book lists six main objectives of public relations efforts. List four of these objectives. Then, give
an example of how a company that sells a product you purchase or provides a service you use could try
to achieve each of the four objectives.
ANS:
management anticipate public reactions.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
PTS: 1 DIF: Difficult REF: p. 266 OBJ: 13-2
2. You are the public relations manager for a manufacturing plant that has been the chief employer in a
town of 100,000 people for the past 40 years. However, rumors are running rampant that the plant is
considering moving to a state with more favorable labor and tax laws. Although the plant had
investigated the possibilities of doing just that, it has decided against it.
Declare your overall strategy and then how and why you would use four of the following five tools in
a public relations effort for the plant: press releases, feature stories, company newsletters, press
conferences, and sponsored events. Also, identify any potential positives and negatives associated with
each tool.
3. Describe the purpose of a public relations audit. What sources of information are used? What types of
information are gathered?
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A public relations audit identifies the characteristics of a firm or the aspects of the firm’s activities that
are positive and newsworthy. Corporate personnel and customers are questioned to provide
information. The types of information gathered in an audit include descriptions of company products
and services, market performance of brands, profitability, goals for products, market trends, new
product introductions, important suppliers, important customers, employee programs and facilities,
community programs, charitable activities, and so on.
PTS: 1 DIF: Moderate REF: p. 269-271 OBJ: 13-3
4. How do proactive and reactive public relations strategies differ? Describe the steps necessary to
implement each strategy.
ANS:
A proactive public relations strategy is guided by marketing objectives, seeks to publicize a
company and its brands, and is offensive rather than defensive in spirit. It starts with a public relations
audit. This audit serves to identify the characteristics of a firm or the aspects of the firm‘s activities that
PTS: 1 DIF: Moderate REF: p. 269-271 OBJ: 13-3
5. Describe the objectives and features of Influencer Marketing, including profiles of the several types in
use today: Professional Influencers, the cultivation of Connectors, and Buzz and Viral marketing.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Professional influencers offer great credibility but they also require careful enlistment in the effort
because they take their professional responsibilities very seriously. Several points should be kept in
mind. First is that their time is money, so wasting their time is likely to be counterproductive. Second,
messaging them with information that offers them intellectual currency as well as important benefits of
the brand will enhance their likelihood of participating. Celebrity testimonials do not have nearly the
credibility with this group than clinical studies will have. Finally, a successful professional influencer
program requires long-term commitment.
Buzz and Viral marketing are both subspecies of peer-to-peer influencer approaches. In Buzz
marketing the idea is to create an event or experience that yields conversations including your brand.
Viral marketing is the process of consumers marketing to consumers via the Internet, via either email
or blogs or nowadays, texting and YouTube links. Personal contact also works.
In both Buzz and Viral programs the idea is to target a handful of carefully chosen trendsetters or
connectors as your influencers and let them spread the word about your brand. Think of what you
offer them as “social currency” (in contrast to “intellectual currency” for professionals).
Finally, connectors can also be recruited as ongoing peer influencers in less dramatic ways.
Homemakers are mostly women with large social networks whom large household goods makers
approach and enroll in special influencer programs. An example is P&G’s Vocalpoint. The social
currency is news about existing or new brands and products and their reward is twofold. One is that
they can feel their voice is actually heard by a big company. The second reward is that they are often
the first not only to hear about, but to have the latest samples; it gives them something new to talk
about.
PTS: 1 DIF: Moderate REF: p. 272-273|276
OBJ: 13-4|13-5
6. What common goal do corporate image advertising, advocacy advertising, and cause-related
advertising share? Outline the unique features of each of these types of corporate advertising.