CHAPTER 13
Public Relations, Influencer Marketing,
Social Media, and Corporate Advertising
PPT 13-1
KEY TERMS
public relations
publicity
proactive public
relations strategy
reactive public relations
strategy
public relations audit
public relations plan
influencer marketing
social media
buzz marketing
viral marketing
corporate advertising
advocacy advertising
cause-related advertising
green marketing
SUMMARY
PPT 13-2
LO1 Discuss the role of public relations as part of a strategy for integrated
marketing communication (IMC).
Public relations focuses on communications that can foster goodwill between a firm and
constituent groups such as customers, stockholders, employees, government entities, and
fostered a bolder, more aggressive role for PR in IMC campaigns.
LO2 Identify the objectives and tools of public relations.
An active PR effort can serve many objectives, such as building goodwill and
counteracting negative publicity. Public relations activities may also be orchestrated to
LO3 Describe basic strategies for PR activities.
When companies perceive public relations as a source of opportunity for shaping public
opinion, they are likely to pursue a proactive PR strategy. With a proactive strategy, a
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 2
comprehensive public relations plan. The plan should include an explicit statement of
LO4 Summarize how companies use influencer marketing programs.
Given that consumers are predisposed to talk about brands and that what they say is vital
to the well-being of those brands, it is no surprise that marketers are pursuing strategies to
influence the conversation. Influencer marketing refers to tools and techniques directed at
LO5 Describe how marketers use social media to promote brands.
Social media are websites where users create and share information. Examples include
social-networking sites, works-sharing sites, blogs, and microblogging (Twitter). To
engage in brand communication via social media, marketers need to enter a community
LO6 Discuss the applications and objectives of corporate advertising.
Corporate advertising, rather than supporting an organization’s specific brands, aims to
build the general reputation of the organization in the eyes of key constituents. This form
of advertising serves goals such as enhancing the firm’s image and building credibility
programs.
CHAPTER OUTLINE
INTRODUCTORY SCENARIO: Making Crest Irresistible
This introductory scenario does a good job of revealing the breadth of contemporary
public relations/influencer promotional campaign and the many new techniques being
used.
The scenario features what students will consider a “boring” brand—Crest—rather than
something hip like an iPod. But that is the power of the scenario: using contemporary
techniques to enliven an old brand.
A. Crest was interested in creating buzz for a Crest brand extension, Crest Whitening
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 3
Plus Scope Extreme. The target market was women 18–34 with emphasis on 23 to
24 years old. Characteristics of this segment:
• Social, outgoing, and not married
• Heavy users of social-networking sites
• Constantly in contact with friends via all forms of wireless
• Place high importance on making a good first impression; no tolerance for a
“bad breath” day
B. Crest launched a holistic, IBP campaign to create buzz:
• P&G created the Crest Extreme Irresistibility IQ Quiz.
• Public relations—Celebrities were lined up to take the quiz (MTV, boy band
personalities).
• Online—Banner ads promoted the quiz and appeared on Facebook, MySpace,
Evite, etc.
• Events and publicity—Crest partnered with Vibe.com to host a speeddating
event in Times Square.
• Print ads and posters—Posters appeared in restrooms of night spots.
• Results:
• 401,000 quizzes completed
• 48,000 MySpace friends
• 157 million media impressions
• 1.1 million visits to CrestIQ.com
I. Public Relations
PPT 13-3
Public relations focuses on communications that can foster goodwill between a firm and
its many constituent groups. The constituent groups include customers, stockholders,
suppliers, employees, government entities, educators, citizen action groups, the local
communities where a firm has operations, and the general public.
• Public relations can be used to highlight positive events in an organization, such
as quarterly sales and profits or noteworthy community service programs. When
adversity strikes, public relations can be used strategically for damage control.
• Public relations has entered an exciting new era:
• Consumers are spreading info about brands like never before, using
YouTube, blogs, etc.
• PR lacks the strategic control needed to establish a brand within the
segment in the manner desired by a firm.
• But people talk about brands; if you give them the right things to talk
about, you have more control.
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• Good PR can create a positive social epidemic.
A. Damage Control
One of the most important roles PR can play is damage control. Firms can encounter
serious public relations problems either of their own doing or outside their control.
Students are provided with examples of each type of problem.
1. Taco Bell—When someone took a video of rats running around a Taco Bell
restaurant at night and then posted it on the Internet, there was little the
company could do about the situation.
2. Johnson & Johnson and Walmart—Johnson & Johnson unintentionally
stirred up negative publicity with an intentional act: suing the Red Cross for
logo infringement. And as Walmart faces one embarrassment after another
related to treatment of its frontline employees, it has to contend with the brand
trashing initiated by a group called “Wake Up Walmart.” Research shows that
a significant number of people have stopped shopping at Walmart based on
the group’s effort. PR could have helped.
II. PR Objectives
PPT 13-4, 13-5, 13-6
A company’s public relations function, usually handled by an outside agency, is prepared
to engage in positive public relations efforts and to deal with any negative events related
to the company’s activities. Objectives for public relations include the following
possibilities:
• Promoting goodwill: This is an image-building function of public relations.
Industry events or community activities that reflect favorably on a firm are
highlighted.
• Promoting a product or service: Press releases or events that increase public
awareness of a firm’s brands can be pursued through public relations.
• Preparing internal communications: Disseminating information and
correcting misinformation within a firm can reduce the impact of rumors and
increase employee support. For events like reductions in the labor force or
mergers of firms, internal communications can do much to dispel rumors
circulating among employees and in the local community.
• Counteracting negative publicity: This is the damage-control function of
public relations. The attempt is not to cover up negative events but to prevent
the negative publicity from damaging the image of a firm and its brands.
• Lobbying: The public relations function can assist a firm in dealing with
government officials and pending legislation. Industries maintain active and
aggressive lobbying efforts at both the state and federal levels.
• Giving advice and counsel: Assisting management in determining what (if
any) position to take on public issues, preparing employees for public
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 5
appearances, and helping management anticipate public reactions are all part
of the advice and counsel function of public relations.
A. PR Tools
Several vehicles allow a firm to make positive use of public relations and pursue the
objectives just cited. The goal is to gain as much control over the process as possible.
1. Press Releases. Having a file of information that makes good news stories
puts the firm in a position to take advantage of free press coverage. Items that
make for good public relations include:
• New products
• New scientific discoveries
• New personnel
• New corporate facilities
• Innovative corporate practices, like energy-saving programs or employee
benefit programs
• Annual shareholder meetings
• Charitable and community service activities
2. Feature Stories. While a firm cannot write a feature story for a newspaper or
broadcast a story over local television networks, it can invite journalists to do
an exclusive story on the firm when there is a particularly noteworthy event.
3. Company Newsletters. In-house publications, like a newsletter, can
disseminate positive information about a firm through its employees. As
members of the community, employees are proud of achievements by their
firm. Newsletters can also be distributed to important constituents in the
community.
4. Interviews and Press Conferences. Interviews and press conferences can be
a highly effective public relations tool. Often, interviews and press
conferences are warranted in a crisis management situation. Firms have also
successfully called press conferences to announce important scientific
breakthroughs or to explain the details of a corporate expansion.
5. Sponsored Events. Event sponsorship was discussed as a form of support
media in Chapter 12. Sponsoring events can also serve as an important public
relations tool. A firm can become involved in local community events through
sponsorships.
6. Publicity. Publicity is unpaid-for media exposure about a firm’s activities or
its products and services. Publicity is handled by the public relations function
but cannot, with the exception of press releases, be strategically controlled
like other public relations efforts. One major advantage of publicity—when
the information is positive—is that it has credibility because information
shows up in newspapers and on news broadcasts.
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 6
III. PR Strategies
PPT 13-7, 13-8, 13-9
Public relations strategies can be categorized as either proactive or reactive, based on
their orientation to public relations: Proactive public relations strategy is dictated by
marketing objectives, seeks to publicize a company and its brands, and in spirit is
offensive rather than defensive. Reactive public relations strategy is dictated by
influences outside the control of a company, focuses on problems to be solved rather than
opportunities, and requires defensive rather than offensive measures.
A. Proactive Strategy
To implement a proactive public relations strategy, a firm needs to develop a
comprehensive public relations program. Such a program has two key components:
• Public relations audit: A public relations audit identifies the
characteristics of a firm that are positive and newsworthy. Information is
gathered in much the same way as information related to advertising
strategy is gathered.
• Public relations plan: The component developed next, a structured public
relations plan identifies objectives and activities. The components of a
public relations plan include the following:
• Current situation analysis: This section summarizes the information
obtained from the public relations audit.
• Program objectives: Objectives should be set for both short-term and
long-term opportunities. As with advertising, the focal point is not
sales or profits. Rather, legitimate statements of objective include
factors like the credibility of product performance (that is, placing
products in verified, independent tests) or the stature of the firm’s
research and development efforts (highlighted in a prestigious trade
publication article).
• Program rationale: The plan identifies the role the public relations
program will play relative to all the other communication efforts,
particularly advertising. This is where an integrated marketing
communications perspective is clearly articulated.
• Communications vehicles: This section specifies precisely what means
will be used to implement the public relations plan.
• Message content: PR messages need to be researched and developed
much like other brand promotion messages.
B. Reactive Strategy
As stated earlier, firms must implement a reactive public relations strategy when
events outside the control of the firm create negative publicity or circumstances. It is
much harder to organize and structure reactive public relations. Because the events
that trigger the PR effort are uncontrollable, a firm must be prepared to react quickly
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 7
and effectively. Two activities help firms implement reactive public relations
strategy:
• Public relations audit: Part of the preparation will occur during the public
relations audit prepared for the proactive public relations strategy.
• Identification of vulnerabilities: The other key step in reactive public
relations strategy is to recognize areas where the firm has weaknesses in
its operations or products that can hurt its relationships with important
constituents. From a public relations standpoint, these weaknesses are
called vulnerabilities.
C. Keeping PR Integrated
PR plays a support role in integrated marketing communication (IMC). It is the main
tool for damage control and can contribute to a positive attitude toward a brand.
However, PR cannot be implemented quickly enough or with enough control to be the
main IMC tool used to build a brand or maintain a brand.
IV. Influencer Marketing
PPT 13-10, 13-11
Public relations is a discipline devoted to monitoring and managing what consumers are
saying to one another about the firm. In addition, consumers have become increasingly
predisposed to talk about brands, both online and offline. Marketers can give consumers
something (positive) to talk about.
Influencer marketing refers to a series of personalized marketing techniques directed at
individuals or groups who have the credibility and capability to drive positive word of
mouth in a broader and salient segment of the population. The idea is to give the
influencer something positive to talk about with respect to firms and brands.
A. Professional Influencers
• Marketers can target professionals (doctors, therapists, lawyers, accountants,
etc.) with positive PR messages aimed at having these professionals influence
their clients’ attitude toward a brand.
• The process can be thought of as “seeding the conversation” between the
professionals and their clients.
• Tactics include trade show displays, direct-mail communications, and
personal-selling calls—all IMC techniques.
B. Peer-to-Peer Programs
• Marketers use peer-to-peer programs to target social networks with positive
messages about a brand, so individuals can pass the information along to their
peers.
• Cultivating connectors
• Marketers engage in a sophisticated process of cultivating peer-to-peer
influencers to positively tout a firm’s brand.
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• Procter & Gamble has enrolled 600,000 “connectors” in its Vocalpoint
program—mostly women with wide social networks.
V. Social Media
PPT 13-12, 13-13
• Today, more people are using community websites like Facebook and MySpace than
are using email. These social-networking sites have revolutionized the way marketers
think about mediated communication. Communication about brands in these
communities has three nodes, rather than the traditional two.
• Microblogging—sending short messages to subscribers (Twitter)
• Commerce communities, such as Amazon and Craig’s List
• Social bookmarking—used for recommending content (for example, Digg and
Reddit)
• Collaborative projects, such as Wikipedia
• An important implication of social media is that marketers no longer generate all the
important brand communications. Rather, consumers are making and distributing
brand material—even ads—on the Internet.
A. Shaping the Message
Social media’s impact on the marketing environment can be a little bit frightening—
for example, nasty product reviews or satirical versions of the company’s ads. But for
marketers who can shape the messages spread online, social media also present a
tremendous opportunity.
Marketers have several ways to shape the message:
• Create venues online for consumers to gather around a brand-related
interest or value, as Crest did in the introductory scenario.
• Invite consumer feedback via social media. (Of course, you must be
prepared for some negative comments.)
• Become trusted participants in the conversation by sharing valuable
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information, such as tips for using products, details about ingredients and
prices, solutions to product-related problems, or general advice on brand-
related topics, say, health or parenting.
• Encourage accurate spreading of messages by stating brand advantages
that are clear, memorable, and easy to describe.
B. Buzz and Viral Marketing
• Buzz marketing is creating an event or experience that yields
conversations that include the brand.
• Viral marketing is the process of consumers marketing to consumers
via the Web (e.g., via blogs or forwarding YouTube links) or through
personal contact. It is stimulated by a firm marketing a brand.
• The idea behind both buzz and viral marketing strategies is to target a
handful of carefully chosen trendsetters or connectors as influencers,
and to let these influencers spread the word.
C. Measuring Results
Although marketers aren’t in total control of their message on social media, they still
need to know whether the time and effort of social media are worthwhile.
In a sign that social media are entrenched in the promotional mix, research services are
offering marketers performance metrics akin to those for other media:
• Nielsen BuzzMetrics tracks more than a million blogs, social networks,
and other consumer-generated online content to provide clients with
information such as where conversations about the brand are taking place,
what people are saying about the brand, and when threats to the brand’s
reputation are developing.
• Radian6 scans over 100 million websites, including blogs, Twitter, and
public Facebook groups to find messages, videos, and photos related to
clients’ brands. It delivers statistics such as the volume of comments,
reach of messages, and type of consumer sentiment.
• Data also can be integrated with Web analytics software to measure how
much traffic is being driven to the marketer’s website from the social
media—and even who is driving the most traffic and how much of that
traffic leads to sales or subscriptions at the website.
• One advantage is that services like these offer real-time tracking and
reporting, so if marketers don’t like what’s being said, they can jump into
the conversation immediately. Marketers can also watch social-media
activity when they engage in other types of brand communication, to see
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whether those efforts are generating the desired buzz. If not, they can
tweak their efforts right away.
VI. Corporate Advertising
PPT 13-14, 13-15
Corporate advertising is not designed to promote a specific brand but is intended rather
to establish a favorable attitude toward a company as a whole.
A. Scope of Corporate Advertising
Corporate advertising is a significant force in the overall advertising carried out by
organizations in the United States. Presumably, these firms have broader
communications programs and more money to invest in advertising, which allows the
use of corporate campaigns.
B. Objectives of Corporate Advertising
The objectives for corporate advertising are well focused. In fact, corporate
advertising shares similar purposes with proactive public relations. The following
objectives are typical:
C. Types of Corporate Advertising
There are three basic types of corporate advertising:
1. Image Advertising. Most corporate advertising efforts focus on enhancing
the firm’s image among important constituents—typically customers,
employees, and the general public. The goal is to enhance the broad image of
the firm and may not result in immediate effects on sales, but as we saw in
Chapter 5, attitude can play an important directive force in consumer decision
making.
2. Advocacy Advertising. To establish an organization’s position on important
social, political, or environmental issues, organizations use advocacy
advertising, which is “advertising that addresses and attempts to influence
public opinion on issues of concern to the sponsor.”
3. Cause-Related Marketing. Firms often affiliate themselves with worthwhile
social causes, such as reducing poverty, increasing literacy, or curbing drug
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abuse. Cause-related marketing is promotional messages that identify
corporate sponsorship of philanthropic activities.
4. Green Marketing. Corporate efforts that embrace a cause or a program in
support of the environment are known as green marketing. Such efforts
include shoe boxes made out of 100 percent recycled materials at Timberland
and the “Dawn Saves Wildlife” program sponsored by Procter & Gamble.
General Electric and its “Ecomagination” campaign is another high-profile
exemplar of this movement.
SOLUTIONS TO REVIEW QUESTIONS
1. Review the example of Crest Whitening Plus Scope Extreme, and identify the features
of the brand’s launch campaign that made it resonate with young women, especially
those in the 23-to-24 age group.
To build new consumer interest and excitement about a standard commodity item like
2. Do you agree with the chapter’s premise that consumers today are spreading the
word about brands like never before? Why or why not? How well does that assessment
apply to you and the people in your social network?
Modern consumers, particularly younger consumers, are drastically reshaping how
brand messages are shaped and spread. As the class evaluates the changing role of
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 12
Shaping brand messages remains as critical as ever, though, and that presents a new
3. Given that some events will have more potential for generating favorable publicity
than others, what criteria should marketers emphasize when selecting an event with the
goal of gaining publicity that will build goodwill? How might the benefits of sponsorship
be similar or different if that sponsorship involves a sporting event versus a noble cause?
If the objective of event sponsorship is to gain publicity that will help build goodwill,
4. What makes good publicity a significant marketing opportunity and bad publicity a
major threat? In what ways does public relations activity today extend beyond simply
generating favorable publicity and stifling unfavorable publicity?
Publicity can have tremendous positive or negative consequences because of the
credibility of the news media. In contrast, most consumers recognize the persuasive
intent of advertising and thus discount its credibility. While public relations activities
5. React to the famous saying “There’s no such thing as bad publicity.” Try to think of a
situation in which bad publicity would actually be good for a brand. How is that
possible?
Sometimes bad publicity is just that—bad publicity, and the chapter’s box about Aqua
Teen Hunger Force plainly demonstrates how a publicity stunt can go very bad
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 13
promise of low prices? Encourage students also to consider the example of celebrity
news sites and magazines. Publicity about a popular celebrity’s troubled marriage,
6. Most organizations have vulnerabilities they should be aware of to help them
anticipate and prepare for unfavorable publicity. What vulnerabilities would you
associate with each of the following companies?
• R. J. Reynolds, makers of Camel cigarettes
• Procter & Gamble, makers of Pampers disposable diapers
• Kellogg’s, makers of Kellogg’s Frosted Flakes
• ExxonMobil, worldwide fossil-fuel company
• McDonald’s, worldwide restaurateur
Most organizations have multiple vulnerabilities. For these five companies, here are
some of the obvious possibilities: Cigarette marketers have proven vulnerable in the
area of marketing their products to children. P&G must constantly deal with concerns
7. What key points need to be managed in creating successful influencer programs with
medical professionals?
Medical professionals, whether the local vet, dentist, or physician, can be a powerful
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 14
8. Imagine yourself as a connector. In that role, what kind of inside information would
you find interesting enough to tell your friends about a new movie or TV show? What
would it take for you to start that conversation?
Carefully selected trendsetters or “connectors” can be powerful tools for marketers
seeking to build peer-to-peer and viral programs. The underlying challenge is to
social networks.
Topics: Give those consumers a compelling story line about your brand to discuss.
9. What opportunities do social media present to marketers? How can marketers tell
whether their use of social media is successfully taking advantage of those opportunities?
Primarily, social media offer a way for marketers to join in conversations that
consumers are already having with one another about brands. Marketers can shape the
messages being spread by setting up venues for brand-related conversations, inviting
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 16
problems with several Toyota makes and models, leading to massive recalls. Conduct
research in business media and at government, company, and industry websites to
prepare a report on that situation:
• Describe the extent of the crisis and who was involved.
• Identify public relations tools and strategies that Toyota employed to manage the
crisis.
• How effective was the PR strategy? Could Toyota have avoided the controversy
altogether or done more to resolve the problem and win back customers? Explain.
This exercise is designed to encourage students to apply chapter concepts and think
2. To better position itself in the competitive college admissions field, your college or
university is planning to launch a PR campaign to encourage more highly qualified high
school seniors to apply for admission. Working in small teams, identify what steps you
would take to create a proactive public relations strategy for the school’s admissions
office. Your proposal should clearly identify the plan’s objectives and rationale, what
steps should be taken prior to the campaign’s launch, and what communication methods
and content would be most effective.
Even when developing a proactive public relations strategy for a brand that students
should know very well—their own college—they should demonstrate an
3. Working in the same teams, propose what steps you would take to launch an effective
peer-to-peer marketing campaign as part of the effort to raise awareness of the college
and increase applications to the school. In your answer, identify what types of individuals
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 17
would make the most influential connectors to generate buzz about the school, and
explain what types of virtual and real-world tools could be developed to provide those
connectors with a compelling story about the college to share with others.
In light of the emerging importance of influencer marketing, this exercise gives
students an opportunity to demonstrate their understanding of the important role of
4. Choose a well-known brand, and visit three of the types of social-media sites listed in
the chapter to learn what people are saying about that brand. Summarize the types of
messages you found. Indicate which of these messages you think would support the
brand’s marketing and which would undermine the marketing effort. Suggest some ways
that marketers for your brand could respond to these messages and get more involved in
the online conversations about the brand.
Answers will vary as students take advantage of the wide array of social-media sites
available to them. Students should look for patterns in the messages: Do certain topics
5. Corporate advertising is broadly intended to boost the reputation of an organization
and build credibility for its products and services. Review recent magazines, and identify
three examples for each of the primary forms of corporate advertising: image
advertising, advocacy advertising, and cause-related advertising. For each ad, prepare a
short analysis of how the ad is likely to enhance the firm’s general reputation, and
identify the likely target audience for the advertisement.
This exercise allows students to evaluate the three primary forms of corporate
advertising and to analyze the effectiveness of several real-world ads. Students should
Chapter 13: Public Relations, Influencer Marketing, Social Media, and Corporate Advertising ❖ 18
POWERPOINT PRESENTATIONS
Use the Instructor PowerPoint files to pace your instruction and provide class notes on
key ideas and themes. Each presentation provides a slide-by-slide coordination with the
chapter’s learning outcomes, definitions, and visuals. Encourage students to use the
accompanying Student PowerPoint presentation to align and reinforce classroom
instruction with studying outside of the classroom.
VIDEOS
To view the two videos for this chapter, go to the PROMO book companion website,
www.cengage.com/login.
(*) Indicates the correct answer in the multiple-choice video questions.
Red: The Lazarus Effect
1. The video Red “The Lazarus Effect” is aimed at what goal?
2. In the video Red “The Lazarus Effect” you are able to see what type of publicity in
action? Be specific about the strategies you see in the video.
3. In Red “The Lazarus Effect,” what is the specific message from Bono at the end of the
video?
4. The video Red “The Lazarus Effect” invites you to learn more at:
