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The actions of a corporation, store,
government, individual, in promoting goodwill
between itself and the public, the community, employees, customers,
etc.
• Maintaining the organization’s relations with its publics.
• Explaining the organization’s policy through communication media.
The Importance of Public Relations
• Proactive PR New product releases Executive statement releases • Reactive PR Crisis response and management • Rumours and urban
legends
• Main role: product introductions or revisions • Consumers are less likely to question the motivation
underlying an editorial-type endorsement.
• Product release Provide relevant information of the new or existing
product by editor of third party media channels. • Executive-statement releases News releases quotes executives’ statements,
address company’s internal issues.
Proactive PR
• It is how organization act in relation to the negative publicity or accident.
• The reaction of the organization effects on brand image.
• When done effectively, reactive MPR can virtually save a brand or company.
Reactive PR
• Sir Richard cut short a family holiday to see the scene of the accident and visit the hospitals treating those injured.
(shows timely respect and personal care of victims)
Case study: Cumbria Train Crash
• He hailed the driver of the Virgin train, Ian Black, who was badly injured in the crash, as a hero.
v staff-friendly culture of organization. v promote the bravery of Virgin employee.
• The train itself was magnificent - it's built like a
tank. v promotion of virgin train’s safety.
Cumbria Train Crash
• Consumers interest involves only those rumours that involve products, brands, store, or other objects of the marketing practice.
(Iphone 5 or galaxy S 2 ? Should I wait or buy it now?)
v Commercial rumours v Conspiracy rumours v Contamination rumours
Rumour’s and Urban Legends
• Marketing primarily focuses on consumers • Conventional approach
1. Development 2. Research 3. Advertising 4. Branding
The decline of Mass Market
Marketing = Advertising big bucks Pepsi-Cola spends $100 million to launch Pepsi one Andersen Consulting spends $150 million to launch its new name, Accenture Bell Atlantic spends $140 million to launch its new name Verinzon
The decline of Mass Market
• Advertising lacks credibility 79
67 63
59
47
37
22 17
11 10 9
Nurses Pharmacists Medical Doctors
Clergy Judges Bankers Business Execu<ves
Lawyers Insurance Salesman
Adver<sing Prac<<oners
Car Salesman
The decline of Mass Market
• The PR approach • Development • Research • Planning • Communication • Evaluation
Public Relations Approach
“A good Public Relations campaign or moment is something that feels like news rather than an advertising”
Mr Branson displaying his feminine side at the unveiling of Vie, Virgin's range of cosmetics and toiletries
Mr Branson arriving at a press conference for his space travel venture, Virgin Galactica
Richard Branson PR moments
Mr Branson baring his backside to mark the arrival of Virgin Atlantic in Canada
Richard Branson PR moments
Richard Branson dressed up as a Bride to launch their new product line Virgin Bride in 1996.
Richard Branson PR moments
• Every company has dissatisfied customers • In 2009, a customer complaint letter was
circulated and published around the world regarding Virgin Airlines in-flight catering services.
Reactive PR by Virgin
Complaint Picture 1
• The passenger described this as a “sponge with green paste.”
• In his letter he says “Look at this Richard just look at it.” “What have I done to deserve this?”
Complaint Picture 2
• Regarding this image he wrote, “Answer me this Richard, what sort of animal would serve a desert with peas in it?”
Complaint Picture 3
• The customer likened opening the main meal to receiving a hamster for Christmas.
• He writes, “It’s your hamster in the box and it’s not breathing. That’s how I felt when I peeled back the foil and saw this.”
Complaint Picture 4
• “I needed a sugar hit. Luckily there was a small cookie provided. It had caught my eye earlier due to it’s baffling presentation.”
• “It appeared to be in an evidence bag.”
• Richard Branson personally cal led the passenger
• Issued the following statement:
“While we investigated his complaint seriously, and fol lowing Richard Branson’s phone call we’ve invited him to our catering house to select the next range of meals and wines we serve on board. Then we can ensure his personal taste is well and truly catered for.”
How did Virgin Deal with the Negative PR?
Presented and created by
Aishath Lamya Ibrahim 17228537 Haifa Mohamed Al-Harbi 16008251
Fernando Moreno Rodriques 16390948 Yujie Guo 16416814
Students from Latrobe University,
Melbourne Australia IMC Subject
3rd September 2011
• The Age News. Costco Readies First Australian Outlets. Accessed on 25th Aug 2011. from http://www.theage.com.au/small-business/smallbiz-marketing/costco-readies-first-australian-outlets-20090721-droq.html
• BBC News. One Dead In Cumbria Train Crash. Accessed on 25th Aug 2011. from http://news.bbc.co.uk/2/hi/uk_news/6391633.stm
• BBC News. It Is A Very Sad Day- Branson. Accessed on 25th Aug 2011 from http://news.bbc.co.uk/2/hi/uk_news/6392935.stm
• Chitty. W, Barker. N & Shimp. T A. 2008. “Integrated Marketing. Communications, 2ed. Cengage Learning: South Melbourne.
• Campaign Live. Campaign Media Awards 2000 – Best one off stunt. Accessed on 30th August 2011 from http://www.campaignlive.co.uk/news/17912/?DCMP=ILC-SEARCH
• Telegraph, Virgin on the Ridiculous. Accessed on 30th August 2011 from http://www.telegraph.co.uk/travel/picturegalleries/4371078/Virgin-on-the-ridiculous-Sir-Richard-Bransons-publicity-campaigns.html
• Telegraph. Worlds best Passenger Complaint Letter. Accessed on 30th August 2011 from http://www.telegraph.co.uk/travel/travelnews/4344890/Virgin-the-worlds-best-passenger-complaint-letter.html
• Telegraph. Virgin Complaint Letter. Accessed on 30th August 2011 from http://www.telegraph.co.uk/travel/travelnews/4371036/Virgin-complaint-letter-Author-of-Virgin-letter-offered-chance-as-airlines-food-tester.html
• YouTube. Richard Branson on Marketing and Business. Accessed on 30th August 2011 from http://www.youtube.com/watch?v=8dhbqOlvx2U&feature=related
References