Promotion

Promotion — Discussion Guide

Performance Indicator: Explain the role of promotion as a marketing function

Slide #2 Opening Discussion (Entry) THINK ABOUT IT

• Every product needs some level of promotion to be successful. Without some form of promotion, even the most innovative creation will struggle to find a large enough audience to succeed. How will customers find the product? How will they even know it exists? These are the basic questions that promotion seeks to answer.

KEY CONCEPTS

Slide #3 Promotion

• Promotion is a marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome.

• It is the element of the marketing mix that encourages customers to buy or have certain views or opinions.

• Promotion can also be described as marketing communication because it involves sending a marketing message to a target audience.

• A business communicates a message to a customer who receives the message and gives feedback by buying or not buying the product (accepting or not accepting the promoted point of view or image).

Slide #4 Users of Promotion

• Any organization that has something to sell uses promotion of some kind. Businesses, government agencies, special interest groups, producers, intermediaries, and individuals are all entities that use promotion.

• Businesses that sell goods often rely heavily on promotion.

  • They develop creative promotions to reach a target audience.

  • Due to their extensive promotional strategies, everyone is familiar with large companies such as Nike, Coca-Cola, or Apple.

• Businesses that sell services also use promotion to inform target audiences about the benefits of their services to convince customers to buy from them rather than from their competitors.

• Companies that promote images or ideas also use promotion.

  • Government agencies and special interest groups, for example, often use advertisements or public service announcements to promote safe driving or recycling.

Discussion #1: Ask students to identify a company that promotes their services. How does this company try to convince customers to use its services over those of a competitor?

Slide #5 Effective Promotion

• Promotional communication is most effective when it is:

• Persuasive

• Relevant

• Appropriate

• Factual

• Repetitive

• Coordinated

Discussion #2: Ask students if they can think of a promotion that is targeted toward their age group but seems to misunderstand what teenagers are interested in. How does this promotion fail to be persuasive, relevant, or appropriate?

Slide #6 Cost of Promotion

• There are many different methods of promotion that companies can use.

• While some are free or nearly free, such as issuing a press release or creating a social media profile, many are costly.

• Advertising fees, costs for sales promotions and contests, and salaries for promotional and sales staff can all add up.

• Considering the costs ahead of time is crucial for developing promotional budgets.

Slide #7 Benefits of Promotion

• Despite the costs, there can be great benefits for the companies who develop promotion for the products they sell.

• Through promotion, these companies strive for:

• • Increased sales

    • The most obvious way that companies seek to benefit is through increased sales, which should lead to increased profits.

  • Increased customer loyalty

    • Customers sometimes identify with the image that a company projects and seek to show that identity through brand loyalty.

  • Increased brand awareness

    • Promotion often helps customers learn that a product or brand exists and where these products can be found.

  • Positive perception

    • Companies often use promotion to affect the way they are perceived by the public.

    • A company may want to be seen as a “green” company, for example.

• Customers, the general population, and the economy can also benefit from effective promotion through:

  • Better informed public

  • Higher customer satisfaction

  • Increased employment opportunities

  • Sustained support for mass media

Slide #8 Promotional Objectives

• Organizations have three major objectives when using promotion in marketing to influence customers. Most promotions seek to achieve one or more of these objectives in some combination:

• Inform

  • Companies certainly use promotion to inform customers about a product that is new on the market, but they also use promotion to educate their customers about general product information, such as special features, or to suggest ways to best use the product.

  • Sometimes a company will make customers aware of a new store opening.

• Persuade

  • Organizations also use promotion to persuade customers to buy their product (or to hold certain views or opinions).

  • Persuasive promotions are designed to stimulate some sort of action in customers, often to purchase their product over those of a competitor.

• Remind

  • Some companies construct entire promotional campaigns just to remind customers that they exist or that their product is available.

  • For example, sometimes a company will install a billboard that simply has their logo on it.

Discussion #3: Ask each student to identify one company that uses promotion to inform, one company that uses promotion to persuade, and one company that uses promotion to remind. What similarities do the companies in each category have?

Types of Promotion—Discussion Guide

Performance Indicator: Explain the types of promotion

Slide #11 Opening Discussion (Entry) THINK ABOUT IT

• We are surrounded by promotional messages every day. Promotional messages serve many purposes for marketers. They come in many different shapes and forms, and marketers use a variety of methods to deliver them to their intended audiences. Each promotional message is intended to inform, persuade, and/or remind customers about goods, services, ideas, images, or issues.

KEY CONCEPTS

Slide #12 Types of Promotion

• There are several kinds of promotional tools that marketers use to communicate with customers.

• Some of these tools are:

  • Advertising

  • Publicity

  • Personal selling

  • Sales promotion

• When using these tools to communicate, businesses generally create two distinct types of promotional messages:

  • Product promotion

  • Institutional promotion

Slide #13 Product Promotion

• • • • The specific goal of product promotion is to persuade customers to buy a particular product.

      • The objectives of product promotion are to:

  • Create awareness for a product

  • Inform customers about product features

  • Build reputation for a product

  • Encourage interest and inquiries about a good or service

  • Inform customers where a product can be purchased

  • Create excitement and motivate retailers and salespeople

Slide #14 Product Promotion

• • • • The specific goal of product promotion is to persuade customers to buy a particular product.

• Primary product promotion aims to stimulate demand for an entire class of goods or services rather than on a particular brand.

  • The emphasis is on the product and its uses.

  • For example, the famous “Got Milk?” campaign that was started in the mid-1990s attempts to convince consumers that they should drink milk, but not any particular brand of milk.

  • Primary product promotion is especially useful and necessary for introducing a new concept or a totally new product.

• Secondary product promotion is used to stimulate demand for a specific product’s brand.

  • Once the product class is already established, efforts can be focused on promoting a particular brand of that product and the features or benefits that the specific brand’s product offers.

  • For example, there is an established demand for running shoes. So, a company that makes running shoes would focus its promotion on convincing customers that one specific brand of running shoes, such as adidas or Reebok, is the one they should buy.

Discussion #1: Ask students if they can think of any other examples of primary product promotion. Have them pick an item in the room and identify some of the features or benefits they would use to promote that item.

Slide #15 Institutional Promotion

• Unlike product promotion, institutional promotion does not attempt to sell a good or service. Instead, the goal of institutional promotion is to create a certain image of a company in the customer’s eyes.

• There are three kinds of institutional promotion:

  • Public service promotions inform customers about noncontroversial issues that are in the public’s best interest. These promotions buy goodwill for the company.

  • Public relations promotions are created to deal with issues that are in the public’s interest, and are also related to the company of its products.

    • These promotional activities may be either proactive (initial action taken to promote the company) or reactive (action taken in response to an external situation).

  • Patronage promotions are designed to promote a firm’s prestige or its features for non-product reasons.

• Institutional promotion can be used to:

  • Inform customers of the company’s name and its type of business

  • Inform customers of the company’s interest in social or environmental issues

  • Build, reinforce, or change a company’s image

  • Enhance company morale and recruit new employees

Slide #16 Advantages of Promotion

• Most promotional activities are considered to be positive contributions to corporations, consumers’ lives, and society in general.

• Promotion is thought to contribute to economic growth and business activity by encouraging customers to purchase and use new and improved products.

• Mass communication media—radio, television, newspapers, magazines, and the Internet—are either partially or entirely supported by promotional spending. Without this money, the financial support for the media would probably be passed along to consumers.

• Consumers also benefit from promotional activities by becoming better informed and more educated about their purchases.

Discussion #2: Ask students to discuss whether it is better for mass communication media to be funded through subscriptions (like Netflix) or through advertisements (like network television). What are the pros and cons of each?

Slide #17 Disadvantages Of Promotion

• The disadvantages of promotional activities stem mainly from the possibility of misuse. Generally, critics of promotional practices argue that:

• Some promotions are deceptive.

• Promotion manipulates customers.

• Some promotion is offensive.

• Promotion can play on people’s fears.

• Promotion may create and reinforce stereotypes.

Discussion #3: Ask students to discuss how promotions might be said to create or reinforce stereotypes. How could companies end up reinforcing stereotypes when they are intending to promote their products?

The Promotional Mix—Discussion Guide

Performance Indicator: Identify the elements of the promotional mix

Slide #19 Opening Discussion (Entry) THINK ABOUT IT

• A company may have an outstanding product which is priced just right for the market, but if customers don’t know about the product, no sales will be made. Promotion consists of communication activities that inform potential customers about products, images, or ideas to achieve a desired outcome.

KEY CONCEPTS

Slide #20 Promotional Mix

• The specific combination, or blend, of marketing communication channels that a business uses to send its messages to customers is known as the promotional mix.

• Marketers must carefully blend the elements of advertising, personal selling, publicity, and sales promotion for each situation.

Slide #21 Advertising

• Advertising is any paid form of nonpersonal presentation of ideas, images, goods, or services.

• It is the most visible element of the promotional mix.

• Businesses often use advertising to encourage short-term sales, build product awareness, and develop a brand image.

  • One advantage of advertising is that it can reach a large audience in a broad geographic area.

  • Since many people receive the same messages, advertising’s cost per contact is low.

  • However, it is typically difficult to track the results or the effectiveness of advertising, and this is not the best method for communicating complex messages.

• Advertisements that go straight from a firm to a customer (such as direct mail, catalogs, telemarketing, infomercials, and emails) are called direct marketing.

  • Direct marketing efforts are targeted toward specific individuals and are generally tied to measurable results, such as increased website traffic.

  • The ability to personalize the advertisements and track their effectiveness makes direct marketing one of the fastest growing forms of advertising.

Discussion #1: Ask students how they feel when they are the target of forms of direct marketing. Do they think this strategy is effective? Why or why not?

Slide #22 Personal Selling

• Personal selling is the form of promotion that determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities.

• At its core, personal selling is all about building relationships through interaction between the customer and the salesperson.

• Although it is the most expensive form of promotion on a per-contact basis, personal selling is considered the most effective form of promotion and is often worth the added cost.

• In personal selling, a salesperson can tailor her/his presentation to individual customers, who often consider this form of promotion to be more credible than advertising.

Slide #23 Publicity

• Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the individual or company benefiting from or harmed by it.

• As with advertising, little or no direct interaction occurs between customers and the company.

• With publicity, businesses often have little control over the message presented to customers because it is largely distributed via third-party sources, such as the news media.

• Because companies do not pay for or control these messages, customers tend to consider the information to be more credible than other forms of promotion.

• Publicity can be useful for building goodwill or developing a positive image of a company (which can also significantly boost employee morale).

Discussion #2: Ask students to discuss the risks associated with publicity. If the company does not pay for this form of promotion, how can they ensure that the message they want to promote is the one that reaches their target market?

Slide #24 Sales Promotion

• Sales promotions are promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases.

• Billions of dollars are spent each year on sales promotion activities, including visual merchandising (displays), couponing, in-store demonstrations, cash discounts and price incentives, product samples, and free accessories.

• Sales promotions are measurable, offer low-cost exposure, and can target either intermediaries or final consumers.

• Other benefits include attracting new customers, generating excitement, providing added value, boosting repeat business, and selling old stock.

• However, sales promotions are very short term in nature and are not good for delivering complex messages.

• There is also a risk of cheapening a company’s image or developing a “no bonus, no buy” attitude in customers.

Discussion #3: Ask students if there is a store that they or their parents/guardians will only shop at if they have coupons. How do they think this affects this store's business? If the students ran that store, what would they do to adapt to this problem?

Slide #25 Importance of Promotional Mix

• The promotional mix plays a key role in obtaining customers, increasing brand recognition, raising product awareness, and communicating product benefits.

• By delivering promotional messages in multiple ways, a business is more likely to reach its target market than it would be using one form of promotion alone.

• Marketers not only use multiple elements of the promotional mix, but they also combine them to form blended promotional strategies such as sponsorship or guerilla marketing.

• Regardless of what promotional elements a company chooses, they should be coordinated or blended to form a unified message.

• All promotional efforts should reinforce the same message, rather than creating contradictions or confusion.

  • This practice is known as integrated marketing communications.

• The right promotional mix that puts forth a strong, unified brand message can drive sales and, ultimately, help the company reach its marketing objectives and goals.

Slide #26 Factors Affecting Promotional Mix

• There is no magic formula that marketers can use to design their promotional mix. No one promotional element or promotional mix should be considered the best. A variety of factors affect the selection and use of appropriate promotional mix elements. Promoters must carefully analyze these factors before deciding when and where to invest money in promotion:

• Type of product

  • Convenience products are items frequently purchased with minimal effort (e.g., toothpaste, pens, eggs).

    • Personal selling is not often included in the promotional mix for these items because customers are already familiar with them.

  • Shopping products are goods and services that customers purchase after comparing competing products (e.g., cars, computers, cable providers).

    • Personal selling and advertising are often used to promote these products.

  • Specialty products have unique characteristics that are prized by customers who make special efforts to obtain them (e.g., jewelry, antiques).

    • These products often require personal selling so the customer becomes informed about features and usage.

    • The image associated with the specialty product is usually a chief concern for promoting these items.

  • Unsought products are those that consumers do not actively seek (e.g., life insurance, health care, funeral services).

    • To promote these products, marketers must be active and opportunistic so that consumers will recognize the need for them.

    • Personal selling and direct marketing are frequently employed in these promotions.

• Stage of life cycle

  • During a product’s introductory stage, when a product is introduced to the market, promotional efforts are designed to inform customers about its existence.

    • Sales promotions and advertising are commonly used during this stage.

  • Competing products appear during a product’s growth stage.

    • Promotional activities, often advertising, focus on pointing out differences between products.

  • The product is well-established when it hits the maturity stage, and promotion is used to remind consumers of the product’s benefits.

  • During a product’s declining stage, newer products enter the market, taking place of existing ones.

    • Companies may stop or slow production.

    • The little money that is invested in promotion at this stage is often aimed at maintaining a positive image for the company.

Slide #27 Factors Affecting Promotional Mix

• The target market

  • Type of customer

    • If a product is used primarily by a personal consumer market, the promotional mix could emphasize advertising, sales promotion, and publicity.

    • However, if the product is used primarily by industrial customers, personal selling must be emphasized.

  • Number of customers

    • If a product has a few customers, it can be effectively promoted through the use of personal selling.

    • If there are vast numbers of customers for a product, advertising and sales promotion would probably work best.

  • Geographic location

    • If customers are located close together, the product can be promoted through personal selling.

    • If the customers are spread over a wide area, however, advertising and sales promotion would probably be a better option.

• Channels of distribution

  • If there are vast numbers of customers for a product, advertising and sales promotion would probably work best.

    • Both personal selling and advertising can be effective when the distribution channel is direct.

  • Some producers choose to promote their products to intermediaries who then promote the products to consumers. The tactics used in this case are called push strategies.

    • For example, a producer might utilize personal selling to promote (push) its newest product to intermediaries who promote (push) the product to consumers through advertising and sales promotion.

  • Rather than promoting their products to intermediaries, producers who adopt pull strategies promote their products directly to the final consumer.

    • In this case, a producer might promote a new product through advertising or creating its own sales promotion to generate interest in its product. Wholesalers and retailers are then pulled into purchasing the product by the demand created through the producer’s promotions.

• The company

  • Historical perspective

    • Marketers often rely on information from previous promotions to determine what combination of the promotional mix could work for current and future promotions.

  • Available funds

    • The promotional mix budget affects both the reach of the promotion and the frequency of promotion.

  • Competition

    • In many cases, competing businesses use very similar promotional mixes.

    • This is because many of the factors that affect the promotional mix will apply to all businesses within the same industry.

Using Business Ethics in Promotion—Discussion Guide

Performance Indicator: Describe the use of business ethics in promotion

Slide #30 Opening Discussion (Entry) THINK ABOUT IT

• You buy a 24-pack of fruit juice that offers an $8.00 cash rebate.

  • A week later, you find the rebate has expired.

  • You are the victim of a short rebate deadline.

  • Cash rebates should give consumers time to collect the money.

  • This is an example of an unethical promotional practice.

KEY CONCEPTS

Slide #31 Promoting Products Ethically

• Marketers have a moral obligation to consumers, competitors, and society to promote their products in ethical ways.

• Organizations should develop standards of ethical conduct to help employees understand their responsibility to avoid forms of promotion that harm others.

• Additionally, these standards should be applied to all forms of promotion involved in advertising, direct marketing, and all of an organization’s marketing communications.

• Honesty, transparency, and integrity should be used at all times to make sure that consumers are not being misled or taken advantage of.

• Competitors should be treated fairly as well.

Slide #32 Ethical Issues in Promotion

• Truth in advertising, representing a product accurately, is the foundation of ethics in promotions.

• Marketing messages should accurately describe a product, its benefits, warranties, price, and availability.

• When marketers create messages that contain inaccurate information, they are misleading and harming consumers.

• Marketers should also avoid using promotions that take advantage of human weaknesses and tendencies such as buying on impulse, failing to pay attention to details, procrastination, and psychological fear.

Discussion #1: Ask students to give examples of misleading promotions that they have fallen victim to.

• Marketers should use cultural sensitivity to make sure their messages are not promoting offensive or harmful messages.

• Sexist, racist, and culturally insensitive messages should be avoided.

• Sometimes, a company may inadvertently create an inappropriate marketing message.

• To prevent the release of unacceptable messages, an organization should have a strict approval process in place to make sure that offensive messages are not produced or released.

Discussion #2: Ask students to share examples of offensive messages they have seen used to promote products or brands.

• Marketing efforts aimed at children, in particular, should be carefully created with the children’s best interests in mind.

• Since children do not have the critical-thinking skills needed to analyze marketing messages, they are more susceptible to persuasive messages used in advertising.

• Companies promoting candy to children that use cartoon characters, for example, should perhaps find a better food product to promote, and/or avoid the use of cartoons in their marketing efforts aimed at children.

Marketers also have an ethical obligation to protect the personal information of their customers.

• A company should make it clear how any information collected will be used and allow customers to deny the use or sharing of their personal information for additional marketing efforts and with third parties.

Slide #33 Unethical Promotional Techniques

• Businesses should avoid unethical promotional techniques.

• Tricky giveaways and rebates are unethical because they mislead customers to buy a product based on a false promise that they will receive a free item or save money.

  • Many giveaways are small, inexpensive items that encourage impulse buying and offer very little real value to a customer.

  • And, “buy-one-get-one-free” promotions are actually a 50% discount on two items that encourage consumers to buy more.

  • Cash rebates that require the customer to quickly complete and mail in a rebate form are problematic because many consumers fail to complete them in time and, therefore, are not compensated.

• Fear-based advertising is used to target consumers’ fears to convince them to buy a product.

  • Some marketers, for example, use the fear of being friendless or lonely to promote everything from breath mints, acne treatments, and fashionable clothing.

  • Makers of antibacterial soaps and organic food often use the fear of disease to promote their products.

  • Fear-based advertising is unethical because it uses psychological manipulation to convince consumers to buy a particular product.

• Green washing occurs when a company develops marketing messages for the sole purpose of creating a “green” image to boost its image to consumers.

  • Marketers should only promote a company or its products as environmentally friendly when a company has developed real corporate objectives such as using sustainable sourcing or eliminating the use of harmful substances.

  • It is dishonest to promote products with an image that is only “green” on the surface.

• Stealth marketing is a technique used to advertise a product without consumers being aware that they are being subjected to advertising.

  • Some companies pay actors to use their products in public to encourage consumers to adopt the product and create “buzz” by spreading positive word-of-mouth messages.

  • Since the product appears to be promoted by real life citizens, consumers are not aware they are being influenced by marketing.

  • The deceptive nature of stealth marketing makes it an unethical practice.

• Promotions offered in exchange for personal information often have complex use agreements that allow information to be shared or sold to numerous third parties.

  • Marketers should avoid these types of promotions because it is widely known that few consumers actually read the terms of use agreements or that they grudgingly sign them to take advantage of the offers.

  • Persuading consumers to provide their personal information in such a way is unethical.

Discussion #3: Ask students to explain how they feel about providing their personal information in exchange for the use of an app.

Use of Technology in Promotion—Discussion Guide

Performance Indicator: Describe the use of technology in the promotion function

Slide #36 Opening Discussion (Entry) THINK ABOUT IT

You and your friends enter a clothing shop and receive a Snapchat message.

• You’re invited to participate in a special promotion—a digital fashion show.

• You and your friends have a blast modeling the latest fashions and taking videos with special logo-branded Snapchat filters.

• You quickly share the fun event on your social networks and wait for a blitz of feedback.

• Your memorable and positive experience is an example of effective promotion enhanced by the use of mobile technology, geofencing, and social media.

KEY CONCEPTS

Slide #37 Impact of Digital Communication

• Digital communication has had a big impact on promotion.

• The use of computers and mobile devices for online shopping, banking, and social media has led to a rise in digital and mobile marketing.

• Digital marketing promotes products using digital technologies such as the Internet, mobile phones, display technology, and other digital mediums.

• Mobile marketing specifically refers to promotional messages sent with wireless technology.

• Because of widespread digital communication, companies must develop strategies to accommodate digital customers and take advantage of new opportunities new technologies provide.

Slide #38 Technology Offers Beneficial Communication Methods

• Technology provides beneficial communication methods.

• Websites and blogs provide ways for companies to stimulate interest in products through the use of content marketing, while company-branded websites share brand and product information directly.

  • Information and messages can be communicated through articles, stories, videos, interactive games, and many other formats.

• Social marketing occurs when companies use online social media as a communication channel.

  • Social media outlets such as Instagram, Snapchat, Twitter, and Facebook have become effective ways to create buzz about a product and spread word-of-mouth messages.

• • Marketers can easily promote messages, images, and events to large audiences in a short amount of time.

  • Social media tools make it easier for marketers to stay in touch with their target market and to understand their desires.

Discussion #1: Ask students to give examples of social media marketing or promotions that they enjoyed.

• • Social media also creates very public conversations in which customers communicate with a company and with each other.

• • Companies can use these forms of communication to build a bigger audience and innovative relationships with customers.

  • Some companies have taken advantage of social media to appoint brand ambassadors to promote their products through these individuals’ social networks.

• Because mobile communication is so personalized, it has led to interactive marketing that occurs when customers control the amount and type of information they receive from a company.

  • Since customers select the communication methods that they prefer, marketers are able to streamline and customize their promotional efforts to appeal to their target markets.

• Display advertising occurs on websites, apps, or social media through banners or other ad formats.

  • Marketers can easily reach customers on any digital site that customers visit.

Slide #39 Advanced Technologies Used in Promotion

• Advanced technologies are used to enhance promotion.

• Since mobile apps allow customization, many companies develop apps to specifically target their market. A pizza franchise, for example, may have a special app that makes it super easy for customers to order and track pizza deliveries. Or, a band might provide fans an app that allows them to win prizes or participate remotely during a live concert.

• Geofencing uses GPS, RFID, or Wi-Fi technology to create a virtual geographic boundary that enables an app to send messages to digital devices within the geographic area. A hotel with a geofenced app, for example, can notify nearby travelers of available lodging and discounts.

• Virtual and augmented reality provide unique ways for marketers to deliver 3-D, holographic images, messages, and interactive experiences to customers. Marketers using these technologies enable customers to “experience” products remotely or to try a new activity in a virtual world.

• Artificial intelligence (AI) allows customers to interact with software to order products with voice commands. Marketers can also create customized offers and experiences for their customers.

Discussion #2: Ask students to share examples of promotions they enjoyed that used mobile apps, geofencing, virtual, or augmented reality.

Slide #40 Disadvantages of Using Technology in Promotion

• There are some disadvantages of using technology in promotion.

• New and rapidly evolving technologies are difficult and expensive to maintain.

• Digital, mobile, and Wi-Fi technologies are more susceptible to hacking, which exposes any communication to risk.

• Digital communication collects personally identifiable information from customers which creates a legal obligation to protect it and exposes marketers to risk.

• Many customers often fear new technologies will invade their privacy and are distrustful and reluctant to use them.

• Since it can be impossible to retrieve digital information, marketers must carefully plan messages and be prepared to respond quickly to any errors that may occur.

• And, because customers have high expectations about the speed, efficiency, and quality of digital communication, marketers must carefully design any digital promotional strategies.

Discussion #3: Ask students to give examples of how they have been impacted in negative ways by the use of technology in promotion.

The Regulation of Promotion—Discussion Guide

Performance Indicator: Describe the regulation of promotion

Slide #42 Opening Discussion (Entry) THINK ABOUT IT

Keisha buys some granola bars promoted as natural healthy snacks.

• She gains five pounds in two weeks.

• She is upset to find the bars contain a large amount of sugar and fat.

• The advertising and packaging used was deceptive.

• Marketers should avoid misrepresenting their products.

KEY CONCEPTS

Slide #43 Promotional Messages Need to Be Honest and Fairg

• Promotional messages need to be accurate and truthful to protect customers from products that are poor quality, ineffective, or harmful.

• Customers depend on companies to provide accurate information so they can make informed decisions about the products they buy.

• Marketers should avoid promoting their products in ways that overstate or misrepresent a product’s quality, effectiveness, or safety.

• Marketers should also avoid making false or highly damaging statements about competitors.

• Organizations have a moral responsibility to promote their products with honest and fair methods.

Discussion #1: Ask students to share examples of unethical promotions they have seen.

Slide #44 The Federal Trade Commission (FTC) Regulates Promotional Activities

• Promotional activities are regulated.

• The Federal Trade Commission (FTC) protects consumers from fraud and deception by enforcing truth-in-advertising laws.

  • Advertising must be truthful, avoid misleading consumers, and when appropriate, must be backed by scientific evidence.

  • The FTC pays close attention to advertising that is harmful to children, hurts consumers financially, or has a negative impact on consumers’ health.

Slide #45 Promotional Activities Regulated by the FTC

• Health claims

  • Companies must make sure they have solid proof to back up any advertising claims that they make, especially for food, drugs, supplements, and other health-related products.

Discussion #2: Ask students to give examples of products that make questionable health claims.

• Endorsements

  • Individuals and celebrities making product endorsements and giving testimonials are required to have experience with the actual product, must not make claims that they cannot prove, and must reveal that they are paid representatives.

• Environmental marketing

  • Companies must avoid making broad, unqualified claims that products are environmentally friendly.

  • Any claims made must have reliable, scientific evidence to support them.

• Marketing to children

  • It’s illegal to promote harmful products such as tobacco and alcohol directly to children or in ways that are highly appealing.

    • A cartoon character smoking a cigarette, for example, is a very questionable promotional technique.

  • Advertisements to children must comply with the intent of truth-in-advertising laws by promoting products in realistic ways.

    • “Flying” toy fairies and “talking” stuffed animals, for example, can be misleading to children.

    • Marketers must also indicate when a product requires batteries or assembly.

  • Any website or online service that collects personal information from children under 13 must inform parents how the data are used, obtain parental consent, allow parents to revoke consent, and fulfill parental requests to review collected information.

Discussion #3: Ask students to share examples of problematic promotions they experienced as children.

• Email

  • Businesses using email for promotional purposes must clearly identify the messages as advertisements, provide accurate information, and include the organization’s address.

  • Businesses must also provide an easy method for consumers to opt out from receiving future commercial messages and promptly honor their requests.

• Telemarketing

  • Calls cannot be made before 8 a.m. or after 9 p.m.

  • In addition, telemarketers must promptly identify their organization and the purpose of the call.

  • They are required to share accurate information about products offered and terms of sale.

  • When consumers request to be placed on a “do not call” list, telemarketers must honor their requests.

• Data privacy

  • Companies can face legal consequences for failure to follow their data privacy policies and for any unauthorized disclosure of consumers’ personal data through negligence or data breaches.

  • Organizations collecting financial and medical information are required to allow consumers to opt out from having their data shared and must take extra measures to protect sensitive data.

Slide #46 International Promotions

• Marketers promoting products internationally need to follow different laws and cultural differences.

• Companies promoting their products internationally need to make sure their messages are accurate by observing differences in language and culture.

• It is also important to make sure that international laws are followed.

  • For example, some countries have laws against using comparative advertising to highlight the superiority of a product against a competing product.

  • When countries require an image of the actual product on packaging, the use of highly creative or logo-based designs should be avoided.

Types of Advertising Media—Discussion Guide Performance Indicator: Explain types of advertising media

Slide #49 Opening Discussion (Entry) THINK ABOUT IT

• The average person spends several hours a day interacting with different forms of media, which means that s/he is exposed to hundreds—maybe even thousands—of advertisements each day. People are exposed to so many advertisements, in fact, that many have learned to tune them out. This presents a problem to advertisers, however, since getting the attention of the target market is an important aspect of advertising.

KEY CONCEPTS

Slide #50 Publications

• Think of advertising media as channels of communication—information travels through them to customers. There are many options for advertisers to choose from when it comes to reaching those markets, and smart advertisers select the advertising media that best suits their needs.

• Publications like newspapers and magazines reach a large audience and are a longstanding way for customers to come into contact with advertising.

  • Some publications are geared toward a national audience, while others aim for more specific markets.

  • For example, consumer magazines are great opportunities for advertisers to find audiences of consumers based on their interests.

  • Business magazines, on the other hand, are ways to reach business or industrial users in certain fields.

• Even though many of these publications currently reach a wider audience with their online editions than with their printed ones, they still serve as great opportunities for advertisers to reach large audiences.

  • Online formats of these newspapers and magazines are often funded with a combination of subscription-based and advertising revenue, just like their printed versions.

  • In online formats, however, banner ads and sidebar ads can directly target more specific audiences than their printed predecessors.

Slide #51 Broadcast Media

• The growth of online/streaming entertainment has also led to a shift in how advertisers make use of broadcast media.

• Advertising on more traditional forms of broadcast media, such as radio and television, have expanded to include online or streaming formats like Netflix, Spotify, and Stitcher.

• While some online entertainment services have moved away from airing commercials in favor of a subscription-based, consumer-funded format, many online streaming services still offer free-to-consumer options, like YouTube, that do have bumper ads and mid-roll ad breaks in their streams.

Discussion #1: Ask students to discuss how the ads they see on television differ from those they see on the Internet. Which of these media is more likely to show them an ad that is relevant to them? Which shows ads that are for broader audiences? Why?

Slide #52 Internet Advertising

• The strategies used in online advertising are constantly growing and changing.

• Advertisers are challenged to continually adapt to Internet trends in order to get their ads in front of the right people at the right time.

  • For example, the increasing online presence of digital influencers and social media stories has allowed innovative advertisers to show their products live and in action to Internet-savvy audiences.

• Social media sites have become an essential advertising media.

  • Websites like Twitter, Facebook, and Instagram allow advertisers to sponsor posts that are then seen by specific target audiences.

  • Online advertisers use cookies to target advertisements to customers who have shown an interest in a product through their browsing and search histories.

  • Using big data and algorithms, social media platforms enable advertisers to select very specific audiences based on location, demographic information, interests, behaviors, and search history/cookies.

  • These forms of microtargeting allow advertisers to reach specific audiences (in some cases even specific individuals) with laser-like precision.

• Due to the fact that so many users have learned to ignore familiar forms of online advertising, many platforms now offer advertisers the opportunity to disguise their ads.

  • They can appear like typical posts in a social media newsfeed (native advertising).

  • Or, as a regular article on a website that highlights a topic chosen by an advertiser (sponsored content advertising)

  • Other forms of native advertising include recommended further readings links at the end of articles, promoted listings, and promoted search engine results.

Discussion #2: Ask students if they think it would be easier to design ads for Internet media or television media. What do they think would make one harder than the other? What information would they want in their ad design process for each?

Slide #53 Direct Mail

• Direct mail is another type of advertising media that both still exists in traditional forms and has also been adapted to an increasingly online world.

• Many companies continue to advertise through printed mail (such as catalogs, flyers, and postcards) that is delivered directly to the homes or offices of customers.

• This can be a relatively inexpensive way to advertise and is a good option for small businesses.

• Opt-in email marketing is also an inexpensive option and has become a great way to keep new and old customers up to date on products and offers.

Slide #54 Out-of-Home Advertising

• Out-of-home media present options for advertisers that exist entirely offline and are still quite effective.

• Billboards or wallscape ads are designed for long-term use.

• Transit posters or car/bus wraps turn transportation into shorter-term opportunities for advertisements.

• In denser cities, some companies even employ human directionals (individuals holding, wearing, or spinning signs) to attract passersby.

Slide #55 Other Advertising Media

• There are many forms and varieties of advertising media. Some have almost disappeared over the years, like advertisements in phone books. Others operate largely as they have for decades, but have shifted where needed to adapt to new technologies and trends.

• Product placement is an example of advertising in which certain products are prominently displayed in a television show, movie, photograph, video game, or online video.

  • For example, Bumblebee in the recent “Transformers” movies is famously a bright yellow Chevy Camaro.

  • By inserting their products into your favorite characters’ lives, advertisers hope that you will feel a sense of loyalty to those products.

Discussion #3: Ask students if they think product placement in television shows, movies, and video games is effective. Can they think of an instance of product placement that they noticed? Did that image pop into their heads when at the store or when they saw that product in person?

• One form of advertising that has grown in popularity is telemarketing.

  • Not only do advertisers have direct access to possible customers through their smart devices, but new technologies have allowed better and more effective robocalling and automated texting in outbound telemarketing.

  • Inbound telemarketing, where operators answer incoming calls from customers, is also evolving to include the use of chatbots for a more cost-effective way of handling customer inquiries.

• Among the many other types of advertising media are specialty media.

Word-of-Mouth Promotion—Discussion Guide

Performance Indicator: Describe WOM channels used to communicate to targeted audiences

Slide #58 Opening Discussion (Entry) THINK ABOUT IT

Saeed is talking about a new café on social media.

• • He posts photos of juicy burgers and crispy french fries.

  • He gets everyone else talking about it too.

  • He is promoting the café through word-of-mouth marketing.

KEY CONCEPTS

Slide #59 Word-of-Mouth Marketing

• Word-of-mouth (WOM) marketing refers to promotion and publicity for a business provided by customers who tell others of their satisfaction with the business.

• WOM is essentially a free form of advertising that occurs when a person spontaneously promotes a product to others.

• For a customer’s promotion of a brand to qualify as WOM, it must be a genuine response that directly results from the customer’s experience or interaction with a brand.

• WOM should not be confused with advertising efforts such as commercials, celebrity sponsorships, or paid testimonials.

Discussion #1: Ask students to share examples of WOM that they have shared with others.

Slide #60 Word-of-Mouth Marketing

• Organic WOM occurs naturally when people become advocates of a product because they are happy with it and have a desire to share their support and enthusiasm with others.

• Consumers who have positive experiences are likely to spontaneously share them with their families, friends, and social networks.

• Organic WOM is often increased by improving product quality and customer satisfaction with products.

• Organic WOM is also increased by actively listening to customers and responding to their concerns and criticism.

• Amplified WOM, also referred to as buzz and viral marketing, occurs when marketers use strategies to motivate people to talk about their products, services, or brands.

• Marketers use a variety of marketing channels and techniques to encourage large-scale discussions among consumers.

Slide #61 Word-of-Mouth Marketing Channels

• There are different WOM marketing channels used in promotion.

• Social media marketing is the use of social media platforms to promote a product, company, or brand.

  • Companies can provide information as “conversation starters” and measure the resulting word-of-mouth activity.

  • A company might share examples of impressive customer service acts, information about popular trends, or stories about hometown heroes that get people talking.

• Blog marketing is used to share information to promote a business and its products.

  • Blogs enhance WOM more effectively than company websites since they are updated frequently and allow visitors to leave comments and interact with the blog owner.

• Grassroots marketing, also known as guerilla marketing, targets specific groups with information in hopes that the groups will share the message with others.

  • This technique allows marketers to create strategic messages that directly appeal to a specific, targeted group.

  • Businesses typically target people or groups that are influential and likely to share the message.

  • A book author, for example, may send free books to top book reviewers so that they will create favorable online reviews.

• Evangelist marketing is used to develop brand ambassadors who believe strongly in a product or brand and willingly promote it to others.

  • The fact that evangelists are not paid or associated with a company causes consumers to view their opinions as credible and trustworthy.

  • Companies try to find high-profile individuals who are already using their product such as popular bloggers, YouTube celebrities, famous athletes, and professional actors.

  • The positive information that ambassadors share through their social networks is very valuable because it is influential and far reaching.

Discussion #2: Ask students to give examples of brand ambassadors they are familiar with.

• Product seeding targets product sampling toward selected customers.

  • Free products or samples are given to seeds (customers who have the potential to influence others). Seeds often share product information on social media or blogs.

  • A business may give a celebrity a brand of sunglasses to wear publicly, provide product samples for a popular blogger to try, or give logo-branded clothing to professional athletes.

• Referral marketing promotes products to potential customers through referrals, usually through word of mouth.

  • Businesses encourage customers to make referrals by rewarding them with prizes, discounts, redeemable points, or recognition as a preferred customer or specialist.

• Advertising that is unique can create WOM.

  • Creative billboards, ads, or commercials, for example, often become topics of conversation.

  • And apps that provide fun, interactive opportunities inspire consumers to share their unique experiences through social networks.

Discussion #3: Ask students to share examples of unique advertising they shared with others.

Slide #62 Word-of-Mouth Should be used Honestly

• It’s important to use honesty and transparency when using WOM marketing techniques.

• Companies must differentiate between spontaneously occurring WOM and paid forms of promotion.

• It is unethical to use a positive message from a paid actor or sponsor without identifying it as advertising.

• False information or manipulative techniques may work in the short term, but are likely to eventually result in negative WOM and lost customers.

Slide #63 Benefits of Genuine Word-of-Mouth

• Naturally occurring WOM provides real data that helps an organization measure, inform, and improve its marketing strategies.

• Organizations that generate genuine trust and faith in their brands develop stronger WOM promoters, increase brand loyalty, and experience more success.

Direct Marketing Channels—Discussion Guide

Performance Indicator: Explain the nature of direct marketing channels

Slide #65 Opening Discussion (Entry) THINK ABOUT IT

Tia is a high school junior and has been identified as a potential future student.

• She frequently receives college promotional materials and social media ads.

• The schools are using direct marketing channels to appeal to Tia.

KEY CONCEPTS

Slide #66 Direct Marketing

• What is direct marketing?

• Direct marketing is the use of customer data for marketing purposes.

  • Often, this involves the use of a personalized or customized experience.

  • By using data, businesses can obtain specific, measurable actions from targeted customers.

  • Essentially, direct marketing is a way to present information about a product directly to customers without the assistance of a third party such as newspapers or television stations.

• Direct marketing differs from mass advertising because it is only presented to customers who have been identified as likely buyers.

  • A formal wear shop, for example, might send discount coupons to high school students during prom season.

• While getting a sale is the goal, marketers often try to persuade the recipient to take some type of action such as visiting a website, downloading an article, or calling for more information.

Discussion #1: Ask students to describe the types of direct marketing they have experienced and explain whether they were effective.

Slide #67 Databases Provide Many Benefits to Direct Marketing

• Businesses increasingly rely on the use of databases to collect customer information as the basis for direct marketing.

• Demographic information and buying behavior data help marketers better understand their target markets.

• Data help marketers determine customers’ preferred communication channels and create personalized messages that appeal to them.

  • Many customers today expect a personalized message and often have a preferred method of contact.

    • For example, many companies send consumers birthday messages accompanied by coupons.

    • Data help a company determine which customers prefer a digital message over a physical card.

• Choosing the best method for each customer increases the effectiveness of the promotional strategy and reduces costs.

• Marketers can also use the collected data to evaluate the success of their promotional strategies.

Discussion #2: Ask students to explain what types of messages they prefer and why.

Slide #68 Major Direct Marketing Channels

• There are major channels used for direct marketing.

• Catalogs and flyers

• Websites

• RSS feeds

• Podcasts

• Voice mail

• Kiosk marketing

• Email marketing

• Telemarketing

• Bot assistants

Discussion #3: Ask students to describe different channels of direct marketing they have experienced and explain how they impact them.

Slide #69 Advantages of Using Direct Marketing

• There are advantages gained when using direct marketing.

• Identifies valuable customer groups (loyal, high-value, first-time)

• Determines best channel and time to engage customers

• Enables businesses to create effective personalized messages

• Allows businesses to receive direct feedback to improve products

• Reduces promotional costs since money isn’t paid to intermediaries

• Increases ROI since targeted customers are more likely to buy

• Builds effective loyalty programs that provide incentives customers want

• Improves customer service by observing customer interactions

• Evaluates success of promotional campaigns

Slide #70 Disadvantages of Using Direct Marketing

• There are disadvantages of using direct marketing.

• Customers often toss “junk” mail and avoid telemarketing calls.

• Businesses find it difficult to cut through promotional clutter with unique approaches.

• Telemarketing calls are highly regulated.

• Businesses face legal risks when using customer information.

• Privacy laws frequently change and increase.

Communication Channels of Sales Promotion—Discussion Guide

Performance Indicator: Identify communications channels used in sales promotion

Slide #73 Opening Discussion (Entry) THINK ABOUT IT

Raj receives a sample of Snafu Surf Wax at a surfing competition.

• He’s impressed with the wax’s performance.

• He orders a bar at his local surf shop.

• The company has effectively promoted its product.

KEY CONCEPTS

Slide #74 Sales Promotion

• Sales promotion and advertising are forms of marketing communication that are very much related, and, for this reason, they are often confused with one another.

• Advertising is any paid form of nonpersonal communication to promote ideas, goods, or services.

• Sales promotion is the use of promotional activities specifically designed to stimulate customer purchases.

• Sales promotion does not rely on the use of advertising, personal selling, or publicity.

• When companies use sales promotion, their main goal is to provide product information and inform customers where and when they can buy products.

• Sales promotion is an essential marketing activity since it helps a business increase brand recognition, distribute its products, and increase sales.

Discussion #1: Ask students to compare examples of promotion with advertising.

Slide #75 Pull Strategy

• Marketers use pull and push strategies to promote their products.

• A pull strategy is a promotional strategy that involves a producer promoting its products directly to the ultimate consumer (individual or organization that buys and consumes a product).

  • Pull strategies make customers actively seek a product, which creates a real demand for it in the marketplace.

  • For example, promotions offering free gifts or discounts can influence consumers to attend sales events and purchase products.

Discussion #2: Ask students to explain types of pull strategies that are effective on different types of customers.

Slide #76 Push Strategy

• Marketers use pull and push strategies to promote their products.

• A push strategy is a promotional strategy that involves a producer promoting its products directly to intermediaries (channel members such as wholesalers and retailers).

• • Since many push strategies offer discounts or rewards, they provide incentives for channel members to purchase, stock, and promote products.

  • Push strategies help producers introduce new products to the market, increase product distribution, and build strong business-to-business (B2B) relationships.

Discussion #3: Ask students to explain why push strategies are important for business success.

Slide #77 Consumer Communication Channels

• Marketers use various communication channels with consumers.

• Free-standing inserts (FSI) are brochures or cards inserted into a newspaper or magazine to promote products.

• Point-of-purchase (POP) displays are marketing or advertising materials placed next to the merchandise they are promoting.

• Coupons are vouchers that offer a discount on particular products.

• Rebates are partial refunds given back to the consumer for the purchase price of a product.

• Sweepstakes are games of chance in which winners are randomly chosen.

  • Some sweepstakes select winners from a large pool of candidates while others may offer instant wins through scratch off cards or digital games.

• Contests such as photo, essay, or video contests are games of skill in which winners are selected by judges using a specific type of criteria.

  • Contests can generate excitement in a brand or product and help spread word-of-mouth advertising.

• Loyalty programs are rewards programs offered by companies to customers who frequently make purchases.

• Product samples are free products or samples of products that are given to consumers for free so they can try them prior to making a purchase.

• Promotional products are used to promote a company, brand, or event. They often carry company logos and advertising messages.

  • Examples of promotional products are logo-branded T-shirts and coffee mugs.

• Product demonstrations are promotions that introduce products to potential new customers through a live demonstration of the product.

  • A product demonstration encourages trial purchases by allowing the customer to experience or witness the performance of the product.

• Personal appearances are events in which a person of interest is introduced to the target market, such as a celebrity, sports figure, or author to promote a product.

  • A high-profile individual can attract a crowd, create excitement, and influence consumers to purchase a product.

Slide #78 Business to Business (B2B) Communication Channels

• Marketers use special communication channels for B2B.

• Industry trade shows are events held to bring together members of a particular industry to display and promote their products.

  • Attendees come to learn more about the latest products and industry trends, build business connections, and take advantage of special “show prices” offered by exhibitors.

• Trade allowances are trade discounts offered by manufacturers to retailers so they can effectively lower retail prices to stimulate sales.

  • Trade allowances are based on volume and are designed to encourage bulk ordering.

  • The more the retailer purchases, the higher the trade discount becomes.

  • While the primary purpose of a trade allowance is to stimulate sales, they can also be used to move discontinued or seasonal merchandise.

• Dealer loaders are rewards given to retailers for purchasing specified quantities of products and for installing product displays.

  • There are two types of dealer loaders—buying loaders and display loaders.

  • A buying loader is a cash incentive or premium given in exchange for purchasing a specified quantity of product.

  • A display loader is a premium given to a retailer in exchange for installing a product display.

  • Typically, display loaders are reusable products or interesting items that form the basis of product displays.

    • Beverage companies, for example, sometimes provide ice chests and barbecue grills for summer product displays that retailers keep once a promotion is over.

• Push money is a cash incentive given to a retailer in exchange for focusing sales efforts on a product, such as purchasing and displaying products.

  • Manufacturers often use push money to encourage a retailer to promote the manufacturer’s brand above other competing brands carried in its stores.

• Co-op advertising occurs when retailers include the mention of a manufacturer in advertisements and then are reimbursed for all or part of the advertising costs by the manufacturer.

  • Co-op advertising gives retailers an incentive to engage in advertising activities.

PR Communication Channels—Discussion Guide

Performance Indicator: Explain communications channels used in public relations activities

Slide #80 Opening Discussion (Entry) THINK ABOUT IT

• Do you remember the Ice Bucket Challenge?

• What was that raising awareness for?

KEY CONCEPTS

Slide #81 What is Public Relations?

• An effort to build beneficial relationships with community members.

• Examples:

  • ALS Bucket Challenge

  • Special media days for the Super Bowl

  • College football team giving free footballs to newborn babies

  • Community bank providing free financial courses for citizens

  • Airlines providing free transportation to soldiers returning from deployment

  • Shop local events providing free food and entertainment

Slide #82 Public Relations Help Businesses Succeed

• PR is important for business success.

• Public relations is the communications channel that marketers use to portray businesses in a positive way, which is crucial to gaining customer trust.

• Companies value public relations, or PR, as a strategic communication process designed to build beneficial relationships between a company and its publics (audiences).

• Building good relationships helps a company influence and shape public perception of its organization.

• Individuals and groups with positive perceptions are more inclined to buy, become goodwill ambassadors, and share complementary information with others.

Slide #83 Public Relations Helps Build Good Relationships

• Businesses use PR to build good relationships.

• Media relations

  • Organizations strive to build good relationships with journalists as a way to reach audiences with messages of interest.

  • The main functions of media relations are to obtain positive comments by the media and to respond to queries from journalists about an organization.

  • Companies maintain media lists—up-to-date lists of media contacts.

    • Well-maintained media lists help organizations quickly determine which media outlets will reach their desired audiences.

• Employee relations

• • Organizations share positive company news through memos and company meetings to educate and motivate their employees.

  • Happy, well-informed employees share positive word-of-mouth that increases the company’s goodwill.

• Community relations

  • Important community relationships include local citizens, charities, clubs, activist groups, and government agencies.

  • Companies work to build friendly relationships with these important groups.

Discussion #1: Ask students to share examples of companies that have built positive relationships with their communities.

Slide #84 Publicity

• There are many PR communication channels businesses use.

• Publicity is newsworthy information provided to media outlets by outside sources.

  • Since the media is a trusted source of reliable information, stories promoted through media channels give organizations valuable coverage that serves as an unpaid form of promotion.

  • Organizations proactively seek publicity by providing the media with newsworthy information.

  • Types of publicity shared include efforts to support the local community, new products, job creation, financial results, and any relevant company information of interest to the public.

  • Since the media decide whether an organization’s information will be shared or not, publicity is considered an uncontrolled method of communication.

  • Organizations provide information to the media in various ways.

    • They provide press releases to make official statements and announcements that are newsworthy and press kits that provide prepackaged promotional materials and images.

    • Organizations also develop website press rooms to provide the media electronic access to PR contact information, promotional information, press releases, and press kits.

    • Press conferences are arranged to meet with members of the media to announce major developments.

Slide #85 Controlled Public Relations Communication Channels

• Brand journalism and content creation refer to an organization’s efforts to create “journalist” content for end users such as customers.

  • These messages are designed to connect with specific target markets.

  • American Greetings, for example, created video content by interviewing job applicants for the “World’s Toughest Job.”

    • The PR campaign captured heartfelt messages to honor mothers. This helped the company build stronger relationships with mothers and the people who love them.

• Corporate communications help a company develop, cultivate, and maintain a corporate identity or brand image.

  • Messages used in corporate communications are designed to create a favorable point of view among all the key stakeholders that a company depends upon.

  • These key stakeholders include employees, investors, channel partners, and the general public.

  • Examples of messages organizations desire to share with all of their audiences are found in commitments to protect the environment or to help disadvantaged individuals.

• Social media allows a business to communicate to a large audience and is closely related to relationship marketing.

  • Social media allows companies to be more friendly in the use of publicity and helps them quickly connect with a wide variety of publics.

  • Taco Bell, for example, built many friendly relationships with the public at large by creating a social media blitz to fulfill a worldwide request for a taco emoji.

Discussion #2: Ask students to share other examples of companies that have built good relationships with their communities through social media.

• Speechwriting is used to develop messages that persuade an audience to take action or develop conclusions about a product, organization, or idea.

  • A company representative, for example, may offer to give a graduation speech to build goodwill with local community members.

• Events are used to stimulate interest in a person, product, or organization by providing activities that allow an organization to interact with specific audiences.

  • In 2016, the Honest Tea campaign set up pop-up stores that let people pay for tea on the honor system.

  • Other examples of events that are useful for building goodwill and relationships include pet parades, 5k races, and special programs for children.

• Reputation management refers to actions and messages designed to influence what key stakeholders think about an organization.

  • A company often needs to defend against legal, ethical, or financial challenges that harm its reputation.

  • Since it is important to respond quickly, an organization maintains a PR crisis plan that describes preferred strategies for communicating with various audiences.

    • Messages are carefully created to counteract negative perceptions, rebuild public trust, and explain corrective actions being taken.

    • Depending on the situation and its severity, damage control efforts may last a few weeks or several years.

  • Failure to handle a crisis effectively can destroy a company’s reputation and even lead to business failure.

Discussion #3: Ask students to share an example of a company that has used public relations to protect its reputation.