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Chapter 14: Consumer Relations

Chapter 14: Consumer Relations. A dose of reality for you……. The world has become one global society of consumers. Around 1.7 billion people worldwide now belong to the “consumer class.” Rising consumption has helped meet basic needs and created jobs around the world.

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Chapter 14: Consumer Relations

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  1. Chapter 14: Consumer Relations

  2. A dose of reality for you…… • The world has become one global society of consumers. • Around 1.7 billion people worldwide now belong to the “consumer class.” • Rising consumption has helped meet basic needs and created jobs around the world. • Nearly half of global consumers reside in developing countries.

  3. And it’s PR to the rescue…… • Consumers have a tough time wading through the advertising clutter to identify winning products and services. • In an era overwrought with advertising “noise,” PR solutions can help cut through the clutter to: • Distinguish one company from the next. • Enhance the sale of a firm’s products. • Attract, win, and keep customers.

  4. So much advertising clutter; so important to use PR to cut through it all.

  5. Consumer relations objectives Building sales is the primary objective. A satisfied customer may return. An unhappy customer may not. Typical consumer relations goals: • Keeping old customers • Attracting new customers • Marketing new items or services • Expediting complaint handling • Reducing costs

  6. Consumer-generated media • The Internet has given consumers a forum and a publishing platform to voice collective opinions. • Consumer-generated media (CGM) encompasses all opinions, comments, and experiences posted online. • CGM is also known as “consumer word-of-mouth.”

  7. Consumer-generated-media…… CGM encompasses: • Blogs • Message boards and forums • Public discussions • Online opinion/review sites and services • Online feedback/complaint sites For any marketer trying to break through the clutter understanding and managing CGM is critical.

  8. Office of the Ombudsman What do they do? • Investigate complaints, monitor difficulties with products or quality. Why are they needed? • To help the consumer feel confident and influence the organization to improve its product or service. The company that expresses understanding and courtesy to consumers will be the one that keeps business.

  9. A typical “bedbug letter”

  10. 1872First legislation to protect consumers against corporate abuses 1887Congress establishes the Interstate Commerce Commission 1927-1938Consumers protected from abuses in manufacturing, advertising, and retailing Early 1960sJohn F. Kennedy proposes the Consumer Bill of Rights The consumer movement

  11. Kennedy’s Consumer Bill of Rights This bill stated that consumers have the right: • to safety • to be informed • to choose • to be heard

  12. A question for you…… • What is your best “dissatisfied customer” story? • How did the company attempt to resolve the situation? • Do you believe their response was satisfactory? Why or why not?

  13. Federal consumer agencies The government attempts to protect consumers against abuse with more than 400 agencies. These include: • Justice Department • Federal Trade Commission (FTC) • Securities and Exchange Commission (SEC) • Food and Drug Administration (FDA) • Consumer Product Safety Commission • Office of Consumer Affairs The best policy for any public company is to communicate regularly and frequently with regulators in Washington.

  14. Consumer activists on the Internet • The Internet has spawned a new hotbed of consumer activism through e-mail campaigns, discussion groups, and forums. • Their primary role is to keep companies honest by informing the public and evaluating products. • Consumers’ Union, formed in l936, publishes Consumer Reports. • Consumer Federation of America was formed in l968 to unify lobbying efforts for pro-consumer legislation.

  15. Another question for you…. Who is considered the founding father of the consumer movement in the United States? Hint: He has run for president several times, and in 1965 wrote the book, “Unsafe at any Speed.” Answer: Ralph Nader

  16. Teaming up for the environment. The Dave Matthews Band joined the founders of Ben & Jerry’s Ice Cream to fight global warming through music and ice cream sales.

  17. Summing it all up…… • Without consumers, there would be no companies. • The cause of consumerism will always remain strong. • The smartest companies tie their products and services to larger societal causes. • That’s why consumer relations is a core public relations challenge in the 21st century.

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