Rounding Out Your IMC Mix

1. Rounding Out Your IMC Mix MKT 846 Professor West

2. Agenda • PR & Publicity • What can it do for you? • Blunders • Direct Marketing • What is it’s role on the IMC mix? • Privacy issues • Scheduling Team Presentations

3. Comparing Campaigns • Labatt’s Blue

4. Comparing Campaigns • Molson Canadian

5. Insect Safari • Orkin Pest Control (circa 2001) • Business was off, in particular sales leads • Advertising didn’t seem to be working • Consumers had more trust in local exterminators • Corporate Sponsorship • Orkin supported the renovation of the “Insect Zoo” at the Smithsonian Institute in 1993 • More than a million people visit the site a year

6. Insect Safari • Taking the show on the road… • Ketchum decided to leverage Orkin’s Smithsonian relationship by taking the Insect Zoo to local markets in an educational campaign • Objectives: • To increase sales leads in top markets • To directly reach educators through the exhibit and website • To inspire a grassroots marketing program through local publicity • Connect to target market indirectly through children

7. Insect Safari • Elements of the campaign • 53-foot traveling exhibit to visit museums and schools with hands-on 3-D models, educational materials, interactive presentation…. • Partnered with Bayer Corp. and CNN/Turner Learning • Website created to inform people and provide background information

8. Insect Safari • Results • An increase in sales leads in 70 percent of the markets visited • Rated very high in quality by teachers and students • 512 stories in the media, 8 hours of TV coverage, 41 morning show interviews • Estimated reach of 66 million impressions • Silver Anvil Award from PRSA

9. What role do PR and Publicity play? • The objective of marketing is to sell products and services…in contrast, the goal of PR is to sell the organization itself. • PR is the official channel of communication between the organization and the public • Publicity is the generation of news about a person, product or service that appears in the media

10. Other things PR can do for you • Provide a value-added customer service • Butterball hotline for advice on how to prepare a turkey. Handles 25,000 calls during the holiday season. • Giving consumers a reason to buy • Energizer’s national education campaign urges consumers to change their smoke detector battery when they reset their clock in the fall and spring. Company is perceived as a good citizen and they sell batteries • PR Stunts & Crisis Management • "CBS deeply regrets the incident that occurred during the Super Bowl halftime show," the network said in a release. "We attended all rehearsals throughout the week and there was no indication that any such thing would happen. The moment did not conform to CBS broadcast standards and we would like to apologize to anyone who was offended."

11. Notable PR Blunders… • Fox News • No one missed the irony when Fox News sued liberal satirist Al Franken. When the suit hit the press, sales of the book immediately became a bestseller. • Judge Denny Chin threw the suit out saying, "Of course it is ironic that a media company that should be fighting for the First Amendment is trying to undermine it.“ • American Airlines CEO Donald Carty • To keep American Airlines out of bankruptcy, Carty called for "shared sacrifice” and the labor union accepted $1.62 billion worth of annual concessions. However, Carty "snatched defeat from the jaws of victory" when details of a secret executive-retention bonus plan were revealed resulting in his resignation.

12. Notable PR Blunders… • KFC Whopper • When KFC aired commercials implying fried chicken can be part of "eating better," consumer advocates clucked loudly. The ads claimed KFC had less fat than a Burger King whopper. A complaint was filed with the FTC, and newspapers blasted the company.

13. Notable PR Blunders… • Abercrombie & Fitch • Columbus-based retailer shows a particular flair for alienating consumers and the nation's press: • T-shirts portraying racially offensive slogans and stereotyped images of Asians debuted and immediately created a firestorm. “ • A “Drinking 101” article was highly criticized for promoting binge drinking • Pushed the sexual envelope when it added thongs to its teeny-bopping catalogs and included images of overt portrayals of group sex in its Christmas Field Guide.

14. Contingency Planning • Being prepared: • Consider in advance how the public will respond • Know what you will say and who will say it • How should you respond to negative publicity? • It depends on both the severity of the problem and the number of people who’ve heard about it. • Guidelines: • Respond Within 24 Hours -- It makes you look guilty if you take longer. • Show You Are Solving the Problem -- Make it clear you are taking steps to improve or rectify the situation.

15. Contingency Planning • Guidelines • Demonstrate Leadership -- The President, CEO or other top official should be the one to address reporters • Be Accessible to the News Media -- Make phone calls from the media a top priority • Be Honest -- If you lie, you will likely be caught and the crisis will worsen. • Show Concern -- Demonstrating sincere caring about the people affected by the situation will help win the public's understanding

16. Other things PR can do for you • Influencing the “influentials” • Gatekeepers play an essential role in getting the word out about your brand • Making a story “newsworthy” • Impact: What is the magnitude of the action or event? • Timeliness: Is it breaking news or the latest development? • Proximity: How local is the story angle? • Prominence: Who is involved and how important are they? • Conflict: Is tension or drama created? • Human Interest: How emotionally charged is the story? Does it strike a chord? • Novelty: It the story unpredictable?

17. Making it Personal Through Dialog • Direct marketing is a method by which the company communicates directly with target consumers to generate a desired response. • Direct-response media include: • Mail • Telephone • Fax • Internet • Sales through direct response advertising exceeded $2 trillion in 2002 and are expected to reach $2.8 trillion by 2006.

18. Growth in Direct Marketing • Factors impacting growth: • Credit cards – 1 billion in circulation • “Money-rich and time-poor” society – increase in dual income households • Technological advancements – allow for new channels of distribution • Viewed as a compliment to other IMC elements • Relationship building mechanism • Cross-selling opportunities • Measuring effectiveness

19. Strengths & Weaknesses • Strengths: • Highly targeted and flexible • Observable responses enhances accountability • Weaknesses: • Relatively high cost per customer CPMs up to $400 instead of $15 to $50.

20. Protecting Customer’s Privacy • Educate employees about the company policies and credit card fraud • Appoint a Chief Privacy Officer • Conduct periodic audits of privacy practices used by other companies • Actively promote your privacy policy

21. Next time… • Project 4 is due • Chapter 21 – Measurement, Evaluation, & Effectiveness • “Truth in Advertising”