Page 506 - Foundations of Marketing
P. 506

Advertising and Public Relations  |  Chapter 16  473




                               Entrepreneurship in Marketing



                                                Pass Christian Soap Co. Experiences the Benefits of Publicity

                                       Pass Christian Soap Company understands the power   Lindsey was unable to find many domestic soap products
                          of publicity. After  Good Morning America (GMA)  anchor   in bath and body shops. She decided to open up Pass
                          Robin Roberts praised the Pass Christian Soap Company   Christian Soap Company as a truly American business.
                          on the show, sales at the company skyrocketed. Owner       Since then, Pass Christian products have caught the
                          Paula Lindsay claims that the company sold $    200  ,  000     in   eye of many different magazines, including  Coastal Living
                          two days.                                        and  Southern Breeze.  However, its feature on  GMA  made
                                 Pass Christian Soap Company advertises itself as the   the difference. Sales became so intense that Lindsey
                          “makers of luxurious handmade bath and body prod-  hired     13     more staff workers and rented another building
                          ucts.” Consumers also love it for its “Made in America”   to complete orders. With sales remaining strong, Pass
                          marketing. The idea for the company occurred when   Christian Soap Company is optimistic about the future.
                                                                                                                      d


                                                                                                                   © iStockphoto.com/CRTd

                       content analysis of messages, a readability study, or a readership survey. If an organization
                       wants to measure the extent to which stakeholders view it as being socially responsible, it can
                       conduct a  social audit.
                            One approach to measuring the effectiveness of publicity-based public relations is to count
                       the number of exposures in the media. To determine which releases are published in print
                       media and how often, an organization can hire a clipping service, a firm that clips and sends
                       news releases to client companies. To measure the effective-
                       ness of television coverage, a firm can enclose a card with its
                       publicity releases requesting that the television station record
                       its name and the dates when the news item is broadcast
                       (although station personnel do not always comply). Some
                       multimedia tracking services exist, but they are quite costly.
                            Counting the number of media exposures does not reveal
                       how many people have actually read or heard the company’s
                       message or what they thought about the message afterward.
                       However, measuring changes in product awareness, knowl-
                       edge, and attitudes resulting from the publicity campaign
                       helps yield this information. To assess these changes, com-
                       panies must measure these levels before and after public
                       relations campaigns. Although precise measures are difficult
                       to obtain, a firm’s marketers should attempt to assess the
                       impact of public relations efforts on the organization’s sales.
                       For example, critics’ reviews of films can affect the films’
                       box office performance. Interestingly, negative reviews
                       (publicity) harm revenue more than positive reviews help
                                                            30
                       revenue in the early weeks of a film’s release.
                                 Dealing with Unfavorable
                       Public Relations                                                                              Pepsi Cola Company

                             Thus far, we have discussed public relations as a planned
                       element of the promotion mix. However, companies may
                       have to deal with unexpected and unfavorable publicity       Annual Reports as a Public Relations Tool
                       resulting from an unsafe product, an accident resulting         Annual reports such as this one from PepsiCo serve as public rela-
                       from product use, controversial actions of employees, or   tion tools for a variety of stakeholders.



                         Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
                       Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
   501   502   503   504   505   506   507   508   509   510   511