Promotion - Public Relations

Question 1

What is Public Relations?

Answer 1

Public relations (PR) is the act of controlling the image of a business that is perceived by the public.

Question 2

What are Press Conferences?

Answer 2

The media is invited to a business presentation, where they are given information or news. A new or updated or product might be launched.

Question 3

What are the advantages of a Press conference?

Answer 3

• Businesses can send a message or update out to a wide audience while keeping control, to a certain extent, of what is reported.
• It can help to get the media ‘on side; and allows the press the opportunity to ask questions to a business directly.

Question 4

What are the disadvantages of Press conference?

Answer 4

• Could have to face difficult questions and be put on the spot.
• The business could end up making the situation worse in front of the press if they are under-prepared.

Question 5

What are Press releases?

Answer 5

The media is provided with a written account of a business’s newsworthy activities or events. Updated mission statements may also be released to the media.

Question 6

What are the advantages of Press releases?

Answer 6

• This can be used to counteract bad publicity.
• Businesses can send out messages or updates without being subject to further questioning.

Question 7

What are the disadvantages of Press releases?

Answer 7

• Can take along time to ensure wording is perfect, especially if the business is already under pressure due to a mistake.

Question 8

What are Donations to charities?

Answer 8

Some businesses donation to charities anonymously, while other take the opportunity for a good public relations event.

Question 9

What are the advantages of Donations to charities?

Answer 9

• Promotes the CSR aims of the business and can make them seem ethical.
• This can help the business achieve a positive image.

Question 10

What are the disadvantages of Donations to charities?

Answer 10

• Some shareholders may prefer money is invested in growing the business.

Question 11

What are Sponsorships?

Answer 11

Some businesses pay to sponsor an event, team or venue. This is popular in the sporting industry.

Question 12

What are the advantages of Sponsorship?

Answer 12

• Businesses can benefit from the successes of those that they sponsor.
• this can help businesses to become popular with customers who visits/support the sponsored event, team or venue.

Question 13

What are the disadvantages of Sponsorship?

Answer 13

• It can cost a lot to sponsor big events. Virgin Money, for example, paid over £15m to sponsor the London Marathon.
• If an event or team suffers bad PR itself then the business will be associated with it.

Question 14

What are Company visits?

Answer 14

Businesses may choose to open their factories to the public for a limited period of time.

Question 15

What are the advantages of Company visits?

Answer 15

• Customers are able to get a sense of what the business is like and how it is run.

Question 16

What are the disadvantages of Company visit?

Answer 16

• A dedicated staff member or team will have to show visitors around, affecting their productivity elsewhere.

Question 17

What is Promotional merchandise?

Answer 17

This is giving out free stationary, key rings, even items like golf balls with the company logo and contact information on them.

Question 18

What are the advantages of Promotional merchandise?

Answer 18

• Customers are reminded of the company each time they use the item.
• Everyone likes free gifts! Customers feel rewarded and are more likely to return to the business.
• Merchandise such as pens can be passed on to other people which means respect exposure to the brand name, web address, etc.

Question 19

What are the disadvantages of Promotional merchandise?

Answer 19

• Merchandise can be expensive to provide and have no immediate returns.
• Cheap-looking free gifts can adversely affect the image of the business, even if they are given out for free.

Question 20

What is Product endorsement?

Answer 20

Product endorsement involves the businesses using celebrities (also know as celebrity endorsement) to promote the product.

Example: Adidas pau Lionel Messi to wear their football boots and appear in their adverts.

Question 21

What are the advantages of Product endorsement?

Answer 21

• The use of celebrity will make consumers who like the celebrity more likely to purchase the product to be like them.
• The product will be advertised for free every time the celebrity is spotted wearing or using it in public.
• If a celebrity gets good media coverage (e.g. winning a sports event), it will provide positive exposure for the product they are associated with.
• Higher prices can be charged as the use of a celebrity gives the product exclusivity.
• Brand loyalty can be created for as long as the celebrity is involved in the endorsement.

Question 22

What are the disadvantages of Product endorsement?

Answer 22

• Some consumers will be put off a product if they don’t like the celebrity that has been chose to endorse it.
• If a celebrity gains bad publicity it will tarnish the image of the products they are associated with.
• It can be very expensive to pay celebrities to endorse products.
• Poor performances by celebrities (e.g. a sports star losing a sports event or an actor appearing in a box office flop), will result in lower sales of the product they endorse.

Question 23

What is Product placement?

Answer 23

Product placement involves the businesses paying for products to appear in films, TV shows or video games.

Example: The brand of juice characters drink, the clothing brand they wear or the make of car they drive.

Question 24

What are the advantages of Product placement?

Answer 24

• Awareness of products is generated, often to worldwide audiences.
• It is a form of subliminal advertising
• the audience doesn’t know they are watching a promotion, they just watch the film.
• Products can be identified with characters who customers like, can result in sales, as they want to be like the character or the actor who plays them.
• Merchandise ‘spin-offs’ can be sold, increasing sales on the back of a successful placement, e.g. the Wilson ‘Hand’ Volleyball from Castaway.

Question 25

What are the disadvantages of Product placement?

Answer 25

• The time of exposure can be very short, limiting the chances of consumers remembering the product they have seen.
• Often, as a result of bidding wars with rival brands to secure the rights to appear in films, TV shows and games, product placement can cost a lot of money.
• Consumers may be put off certain products if they are associated with characters they don’t like.
• products can appear as part of a negative storyline which can put customers off.

Question 26

What are the factors affecting the methods of promotion?

Answer 26

• the target market
• The finance available
• The marketing mix
• Ethical practices

Question 27

How can the the target market affect methods of promotion?

Answer 27

Businesses should promote their products in places where they are likely to be see by the target market. Market research feedback will help with this.

Question 28

How can the finance available affect methods of promotion?

Answer 28

Every business would love to advertise at half time during the World Cup final but only the biggest marketing budgets will stretch to this.

Question 29

How can the marketing mix affect methods of promotion?

Answer 29

All elements of the marketing mis should work in synergy. This means the methods are more effective when combined even though they work well as stand-alone elements.

Example: The promotion model of GHD hair straighteners near the end of their life cycle (product) should be advertised in fashion magazines (promotion) informing the target market of a reduction in price if they buy them online (place).

Question 30

How can ethical practices affect methods of promotion?

Answer 30

Promotions should be ethical in order to avoid upsetting others.

Example: promotions should not -
- mislead customers
- be indecent
- make false claims designed to harm the competition.