Consumer RelationsLecture # 13

How Can We Focus on the Consumer?

Consumer RelationsGlobalization and internet have made it

increasingly challenging to behave responsibly and promote their products.

Organizations must differentiate their products from other competitors.

Usually it is the PR techniques and social sensitivities that help distinguish an organization and its products from its competitors.

Consumer Relations ObjectivesBuilding sales is the primary consumer

relations objectives– very important to fashion (multibillion dollar industry).Keeping old customers: most sales are made to

establish customers, PR efforts should be used to retain customers. Professionals should consider consumers’ concerns.

Attracting new customers: every organization must work constantly to develop new customers.

Consumer Relations ObjectivesMarketing new items or services: Customer relations

techniques can influence the sale of new products. Thousands of new products are offered to consumers each year, confusing customers is done frequently.

Expediting Complaint Handling: there are very few organizations that do not receive complaints. Many large organizations outsource call centers.

Reducing Costs: uninformed buyers cost the organization time and money when items are returned.

Consumer Generated MediaThe internet has given consumers a voiceA place for consumer opinions to be shared,

heard and researchedConsumer generated media includes the

millions of comments, opinions, and personal experiences that are posted publicly on a range of topics covering products, services, topics, and brands.

Consumer Generated Media (CGM) is also referred to as online consumer word or mouth.

Consumer Generated MediaThis can include:

BlogsMessage Boards and ForumsPublic DiscussionsDiscussions and Forums on Large Email PortalsOnline Opinion/ Review Sites and ServicesOnline Feedback/Complaint Sites

An ethical concern is how aggressive an organization is to accessing CGM

Handling Consumer Complaints

Research shows that out of a handful of unsatisfied customers, 4 % will complain.

That means that there are many others with the same complaint, and many of those customers will not repurchase.

The Consumer MovementOver the years, congress has reacted to

protect consumers from corporate abuses.The Right to Safety- be protected from

marketing the goods that are hazardous to life– Stains, bleaches, and paints, drugs and alcohol

The Right to Be Informed- to be protected from fraudulent or deceitful information

The Consumer MovementThe Right to Choose- to be assured access to a

variety of products and services at competitive prices.

The Right to Be Heard: consumer interests will receive full consideration in the formulation of government policy.

Federal Consumer AgenciesKey agencies include:

The Justice Department

Federal Trade Commission

Food and Drug Administration

Consumer Product Safety Commission

Justice Department

Such consumer protection measures has the truth in Lending Act and Product Safety Act, the Justice Department is concerned with anti-trust and monopolistic activities.

Federal Trade Commission

National advertising divisions cover TV and radio advertising on food, drugs and cosmetics. It also includes magazine subscription agencies, door to door sales, and income tax services.

Securities and Exchange Commission

Supervises disclosure among public companies.

Food and Drug Administration

Protects consumers from hazardous items including foods, drugs, cosmetics, therapeutic, and radiological devises, food additives, serums, and vaccines.

Consumer Product Safety Commission

This bureau is responsible for overseeing product safety and standards and has been aggressive in recent years in areas of seat belt restraints, strollers, blankets, and other products for small children.

Consumer Activism Goes OnlineInternet activism uses internet

communications technologies to enable faster communications and coordination by citizen movements.

Internet activism has been criticized that it gives disproportionate access to affluent activists because poor people, minorities and elderly citizens lack access to technology, and lack experience in new technology.

Word of mouth criticism aided by the internet must be dealt with quickly.

Business Gets the MessageCompanies have broadened the consumer relations

function to include such activities as:Developing guidelines to evaluate products and servicesDeveloping consumer programs to help meet consumer

needs and increase sales Develop filed training programs evaluating customer

service approachesEvaluating company effectivenessDemonstrating customer concerns

Most customer criticism can be satisfied by a prompt, personalized reply.

Acknowledging Customer Concerns

Consumers are impressed when organizations contact or notify them for whatever reason.

On the other hand, failing to answer a question, satisfying a complaint, or solving a problem can result in bad word of mouth advertising.

Acknowledging Customer Concerns

Consumer relations needs to not take a defensive position.

Consumer relations professionals must themselves be activists to make sure consumers understand the benefits of using their products.

Final ThoughtsGlobalization and the internet have made it

difficult for organizations to promote products and be responsible.

Organizations should develop products that consumers will want to use, as well as, beat out competition.

Consumers are satisfied when organizations contact them directly about their concerns.

One unhappy customer has the power to turn others away from purchasing your products or services.

References Seitel, F.P. (2011). The Practice of Public

Relations. Prentice Hall: Boston.