Diverse marketing means more sales!

After last class we talked about how positive publicity is most important in distinguish between firms with higher and lower sales. The effects of negative publicity and advertising are dependent on a firm's existing reputation. For companies with a weaker reputation, positive publicity in tandem with B2C advertising is most high associate with higher company sales.

The balance of positive over negative publicity distinguishes between higher and lower sales:

• Stronger Reputation Firms: advertising plays less of a role vs. publicity
• Lower Reputation Firms: advertising and publicity play roles overall

When you are trying to build credibility for a lower reputation firm you must use all sources of advertising and publicity to generate more buzz.  We also talked about outside marketing, and if it is profitable for lower reputation firms to invest in this type of channel. These companies can absolutely use outside marketing but you would want to stick with a more reasonable form that would be effective and target your audience.