Chapter Twenty MarketingOriented Public Relations and Sponsorships 2007

Chapter Twenty Marketing-Oriented Public Relations and Sponsorships 2007 Thomson South-Western

Chapter Twenty Objectives • Appreciate the nature and role of marketing public relations (MPR) • Understand the differences between proactive and reactive MPR • Understand the types of commercial rumors and how to control them

Chapter Twenty Objectives • Be aware of event sponsorship and how to select appropriate events • Recognize the nature and role of causeoriented marketing

Is It Time to Say Goodbye to Advertising? Probably Not! • Creative and powerful public relations can introduce new products with very little advertising involved. • Works best for products that are new and innovative and can capture the attention of the media.

Marketing Public Relations (MPR) Marketing-oriented aspect of public relations that is an organizational activity involved with fostering goodwill between a company and its various publics.

Marketing Public Relations Proactive MPR • Dictated by a company’s marketing objectives • Offensively oriented and opportunity seeking Reactive MPR • The conduct of public relations in response to outside influences • Attempt to repair company’s reputation, prevent market erosion, and regain lost sales

Proactive MPR Widely used forms of publicity in MPR • Product introductions or Product releases product revisions • Credibility accounts for the effectiveness Executive-statement • Publicity is the major tool Feature articles

Proactive MPR Product Releases Executive Statement Feature Articles • • • Announce new products Provide relevant information, features and benefit Audiovisual product releases (video news releases, or VNRs) gained wide usage ***** News releases quoting CEOs and other corporate executives May address a wide variety of issues Published in the news section Carry a significant degree of credibility ***** Detailed descriptions of products or other newsworthy programs Written by a PR firm for immediate publications or airing Inexpensive to prepare

Reactive MPR • Often product defects and failures are the factors • Quick and positive responses are imperative Negative publicity cases • Product tampering cases -Tylenol and Sudafed • The Perrier case • The Pepsi Hoax • Coke in Europe

Reactive MPR Negative publicity cases • Coke and Pepsi In India • Corporate Response and Crisis Management Bridgestone/Firestone

Rumors and Urban Legends * Combat a rumor to put it out! *

Sponsorship Marketing Involve investments in events or causes for the purpose of achieving various corporate objective Event sponsorships Cause-oriented sponsorships

Why Growth in Sponsorships • Avoid the clutter inherent in advertising media • Help companies respond to consumers’ changing media habits • Help companies gain the approval of various constituencies • Can enhance brand equity • Enables marketers to target their efforts to geographic regions and/or to lifestyle groups

Event Sponsorships Event Sponsorship A form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social, or other type of high-interest public activity

Selecting Sponsorship Events • Consistent with brand image? • Reach the desired target market? • Has competition ever sponsored the event? • Is the event cluttered? • Compliment existing sponsorships? • Economically viable?

Creating Customized Events • Developing its own events rather than sponsoring existing events • Provides a brand total control over the event • Can be more effective but less costly

Event Sponsorships Ambushing Events When companies that are not official sponsors undertake marketing efforts to convey the impression that they are

Cause-Related Marketing (CRM) Cause-Related Marketing Based on the idea that a company will contribute to a cause every time the customer undertakes some action

Benefits of CRM • • Enhance corporate or brand image Thwart negative publicity Generate incremental sales Increase brand awareness Broaden customer base Reach new market segments Increase sales at retail level

Fit Accountability It is important to fit the brand to a cause that is naturally related to its benefits, image and attributes Brand marketers are obligated to show their CRM efforts yield sufficient returns on investment or achieve other non-financial objectives.