Public Relations and Sponsorship Programs Chapter 13 Public
Public Relations and Sponsorship Programs Chapter 13
Public Relations �To provide information to the public that reinforces a firms positioning and image. �Can be used to change the public’s perception of a firm. �This can be done internally or by an external firm.
FIGURE 13. 1 Public Relations Functions �Identify internal and external stakeholders �Assess the corporate reputation �Audit corporate social responsibility �Create positive image-building activities �Prevent or reduce image damage
Public Relations Tools �Newsletters �Media news releases - positive or negative �Websites �Special events – sometimes tied to a cause �Annual reports
Approaches to Public Relations �Altruistic activities e. g. internally geared approach �Cause-related marketing e. g. externally geared approach - charities, non-profit associations, etc.
Cause-Related Marketing This approach has many benefits: �Intangible elements – goodwill and top of mind �Increased business �Can create a favourable image of the business/firm �Can change consumers perceptions of the firm e. g. , Wal-Mart - sustainability consortium
Cause-Related Marketing � Consumer studies show that: 78% of consumers are more likely to purchase a brand associated with a cause they care about. 54% would be willing to pay more for a brand that is associated with a cause they care about – e. g. Fair trade coffee 66% would switch to support a particular cause 84% indicate that cause-related marketing creates a more positive image of a company. � One issue with this approach is that a cause liked by one – disliked by another
FIGURE 13. 4 Causes Consumers Prefer • Improve public schools (52%) • Dropout prevention (34%) • Scholarships (28%) • Clean-up environment (27%) • Community health education (25%) YWCA Web site: http: //www. ywca. org
Mc. Donald’s reminded the public of its support for the Olympics with a series of advertisements.
Green Marketing –a rallying cause? However consumers are not always willing to sacrifice: Price Quality Convenience Availability and Performance to become “Green”
Environmental Responsibility Mc. Donald’s has made a substantial commitment to the so-called “green movement. ”
FIGURE 1 3. 3 - edited Examples of Socially Responsible/Irresponsible Activities Image Destroying Activities o o o o Discrimination Harassment Pollution Misleading communications Deceptive communications Offensive communications Labour laws – GAP Inc. Image Building Activities Empowerment of employees. Charitable contributions Sponsoring local events Selling environmentally safe products o Outplacement programs o Support community events o Combining cause-related marketing as primary strategy Dove o o
FIGURE 1 3. 6 - edited Damage Control � Reactive Strategies Crisis Management Apology Impression Management ▪ Justifications ▪ Excuses ▪ Expression of innocence Internet interventions � Proactive Strategies Entitling - Mc. Donalds packaging Enhancements Internet interventions
What’s Happening? Funny ad from Megan: � http: //www. youtube. com/watch? v=Ws. YTl. Hjf. S 3 c
Positive and Socially Responsible Marketing To maximize positive impact: Identify areas where the firm can make a positive difference – http: //www. starbucks. com/aboutus/csr. asp � Make sure local/international media are aware. � Inform and involve employees. � Invest in advertising and public relations to highlight the firm’s efforts – more and more popular. �
Sponsorship Programs Objectives: � Enhance company image � Increase visibility � Showcase a product � To develop new customer relationships � To get rid of excess inventory Sponsorships are a critical part of many firms IMC plans e. g. http: //www. budlight. ca/sponsorships. php
Event Marketing and Sponsorships Canada Humanitarian (10%) Environment (2. 5%) Health (10%) Education (10%) Sports (45%) Cultural Events (20%) Source: “How Big is the Canadian Sponsorship Pie? ” The Sponsorship Report (http: //www. sponsorship. ca/p-issues-howbig. html)
Event Marketing and Sponsorships United States Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Approaches to Sponsorships A firm may choose to: 1. 2. 3. Sponsor an individual Sponsor an event Other Specific group – i. e. , school choir Real Property (naming rights) http: //www. forbes. com/2006/11/14/baseball-mets-citigroupbiz_cz_kb_1114 naming_slide_2. html
Sponsoring an Individual What attributes do sponsors look for in endorsing an individual such as Danica Patrick or Sidney Crosby? �Name recognition �Current popularity �Overall image �Character
Sponsoring an Event Many factors to consider: �Determine objective(s) – e. g. CIBC run for the cure �Match event with customers �Cross-promote event – e. g. , with new products, etc. �Maintain a consistent theme �Track results �Evaluate investment of event, and against other IMC tools
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