Public Relations and Sponsorship Programs Chapter 13 Public

Public Relations and Sponsorship Programs Chapter 13

Public Relations n To provide information to the public that reinforces a firms positioning and image. n Can be used to change the public’s perception of a firm. n This can be done internally or by an external firm.

FIGURE 13. 1 Public Relations Functions n n n 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 n Newsletters n Media news releases - positive or negative n Websites n Special events – sometimes tied to a cause n Annual reports

Approaches to Public Relations n Altruistic activities e. g. internally geared approach n Cause-related marketing e. g. externally geared approach - charities, non-profit associations, etc.

Cause-Related Marketing This approach has many benefits: n Intangible elements – goodwill and top of mind n Increased business n Can create a favourable image of the business/firm n Can change consumers perceptions of the firm e. g. , Wal-Mart - sustainability consortium

Cause-Related Marketing n Consumer studies show that: n 78% of consumers are more likely to purchase a brand associated with a cause they care about. n 54% would be willing to pay more for a brand that is associated with a cause they care about – e. g. Fair trade coffee n 66% would switch to support a particular cause n 84% indicate that cause-related marketing creates a more positive image of a company. n 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: n n n 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 Image Building Activities o Discrimination o o Harassment o o Pollution o o Misleading communications o Deceptive communications o Offensive communications o Labour laws – GAP Inc. o o Empowerment of employees. Charitable contributions Sponsoring local events Selling environmentally safe products Outplacement programs Support community events Combining cause-related marketing as primary strategy Dove

FIGURE 1 3. 6 - edited Damage Control n Reactive Strategies n Crisis Management n Apology n Impression Management n n Justifications Excuses Expression of innocence Internet interventions n Proactive Strategies n Entitling - http: //www. gap. com/ , Mc. Donalds packaging n Enhancements n Internet interventions

Positive and Socially Responsible Marketing To maximize positive impact: n Identify areas where the firm can make a positive difference – http: //www. starbucks. com/aboutus/csr. asp n Make sure local/international media are aware. n Inform and involve employees. n Invest in advertising and public relations to highlight the firm’s efforts – more and more popular.

Sponsorship Programs Objectives: n Enhance company image n Increase visibility n Showcase a product n To develop new customer relationships n To get rid of excess inventory

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. Sponsor an individual 2. Sponsor an event 3. Other n Specific group n Real Property 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? n Name recognition n Current popularity n Overall image n Character

Sponsoring an Event Many factors to consider: n Determine objective(s) n Match event with customers n Cross-promote event n Maintain a consistent theme n Track results n Evaluate investment of event, and against other IMC tools