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.

Identify internal and external stakeholders Assess the corporate reputation Audit corporate social responsibility Create positive image-building activities Prevent or reduce image damage

F I G U R E 1 3 . 1

Public Relations Functions

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

YWCA Web site: http://www.ywca.org

• Improve public schools (52%)• Dropout prevention (34%)• Scholarships (28%)• Clean-up environment (27%)• Community health education (25%)

F I G U R E 13 . 4Causes Consumers Prefer

McDonald’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

McDonald’s has made a substantial commitment to the so-called “green

movement.”

o Discriminationo Harassmento Pollutiono Misleading

communicationso Deceptive

communicationso Offensive communicationso Labour laws – GAP Inc.

o Empowerment of employees.o Charitable contributionso Sponsoring local eventso Selling environmentally safe

productso Outplacement programso Support community eventso Combining cause-related

marketing as primary strategy - Dove

Image Destroying Activities

Image Building Activities

F I G U R E 1 3. 3 - editedExamples of Socially Responsible/Irresponsible Activities

Reactive Strategies Crisis Management Apology Impression Management

Justifications Excuses Expression of innocence

Internet interventions Proactive Strategies

Entitling - http://www.gap.com/ , McDonalds packaging Enhancements Internet interventions

F I G U R E 1 3.6 - editedDamage Control

Positive and Socially Responsible Marketing

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.

To maximize positive impact:

Sponsorship Programs

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

Event Marketing and SponsorshipsCanada

Source: “How Big is the Canadian Sponsorship Pie?” The Sponsorship Report (Http://www.sponsorship.ca/p-issues-howbig.html)

Sports (45%)

Cultural Events (20%)

Education (10%)

Health (10%)

Humanitarian (10%)Environment (2.5%)

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall

Event Marketing and SponsorshipsUnited States

Sports, 68.8%

Causes, 8.9%

Entertainment, tours, and attractions, 9.8%

Festivals, fairs and annual events, 7.1%

Arts, 5.4%

Approaches to Sponsorships

A firm may choose to:

1. Sponsor an individual

2. Sponsor an event

3. Other Specific group Real Property -

http://www.forbes.com/2006/11/14/baseball-mets-citigroup-biz_cz_kb_1114naming_slide_2.html

Sponsoring an Individual

What attributes do sponsors look for in endorsing an individual such as Danica Patrick?

Name recognition Current popularity Overall image Character

Sponsoring an Event

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

other IMC tools