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 activitiese.g. internally geared approach

Cause-related marketinge.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 - McDonalds packaging Enhancements Internet interventions

F I G U R E 1 3.6 - editedDamage Control

What’s Happening?

Funny ad from Megan:

http://www.youtube.com/watch?v=WsYTlHjfS3c

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

Sponsorships are a critical part of many firms IMC plans e.g. - http://www.budlight.ca/sponsorships.php

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%)

Event Marketing and SponsorshipsUnited States

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

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 individual2. Sponsor an event3. Other

Specific group – i.e., school choir Real Property (naming rights) -

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

Sponsoring an IndividualWhat 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