Transcript 2007 Thomson South-Western Marketing

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
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
Proactive MPR
• Product introductions
or product revisions
• Credibility accounts for
the effectiveness
• Publicity is the major
tool
Widely used forms
of publicity in MPR
Product releases
Executive-statement
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
Commercial
rumors
Widely circulated but
unverified propositions
Conspiracy
rumors
Involve supposed company
policies or practices that
are threatening or
undesirable to consumers
Contamination
rumors
Deal with undesirable or
harmful product or store
features
* 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.