Transcript Public Relations and Sponsorship Programs

Public Relations and
Sponsorship Programs
Chapter 12
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.
Approaches to Public Relations
 Altruistic activities
e.g. internally geared approach
 Cause-related marketing
e.g. externally geared approach - charities,
etc.
Cause-Related Marketing
This approach has many benefits:
 Intangible elements - goodwill
 Increased business
 Can create a favourable image of the
business
Cause-Related Marketing
 Businesses pay over $600 million (US) in
cause-related marketing
 Consumer studies:


Nearly 50% switch brands, increase usage, try
new brand
46% felt better about using product when
company supported a particular cause – eg. Fair
trade coffee, M&M promotion
 Cause liked by one – disliked by another
McDonald’s reminded the public of its
support for the Olympics with a
series of advertisements.
What’s Happening?
 http://www.youtube.com/watch?v=vJSMNIRH-Pg&feature=related
 http://www.youtube.com/watch?v=BhiSuX3HmFM
 http://www.youtube.com/watch?v=9sqhwRj_SDI&feature=related
Sheep Herding
 http://www.youtube.com/watch?v=D2FX9rviEhw
Condon Contest
 http://www.onedesigncontest.com/designone.htm

Old Dora, New Dora - INSANE!
 http://www.afterellen.com/blog/dorothysnarker/dora-the-
explorer-discovers-new-look-lip-gloss
FIGURE
1 2. 3
Examples of Socially Responsible Activities
Image Destroying
Activities
o Discrimination
o Harassment
o Pollution
o Misleading
communications
o Deceptive
communications
o Offensive communications
o Labour laws – GAP Inc.
Image Building Activities
Empowerment of employees.
o Charitable contributions
o Sponsoring local events
o Selling environmentally safe
products
o Outplacement programs
o Support community events
o Combining cause-related
marketing as primary strategy Dove
o
Image Destroying Activities – an example
 http://www.youtube.com/watch?v=OVKlFT58
Zwc&feature=related
FIGURE
12.6
Damage Control
 Reactive Strategies
 Crisis Management
 Apology
 Defense of innocence -http://www.gap.com/
 Excuses
 Justifications
 Other explanations
 Proactive Strategies
 Entitling
 Enhancements
 Internet interventions
Green Marketing –a rallying cause?
 Survey concerning green marketing
 Try to save electricity (58%)
 Recycle newspapers (46%)
 Return bottles and cans (45%)
 Buy products –recycled materials (23%)
 Consumers not willing to sacrifice
 Price
 Quality
 Convenience
 Availability
 Performance
Environmental Responsibility
McDonald’s has made a substantial commitment
to the so-called “green movement.”
FIGURE
12.5
U.S. Consumer’s Segmented on Their Attitudes
Toward Support of Green Marketing
 True Blue Green (9%) – Have strong environmental




values and are politically active in environmental issues.
Heavy users of green products.
Greenback Greens (6%) – Have strong environmental
values, but are not politically active. Heavy users of green
products.
Sprouts (31%) – Believe in green products in theory, but
not in practice. Will buy green products, but only if equal to
or superior to non-green products.
Grousers (19%) – Are uneducated about environmental
issues and cynical about their ability to effect change.
Believe green products are too expensive and inferior.
Basic Browns (33%) – Do not care about environmental
issues or social issues.
Source: Jill Meredith Ginsberg and Paul N. Bloom, “Choosing the Right Green Marketing Strategy,” MIT Sloan
Management Review, Vol. 46, No. 1 (Fall 2004), pp. 79-84.
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.
Public Relations Tools
 Newsletters
 Media news releases - positive or negative
 Websites
 Special events – sometimes tied to a cause
 Annual reports
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 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
Causes
$535 million (9%)
Arts & Cultural Events
$354 million (6%)
Festivals & Fairs
$558 million (9%)
Entertainment Tours
$650 million (11%)
Sports Marketing
$3.84 billion
65%
Source: “Event Marketing/Sponsorships,” Public Relations Society of America
Approaches to Sponsorships
A firm may choose to:
1. Sponsor an individual
2. Sponsor an event
3. Other


Specific group
Real Property
Sponsoring an Individual
What attributes do sponsors look for in
endorsing an individual such as Tiger
Woods?
 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