Transcript thirteen - Prospect of e-Marketing in Bangladesh

13
Public Relations, Regulations
and Sponsorship Programs
Chapter Overview
•Public relations
–Role of public relations
–Social responsibility
•Regulating marketing
communication
–Federal Trade Commission
–Industry regulations
•Sponsorship marketing
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Cause-Related Marketing
• Support of a social cause through financial
transactions with the firm’s customers.
• Cause-related marketing studies:
– 83% of consumers have a more positive image of
companies that support causes the customer cares about.
– Most Americans believe companies should have a positive
impact on environment and community.
– 76% willing to switch to a brand that supports a cause they
believe in if price and quality perceived equal.
• National vs local causes
• Impact greater if the firm can utilize its products in
the social cause.
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FIGURE
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Causes Consumers Prefer
• Improve public schools (52%)
• Dropout prevention (34%)
• Scholarships (28%)
• Cleanup environment (27%)
• Community health education (25%)
YWCA Web site:
http://www.ywca.org
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Regulating Marketing Communications
• Unfair and deceptive marketing practices
– Lanham Act (1947)
• An advertisement or communication is
deceptive or misleading if:
– A substantial number of people or “typical person”
is left with false impression or misrepresentation.
– The misrepresentation induces people or the
“typical person” to make a purchase.
• Deception vs puffery
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FIGURE
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Governmental Regulatory Agencies
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Federal Trade Commission (FTC)
Food & Drug Administration (FDA)
Federal Communications Commission (FCC)
US Postal Service (USPS)
Bureau of Alcohol, Tobacco and Firearms (BATF)
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Federal Trade Commission
(FTC)
• Created in 1914 by passage of Federal Trade
Commission Act.
• Original intent was to enforce anti-trust laws.
• FTC authority expanded in 1938 with Wheeler-Lea
Amendment.
• Given power to stop unfair and deceptive advertising
practices.
• Granted FTC access to courts to enforce their decisions.
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How an FTC investigation begins
Complaints can be lodged by any of the following
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Consumers
Businesses
Congress
Media
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FTC Actions
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Consent order
Administrative complaint
Cease and desist order
Full commission hearing
Appeal to U.S. Court of Appeals
Corrective advertising order
Trade regulation ruling
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FTC Criteria
• Is the typical person misled by the marketing
communication?
• Does the marketing communication lead the
typical person to make a purchase or pursue
some other type of activity?
• Is the claim mere puffery or does it have to
be substantiated?
• Is the claim substantiated by competent or
reliable evidence?
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FIGURE
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Industry Regulation
• Better Business Bureau
• National Advertising Division
(NAD)
• National Advertising Review
Board (NARB)
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Sponsorship Marketing Objectives
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Enhance company image.
Increase firm visibility.
Differentiate a company or brand.
Showcase specific goods or services.
Develop a closer relationship with
current and prospective customers.
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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
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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
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(Http://www.sponsorship.ca/p-issues-howbig.html)
What is the likelihood that a fan will buy a
sponsor’s product?
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NASCAR
Tennis
Golf
NBA
NFL
72%
52%
47%
38%
36%
Source: “Event Marketing/Sponsorships,” Public Relations Society of America
(Http://www.prsa.org/ppc/68022.html)
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Sponsoring Individuals
What attributes do sponsors look for in
endorsing an individual such as Tiger Woods?
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Name recognition
Current popularity
Overall image
Character
68%
56%
53%
51%
Source: “Event Marketing/Sponsorships,” Public Relations Society of America
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To Maximize Event Marketing
• Determine objective.
• Match event with customers, vendors
and employees.
• Cross-promote event.
• Include company in all event
advertising and brochures.
• Track results.
• Evaluate the investment following the
event.
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