Transcript Public Relations and Sponsorship Programs

Public Relations and
Sponsorship Programs
Chapter 10
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.
FIGURE
13.1
Public Relations Functions
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Identify internal and external stakeholders
Assess the corporate reputation
Audit corporate social responsibility
Create positive image-building activities
Prevent or reduce image damage
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
FIGURE
10 . 3
Causes Consumers Prefer
• Improve public schools (52%)
• Dropout prevention (34%)
• Scholarships (28%)
• Clean-up environment (27%)
• Community health education (25%)
YWCA Web site: http://www.ywca.org
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:
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Price
Quality
Convenience
Availability and
Performance
to become “Green”
What’s Happening?
 http://www.youtube.com/watch?v=8rP7umMjjxE
 http://www.youtube.com/watch?v=Sjl5_vDfiuM&sns=em –
Australian Beer ad
 Final Exam final proposal/option
FIGURE
1 0. 2 - edited
Examples of Socially Responsible/Irresponsible
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
FIGURE
10.7
Damage-Control Strategies
o Proactive Strategies
o Entitling – claim responsibility for positive outcomes
o Enhancements – creating desirable outcome in
public’s eye
o Reactive Strategies
o Internet interventions
o Crisis management programs
o Apology Strategy
o Impression management techniques
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
Strengths
Weaknesses
o Reaching Elusive
o Relative Loss of Control
Audiences
o Image and Reputation
Management
o Credibility
o Relatively Low Cost
o Measurement Difficulties
(Effectiveness)
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 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
in North America
Arts, 5.4%
Festivals, fairs and
annual events, 7.1%
Entertainment, tours,
and attractions, 9.8%
Causes, 8.9%
Sports, 68.8%
Copyright © 2010 by Pearson Education, Inc.
publishing as Prentice Hall
Approaches to Sponsorships
A firm may choose to:
1. Sponsor an individual
2. Sponsor an event
3. Other
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Specific group – i.e., school choir
Real Property (naming rights) http://www.forbes.com/2006/11/14/baseball-mets-citigroupbiz_cz_kb_1114naming_slide_2.html
Sponsoring an Individual
What 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