Marketing-Oriented Public Relations and Sponsorships

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 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 Dictated by a company’s marketing objectives Offensively oriented and opportunity seeking

Widely used forms of publicity in MPR Proactive MPR Proactive MPR Widely used forms of publicity in MPR Product introductions or product revisions Credibility accounts for the effectiveness Publicity is the major tool 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 Executive Statement Feature Articles

Reactive MPR Often product defects and failures are the factors Negative publicity cases Often product defects and failures are the factors Quick and positive responses are imperative 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

Rumors and Urban Legends

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 A form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social, or other type of high-interest public activity

e.g. Costs

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

Cause-Related Marketing (CRM) 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 It is important to fit the brand to a cause that is naturally related to its benefits, image and attributes Accountability Brand marketers are obligated to show their CRM efforts yield sufficient returns on investment or achieve other non-financial objectives.