Public Relations, Regulations ad Sponsorship Programs Chapter 13 with Duane Weaver

Public Relations (PR) Definitions PR Department: unit in the firm that manages items related to publicity and communications with all the groups that make contact with a company. PR focuses on stakeholders whereas typical marketing functions primary focus is usually on customers. PR firms often focus on getting “hits” (exposure count)

Types of PR Stakeholders Stakeholder: person or group that has a vested interest in the organization’s well-being, such as: –Profits paid as stock dividends –Loan repayments received by a lending institution –Sales to the company or purchases made by the company –Community well being –Special Interest topic

PR: Internal Stakeholders Employees Unions Shareholders

PR: External Stakeholders Channel Members Customers Media Local Community Financial Community Government Special-interest Groups

PR Events Altruistic –Things provided to employees and other internal stakeholders, e.g.: flowers, fruit baskets, employee rehab programs, child care, purchase discounts… Cause-Related –When marketing program is tied into some form of charity work so as to gain: Additional customers Increased profits Build consumer goodwill Better relations with government Reduced chances of lawsuits (risk mitigation) Green –Development and promotion of products that are environmentally safe

PR: DAMAGE CONTROL Reactive –Crisis management (accept blame and apologize or refute) –Apology –Response to Negative Publicity (impression management) Proactive –Entitlings – attempts to claim responsibility for positive outcome events. –Enhancements – attempt to increase the desirable outcome of an event in the eyes of the public.

REGULATIONS Unfair and Deceptive Marketing Practices (when): –A substantial number of people or the “reasonable person” is left with a false impression or misrepresentation related to the product –The misrepresentation induces the “reasonable person(s)” to make a purchase Puffery –Exaggerated claim without overt attempt to decieve Gov. Agencies – CRTC and Health Canada

Sponsorship Marketing When a company pays money to sponsor someone or some group that is participating in an activity. Used to: –Enhance a company’s image –Increase visibility (exposure) –Differentiate –Showcase specific goods or services (Buzz marketing) –Develop closer relationships with prospective or current customers –Unload excess inventory

Event Marketing Similar to sponsorship except that rather than supporting any one person, group or team, an entire specific event is sponsored.

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