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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.

Identify internal and external stakeholders Assess the corporate reputation Audit corporate social responsibility Create positive image-building activities Prevent or reduce image damage F I G U R E Public Relations Functions

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 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

YWCA Web site: Improve public schools (52%) Dropout prevention (34%) Scholarships (28%) Clean-up environment (27%) Community health education (25%) F I G U R E Causes Consumers Prefer

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: Price Quality Convenience Availability and Performance to become “Green”

o Discrimination o Harassment o Pollution o Misleading communications o Deceptive communications o Offensive communications o money/ford-apologizes-over-sexist- ads-using-cartoons-of-bound-and- gagged-women html money/ford-apologizes-over-sexist- ads-using-cartoons-of-bound-and- gagged-women html o Labour laws o 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 Image Destroying Activities Image Building Activities F I G U R E edited Examples of Socially Responsible/Irresponsible Activities

Offensive Communications - Ford

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 F I G U R E Damage-Control Strategies

Positive and Socially Responsible Marketing Identify areas where the firm can make a positive difference – 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. To maximize positive impact:

Public Relations Strengths o Reaching Elusive Audiences o Image and Reputation Management o Credibility o Relatively Low Cost Weaknesses o Relative Loss of Control o Measurement Difficulties (Effectiveness)