Public Relations and Sponsorship Programs Chapter 13

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”

Environmental Responsibility McDonald’s has made a substantial commitment to the so-called “green movement.”

o Discrimination o Harassment o Pollution o Misleading communications o Deceptive communications o Offensive communications o Labour laws – GAP Inc. 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

Reactive Strategies Crisis Management Apology Impression Management Justifications Excuses Expression of innocence Internet interventions Proactive Strategies Entitling - McDonalds packaging Enhancements Internet interventions F I G U R E edited Damage Control

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:

Sponsorship Programs Objectives: Enhance company image Increase visibility Showcase a product To develop new customer relationships To get rid of excess inventory

Event Marketing and Sponsorships Canada Source: “How Big is the Canadian Sponsorship Pie?” The Sponsorship Report ( Sports (45%) Cultural Events (20%) Education (10%) Health (10%) Humanitarian (10%) Environment (2.5%)

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Event Marketing and Sponsorships United States

Approaches to Sponsorships A firm may choose to: 1. Sponsor an individual 2. Sponsor an event 3. Other Specific group Real Property - biz_cz_kb_1114naming_slide_2.html biz_cz_kb_1114naming_slide_2.html

Sponsoring an Individual What attributes do sponsors look for in endorsing an individual such as Danica Patrick? Name recognition Current popularity Overall image Character

Sponsoring an Event Many factors to consider: Determine objective(s) Match event with customers Cross-promote event Maintain a consistent theme Track results Evaluate investment of event, and against other IMC tools