Chapter 13

 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

 Newsletters  Media news releases - positive or negative  Websites  Special events – sometimes tied to a cause  Annual reports

 Altruistic activities e.g. internally geared approach  Cause-related marketing e.g. externally geared approach - charities, non-profit associations, etc.

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

 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.

However consumers are not always willing to sacrifice:  Price  Quality  Convenience  Availability and  Performance to become “Green”

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

Funny ad from Megan: 

 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:

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

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%)

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A firm may choose to: 1. Sponsor an individual 2. Sponsor an event 3. Other  Specific group – i.e., school choir  Real Property (naming rights) - biz_cz_kb_1114naming_slide_2.html biz_cz_kb_1114naming_slide_2.html

What attributes do sponsors look for in endorsing an individual such as Danica Patrick or Sidney Crosby?  Name recognition  Current popularity  Overall image  Character

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