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.

F I G U R E 1 3 . 1 Public Relations Functions Identify internal and external stakeholders Assess the corporate reputation Audit corporate social responsibility Create positive image-building activities Prevent or reduce image damage

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

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

F I G U R E 13 . 4 Improve public schools (52%) Causes Consumers Prefer Improve public schools (52%) Dropout prevention (34%) Scholarships (28%) Clean-up environment (27%) Community health education (25%) YWCA Web site: http://www.ywca.org

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 Chapter 4, page 142-43 McDonald’s has made a substantial commitment to the so-called “green movement.”

F I G U R E 1 3. 3 - edited Image Destroying Activities Examples of Socially Responsible/Irresponsible Activities Image Destroying Activities Image Building Activities Discrimination Harassment Pollution Misleading communications Deceptive communications Offensive communications Labour laws – GAP Inc. Empowerment of employees. Charitable contributions Sponsoring local events Selling environmentally safe products Outplacement programs Support community events Combining cause-related marketing as primary strategy - Dove

F I G U R E 1 3.6 - edited Reactive Strategies Proactive Strategies Damage Control Reactive Strategies Crisis Management Apology Impression Management Justifications Excuses Expression of innocence Internet interventions Proactive Strategies Entitling - http://www.gap.com/ , McDonalds packaging Enhancements

Positive and Socially Responsible Marketing To maximize positive impact: Identify areas where the firm can make a positive difference – http://www.starbucks.com/aboutus/csr.asp 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.