Public Relations and Sponsorship Programs Chapter 12

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.

Approaches to Public Relations Altruistic activities e.g. internally geared approach Cause-related marketing e.g. externally geared approach - charities, etc.

Cause-Related Marketing This approach has many benefits: Intangible elements - goodwill Increased business Can create a favourable image of the business

Cause-Related Marketing Businesses pay over $600 million (US) in cause-related marketing Consumer studies: Nearly 50% switch brands, increase usage, try new brand 46% felt better about using product when company supported a particular cause – eg. Fair trade coffee, M&M promotion Cause liked by one – disliked by another

McDonald’s reminded the public of its support for the Olympics with a series of advertisements.

What’s Happening? Sheep Herding Condon Contest Old Dora, New Dora - INSANE! explorer-discovers-new-look-lip-gloss explorer-discovers-new-look-lip-gloss

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 Examples of Socially Responsible Activities

Image Destroying Activities – an example Zwc&feature=related Zwc&feature=related

Reactive Strategies Crisis Management Apology Defense of innocence Excuses Justifications Other explanations Proactive Strategies Entitling Enhancements Internet interventions F I G U R E Damage Control

Green Marketing –a rallying cause? Survey concerning green marketing Try to save electricity (58%) Recycle newspapers (46%) Return bottles and cans (45%) Buy products –recycled materials (23%) Consumers not willing to sacrifice Price Quality Convenience Availability Performance

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

F I G U R E U.S. Consumer’s Segmented on Their Attitudes Toward Support of Green Marketing True Blue Green (9%) – Have strong environmental values and are politically active in environmental issues. Heavy users of green products. Greenback Greens (6%) – Have strong environmental values, but are not politically active. Heavy users of green products. Sprouts (31%) – Believe in green products in theory, but not in practice. Will buy green products, but only if equal to or superior to non-green products. Grousers (19%) – Are uneducated about environmental issues and cynical about their ability to effect change. Believe green products are too expensive and inferior. Basic Browns (33%) – Do not care about environmental issues or social issues. Source: Jill Meredith Ginsberg and Paul N. Bloom, “Choosing the Right Green Marketing Strategy,” MIT Sloan Management Review, Vol. 46, No. 1 (Fall 2004), pp

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

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%)

Event Marketing and Sponsorships United States Source: “Event Marketing/Sponsorships,” Public Relations Society of America Sports Marketing $3.84 billion 65% Entertainment Tours $650 million (11%) Festivals & Fairs $558 million (9%) Causes $535 million (9%) Arts & Cultural Events $354 million (6%)

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

Sponsoring an Individual What attributes do sponsors look for in endorsing an individual such as Tiger Woods? 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