1. Public Relations and Sponsorship Programs
Chapter 10

2. 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.

3. 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

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

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

6. 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

7. 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

8. F I G U R E 10 . 3 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:

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

10. Green Marketing –a rallying cause?
However consumers are not always willing to sacrifice:
Price
Quality
Convenience
Availability and
Performance
to become “Green”

11. What’s Happening? http://www.youtube.com/watch?v=8rP7umMjjxE
– Australian Beer ad
Final Exam final proposal/option

12. F I G U R E 1 0. 2 - 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

13. F I G U R E 1 0 . 7 Proactive Strategies Reactive Strategies
Damage-Control Strategies
Proactive Strategies
Entitling – claim responsibility for positive outcomes
Enhancements – creating desirable outcome in public’s eye
Reactive Strategies
Internet interventions
Crisis management programs
Apology Strategy
Impression management techniques
Damage control strategies can be divided into two categories based on the overall approach used – proactive strategies and reactive strategies. Proactive approaches try to prevent or reduce the chances of negative events through building a positive image through entitling and enhancements. Reactive strategies try to react to a negative situation through Internet interventions, crisis management programs, or impression management techniques.

14. Positive and Socially Responsible Marketing
To maximize positive impact:
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.

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

17. Sponsorship Programs 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. -

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

19. Event Marketing and Sponsorships in North America
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall

20. Approaches to Sponsorships
A firm may choose to:
Sponsor an individual
Sponsor an event
Other
Specific group – i.e., school choir
Real Property (naming rights) -

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

22. Sponsoring an Event 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