1. Public Relations and Sponsorship Programs
Chapter 13

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 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:

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

12. 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

13. 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 - , McDonalds packaging
Enhancements

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.