Presentation on theme: "Public Relations and Sponsorship Programs"— Presentation transcript:
1Public Relations and Sponsorship Programs Chapter 10
2Public RelationsTo 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.
3F I G U R E 1 3 . 1 Public Relations Functions Identify internal and external stakeholdersAssess the corporate reputationAudit corporate social responsibilityCreate positive image-building activitiesPrevent or reduce image damage
4Public Relations Tools NewslettersMedia news releases - positive or negativeWebsitesSpecial events – sometimes tied to a causeAnnual reports
5Approaches to Public Relations Altruistic activitiese.g. internally geared approachCause-related marketinge.g. externally geared approach - charities, non-profit associations, etc.
6Cause-Related Marketing This approach has many benefits:Intangible elements – goodwill and top of mindIncreased businessCan create a favourable image of the business/firmCan change consumers perceptions of the firm e.g., Wal-Mart - sustainability consortium
7Cause-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 coffee66% would switch to support a particular cause84% 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
8F I G U R E 10 . 3 Improve public schools (52%) Causes Consumers PreferImprove public schools (52%)Dropout prevention (34%)Scholarships (28%)Clean-up environment (27%)Community health education (25%)YWCA Web site:
9McDonald’s reminded the public of its support for the Olympics with a series of advertisements.
10Green Marketing –a rallying cause? However consumers are not always willing to sacrifice:PriceQualityConvenienceAvailability andPerformanceto become “Green”
11What’s Happening? http://www.youtube.com/watch?v=8rP7umMjjxE – Australian Beer adFinal Exam final proposal/option
12F I G U R E 1 0. 2 - edited Image Destroying Activities Examples of Socially Responsible/Irresponsible ActivitiesImage Destroying ActivitiesImage Building ActivitiesDiscriminationHarassmentPollutionMisleading communicationsDeceptive communicationsOffensive communicationsLabour laws – GAP Inc.Empowerment of employees.Charitable contributionsSponsoring local eventsSelling environmentally safe productsOutplacement programsSupport community eventsCombining cause-related marketing as primary strategy - Dove
13F I G U R E 1 0 . 7 Proactive Strategies Reactive Strategies Damage-Control StrategiesProactive StrategiesEntitling – claim responsibility for positive outcomesEnhancements – creating desirable outcome in public’s eyeReactive StrategiesInternet interventionsCrisis management programsApology StrategyImpression management techniquesDamage 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.
14Positive 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.
15Public Relations Strengths Weaknesses Reaching Elusive Audiences Image and Reputation ManagementCredibilityRelatively Low CostRelative Loss of ControlMeasurement Difficulties (Effectiveness)
17Sponsorship Programs Objectives: Enhance company image Increase visibilityShowcase a productTo develop new customer relationshipsTo get rid of excess inventorySponsorships are a critical part of many firms IMC plans e.g. -
18Event 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(http://www.sponsorship.ca/p-issues-howbig.html)
20Approaches to Sponsorships A firm may choose to:Sponsor an individualSponsor an eventOtherSpecific group – i.e., school choirReal Property (naming rights) -
21Sponsoring an Individual What attributes do sponsors look for in endorsing an individual such as Danica Patrick or Sidney Crosby?Name recognitionCurrent popularityOverall imageCharacter
22Sponsoring an Event Many factors to consider: Determine objective(s) – e.g.CIBC run for the cureMatch event with customersCross-promote event – e.g., with new products, etc.Maintain a consistent themeTrack resultsEvaluate investment of event, and against other IMC tools