Presentation on theme: "Public Relations and Sponsorship Programs"— Presentation transcript:
1 Public Relations and Sponsorship Programs Chapter 10
2 Public 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.
3 F 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
4 Public Relations Tools NewslettersMedia news releases - positive or negativeWebsitesSpecial events – sometimes tied to a causeAnnual reports
5 Approaches to Public Relations Altruistic activitiese.g. internally geared approachCause-related marketinge.g. externally geared approach - charities, non-profit associations, etc.
6 Cause-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
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 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
8 F 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:
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:PriceQualityConvenienceAvailability andPerformanceto become “Green”
11 What’s Happening? http://www.youtube.com/watch?v=8rP7umMjjxE – Australian Beer adFinal Exam final proposal/option
12 F 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
13 F 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.
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 ManagementCredibilityRelatively Low CostRelative Loss of ControlMeasurement Difficulties (Effectiveness)
17 Sponsorship 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. -
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(http://www.sponsorship.ca/p-issues-howbig.html)
20 Approaches to Sponsorships A firm may choose to:Sponsor an individualSponsor an eventOtherSpecific group – i.e., school choirReal 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 recognitionCurrent popularityOverall imageCharacter
22 Sponsoring 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