1. Copyright © 2012 Pearson Canada Inc. CHAPTER 14 Public Relations and Event Marketing and Sponsorships 14-1

2. Copyright © 2012 Pearson Canada Inc. Learning Objectives  Identify the role of public relations, experiential marketing, and event marketing and sponsorships in achieving organizational objectives.  Describe the various types of public relations activities  Identify the steps involved in the public relations planning process Continued… 14-2

3. Copyright © 2012 Pearson Canada Inc. Learning Objectives (cont.)  Assess the usefulness of a variety of public relations tools  Evaluate public relations and event marketing and sponsorships as a communications medium  Identify the unique considerations involved in the planning and evaluation of event marketing programs 14-3

4. Copyright © 2012 Pearson Canada Inc. Public Relations  “The strategic management of relationships between an organization and its diverse publics through the use of communication to achieve mutual understanding realize organizational goals and serve the public interest.” Course textbook, page 406 14-4

5. Copyright © 2012 Pearson Canada Inc. The Publics PR is sensitive to two different publics: Employees, distributors, suppliers, shareholders, and regular customers Media, governments, prospective shareholders, financial community, and community groups Internal Publics Internal Publics External Publics External Publics 14-5

6. Copyright © 2012 Pearson Canada Inc. Public Relations vis à vis Advertising Public relations is distinguished from advertising in two ways:  Advertising is focused on selling products  Public relations is more focused on corporate image and organizational relationships.  Advertising is controlled and paid for by the subject organization  Public relations is determined by the media. 14-6

7. Copyright © 2012 Pearson Canada Inc. Publicity Publicity is one aspect of public relations  the communication of newsworthy information designed to interest the public in a product, service or idea. Publicity can often be generated around:  Launching new products  Opening a new store  Technological breakthrough  Achievement of some milestone 14-7

8. Copyright © 2012 Pearson Canada Inc. The Role of Public Relations  Corporate Public Relations  Corporate Image building  Advocacy  Crisis Management  Reputation Management Continued… The role of public relations is varied but generally falls into six key areas: 14-8

9. Copyright © 2012 Pearson Canada Inc. The Role of Public Relations (cont.)  Community Relations & Public Affairs  Lobbying  Fund Raising 14-9

10. Copyright © 2012 Pearson Canada Inc. Public Relations Planning A PR plan is dictated by the situation. It can:  Be proactive and carefully set out in advance and be implemented with precision or  Be reactive and only undertaken because of some unforeseen circumstance occurring  The success or failure of a PR plan can impact on the bottom line 14-10

11. Copyright © 2012 Pearson Canada Inc. Public Relations Planning PR planning usually involves five steps: Evaluate Effectiveness Evaluate Effectiveness Situation Analysis Situation Analysis Establish Objectives Establish Objectives Develop the PR Strategy Develop the PR Strategy Execute Plan 14-11

12. Copyright © 2012 Pearson Canada Inc. Handling Crisis Situations 14-12

13. Copyright © 2012 Pearson Canada Inc. The Tools of Public Relations Diverse tools exist to execute public relations programs. Some are used routinely, others periodically.  Media Release  Media Conference  Websites  Social Media  Annual Reports (and other publications)  Blogs 14-13

14. Copyright © 2012 Pearson Canada Inc. Advantages & Disadvantages of Public Relations Advantages  Credible source of information  Helps to build relationships  Can influence long term sales positively Disadvantages  Lack of control  Impact not always proportional to cost, effort 14-14

15. Copyright © 2012 Pearson Canada Inc. Experiential Marketing  Creates an emotional connection with a consumer in personal and memorable ways:  A free sample distributed at an event  Event where the brand is the centrepiece of the event  Grey Cup train across Canada last year to promote CFL  A good fit for social media, where consumers willingly allow brands into their worlds 14-15

16. Copyright © 2012 Pearson Canada Inc. Event Marketing Integrating a variety of communication elements to support an event theme. Financial support of an event in return for advertising privileges. Event Marketing Event Sponsorship 14-16

17. Copyright © 2012 Pearson Canada Inc. Primary Types of Sponsorship Culture & the Arts Culture & the Arts Cultural sponsorships are aimed at a “class” target audience. Sports The largest sponsorship segment (70%), sports reaches a “mass” target audience. Entertainment Music plays a major role in entertainment sponsorships. Cause-Related Partnership between a company and a non-profit entity for mutual benefit 14-17

18. Copyright © 2012 Pearson Canada Inc. Sports Sponsorship  Tend to be dominated by certain industries and manufacturers  Organizations choose between spending locally (inexpensive) or nationally/ internationally (more expensive).  Involvement in sports sponsorship need not be extravagant or conspicuous  Commitment depends on the organization’s marketing objectives. 14-18

19. Copyright © 2012 Pearson Canada Inc. Sport Marketing Strategies Sports marketing is extremely competitive so companies look for advantage by any means. Some recent strategies include:  Venue Marketing and Sponsorship  Athlete Sponsorship  “Ambush Marketing” 14-19

20. Copyright © 2012 Pearson Canada Inc. Entertainment Sponsorship  Sponsoring concerts and securing famous endorsements, corporations establish a celebrity- company association.  Coca-Cola uses entertainment sponsorships to develop pop-music and youth-lifestyle marketing strategies.  Festivals (film, comedy, music) offer opportunities to reach a cross-section of adult target audiences.  Montréal International Jazz Festival attracts GM, TD Canada Trust, Loto Quebec, and Bell. 14-20

21. Copyright © 2012 Pearson Canada Inc. Cultural and Arts Sponsorships Art and cultural event opportunities embrace dance, film, literature, music, painting, sculpture, and theatre.  Effective for companies who prefer to reach a more selective and upscale audience (e.g., Mercedes).  Primary benefit that companies gain from sponsoring the arts is goodwill from the public. 14-21

22. Copyright © 2012 Pearson Canada Inc. Cause Marketing Sponsorship Partnership between company and a non- profit entity for mutual benefit  The relationship between the parties has significant meaning to consumers  CIBC Run fro the Cure (partners are Canadian Breast Cancer Foundation and CIBC both trying to raise funds to help find a cure for breast cancer 14-22

23. Copyright © 2012 Pearson Canada Inc. Strategic Considerations for Event Marketing “Fit” between the event and the sponsor is essential. It is important to:  Establish selection criteria  Select successful events reaching relevant target  Require category exclusivity  Use sponsorships to complement other promotional activity 14-23

24. Copyright © 2012 Pearson Canada Inc. Measuring Event Marketing and Sponsorship Benefits The following indicators are used to measure the benefits of sponsorship:  Awareness  Image  New Clients  Sales  Specific Target Reach  Media Coverage 14-24

25. Copyright © 2012 Pearson Canada Inc. Advantages of Event Marketing & Sponsorship  Target marketing capability  Face-to-face access to customers  Public image enhancement 14-25

26. Copyright © 2012 Pearson Canada Inc. Disadvantages of Event Marketing & Sponsorship  Cost of big events  Advertising clutter at events  Ambush marketing (potentially)  Effectiveness hard to measure 14-26