1. 14-1 Copyright © 2009 Pearson Education Canada Inc. CHAPTER 14 Public Relations and Event Marketing and Sponsorships

2. 14-2 Copyright © 2009 Pearson Education Canada Inc. Learning Objectives  Identify the role of public relations 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…

3. 14-3 Copyright © 2009 Pearson Education 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

4. 14-4 Copyright © 2009 Pearson Education Canada Inc.  The variety of activities and communications an organization undertakes to monitor, evaluate, and influence the attitudes, opinions and behaviours of groups or individuals who constitute their publics. Public Relations

5. 14-5 Copyright © 2009 Pearson Education Canada Inc. Public relations is distinguished from advertising in two ways: 1.Advertising is focused on product image; public relations is more focused on corporate image. 2.Advertising is controlled and paid for by a sponsor (the company the media story concerns); public relations is controlled by the media. Public Relations versus Advertising

6. 14-6 Copyright © 2009 Pearson Education Canada Inc. Publicity At the product level, publicity is used to market goods and services.  Publicity is one aspect of public relations  It is the communication of newsworthy information designed to familiarize the public with the features or advantages of a product, service, or idea.  Typically, publicity attends:  Launching new products  Opening a new store  Technological breakthrough  Achievement of some milestone

7. 14-7 Copyright © 2009 Pearson Education 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

8. 14-8 Copyright © 2009 Pearson Education Canada Inc. The role of PR generally falls into six areas: 1.Corporate Public Relations  Corporate Advertising  Advocacy Advertising  Crisis Management 2.Reputation Management 3.Product Publicity 4.Product Placement and Branded Content Continued… The Role of Public Relations

9. 14-9 Copyright © 2009 Pearson Education Canada Inc. The Role of Public Relations (cont.) 5.Buzz Marketing (word-of-mouth) 6.Media Relations 7.Community Relations & Public Affairs  Lobbying 8.Fund Raising

10. 14-10 Copyright © 2009 Pearson Education Canada Inc.  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 Public Relations Planning

11. 14-11 Copyright © 2009 Pearson Education 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

12. 14-12 Copyright © 2009 Pearson Education Canada Inc. The tools available to execute public relations programs are diverse. Some are used routinely while others are used periodically.  Press Release  Press Conference  Publications  Posters and Displays  Web Sites  Blogs The Tools of the Trade

13. 14-13 Copyright © 2009 Pearson Education Canada Inc.  Credible source of information  Can influence sales positively  Helps to build relationships  Lack of control  Costs associated with waste Advantages Disadvantages Advantages & Disadvantages of Public Relations

14. 14-14 Copyright © 2009 Pearson Education 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

15. 14-15 Copyright © 2009 Pearson Education Canada Inc. 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. Primary Types of Sponsorship Cause-Related Partnership between a company and a non-profit entity for mutual benefit

16. 14-16 Copyright © 2009 Pearson Education Canada Inc. Sports Sponsorship Sports sponsorship are dominated by some of the largest manufacturers, service companies, and retailers  Ford, General Motors, Molson, Labatt, RBC Financial, BMO Financial Group, Visa, MasterCard  82% of the North American executives perceive event marketing to be strategic and efficient business tool.  A key indicator of success is the effect the association with a sponsored event has on consumer awareness of brand or company.

17. 14-17 Copyright © 2009 Pearson Education Canada Inc. Level of Sports Sponsorship From grassroots (local) levels to global events, sponsorships can pay dividends for companies. Local Regional National International Global

18. 14-18 Copyright © 2009 Pearson Education Canada Inc. Sports marketing is extremely competitive so companies look for advantage by any means. Some recent strategies include:  Ambush Marketing  Venue Marketing and Sponsorship  Athlete Sponsorship Sport Marketing Strategies

19. 14-19 Copyright © 2009 Pearson Education Canada Inc. Entertainment Sponsorship  Sponsor concerts and secure endorsements from high-profile personalities in the hope that the celebrity-company relationship will pay off in the long run.  Coca-Cola uses entertainment sponsorships as a vehicle for developing 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.

20. 14-20 Copyright © 2009 Pearson Education 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.

21. 14-21 Copyright © 2009 Pearson Education 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)

22. 14-22 Copyright © 2009 Pearson Education Canada Inc. “Fit” between the event and the sponsor is essential. It is important to:  Select events offering exclusivity  Use sponsorships to complement other promotional activity  Choose the target carefully  Select an event with image that sells  Establish selection criteria Strategic Considerations for Event Marketing

23. 14-23 Copyright © 2009 Pearson Education Canada Inc. Measuring the Benefits of Event Marketing and Sponsorship The following indicators are used to measure the benefits of sponsorship:  Awareness  Image  New Clients  Sales  Specific Target Reach  Media Coverage

24. 14-24 Copyright © 2009 Pearson Education Canada Inc. Advantages  Target marketing capability  Face-to-face access to customers  Public image enhancement Disadvantages  Cost of big events  Advertising clutter at events  Ambush marketing (potentially)  Effectiveness hard to measure Advantages & Disadvantages of Event Marketing & Sponsorship