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

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…

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

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

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

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

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

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

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

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

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

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

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 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

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

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.

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

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

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.

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.

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)

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

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

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