Marketing Public Relations and Sponsorship Marketing 20

2 Public Relations Audiences for Public Relations?  Employees  Suppliers  Stockholders  Governments  The Public  Labor Groups  Citizen Action Groups  Consumers 2

Marketing Public Relations Marketing Public Relations (MPR) Marketing-oriented aspect of public relations that is an organizational activity involved with fostering goodwill between a company and its consumers 3

Marketing Public Relations Dictated by a company’s marketing objectives Offensively oriented and opportunity seeking Proactive MPRReactive MPR The conduct of public relations in response to outside influences Attempt to repair company’s reputation, prevent market erosion, and regain lost sales 4

Proactive MPR Product introductions or product revisions Credibility accounts for the effectiveness Publicity is the major tool Product releases Executive-statement Feature articles Proactive MPR Widely used forms of publicity in MPR 5

Announce new products Provide relevant information, features and benefit Audiovisual product releases (video news releases, or VNRs) gained wide usage Proactive MPR Product releases Executive- statement Feature articles 6

News releases quoting CEOs and other corporate executives May address a wide variety of issues Published in the news section Carry a significant degree of credibility Proactive MPR Product releases Executive- statement Feature articles 7

Detailed descriptions of products or other newsworthy programs Written by a PR firm for immediate publications or airing Inexpensive to prepare Proactive MPR Product releases Executive- statement Feature articles 8

Reactive MPR Often product defects and failures are the factors Quick and positive responses are imperative Examples ??? Negative publicity cases 9

Great example of Reactive MPR (a brand manager’s nightmare?): mmentary/wastler/wastler/

Reactive MPR Often product defects and failures are the factors Quick and positive responses are imperative Product tampering cases -Tylenol and Sudafed The Perrier case The Pepsi Hoax Rumors Negative publicity cases 11

Reactive MPR Johnson & Johnson’s efforts to retain customers using reactive MPR 12

Reactive MPR Often product defects and failures are the factors Quick and positive responses are imperative Product tampering cases -Tylenol and Sudafed The Perrier case The Pepsi Hoax Rumors Negative publicity cases 13

Responses to Rumors Procter and Gamble’s Logos Old and New 14

Reactive MPR 15

Reactive MPR Exercise You are owner of a campus restaurant Rumor: Rat found in your food How do you handle this??? Negative publicity case 16

Sponsorship Marketing Involve investments in events or causes for the purpose of achieving various corporate objectives Event sponsorships Cause-related marketing 17

Why Growth in Sponsorships Avoid the clutter inherent in advertising media Help companies respond to consumers’ changing media habits Help companies gain the approval of various constituencies Can enhance a brand’s equity Enables marketers to target their efforts to geographic regions and/or to lifestyle groups 18

Event Sponsorships Event Sponsorship A form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social, or other type of high-interest public activity 19

Sponsoring Events and Causes John Hancock Hill Holliday

Event Sponsorships Denny’s Sponsorship Harlem Globetrotters WHY?? Repair negative image/record of employement discrimination against African-Americans 21

Event Sponsorships Denny’s Set To Hold Third Annual Week-Long Harlem Globetrotters Summer Basketball Camps (PHOENIX, April 12, 2000) – Denny’s restaurants and the Harlem Globetrotters will once again hold a series of week-long basketball camps in 15 cities across the country this summer for aspiring athletes between the ages of 6 and 16. The 15 cities chosen to host the Denny’s/Harlem Globetrotters Summer Youth Basketball Camps are Denver (June 12-16), Milwaukee (June 19-23), Los Angeles (June 26-30), New York City (June 26-30), Houston (July 10-14), Phoenix (July 17-21), Seattle (July 17-21), St. Louis (July 17-21), Pittsburgh (July 24-28), Washington D.C. (July 31-Aug. 4), Chicago (Aug. 7-11), San Diego (Aug ), Buffalo (Aug ), Atlanta (TBA) and San Jose (TBA). ”It’s a great thing that Denny’s is doing for kids and families each year. We are proud to team up with Denny’s for the third straight year and conduct their summer camps in 15 different cities,” said Globetrotters Owner and Chairman Mannie Jackson. ”Both the Globetrotters and Denny’s are dedicated to improving the lives of children. The summer basketball camps present positive role models for all who attend, as well as an experience that will be remembered for many years to come.” Ranging between $150-$185, the week-long, half-day camp is open to all aspiring athletes, regardless of skill level. Boys and girls entered will receive an official Denny’s/Harlem Globetrotters Summer Youth Basketball Camp T-shirt, a mini Globetrotters basketball, an autographed Globetrotters team photo and a camp picture. Harlem Globetrotters players and coaches will instruct the camp activities, with an emphasis on basketball skill instruction, leadership development training, conditioning, and academic and athletic issues. Camp attendees will have the chance to interact with the Globetrotters throughout the entire week, while vying for special awards in hustle, citizenship and basketball- related skills. 22

Selecting Sponsorship Event Consistent with brand image? Reach the desired target market? Has competition ever sponsored the event? Is the event cluttered? Compliment your existing sponsorships and fit other marcom programs? Economically viable? 23

Event Sponsorships Ambushing Events When companies that are not official sponsors undertake marketing efforts to convey the impression that they are 24

Ambushing Wendy’s Wendy’s International, Inc.

Cause-Related Marketing (CRM) Cause-Related Marketing Based on the idea that a company will contribute to a cause every time the customer undertakes some action 26

Event Related Promotion Cause-related marketing illustration 27

Benefits of CRM Enhance corporate or brand image Thwart negative publicity Generate incremental sales Increase brand awareness Broaden customer base Reach new market segments Increase sales at retail level 28

Cause-Related Marketing Cause-related marketing illustration

Cause-Related Marketing Cause Related Marketing CRM 30