Public Relations and Sponsorship Programs

Chapter 12

Public Relations

To provide information to the public that reinforces a firms positioning and image.

Can be used to change the public’s perception of a firm.

Approaches to Public Relations

Altruistic activities

e.g. internally geared approach

Cause-related marketing

e.g. externally geared approach - charities, etc.

Cause-Related Marketing

This approach has many benefits: Intangible elements - goodwill Increased business Can create a favourable image of the

business

Cause-Related Marketing

Businesses pay over $600 million (US) in cause-related marketing

Consumer studies: Nearly 50% switch brands, increase usage, try

new brand 46% felt better about using product when

company supported a particular cause – eg. Fair trade coffee, M&M promotion

Cause liked by one – disliked by another

McDonald’s reminded the public of its support for the Olympics with a series of advertisements.

What’s Happening?

http://www.youtube.com/watch?v=vJSMNIRH-Pg&feature=related http://www.youtube.com/watch?v=BhiSuX3HmFM http://www.youtube.com/watch?v=9sqhwRj_SDI&feature=related

Sheep Herding http://www.youtube.com/watch?v=D2FX9rviEhw

Condon Contest

 http://www.onedesigncontest.com/designone.htm   Old Dora, New Dora - INSANE!

http://www.afterellen.com/blog/dorothysnarker/dora-the-explorer-discovers-new-look-lip-gloss

o Discriminationo Harassmento Pollutiono Misleading

communicationso Deceptive

communicationso Offensive communicationso Labour laws – GAP Inc.

o Empowerment of employees.o Charitable contributionso Sponsoring local eventso Selling environmentally safe

productso Outplacement programso Support community eventso Combining cause-related

marketing as primary strategy - Dove

Image Destroying Activities

Image Building Activities

F I G U R E 1 2. 3Examples of Socially Responsible Activities

Image Destroying Activities – an example

http://www.youtube.com/watch?v=OVKlFT58Zwc&feature=related

Reactive Strategies Crisis Management Apology Defense of innocence -http://www.gap.com/ Excuses Justifications Other explanations

Proactive Strategies Entitling Enhancements Internet interventions

F I G U R E 1 2 . 6Damage Control

Green Marketing –a rallying cause?

Survey concerning green marketing Try to save electricity (58%) Recycle newspapers (46%) Return bottles and cans (45%) Buy products –recycled materials (23%)

Consumers not willing to sacrifice Price Quality Convenience Availability Performance

Environmental Responsibility

McDonald’s has made a substantial commitment to the so-called “green

movement.”

F I G U R E 1 2 . 5U.S. Consumer’s Segmented on Their Attitudes Toward Support of Green Marketing

True Blue Green (9%) – Have strong environmental values and are politically active in environmental issues. Heavy users of green products.

Greenback Greens (6%) – Have strong environmental values, but are not politically active. Heavy users of green products.

Sprouts (31%) – Believe in green products in theory, but not in practice. Will buy green products, but only if equal to or superior to non-green products.

Grousers (19%) – Are uneducated about environmental issues and cynical about their ability to effect change. Believe green products are too expensive and inferior.

Basic Browns (33%) – Do not care about environmental issues or social issues.

Source: Jill Meredith Ginsberg and Paul N. Bloom, “Choosing the Right Green Marketing Strategy,” MIT Sloan Management Review, Vol. 46, No. 1 (Fall 2004), pp. 79-84.

Positive and Socially Responsible Marketing

Identify areas where the firm can make a positive difference – http://www.starbucks.com/aboutus/csr.asp

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.

To maximize positive impact:

Public Relations Tools

Newsletters Media news releases - positive or negative Websites Special events – sometimes tied to a cause Annual reports

Sponsorship Programs

Objectives: Enhance company image Increase visibility Showcase a product To develop new customer relationships To get rid of excess inventory

Event Marketing and SponsorshipsCanada

Source: “How Big is the Canadian Sponsorship Pie?” The Sponsorship Report (Http://www.sponsorship.ca/p-issues-howbig.html)

Sports (45%)

Cultural Events (20%)

Education (10%)

Health (10%)

Humanitarian (10%)Environment (2.5%)

Event Marketing and SponsorshipsUnited States

Source: “Event Marketing/Sponsorships,” Public Relations Society of America

Sports Marketing$3.84 billion

65%Entertainment Tours$650 million (11%)

Festivals & Fairs$558 million (9%)

Causes$535 million (9%)

Arts & Cultural Events$354 million (6%)

Approaches to Sponsorships

A firm may choose to:

1. Sponsor an individual

2. Sponsor an event

3. Other Specific group Real Property

Sponsoring an Individual

What attributes do sponsors look for in endorsing an individual such as Tiger Woods?

Name recognition Current popularity Overall image Character

Sponsoring an Event

Many factors to consider: Determine objective(s) Match event with customers Cross-promote event Maintain a consistent theme Track results Evaluate investment of event, and against

other IMC tools