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What’s Happening?
Projects http://www.greenpeace.org/international/en/campaigns/climate-c
hange/cool-it/ITs-carbon-footprint/Facebook/
https://www.youtube.com/watch?v=S4lNgXQPyCg https://www.youtube.com/watch?v=VUYUvY6quE0
Public Relations and Sponsorship Programs
Chapter 10
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.
This can be done internally or by an external firm.
Identify internal and external stakeholders Assess the corporate reputation Audit corporate social responsibility Create positive image-building activities Prevent or reduce image damage
F I G U R E 1 3 . 1
Public Relations Functions
Public Relations Tools
Newsletters Media news releases - positive or negative Websites Special events – sometimes tied to a cause Annual reports
Approaches to Public Relations
Altruistic activities
e.g. internally geared approach
Cause-related marketing
e.g. externally geared approach - charities, non-profit associations, etc.
Cause-Related Marketing
This approach has many benefits: Intangible elements – goodwill and top of
mind Increased business Can create a favourable image of the
business/firm Can change consumers perceptions of the
firm e.g., Wal-Mart - sustainability consortium
Cause-Related Marketing
Consumer studies show that: 78% of consumers are more likely to purchase a brand
associated with a cause they care about. 54% would be willing to pay more for a brand that is
associated with a cause they care about – e.g. Fair trade coffee
66% would switch to support a particular cause 84% indicate that cause-related marketing creates a
more positive image of a company.
One issue with this approach is that a cause liked by one – disliked by another
YWCA Web site: http://www.ywca.org
• Improve public schools (52%)• Dropout prevention (34%)• Scholarships (28%)• Clean-up environment (27%)• Community health education (25%)
F I G U R E 10 . 3Causes Consumers Prefer
McDonald’s reminded the public of its support for the Olympics with a series of advertisements.
Green Marketing –a rallying cause?
However consumers are not always willing to sacrifice: Price Quality Convenience Availability and Performance
to become “Green”
o Discriminationo Harassmento Pollutiono Misleading
communicationso Deceptive
communicationso Offensive communications
o http://shine.yahoo.com/work-money/ford-apologizes-over-sexist-ads-using-cartoons-of-bound-and-gagged-women-142842233.html
o Labour laws
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 0. 2 - editedExamples of Socially Responsible/Irresponsible Activities
Offensive Communications - Ford
Offensive Communications - Ford
o Proactive Strategieso Entitling – claim responsibility for positive outcomeso Enhancements – creating desirable outcome in
public’s eye
o Reactive Strategieso Internet interventionso Crisis management programso Apology Strategyo Impression management techniques
F I G U R E 1 0 . 7
Damage-Control Strategies
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
Strengths
o Reaching Elusive Audiences
o Image and Reputation Management
o Credibilityo Relatively Low Cost
Weaknesses
o Relative Loss of Controlo Measurement Difficulties
(Effectiveness)