Transcript
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Chapter Objectives
1. Clarify the role performed by the public relations department
2. Understand the various organizational stakeholders
3. Utilize cause-related marketing and green marketing to build customer loyalty
4. Work with sponsorship and event marketing programs
5. Know and obey advertising regulations and laws
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Publicity
• In Hollywood
• There's no such thing as bad publicity
• In Marketing and communications
• Bad publicity is worse than no publicity
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Public Relations • A unit in the firm that manages publicity and other
communications with every group that is in contact with the company
• Public Relations Department
Separate entity
Part of marketing department
Department of Communication
• External agency
• Goal of public relations
Hits-Mention of a company's name in a news story
Positive, negative or neutral stories
• Reinforce IMC Plan
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Public Relations Functions
• Identify stakeholders
• Assess corporate reputation
• Audit corporate social responsibility
• Create positive image-building activities
• Prevent or reduce image damage
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Stakeholders
• Employees • Unions • Shareholders • Customers
• Media • Local community • Financial community • Special-interest groups • Channel members • Government
A stakeholder is a person or group that has a vested interest in the organization's well-being
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Corporate Social Responsibility
• Social responsibility is the obligation an organization has to be ethical, accountable and reactive to the needs of society
• Image Activities
Image-building
Audit
Undertaken by management
Organization needs
• Ethical guidelines
• Code of ethics
• Ethical hotline
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Cause-Related Marketing • Is a program in which a firm ties a marketing program in
with some type of charity in order to generate goodwill
• Consumer studies
Nearly 50% switch brands because of a cause
Try new brands because of a cause
46% feel better about using a brand that supports a good cause
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Causes Consumers Support
• Improve public schools – 52%
• Dropout prevention – 34%
• Scholarships – 28%
• Cleanup environment – 27%
• Community health education – 25%
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Cause-Related Marketing
• Causes should relate to firm’s business
• Also important for not-for-profit organizations
• Publicizing causes
Public recognizes companies need to benefit
Should publicize, but not significant amount
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Green Marketing Is the development and promotion of products that are
environmentally safe
Consumer survey
Try to save electricity (58%)
Recycle newspapers (46%)
Return bottles and cans (45%)
Buy products of recycled materials (23%)
Consumers not willing to sacrifice
Price
Quality
Convenience
Availability
Performance
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Green Marketing Groups
• Based on strong environmental values, active in environmental issues, usage of green products
• True Blue Greens (9%)
• Greenback Greens (6%)
• Sprouts (31%)
• Grousers (19%)
• Basic Browns (33%)
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Pro-Environment Activities
• Low-key approach
Coco-Cola
• Publicize product first, pro-environment second
• Environmental activities are fully integrated into the business design and marketing approach
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Preventing/Reducing Image Damage
• Proactive strategies
Entitling-Attempts to claim responsibility for positive outcomes of events( official sponsor for IPL)
Enhancements-attempts to increase the desirable outcome of an event in the eyes of the public(fat free products)
• Reactive strategies
Internet interventions
Crisis management programs-A crisis may be viewed as a problem or an opportunity. Accepting the blame or refuting
Apology strategy
Impression management techniques-Conscious or unconscious attempt to control images that are projected in real or imagined social interactions
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Steps in Apology Strategy
1. Expression of guilt, embarrassment, or regret
2. Statement
1. Recognizing inappropriate behavior
2. Accepting sanctions of wrong-doing
3. Rejection of inappropriate behavior
4. Approval of appropriate behavior
5. Promise not to engage in inappropriate behavior
6. Offer of compensation or penance
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Impression Management
• Conscious or unconscious attempt to control image
• Remedial tactics
Expression of innocence-convince others that they were not associated with the event
Excuses-'It was an act of God'. Totally unavoidable
Justifications-using logic designed to reduce the degree of negativity associated with the predicament
Other explanations-not a fair representation, exception rather than rule
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Sponsorships and Event Marketing
• Sponsorship marketing means that the company pays money to sponsor someone, some group or something that is part of an activity
• Marketing expenditures on sponsorships and events
– Sports (68.8%)
– Entertainment, tours, and attractions (9.8%)
– Causes (8.9%)
– Festivals, fairs, and annual events (7.1%)
– Arts (5.4%)
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Sponsorship Objectives
• Enhance a company's image
• Increase firm's visibility
• Differentiate a company from its competitors
• Showcase specific goods or services
• Help develop a closer relationship with current and prospective customers
• Sell excess inventory
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Maximizing Event Marketing
• Determine objectives
• Match event with customers, vendors, and employees
• Cross-promote event
• Include company in all advertising and brochures
• Track results
• Evaluate the investment
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