13-1 Public Relations, Regulations and Sponsorship Programs 13 •Public relations –Role of public relations –Social responsibility •Regulating marketing communication –Federal Trade Commission –Industry regulations •Sponsorship marketing Chapter Overview
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13-1 Public Relations, Regulations and Sponsorship Programs 13 Public relations –Role of public relations –Social responsibility Regulating marketing communication.
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13-1
Public Relations, Regulations and Sponsorship Programs13•Public relations
–Role of public relations–Social responsibility
•Regulating marketing communication
–Federal Trade Commission–Industry regulations
•Sponsorship marketing
Chapter Overview
13-2
Sponsorships and Causes
• What do you think about the WWF and the companies that sponsor it?
• Should companies be involved in sponsoring sporting events, rodeos and music events?
• Should companies contribute or participate in social causes such as the American Cancer Society?
• Would you switch brands based on causes the company or brand supports?
• How do you feel about the naming of sports stadiums by companies?
13Discussion Slide
13-3
• Monitor internal and external publics.• Provide positive information to each
public that reinforces the IMC plan.• React quickly to any shift by any of the
McDonald’s reminded the public of its support for the Olympics with a series of advertisements.
13-10
• Corporate newsletters• Internal communications• Media news releases• Stockholder correspondence• Annual reports• Special events
F I G U R E 1 3 . 6
Public Relations Tools
13-11
Regulating Marketing Communications
• Unfair and deceptive marketing practices• Lanham Act (1947)
• An advertisement or communication is deceptive or misleading if:• A substantial number of people or “typical
person” is left with false impression or misrepresentation.
• The misrepresentation induces people or the “typical person” to make a purchase.
• Deception vs puffery
13-12
• Federal Trade Commission (FTC)• Food & Drug Administration (FDA)• Federal Communications Commission (FCC)• US Postal Service (USPS)• Bureau of Alcohol, Tobacco and Firearms
(BATF)
F I G U R E 1 3 . 7
Governmental Regulatory Agencies
13-13
Federal Trade Commission(FTC)
• Created in 1914 by passage of Federal Trade Commission Act.
• Original intent was to enforce anti-trust laws.• FTC authority expanded in 1938 with Wheeler-Lea
Amendment.• Given power to stop unfair and deceptive
advertising practices.• Granted FTC access to courts to enforce their
decisions.
13-14
How an FTC investigation begins
• Consumers• Businesses• Congress• Media
Complaints can be lodged by any of the following
13-15
FTC Actions
• Consent order• Administrative complaint• Cease and desist order• Full commission hearing• Appeal to U.S. Court of