13

Public RelationsSponsorship

Programs

Chapter 13

13-1

Chapter Overview

13-2

•Public relations•Public relations functions•Stakeholders•Assessing corporate

reputation•Social responsibility•Damage control

•Sponsorships•Event marketing

Public Relations

• Public relations department• Separate entity• Part of marketing department• Department of Communications

Public relations tools• Goal hits• Develop PR strategy that fits

with IMC• Monitor actions and opinions

13-3

Public Relations Functions

13-4

• Identify internal and external stakeholders

• Assess the corporate reputation

• Audit corporate social responsibility

• Create positive image-building activities

• Prevent or reduce image damage

Stakeholders

• Employees• Unions• Management• Shareholders• Customers

• Media• Local community• Financial community• Special-interest

groups• Channel members• Government

13-5

Stakeholders

13-6

• Internal• Employees powerful channel• Receive constant

communications• Work with HR department

• External• Company has little or no

influence• Planned contact points• Unplanned contact points

Corporate Social Responsibility

13-7

• Reputation is fragile, but valuable

• Negative view of businesses• Ongoing reputation assessment• Monitor corporate reputation

• Less than half have someone assigned

13-8

• Undertaken by management• Organizations need

Ethical guidelines for all employees

Code of ethics Ethical hotline

Corporate Social Responsibility

Audit:

Factors Affecting Corporate Image

13-9

• Discrimination• Harassment• Pollution• Misleading

communications• Deceptive

communications• Offensive

communications

• Empowerment of employees

• Charitable contributions

• Sponsoring local events

• Selling environmentally safe products

• Outplacement programs

• Support community events

Image Destroying

Image Building

(almost everything)

Creating a Positive Image

• Cause-related Marketing

• Green marketing

• Pro-environment activities

13-10

Cause-Related Marketing

13-11

• Businesses spend over $600 million 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

• Cause liked by one – disliked by another

• Causes should relate to firm’s business.

• Good fit important.• Benefits not-for-profit organizations.• Not-for-profits compete for donations.• Publicizing causes

• Public recognizes companies need to benefit.

• Should publicize moderately

13-12

Cause-Related Marketing

Causes Consumers Support

• Improve public schools – 52%• Dropout prevention – 34%• Scholarships – 28%• Cleanup environment – 27%• Community health education – 25%

13-13

• 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

13-14

Green Marketing

F I G U R E 1 3 . 5U.S. Consumer’s Segmented by Attitudes Toward Support of Green Marketing

• True Blue Green (9%) – Strong environmental values, politically active. Heavy users of green products

• Greenback Greens (6%) – Strong environmental values, not politically active. Heavy users of green products

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

• Grousers (19%) – Uneducated about environmental issues, cynical about their ability to effect change. Green products are too expensive and inferior.

• Basic Browns (33%) – Don’t 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.

13-15

P.R. Damage Control Strategies

• Proactive strategies• Entitling• Enhancements

• Reactive strategies• Internet interventions• Crisis management programs• Impression management

techniques

13-16

If an Apology Strategy is Necessary

13-17

1. Show real guilt, embarrassment, or regret (Can’t be faked).

2. Recognize inappropriate behavior; accept sanctions because of wrong behavior.

3. Reject the inappropriate behavior.4. Approve of appropriate (or

remedial) behavior; promise not to do it again.

5. Offer compensation or penance to correct the wrong.

6. Hope for the best!

• Conscious or unconscious attempt to control image

• Understand Igniters• Remedial tactics

• Expression of innocence• Excuses• Justifications• Other explanations

13-18

Impression Management

Value Image!

Sponsorships

• Enhance corporate image.• Increase firm visibility.• Differentiate a company or brand.• Showcase specific goods or services.• Develop a closer relationship with

current and prospective customers.• Unload excess inventory.

13-19

Objectives:

Sponsorships and Event Marketingin the U.S.

• Sports (68.8%)• Entertainment, tours, and

attractions (9.8%)• Causes (8.9%)• Festivals, fairs, and annual

events (7.1%)• Arts (5.4%)

13-20

What is the likelihood that a fan will buy a sponsor’s product?

• NASCAR 72%• Tennis 52%• Golf 47%• NBA 38%• NFL 36%

Source: “Event Marketing/Sponsorships,” Public Relations Society of America (Http://www.prsa.org/ppc/68022.html)

13-21

Maximizing Event Marketing

• Determine objectives• Match event with customers,

vendors, and employees• Cross-promote event• Include company in all advertising

and brochures (consistent with IMC)• Track results to evaluate the

investment

13-22

Crises Management

1. Stay reasonably calm . .don’t panicDon’t let it read as a desperate

situation

2. Get all the factsWho, what , where , when

3. Should you give the situation and validity?

Maintain your core message

13-23

(Optional Topic)

What to do when it really happens . . . . . . Eleven advisory

steps

Crises Management 2

4. Respond quicklyThe longer it’s out there without

rebuttal, the more likely it’s accepted as fact.

5. Overwhelm with factsShow how the attacker is wrong

or not accurate. Does the media have a balanced story?

6. Have a concise, integrated message

13-24

(Optional Topic)

Crises Management 3

7. Get 3rd parties to support your position

The Goodyear blimp factor.

8. Don’t Lie“I don’t know” is okay;

“inappropriate to comment right now” . . .

9. If all else fails, lose the fastest way you can

Don’t quibble – it just prolongs ands magnifies

13-25

(Optional Topic)

Crises Management 4

10. Understand Pack JournalismVery little original reporting – all

writing each other rather than digging up new information

11. Inoculation – Proactive P.R.Have a well-defined, workable

crisis management plan Trained employees Emergency order of response Know the media

13-26

(Optional Topic)