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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
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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
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• 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
• Media• Local community• Financial community• Special-interest
groups• Government
F I G U R E 1 3 . 2
Stakeholders of Public Relations
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Employees need to be aware of what is being said in advertisements and on the Internet.
Motorola’s Web site
Http://www.motorola.com
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Public Relations Events
• Altruistic activities• Cause-related marketing• Benefits of supporting causes
• Additional customers• Increased profits• Goodwill• Better relations with governmental
agencies• Green marketing
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Cause-Related Marketing
• Support of a social cause through financial transactions with the firm’s customers.
• Cause-related marketing studies:• 83% of consumers have a more positive image of
companies that support causes the customer cares about.
• Most Americans believe companies should have a positive impact on environment and community.
• 76% willing to switch to a brand that supports a cause they believe in if price and quality perceived equal.
• National vs local causes• Impact greater if the firm can utilize its products in
the social cause.
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YWCA Web site: http://www.ywca.org
• Improve public schools (52%)• Dropout prevention (34%)• Scholarships (28%)• Cleanup environment (27%)• Community health education (25%)
F I G U R E 1 3 . 3
Causes Consumers Prefer
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McDonald’s reminded the public of its support for the Olympics with a series of advertisements.
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• 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
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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
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• 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
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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.
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How an FTC investigation begins
• Consumers• Businesses• Congress• Media
Complaints can be lodged by any of the following
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FTC Actions
• Consent order• Administrative complaint• Cease and desist order• Full commission hearing• Appeal to U.S. Court of