Public Relation

Public Relations Sponsorship Programs

and Regulations

Chapter 12

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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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Creating a Positive Image

• Cause-related Marketing

• Green marketing or Pro-environment activities

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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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Thank you