What’s Happening? Projects change/cool-it/ITs-carbon-footprint/Facebook

What’s Happening?

Projects http://www.greenpeace.org/international/en/campaigns/climate-c

hange/cool-it/ITs-carbon-footprint/Facebook/

https://www.youtube.com/watch?v=S4lNgXQPyCg https://www.youtube.com/watch?v=VUYUvY6quE0

Public Relations and Sponsorship Programs

Chapter 10

Public Relations

To provide information to the public that reinforces a firms positioning and image.

Can be used to change the public’s perception of a firm.

This can be done internally or by an external firm.

Identify internal and external stakeholders Assess the corporate reputation Audit corporate social responsibility Create positive image-building activities Prevent or reduce image damage

F I G U R E 1 3 . 1

Public Relations Functions

Public Relations Tools

Newsletters Media news releases - positive or negative Websites Special events – sometimes tied to a cause Annual reports

Approaches to Public Relations

Altruistic activities

e.g. internally geared approach

Cause-related marketing

e.g. externally geared approach - charities, non-profit associations, etc.

Cause-Related Marketing

This approach has many benefits: Intangible elements – goodwill and top of

mind Increased business Can create a favourable image of the

business/firm Can change consumers perceptions of the

firm e.g., Wal-Mart - sustainability consortium

Cause-Related Marketing

Consumer studies show that: 78% of consumers are more likely to purchase a brand

associated with a cause they care about. 54% would be willing to pay more for a brand that is

associated with a cause they care about – e.g. Fair trade coffee

66% would switch to support a particular cause 84% indicate that cause-related marketing creates a

more positive image of a company.

One issue with this approach is that a cause liked by one – disliked by another

YWCA Web site: http://www.ywca.org

• Improve public schools (52%)• Dropout prevention (34%)• Scholarships (28%)• Clean-up environment (27%)• Community health education (25%)

F I G U R E 10 . 3Causes Consumers Prefer

McDonald’s reminded the public of its support for the Olympics with a series of advertisements.

Green Marketing –a rallying cause?

However consumers are not always willing to sacrifice: Price Quality Convenience Availability and Performance

to become “Green”

o Discriminationo Harassmento Pollutiono Misleading

communicationso Deceptive

communicationso Offensive communications

o http://shine.yahoo.com/work-money/ford-apologizes-over-sexist-ads-using-cartoons-of-bound-and-gagged-women-142842233.html

o Labour laws

o Empowerment of employees.o Charitable contributionso Sponsoring local eventso Selling environmentally safe

productso Outplacement programso Support community eventso Combining cause-related

marketing as primary strategy - Dove

Image Destroying Activities

Image Building Activities

F I G U R E 1 0. 2 - editedExamples of Socially Responsible/Irresponsible Activities

Offensive Communications - Ford

Offensive Communications - Ford

o Proactive Strategieso Entitling – claim responsibility for positive outcomeso Enhancements – creating desirable outcome in

public’s eye

o Reactive Strategieso Internet interventionso Crisis management programso Apology Strategyo Impression management techniques

F I G U R E 1 0 . 7

Damage-Control Strategies

Positive and Socially Responsible Marketing

Identify areas where the firm can make a positive difference – http://www.starbucks.com/aboutus/csr.asp

Make sure local/international media are aware. Inform and involve employees. Invest in advertising and public relations to highlight the

firm’s efforts – more and more popular.

To maximize positive impact:

Public Relations

Strengths

o Reaching Elusive Audiences

o Image and Reputation Management

o Credibilityo Relatively Low Cost

Weaknesses

o Relative Loss of Controlo Measurement Difficulties

(Effectiveness)