Chapter 10 Public Relations To provide information to the public that reinforces a firms positioning and image Can be used to change the publics perception of a firm This can be done internally or by an external firm ID: 275480
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Slide1
Public Relations and Sponsorship Programs
Chapter 10Slide2
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. Slide3
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 FunctionsSlide4
Public Relations Tools
Newsletters
Media news releases - positive or negative
Websites
Special events – sometimes tied to a causeAnnual reportsSlide5
Approaches to Public Relations
Altruistic activities
e.g. internally geared approach
Cause-related marketing
e.g. externally geared approach - charities, non-profit associations, etc.Slide6
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 Slide7
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 anotherSlide8
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 . 3
Causes Consumers PreferSlide9
McDonald’s reminded the public of its support for the Olympics with a series of advertisements.Slide10
Green Marketing –a rallying cause?
However consumers are not always willing to sacrifice:
Price
Quality
Convenience
Availability andPerformanceto become “Green”Slide11
What’s Happening?
http://
www.youtube.com/watch?v=8rP7umMjjxE
http://www.youtube.com/watch?v=Sjl5_vDfiuM&sns=em – Australian Beer ad
Final Exam final proposal/optionSlide12
Discrimination
Harassment
Pollution
Misleading communications
Deceptive communications
Offensive communicationsLabour laws – GAP Inc.Empowerment of employees.Charitable contributionsSponsoring local eventsSelling environmentally safe productsOutplacement programsSupport community events
Combining cause-related marketing as primary strategy - Dove
Image Destroying Activities
Image Building Activities
F I G U R E 1 0. 2 -
edited
Examples of Socially Responsible/Irresponsible ActivitiesSlide13
Proactive Strategies
Entitling – claim responsibility for positive outcomes
Enhancements – creating desirable outcome in public’s eye
Reactive Strategies
Internet interventions
Crisis management programsApology StrategyImpression management techniques
F I G U R E 1 0 . 7
Damage-Control StrategiesSlide14
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:Slide15
Public Relations
Strengths
Reaching Elusive Audiences
Image and Reputation Management
Credibility
Relatively Low CostWeaknessesRelative Loss of ControlMeasurement Difficulties (Effectiveness)Slide16Slide17
Sponsorship Programs
Objectives:
Enhance company image
Increase visibility
Showcase a product
To develop new customer relationshipsTo get rid of excess inventorySponsorships are a critical part of many firms IMC plans e.g. - http://www.budlight.ca/sponsorships.php Slide18
Event Marketing and Sponsorships
Canada
Source: “How Big is the Canadian Sponsorship Pie?”
The Sponsorship Report
(http://www.sponsorship.ca/p-issues-howbig.html
)
Sports (45%)
Cultural Events (20%)
Education (10%)
Health (10%)
Humanitarian (10%)
Environment (2.5%)Slide19
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Event Marketing and Sponsorships
in North AmericaSlide20
Approaches to Sponsorships
A firm may choose to:
Sponsor an individual
Sponsor an event
Other
Specific group – i.e., school choir Real Property (naming rights) - http://www.forbes.com/2006/11/14/baseball-mets-citigroup-biz_cz_kb_1114naming_slide_2.html Slide21
Sponsoring an Individual
What attributes do sponsors look for in endorsing an individual such as Danica Patrick or Sidney Crosby?
Name recognition
Current popularity
Overall image
CharacterSlide22
Sponsoring an Event
Many factors to consider:
Determine objective(s) – e.g.CIBC run for the cure
Match event with customers
Cross-promote event – e.g., with new products, etc.
Maintain a consistent themeTrack resultsEvaluate investment of event, and against other IMC tools