Public Relations and Sponsorship Programs

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Public Relations and Sponsorship Programs

• Chapter 12

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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.

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Approaches to Public Relations

• Altruistic activities
• e.g. internally geared approach
• Cause-related marketing
• e.g. externally geared approach - charities, etc.

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Cause-Related Marketing

• This approach has many benefits
• Intangible elements - goodwill
• Increased business
• Can create a favourable image of the business

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Cause-Related Marketing

• Businesses pay over 600 million (US) 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 eg. Fair trade
  coffee, MM promotion
• Cause liked by one disliked by another

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McDonalds reminded the public of its support for
the Olympics with a series of advertisements.
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Whats Happening?

• http//www.youtube.com/watch?vvJSMNIRH-Pgfeature
  related
• http//www.youtube.com/watch?vBhiSuX3HmFM
• http//www.youtube.com/watch?v9sqhwRj_SDIfeature
  related
• Sheep Herding
• http//www.youtube.com/watch?vD2FX9rviEhw
• Condon Contest
•  http//www.onedesigncontest.com/designone.htm
•   Old Dora, New Dora - INSANE!
• http//www.afterellen.com/blog/dorothysnarker/dora
  -the-explorer-discovers-new-look-lip-gloss

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F I G U R E 1 2. 3
Examples of Socially Responsible Activities
Image Destroying Activities
Image Building Activities

• Discrimination
• Harassment
• Pollution
• Misleading communications
• Deceptive communications
• Offensive communications
• Labour laws GAP Inc.

• Empowerment of employees.
• Charitable contributions
• Sponsoring local events
• Selling environmentally safe products
• Outplacement programs
• Support community events
• Combining cause-related marketing as primary
  strategy - Dove

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Image Destroying Activities an example

• http//www.youtube.com/watch?vOVKlFT58Zwcfeature
  related

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F I G U R E 1 2 . 6
Damage Control

• Reactive Strategies
• Crisis Management
• Apology
• Defense of innocence -http//www.gap.com/
• Excuses
• Justifications
• Other explanations
• Proactive Strategies
• Entitling
• Enhancements
• Internet interventions

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Green Marketing a rallying cause?

• Survey concerning green marketing
• Try to save electricity (58)
• Recycle newspapers (46)
• Return bottles and cans (45)
• Buy products recycled materials (23)
• Consumers not willing to sacrifice
• Price
• Quality
• Convenience
• Availability
• Performance

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Environmental Responsibility
McDonalds has made a substantial commitment to
the so-called green movement.
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F I G U R E 1 2 . 5
U.S. Consumers Segmented on Their Attitudes
Toward Support of Green Marketing

• True Blue Green (9) Have strong environmental
  values and are politically active in
  environmental issues. Heavy users of green
  products.
• Greenback Greens (6) Have strong environmental
  values, but are not politically active. Heavy
  users of green products.
• Sprouts (31) Believe in green products in
  theory, but not in practice. Will buy green
  products, but only if equal to or superior to
  non-green products.
• Grousers (19) Are uneducated about
  environmental issues and cynical about their
  ability to effect change. Believe green products
  are too expensive and inferior.
• Basic Browns (33) Do not 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.
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Positive and Socially Responsible Marketing
To maximize positive impact

• 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 firms efforts more and more
  popular.

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Public Relations Tools

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

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Sponsorship Programs

• Objectives
• Enhance company image
• Increase visibility
• Showcase a product
• To develop new customer relationships
• To get rid of excess inventory

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Event Marketing and SponsorshipsCanada
Environment (2.5)
Humanitarian (10)
Health (10)
Sports (45)
Education (10)
Cultural Events (20)
Source How Big is the Canadian Sponsorship
Pie? The Sponsorship Report (Http//www.sponsors
hip.ca/p-issues-howbig.html)
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Event Marketing and SponsorshipsUnited States
Arts Cultural Events 354 million (6)
Causes 535 million (9)
Festivals Fairs 558 million (9)
Sports Marketing 3.84 billion 65
Entertainment Tours 650 million (11)
Source Event Marketing/Sponsorships, Public
Relations Society of America
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Approaches to Sponsorships

• A firm may choose to
• 1. Sponsor an individual
• Sponsor an event
• Other
• Specific group
• Real Property

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Sponsoring an Individual

• What attributes do sponsors look for in endorsing
  an individual such as Tiger Woods?
• Name recognition
• Current popularity
• Overall image
• Character

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Sponsoring an Event

• Many factors to consider
• Determine objective(s)
• Match event with customers
• Cross-promote event
• Maintain a consistent theme
• Track results
• Evaluate investment of event, and against other
  IMC tools