Public Relations Sponsorship Programs and Regulations

Chapter 12

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

Publicity
In Hollywood There's no such thing as bad publicity In Marketing and communications Bad publicity is worse than no publicity

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

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
Media Local community Financial community Special-interest groups Channel members Government Employees Unions Shareholders Customers

A stakeholder is a person or group that has a vested interest in the organization's well-being 6

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

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 firms 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

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