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Public Relations, Regulations ad
Sponsorship Programs
Chapter 13 with Duane Weaver
Public Relations (PR) Definitions
• PR Department: unit in the firm that
manages items related to publicity and
communications with all the groups that
make contact with a company.
• PR focuses on stakeholders whereas typical
marketing functions primary focus is usually
on customers.
• PR firms often focus on getting “hits”
(exposure count)
Types of PR Stakeholders
• Stakeholder: person or group that has
a vested interest in the organization’s
well-being, such as:
– Profits paid as stock dividends
– Loan repayments received by a lending
institution
– Sales to the company or purchases made
by the company
– Community well being
– Special Interest topic
PR: Internal Stakeholders
• Employees
• Unions
• Shareholders
PR: External Stakeholders
• Channel Members
• Customers
• Media
• Local Community
• Financial Community
• Government
• Special-interest Groups
PR Events
• Altruistic
– Things provided to employees and other internal
stakeholders, e.g.: flowers, fruit baskets, employee rehab
programs, child care, purchase discounts…
• Cause-Related
– When marketing program is tied into some form of charity
work so as to gain:
•
•
•
•
•
Additional customers
Increased profits
Build consumer goodwill
Better relations with government
Reduced chances of lawsuits (risk mitigation)
• Green
– Development and promotion of products that are
environmentally safe
PR: DAMAGE CONTROL
•
Reactive
–
–
–
Crisis management (accept blame and
apologize or refute)
Apology
Response to Negative Publicity (impression
management)
•
Proactive
–
–
Entitlings – attempts to claim responsibility for
positive outcome events.
Enhancements – attempt to increase the
desirable outcome of an event in the eyes of
the public.
REGULATIONS
• Unfair and Deceptive Marketing Practices
(when):
– A substantial number of people or the
“reasonable person” is left with a false impression
or misrepresentation related to the product
– The misrepresentation induces the “reasonable
person(s)” to make a purchase
• Puffery
– Exaggerated claim without overt attempt to
decieve
• Gov. Agencies – CRTC and Health Canada
Sponsorship Marketing
• When a company pays money to sponsor
someone or some group that is participating
in an activity.
• Used to:
–
–
–
–
Enhance a company’s image
Increase visibility (exposure)
Differentiate
Showcase specific goods or services (Buzz
marketing)
– Develop closer relationships with prospective or
current customers
– Unload excess inventory
Event Marketing
• Similar to sponsorship except that
rather than supporting any one
person, group or team, an entire
specific event is sponsored.
Thank You
Have a great day!