Download MKTG 3331 Chapter 13

Public Relations
Sponsorship Programs
Chapter 13
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Chapter Objectives
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What type of relationships are possible
between a public relations department and a
marketing department?
Why is it important to understand the nature
of various organizational stakeholders?
When should a marketing team consider
cause-related marketing and green
marketing programs?
How can a sponsorship program hurt or
harm a firm’s image?
When are event marketing programs most
and least likely to succeed?
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Wild About Harry
• Deathly Hollows – July 21, 2007
 Buzz about book
 10 days  11.5 million
• Harry Potter series – 350 million
• Word-of-mouth
• Free publicity
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Chapter Overview
•Public relations
–Public relations functions
–Stakeholders
–Assessing corporate reputation
–Social responsibility
–Damage control
•Sponsorships
•Event marketing
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Public Relations Functions
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Identify internal and external stakeholders
Assess the corporate reputation
Audit corporate social responsibility
Create positive image-building activities
Prevent or reduce image damage
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Stakeholders
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Media
Local community
Financial community
Special-interest groups
Channel members
Government
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Employees
Unions
Management
Shareholders
Customers
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Stakeholders
• Internal
 Employees powerful channel
 Receive constant communications
 Work with HR department
• External
 Company has little or no influence
 Contact points
 Unplanned contact points
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Corporate Social Responsibility
Assessing
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Reputation is fragile, but valuable
Negative view of businesses
Assess reputation
Monitor corporate reputation
 Less than half have someone assigned
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Corporate Social Responsibility
Audit
• Undertaken by management
• Organizations need
 Ethical guidelines for all employees
 Code of ethics
 Ethical hotline
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Factors Affecting Corporate Image
Image Destroying
Activities
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Discrimination
Harassment
Pollution
Misleading
communications
o Deceptive
communications
o Offensive
communications
Image Building
Activities
o Empowerment of
employees
o Charitable
contributions
o Sponsoring local events
o Selling environmentally
safe products
o Outplacement
programs
o Support community
events
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Creating a Positive Image
• Cause-related Marketing
• Green marketing
• Pro-environment activities
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Cause-Related Marketing
• Businesses pay over $600 million 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
• Cause liked by one – disliked by another
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Causes Consumers Support
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Improve public schools – 52%
Dropout prevention – 34%
Scholarships – 28%
Cleanup environment – 27%
Community health education – 25%
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Cause-Related Marketing
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Causes should relate to firm’s business.
Good fit important.
Benefits not-for-profit organizations.
Not-for-profits compete for donations.
Publicizing causes
 Public recognizes companies need to benefit.
 Should publicize, but not significant amount.
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Green Marketing
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Consumer survey
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Try to save electricity (58%)
Recycle newspapers (46%)
Return bottles and cans (45%)
Buy products of recycled materials (23%)
Consumers not willing to sacrifice
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Price
Quality
Convenience
Availability
Performance
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Green Marketing Groups
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True Blue Greens (9%)
Greenback Greens (6%)
Sprouts (31%)
Grousers (19%)
Basic Browns (33%)
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Green Marketing Strategy
• What percentage of customers fit into
each green segment?
• Can the brand or company be
differentiated based on green lines and
can it become a competitive advantage?
• Will current customers be alienated by a
green marketing approach?
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Pro-Environment Activities
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Low-key approach
 Coco-Cola
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Publicize product first, pro-environment second
 Prius
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Promote pro-environment
 The Body Shop
 Patagonia
 Honest Tea
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Damage Control Strategies
• Proactive strategies
 Entitling
 Enhancements
• Reactive strategies
 Internet interventions
 Crisis management programs
 Impression management techniques
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Elements of an
Apology Strategy
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An expression of guilt, embarrassment, or regret.
Statement recognizing inappropriate behavior and
acceptance of sanctions because of wrong behavior.
Rejection of the inappropriate behavior.
Approval of the appropriate behavior and a promise
not to engage in the inappropriate behavior again.
An offer of compensation or penance to correct the
wrong.
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Impression Management
• Conscious or unconscious attempt
to control image
• Remedial tactics
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Expression of innocence
Excuses
Justifications
Other explanations
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Sponsorships and Event Marketing
United States
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Sports (68.8%)
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Entertainment, tours, and attractions (9.8%)
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Causes (8.9%)
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Festivals, fairs, and annual events (7.1%)
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Arts (5.4%)
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Sponsorship Objectives
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Enhance corporate image.
Increase firm visibility.
Differentiate a company or brand.
Showcase specific goods or services.
Develop a closer relationship with
current and prospective customers.
• Unload 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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