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Chapter Nineteen Marketing Public Relations and Sponsorship Marketing Chapter Nineteen Objectives • Explain the nature and role of marketing public relations (MPR) • Distinguish between proactive and reactive MPR • Understand the types of commercial rumors and how to control them Chapter Nineteen Objectives • Explain event sponsorship and how to select appropriate events • Explain the nature and use of causeoriented marketing Marketing Public Relations Marketing Public Relations (MPR) Marketing-oriented aspect of public relations that is an organizational activity involved with fostering goodwill between a company and its various publics Marketing Public Relations Proactive MPR • Dictated by a company’s marketing objectives • Offensively oriented and opportunity seeking Proactive MPR • The conduct of public relations in response to outside influences • Attempt to repair company’s reputation, prevent market erosion, and regain lost sales Proactive MPR Proactive MPR Widely used forms of publicity in MPR • Product introductions or product revisions • Credibility accounts for the effectiveness • Publicity is the major tool Product releases Executive-statement Feature articles Proactive MPR Product releases Executivestatement Feature articles • Announce new products • Provide relevant information, features and benefit • Audiovisual product releases (video news releases, or VNRs) gained wide usage Proactive MPR Product releases Executivestatement Feature articles • News releases quoting CEOs and other corporate executives • May address a wide variety of issues • Published in the news section • Carry a significant degree of credibility Proactive MPR Product releases Executivestatement Feature articles • Detailed descriptions of products or other newsworthy programs • Written by a PR firm for immediate publications or airing • Inexpensive to prepare Reactive MPR • Often product defects and failures are the factors • Quick and positive responses are imperative Negative publicity cases • Product tampering cases -Tylenol and Sudafed • The Perrier case • The Pepsi Hoax • Coke in Europe Rumors and Urban Legends Commercial rumors Widely circulated but unverified propositions Conspiracy rumors Involve supposed company policies or practices that are threatening or undesirable to consumers Contamination rumors Deal with undesirable or harmful product or store features * Combat a rumor to put it out! * Reactive MPR Johnson & Johnson’s efforts to retain customers using reactive MPR Reactive MPR Old and Proctor and Gamble’s Logos New Reactive MPR Sponsorship Marketing Involve investments in events or causes for the purpose of achieving various corporate objective Event sponsorships Cause-oriented sponsorships Why Growth in Sponsorships • Avoid the clutter inherent in advertising media • Help companies respond to consumers’ changing media habits • Help companies gain the approval of various constituencies • Can enhance brand equity • Enables marketers to target their efforts to geographic regions and/or to lifestyle groups Event Sponsorships Event Sponsorship A form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural , social, or other type of high-interest public activity Selecting Sponsorship Event • Consistent with brand image? • Reach the desired target market? • Has competition ever sponsored the event? • Is the event cluttered? • Compliment existing sponsorships? • Economically viable? Creating Customized Events • Developing its own events rather than sponsoring existing events • Provides a brand total control over the event • Can be more effective but less costly Creating Customized Events The Oscar Mayer Wienermobile Event Sponsorships Ambushing Events When companies that are not official sponsors undertake marketing efforts to convey the impression that they are Event Related Promotion Cause-related marketing illustration Cause-Related Marketing (CPM) Cause-Related Marketing Based on the idea that a company will contribute to a cause every time the customer undertakes some action Benefits of CPM • • • • • • • Enhance corporate or brand image Thwart negative publicity Generate incremental sales Increase brand awareness Broaden customer base Reach new market segments Increase sales at retail level Cause-Related Marketing Cause-related marketing illustration Cause-Related Marketing Cause-related marketing illustration Cause-Related Marketing Cause Related Marketing CRM Cause-Related Marketing Promotion of AIDS awareness Cause-Related Marketing Relevant cause