What’s Happening?

1. What’s Happening? • Projects • http://www.greenpeace.org/international/en/campaigns/climate-change/cool-it/ITs-carbon-footprint/Facebook/ • https://www.youtube.com/watch?v=S4lNgXQPyCg • https://www.youtube.com/watch?v=VUYUvY6quE0

2. Public Relations and Sponsorship Programs Chapter 10

3. Public Relations • To provide information to the public that reinforces a firms positioning and image. • Can be used to change the public’s perception of a firm. • This can be done internally or by an external firm.

4. F I G U R E 1 3 . 1 Public Relations Functions • Identify internal and external stakeholders • Assess the corporate reputation • Audit corporate social responsibility • Create positive image-building activities • Prevent or reduce image damage

5. Public Relations Tools • Newsletters • Media news releases - positive or negative • Websites • Special events – sometimes tied to a cause • Annual reports

6. Approaches to Public Relations • Altruistic activities e.g. internally geared approach • Cause-related marketing e.g. externally geared approach - charities, non-profit associations, etc.

7. Cause-Related Marketing This approach has many benefits: • Intangible elements – goodwill and top of mind • Increased business • Can create a favourable image of the business/firm • Can change consumers perceptions of the firm e.g., Wal-Mart - sustainability consortium

8. Consumer studies show that: 78% of consumers are more likely to purchase a brand associated with a cause they care about. 54% would be willing to pay more for a brand that is associated with a cause they care about – e.g. Fair trade coffee 66% would switch to support a particular cause 84% indicate that cause-related marketing creates a more positive image of a company. One issue with this approach is that a cause liked by one – disliked by another Cause-Related Marketing

9. F I G U R E 10 . 3 Causes Consumers Prefer • Improve public schools (52%) • Dropout prevention (34%) • Scholarships (28%) • Clean-up environment (27%) • Community health education (25%) YWCA Web site: http://www.ywca.org

10. McDonald’s reminded the public of its support for the Olympics with a series of advertisements.

11. However consumers are not always willing to sacrifice: Price Quality Convenience Availability and Performance to become “Green” Green Marketing –a rallying cause?

12. Discrimination Harassment Pollution Misleading communications Deceptive communications Offensive communications http://shine.yahoo.com/work-money/ford-apologizes-over-sexist-ads-using-cartoons-of-bound-and-gagged-women-142842233.html Labour laws 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 F I G U R E 1 0. 2 - edited Examples of Socially Responsible/Irresponsible Activities Image Destroying Activities Image Building Activities

13. Offensive Communications - Ford

14. Offensive Communications - Ford

15. F I G U R E 1 0 . 7 Damage-Control Strategies • Proactive Strategies • Entitling – claim responsibility for positive outcomes • Enhancements – creating desirable outcome in public’s eye • Reactive Strategies • Internet interventions • Crisis management programs • Apology Strategy • Impression management techniques

16. 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 firm’s efforts – more and more popular. Positive and Socially Responsible Marketing To maximize positive impact:

17. Public Relations Strengths Weaknesses Relative Loss of Control Measurement Difficulties (Effectiveness) • Reaching Elusive Audiences • Image and Reputation Management • Credibility • Relatively Low Cost