Public Relations and Sponsorship Programs

1. Public Relations and Sponsorship Programs Chapter 12

2. 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.

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

4. Cause-Related Marketing This approach has many benefits: • Intangible elements - goodwill • Increased business • Can create a favourable image of the business

5. Businesses pay over $600 million (US) 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 – eg. Fair trade coffee, M&M promotion Cause liked by one – disliked by another Cause-Related Marketing

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

7. What’s Happening? • http://www.youtube.com/watch?v=vJSMNIRH-Pg&feature=related • http://www.youtube.com/watch?v=BhiSuX3HmFM • http://www.youtube.com/watch?v=9sqhwRj_SDI&feature=related Sheep Herding • http://www.youtube.com/watch?v=D2FX9rviEhw Condon Contest • http://www.onedesigncontest.com/designone.htm • Old Dora, New Dora - INSANE! • http://www.afterellen.com/blog/dorothysnarker/dora-the-explorer-discovers-new-look-lip-gloss

8. Discrimination Harassment Pollution Misleading communications Deceptive communications Offensive communications Labour laws – GAP Inc. 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 2. 3 Examples of Socially Responsible Activities Image Destroying Activities Image Building Activities

9. Image Destroying Activities – an example • http://www.youtube.com/watch?v=OVKlFT58Zwc&feature=related

10. F I G U R E 1 2 . 6 Damage Control • Reactive Strategies • Crisis Management • Apology • Defense of innocence -http://www.gap.com/ • Excuses • Justifications • Other explanations • Proactive Strategies • Entitling • Enhancements • Internet interventions

11. Survey concerning green marketing Try to save electricity (58%) Recycle newspapers (46%) Return bottles and cans (45%) Buy products –recycled materials (23%) Consumers not willing to sacrifice Price Quality Convenience Availability Performance Green Marketing –a rallying cause?

12. Environmental Responsibility McDonald’s has made a substantial commitment to the so-called “green movement.”

13. F I G U R E 1 2 . 5 U.S. Consumer’s Segmented on Their Attitudes Toward Support of Green Marketing • True Blue Green (9%) – Have strong environmental values and are politically active in environmental issues. Heavy users of green products. • Greenback Greens (6%) – Have strong environmental values, but are not politically active. Heavy users of green products. • Sprouts (31%) – Believe in green products in theory, but not in practice. Will buy green products, but only if equal to or superior to non-green products. • Grousers (19%) – Are uneducated about environmental issues and cynical about their ability to effect change. Believe green products are too expensive and inferior. • Basic Browns (33%) – Do not care about environmental issues or social issues. Source: Jill Meredith Ginsberg and Paul N. Bloom, “Choosing the Right Green Marketing Strategy,” MIT Sloan Management Review, Vol. 46, No. 1 (Fall 2004), pp. 79-84.

14. 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:

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

17. Sponsorship Programs Objectives: • Enhance company image • Increase visibility • Showcase a product • To develop new customer relationships • To get rid of excess inventory

18. Event Marketing and SponsorshipsCanada Environment (2.5%) Humanitarian (10%) Health (10%) Sports (45%) Education (10%) Cultural Events (20%) Source: “How Big is the Canadian Sponsorship Pie?” The Sponsorship Report (Http://www.sponsorship.ca/p-issues-howbig.html)

19. Event Marketing and SponsorshipsUnited States Arts & Cultural Events $354 million (6%) Causes $535 million (9%) Festivals & Fairs $558 million (9%) Sports Marketing $3.84 billion 65% Entertainment Tours $650 million (11%) Source: “Event Marketing/Sponsorships,” Public Relations Society of America

20. Approaches to Sponsorships A firm may choose to: 1. Sponsor an individual • Sponsor an event • Other • Specific group • Real Property

21. Sponsoring an Individual What attributes do sponsors look for in endorsing an individual such as Tiger Woods? • Name recognition • Current popularity • Overall image • Character

22. Sponsoring an Event Many factors to consider: • Determine objective(s) • Match event with customers • Cross-promote event • Maintain a consistent theme • Track results • Evaluate investment of event, and against other IMC tools