13

Chapter Thirteen

Public Relations
and

Sponsorship Programs
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13

Harry Potter
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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13-2

13

Public Relations and

Sponsorship Programs
Chapter Overview
Public relations
Public relations functions
Stakeholders
Assessing corporate reputation
Social responsibility
Damage control

Sponsorships
Event marketing
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13-3

FIGURE

13.1

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

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13-4

FIGURE 13.2
Stakeholders

Employees
Unions
Shareholders
Channel
members
Customers

Media
Local community
Financial community
Government
Special-interest
groups

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13-5

Public Relations
Public relations department
Separate entity
Part of marketing department
Department of Communications

Internal versus external agency

Public relations tools
Goal hits
Develop PR strategy that fits with IMC
Monitor actions and opinions

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13-6

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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13-7

Internal Stakeholders
Employees need to be
aware of what is being
said in advertisements
and on the Internet.

Motorolas Web site

Http://www.motorola.com
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13-8

Assessing
Corporate Reputation

Reputation is fragile, but valuable

Negative view of businesses
Assess reputation
Monitor corporate reputation
Less than half have someone assigned

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13-9

Corporate Social
Responsibility Audit
Undertaken by management
Organizations need
Ethical guidelines for all employees
Code of ethics
Ethical hotline

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FIGURE

13.3

Examples of Activities that Affect a Companys Image

Image Destroying
Activities
o
o
o
o
o
o

Discrimination
Harassment
Pollution
Misleading communications
Deceptive communications
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

Corporate Social Responsibility Audit

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Creating a Positive Image

Cause-related marketing
Green marketing

Pro-environment

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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

Copyright 2010 by Pearson Education, Inc. publishing as Prentice Hall 13-13

Salvation Army
A radio advertisement
encouraging support of the
Salvation Army.
Click here to play ad.

Copyright 2010 by Pearson Education, Inc. publishing as Prentice Hall 13-14

FIGURE

13 . 4

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

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McDonalds reminded the public of its

support for the Olympics with a series of
advertisements.

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Cause-Related Marketing

Cause should relate to firms business

Good fit important
Benefits not-for-profit organization
Not-for-profit organizations compete for
dollars
Publicizing causes
Public recognizes companies need to benefit
Should publicize, but not significant amount

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Green Marketing
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
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FIGURE

13.5

U.S. Consumers 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.

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Green Marketing Strategy?

1) What percentage of customers fits into
green segments?
2) Can brand or company be differentiated
based on green lines and become a
competitive advantage?
3) Will current target market be alienated
with green marketing approach?

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Pro-Environment Activities
Low-key approach
Coca-Cola

Publicize product first, pro-environment second

Prius

Promote pro-environment
The Body Shop
Patagonia
Honest Tea

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FIGURE

13.6

Damage-Control Strategies

Proactive Strategies
Entitling
Enhancements

Reactive Strategies
Internet interventions
Crisis management programs
Impression management techniques

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FIGURE

13.7

Elements of an Apology Strategy

1.
2.

3.
4.

5.

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.
A Crisis Management Technique
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Impression Management
Conscious or unconscious attempt
to control image
Remedial tactics

Expression of innocence
Excuses
Justifications
Other explanations

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Intels Response to a Crisis

In 1994, a glitch in Intels
microprocessors was made
public. Not only did Intel
avoid a crisis, they actually
benefited from the glitch.
Click icon for video.

After listening to Dennis

Carter, discuss why you
think Intel was able to
benefit from this crises
rather than suffer damage
to their brand.

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Sponsorships and Event Marketing

United States
Arts, 5.4%
Festivals, fairs and
annual events, 7.1%
Entertainment, tours,
and attractions, 9.8%

Causes, 8.9%

Sports, 68.8%

Source: Events & Sponsorships, Marketing News, Vol. 38, No. 2 (July 15, 2004), p. 18.
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Event Marketing and Sponsorships

Canada
Humanitarian (10%)

Environment (2.5%)

Health (10%)

Education (10%)

Sports (45%)

Cultural Events (20%)

Source: How Big Is the Canadian Sponsorship Pie? The Sponsorship Report
(Http://www.sponsorship.ca/p-issues-howbig.html)
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What is the likelihood that a fan

will buy a sponsors product?

NASCAR
Tennis
Golf
NBA
NFL

72%
52%
47%
38%
36%

Source: Event Marketing/Sponsorships, Public Relations Society of America

(Http://www.prsa.org/ppc/68022.html)
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Sponsorship Marketing
Objectives

Enhance company 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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Sponsoring Individuals
What attributes do sponsors look for in
endorsing an individual such as Tiger Woods?

Name recognition
Current popularity
Overall image
Character

68%
56%
53%
51%

Source: Event Marketing/Sponsorships, Public Relations Society of America

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To Maximize Event Marketing

Determine objective
Match event with customers, vendors, and employees
Cross-promote event
Include company in all event advertising and brochures
Track results
Evaluate the investment following the event

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