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Prof. (Dr.) Kao Kveng Hong, Ph.D. D. Litt 13-1

Chapter -20

Public Relationsand

Sponsorship Programs

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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Public Relations and

Sponsorship Programs

13•Public relations

–Public relations functions

–Stakeholders

–Assessing corporate reputation

–Social responsibility

–Damage control

•Sponsorships

•Event marketing

Chapter Overview

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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

F I G U R E 1 3 . 1

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Public Relations Functions

• Employees

• Unions

• Shareholders

• Channel

members

• Customers

• Media

• Local community

• Financial community

• Government

• Special-interest

groups

F I G U R E

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1 3 . 2

Stakeholders

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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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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Employees need to be

aware of what is being

said in advertisements

and on the Internet.

Motorola’s Web site

Http://www.motorola.com

Internal Stakeholders

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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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Corporate Social

Responsibility Audit

• Undertaken by management

• Organizations need

• Ethical guidelines for all employees

• Code of ethics

• Ethical hotline

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Image Destroying

Activities

oDiscrimination

oHarassment o

Pollution

oMisleading communications o

Deceptive communications

o Offensive communications

Image Building

Activities

oEmpowerment ofemployees

oCharitable contributions o

Sponsoring local events o

Selling environmentally

safe products

o Outplacement programs

o Support community events

F I G U R E 1 3 . 3

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Examples of Activities that Affect a Company’s Image

Corporate Social Responsibility Audit

Creating a Positive Image

• Cause-related marketing

• Green marketing

• Pro-environment

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Cause-Related Marketing

• Businesses pay over $600 million incause-related marketing

• Consumer studies:

• Nearly 50% switch brands, increase usage, try new brand

• 46% felt better about using product whencompany supported a particular cause

• Cause liked by one – disliked by another

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Salvation Army

Click here to play ad.

A radio advertisement

encouraging support of the

Salvation Army.

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YWCA Web site: http://www.ywca.org

• Improve public schools (52%)

• Dropout prevention (34%)

• Scholarships (28%)

• Clean-up environment (27%)

• Community health education (25%)

F I G U R E 13 . 4

Causes Consumers Prefer

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McDonald’s 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 firm’s 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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F I G U R E 1 3 . 5

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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.

Green Marketing Strategy?

1) What percentage of customers fits into green segments?

2) Can brand or company be differentiatedbased on green lines and become acompetitive advantage?

3) Will current target market be alienatedwith 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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Damage-Control Strategies

• Proactive Strategies

• Entitling

• Enhancements

• Reactive Strategies

• Internet interventions

• Crisis management programs

• Impression management techniques

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F I G U R E 1 3 . 6

Elements of an Apology Strategy

1. An expression of guilt, embarrassment, or regret.

2. Statement recognizing inappropriate behavior and acceptance of sanctions because of wrong behavior.

3. Rejection of the inappropriate behavior.

4. Approval of the appropriate behavior and apromise not to engage in the inappropriatebehavior again.

5. An offer of compensation or penance tocorrect the wrong.

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F I G U R E 1 3 . 7

A Crisis Management Technique

Impression Management

• Conscious or unconscious attempt

to control image

• Remedial tactics

• Expression of innocence

• Excuses

• Justifications

• Other explanations

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Intel’s Response to a Crisis

In 1994, a glitch in Intel’s

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

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

Causes, 8.9%

Sports, 68.8%

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Arts, 5.4%

Festivals, fairs and

annual events, 7.1%

Entertainment, tours,

and attractions, 9.8%

Event Marketing and Sponsorships

Canada

Source: “How Big Is the Canadian Sponsorship Pie?” The Sponsorship Report

(Http://www.sponsorship.ca/p-issues-howbig.html)

Sports (45%)

Cultural Events (20%)

Education (10%)

Health (10%)

Humanitarian (10%)Environment (2.5%)

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What is the likelihood that a fan

will buy a sponsor’s product?

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

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

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• NASCAR 72%

• Tennis 52%

• Golf 47%

• NBA 38%

• NFL 36%

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

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall 13-29

Sponsoring Individuals

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

What attributes do sponsors look for in

endorsing an individual such as Tiger Woods?

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• Name recognition 68%

• Current popularity 56%

• Overall image 53%

• Character 51%

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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