Clow IAPMC9 PPT 13

Integrated Advertising, Promotion, and
Marketing Communications
Ninth Edition
Chapter 13
Public Relations and
Sponsorship Programs
Copyright © 2022, 2018, 2016 Pearson Education, Inc. All Rights Reserved
Chapter Objectives (1 of 2)
13.1 What relationships exist between public relations and
the marketing activities a company performs?
13.2 How can public relations functions build better
relationships with internal and external stakeholders?
13.3 What positive, image-building programs can
companies feature as parts of a public relations program?
13.4 What steps might companies take to prevent or
reduce image damage when negative events occur?
Chapter Objectives (2 of 2)
13.5 How can marketers tie sponsorships to public relations
efforts to strengthen a customer base?
13.6 How might event marketing create customer
excitement and brand loyalty?
13.7 How do companies adapt public relations programs,
sponsorships, and event marketing to international
settings?
Chapter Overview
• Public relations
– Public relations functions
– Stakeholders
▪ Assessing reputation
▪ Social responsibility
▪ Damage control
• Sponsorships
• Event marketing
Racism and Public Relations
• Racially charged incidents
call for immediate
organizational response
• Even well-intentioned
efforts can go awry
• Individual sensitivities are
heightened
• Social media and other PR
tools key in maintaining
corporate image
Internal versus External Public Relations
• Key decision: Will PR
activities be managed by
an internal officer or
outside agency?
• Working with an agency:
– Develop trust
– Clearly spell out
expectations
Public Relations Tools
• Public relations tools
– Goal → hits, or mention of company’s name
– Develop PR strategy that fits with IMC
– Strengthen company voice
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
Identifying Stakeholders
• Have a vested interest
• Internal stakeholders
– Employees powerful channel
– Receive constant communications
– Work with HR department
• External stakeholders
– Company has little or no influence
– Unplanned contact points
Figure 13.2: Stakeholders
• Employees • Media
• Unions • Local community
• Shareholders • Financial community
• Channel members • Government
• Customers • Special-interest groups
Assessing Corporate Reputation
• Corporate reputation is fragile and valuable
• Scandals have reduced consumer confidence
• Assess and manage reputation
• Monitor corporate reputation
– Fewer than half have someone assigned
Figure 13.3: Activities that Affect a
Company’s Image
Image-Destroying: Image-Building:
• Discrimination • Empowerment of employees
• Harassment • Charitable contributions
• Pollution • Sponsoring local events
• Misleading communications • Selling environmentally safe
products
• Deceptive communications
• Outplacement programs
• Offensive communications
• Supporting community events
Questions to Consider (1 of 2)
• Reviewing Figure 13.3, think of recent corporate activities
in the news that have:
– Destroyed the company’s image
– Built up the company’s image
• Has the company’s image now recovered?
• If the company’s image was destroyed, which image-
building activities might it undertake to re-establish itself?
Corporate Social Responsibility
• Obligation to be ethical
• Corporate transparency
• Fight injustice
• Drive positive social
change
• Purpose marketing (Pro-
social marketing)
Creating Positive Image-Building
Activities
• Cause-related marketing
• Green marketing and pro-
environmental activities
• Draw positive attention to
the organization
• PR department uses
press releases, press
conferences
Cause-Related Marketing (1 of 2)
• Partnership with charity
• Businesses invest billions annually
• Most consumers are:
– likely to purchase a brand associated with a cause
they care about
– willing to pay more for a brand associated with a
cause they care about
• Causes should support business-related issues
Cause-Related Marketing (2 of 2)
• Benefits to non-profit organizations
– Provides funds in competitive environment
– Positive publicity
• Companies must balance amount of publicity
• Many consumers remain skeptical of motives
Green Marketing and Pro-Environmental
Activities
• Development of environmentally safe products
• A consumer survey revealed that:
– 58% try to save electricity
– 46% recycle newspapers
– 45% return bottles or cans
– 23% buy products from recycled materials
• Consumers will buy green only when all things equal
Should a firm engage in green
marketing?
• What percentage of
customers fits into green
segments?
• Can brand or company
differentiate to create a
competitive advantage?
• Will current target market
be alienated by a green
marketing approach?
Promoting Green Activities
• Promotion of green efforts varies widely
• Promote product first, environmental benefit second
• Create green products within brand line
• Integrate activities into overall business design
• Avoid “greenwashing”
Preventing or Reducing Image Damage
• Damage control
• Negative publicity and events
• Bad news travels fast
• Two situations
– Firm has made an error
– Unjustified or exaggerated negative press
• Two strategies
– Proactive prevention strategies
– Reactive damage-control strategies
Figure 13.4: Damage Control Strategies
• Proactive Strategies
– Entitlings
– Enhancements
• Reactive Strategies
– Internet interventions
– Crisis management programs
– Apology strategy
– Impression management techniques
Proactive Prevention Strategies
• Entitlings claim
responsibility for positive
outcomes
• Enhancements attempt to
increase impact of
desirable outcome
Figure 13.5: Reactive Damage-Control
Strategies
• Internet interventions
• Crisis management programs
• Apology strategies
• Impression management
Internet Interventions
• Use internet to react
• Consumers can injure company reputation quickly
• Assign employees to monitor online communications
– Involves hundreds of posts per day
– Watch for trends, increased chatter
– Must choose which warrant a reaction
• Provides information on what people say and think
Crisis Management
• Crisis can be viewed as problem or opportunity
• PepsiCo – hypodermic needles case
– Speedy, factual response
– Used photos, videos to prove hoax
• Toyota – quality control issues
– Denied problems
– Launched full-scale PR campaign
– Social media PR
Apology Strategies
• Reactive form of crisis management
• Works when firm is at fault
• Used when violation is minor
• Firm cannot deny responsibility
• Effective for creating emotional bond
• Admit fault immediately
Figure 13.6: Elements of an Apology
Strategy
1. An expression of guilt, embarrassment, or regret
2. A 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 a promise not
to engage in the inappropriate behavior again
5. An offer of compensation or penance to correct the
wrong
Questions to Consider (2 of 2)
• Can you think of any instances in which a company
followed the apology strategy described in Figure 13.6?
• What was your reaction to the apology? What made it
effective or ineffective in your mind?
• After this type of apology, are you likely to do business
again with this company? Explain your thinking.
Impression Management
• Conscious or unconscious attempts to control image
• Work to maintain or enhance image by influencing
identity displayed to others
• Try to reduce or minimize negative impact on image
– Expression of innocence
– Excuses
– Justifications
– Other explanations
The Coronavirus Challenge
• Coronavirus outbreak created unique challenges for
companies
• Major goals:
– Public reassurance
– Presenting strong corporate image
• Need to address both positive and negative performance
Sponsorships
• Enhance brand loyalty
and positive feelings
toward company
• Enables prospects,
customers, vendors,
others to gather
• Positive attitudes about
activity transfer to funding
company
Forms of Sponsorships
• Sponsorship marketing
• Examples:
– Little League baseball,
soccer teams
– National music tours
– NASCAR drivers
– Sports stadiums
• $21 billion per year in
North America
Social Media and Blogs
• Sponsorship of bloggers
• Example: Classy Mommy (classymommy.com)
• Lucrative business for some bloggers
Sponsorship 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
Event Marketing
• Sponsor of specific event
• Closely related to lifestyle
marketing
• Brand-name recognition
• Closer ties with
customers and vendors
• Boosts employee morale
Figure 13.7: Steps in Selecting a
Sponsorship or Event
1. Determine objectives
2. Match the audience to company’s target market
3. Promote the sponsorship or event
4. Advertise at the event
5. Track results
Determining Objectives
• Outline communication objectives first
• Internally oriented objectives
– Increase employee involvement
– Boost morale
• Externally oriented objectives:
– Maintaining market share
– Building stronger brand presence
– Increasing sales
Matching the Audience to the Company’s
Target Market
• Match audience profile
with target market
• Consider how participant
or group image relates to
firm’s image
Promoting and Advertising at the Event
• Use advertising and
public relations releases
to promote event
• Place company name and
logo in all ads, brochures
• Company name should
get prominent attention
Tracking Results
• Some events and sponsorships turn out better than
others
• Marketing team tracks sales and number of:
– Literature pieces given to attendees
– Samples distributed
– Visitors to sponsor’s display booth
• Brand awareness, brand image before and after event
Cross Promotions
• Tie together companies and activities around specific
theme
• Cross-promotion with event sponsor or other companies
boost sponsorship impact
• Sponsorship programs and event marketing more popular
over last decade
• Potential to reach customers in personalized way
International Implications
• PR increasingly valuable in international arena
– Growing number of international firms
– Impact of terrorism
– Cultural differences
• Corporate social responsibility has no boundaries
• Many sponsorships contain international flavor
• Sports important in international sponsorships
Your Career: Public Relations
• Assess your reputation, image among various publics
• Build on strengths and improve weaknesses
• Work on image-building activities
• If necessary:
– utilize damage-control strategies
– Employ reactive strategies
– Use apology strategy
Blog Exercises
• Interstate Batteries
• McDonald’s Scholarship Program
• Organic Valley
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