BA323 Lecture on PR and Sponsorships Fall 2010

Marketing Public Relations and Sponsorship Marketing Public Relations Audiences for Public Relations? 22 Marketing Public Relations Marketing Public Relations (MPR) Marketing-oriented aspect of public relations that is an organizational activity involved with fostering goodwill between a company and its consumers Marketing Public Relations Proactive MPR • Dictated by a company’s marketing objectives • Offensively oriented and opportunity seeking Reactive MPR • The conduct of public relations in response to outside influences • Attempt to repair company’s reputation, prevent market erosion, and regain lost sales Proactive MPR Proactive MPR Widely used forms of publicity in MPR Product releases Executive-statement Feature articles Proactive MPR Product releases Executivestatement Feature articles • Announce new products • Provide relevant information, features and benefit • Audiovisual product releases (video news releases, or VNRs) gained wide usage Proactive MPR Product releases Executivestatement Feature articles • News releases quoting CEOs and other corporate executives • May address a wide variety of issues • Published in the news section • Carry a significant degree of credibility Proactive MPR Product releases Executivestatement • Detailed descriptions of products or other newsworthy programs • Written by a PR firm for immediate publications or airing • Inexpensive to prepare Feature articles Reactive MPR Negative publicity cases Examples ??? • Great example of Reactive MPR (a brand manager’s nightmare?): Reactive MPR Negative publicity cases • Product tampering cases -Tylenol and Sudafed • The Perrier case • The Pepsi Hoax • Rumors 13 Reactive MPR 14 Reactive MPR Exercise Negative publicity case • You are owner of a campus restaurant • Rumor: Rat found in your food • How you handle this??? 15 Sponsorship Marketing Event sponsorships Cause-related marketing 16 Why Growth in Sponsorships • Avoid the clutter inherent in advertising media • Help companies respond to consumers’ changing media habits • Help companies gain the approval of various constituencies • Can enhance a brand’s equity • Enables marketers to target their efforts to geographic regions and/or to lifestyle groups 17 Event Sponsorships Event Sponsorship 18 Event Sponsorships McDonald’s List sponsorship options that offer the opportunity to build McDonald’s image as fitting into a healthy lifestyle 19 Event Sponsorships Denny’s Sponsorship Harlem Globetrotters WHY?? 21 Selecting Sponsorship Event • • • • • Consistent with brand image? Reach the desired target market? Has competition ever sponsored the event? Is the event cluttered? Compliment your existing sponsorships and fit other marcom programs? • Economically viable? 22 Event Sponsorships Ambushing Events 23 Cause-Related Marketing (CRM) Cause-Related Marketing 24 Event Related Promotion 25 Benefits of CRM • • • • • • • Enhance corporate or brand image Thwart negative publicity Generate incremental sales Increase brand awareness Broaden customer base Reach new market segments Increase sales at retail level 26 Cause-Related Marketing Cause-related marketing illustration Cause-Related Marketing Cause Related Marketing CRM 28 ... relations in response to outside influences • Attempt to repair company’s reputation, prevent market erosion, and regain lost sales Proactive MPR Proactive MPR Widely used forms of publicity in MPR... Event Sponsorships Event Sponsorship 18 Event Sponsorships McDonald’s List sponsorship options that offer the opportunity to build McDonald’s image as fitting into a healthy lifestyle 19 Event Sponsorships. .. existing sponsorships and fit other marcom programs? • Economically viable? 22 Event Sponsorships Ambushing Events 23 Cause-Related Marketing (CRM) Cause-Related Marketing 24 Event Related Promotion