Chapter Twenty Marketing-Oriented Public Relations and Sponsorships

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2007 Thomson South-Western

Is It Time to Say Goodbye to Advertising? Probably Not! • The role that PR (or MPR) should play in a firm’s marcom program has been the subject of much debate.

• Creative and powerful public relations can introduce new products with very little advertising involved. • Works best for products that are new and innovative and can capture the attention of the media.

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 various publics.

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 introductions or product revisions • Credibility accounts for the effectiveness • Publicity is the major tool

Product releases Executive-statement Feature articles

Proactive MPR

Product releases Executive statement

• Announce new products • Provide relevant information, features and benefit • Audiovisual product releases (video news releases, or VNRs) gained wide usage

Feature articles

Proactive MPR

Product releases Executive statement 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 Executive statement

• 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

• Often product defects and failures are the factors • Quick and positive responses are imperative

Negative publicity cases

• Product tampering cases -Tylenol and Sudafed • The Perrier case • The Pepsi Hoax • Coke in Europe

Reactive MPR

Negative publicity cases

• Coke and Pepsi In India • Corporate Response and Crisis Management Bridgestone/Firestone

Rumors and Urban Legends

Commercial rumors Widely circulated but unverified propositions Conspiracy rumors Contamination rumors Involve supposed company policies or practices that are threatening or undesirable to consumers Deal with undesirable or harmful product or store features * Combat a rumor to put it out! *

Sponsorship Marketing

Involve investments in events or causes for the purpose of achieving various corporate objectives

Event sponsorships Cause-oriented sponsorships

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 brand equity • Enables marketers to target their efforts to geographic regions and/or to lifestyle groups

Event Sponsorships

Event Sponsorship A form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social, or other type of high-interest public activity

Selecting Sponsorship Events

• Consistent with brand image?

• Reach the desired target market?

• Has competition ever sponsored the event?

• Is the event cluttered?

• Compliment existing sponsorships?

• Economically viable?

Creating Customized Events

• Developing its own events rather than sponsoring existing events • Provides a brand total control over the event • Can be more effective but less costly • E.g. Kibbles ‘n Bits brand dog food

Event Sponsorships

Ambushing Events When companies that are not official sponsors undertake marketing efforts to convey the impression that they are e.g. “Nothing Official About it”

Cause-Related Marketing

Based on the idea that a company will contribute to a cause every time the customer undertakes some action Amalgam of Promotions, PR and corporate philanthropy

Benefits of Cause Related Marketing

• 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

Cause Related Marketing Yoplait’s Save Lids to Save Lives CRM Program

Fit

It is important to fit the brand to a cause that is naturally related to its benefits, image and attributes

Accountability

Brand marketers are obligated to show their CRM efforts yield sufficient returns on investment or achieve other non-financial objectives.