2007 Thomson South-Western

Marketing-Oriented Public Relations and

Sponsorships

Chapter Twenty

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

• Dictated by a company’s marketing objectives

• Offensively oriented and opportunity seeking

Proactive MPR 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

• Product introductions or product revisions

• Credibility accounts for the effectiveness

• Publicity is the major tool

Product releases

Executive-statement

Feature articles

Proactive MPR Widely used forms of publicity in MPR

• Announce new products• Provide relevant

information, features and benefit

• Audiovisual product releases (video news releases, or VNRs) gained wide usage

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

Feature articles

• Detailed descriptions of products or other newsworthy programs

• Written by a PR firm for immediate publications or airing

• Inexpensive to prepare

Proactive MPR

Product releases

Executive-statement

Feature articles

Reactive MPR

• Product tampering cases -Tylenol and Sudafed

• The Perrier case• The Pepsi Hoax• Coke in Europe

Negative publicitycases

• Often product defects and failures are the factors

• Quick and positive responses are imperative

Reactive MPR

• Coke and Pepsi In India

• Corporate Response and Crisis Management

Negative publicitycases

Bridgestone/Firestone

Rumors and Urban LegendsCommercial rumors

Widely circulated but unverified propositions

Conspiracy rumors

Involve supposed company policies or practices that are threatening or undesirable to consumers

Contamination rumors

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

AccountabilityBrand marketers

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