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Copyright © 2012 Pearson Canada Inc. CHAPTER 14 Public Relations and Event Marketing and Sponsorships 14-1

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Page 1: Copyright © 2012 Pearson Canada Inc. CHAPTER 14 Public Relations and Event Marketing and Sponsorships 14-1

Copyright © 2012 Pearson Canada Inc.

CHAPTER 14

Public Relations and Event Marketing and Sponsorships

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Page 2: Copyright © 2012 Pearson Canada Inc. CHAPTER 14 Public Relations and Event Marketing and Sponsorships 14-1

Copyright © 2012 Pearson Canada Inc.

Learning Objectives

Identify the role of public relations, experiential marketing, and event marketing and sponsorships in achieving organizational objectives.

Describe the various types of public relations activities

Identify the steps involved in the public relations planning process

Continued…

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Page 3: Copyright © 2012 Pearson Canada Inc. CHAPTER 14 Public Relations and Event Marketing and Sponsorships 14-1

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Learning Objectives (cont.)

Assess the usefulness of a variety of public relations tools

Evaluate public relations and event marketing and sponsorships as a communications medium

Identify the unique considerations involved in the planning and evaluation of event marketing programs

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Page 4: Copyright © 2012 Pearson Canada Inc. CHAPTER 14 Public Relations and Event Marketing and Sponsorships 14-1

Copyright © 2012 Pearson Canada Inc.

Public Relations

“The strategic management of relationships between

an organization and its diverse publics through the use

of communication to achieve mutual understanding

realize organizational goals and serve the public

interest.” Course textbook, page 406

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The Publics

PR is sensitive to two different publics:

Employees, distributors, suppliers, shareholders, and regular customers

Media, governments, prospective shareholders, financial community, and community groups

InternalPublicsInternalPublics

ExternalPublicsExternalPublics

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Public Relationsvis à vis Advertising

Public relations is distinguished from advertising in two ways:

Advertising is focused on selling products

Public relations is more focused on corporate image and organizational relationships.

Advertising is controlled and paid for by the subject organization

Public relations is determined by the media.

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PublicityPublicity is one aspect of public relations

the communication of newsworthy information designed to interest the public in a product, service or idea.

Publicity can often be generated around: Launching new products Opening a new store Technological breakthrough Achievement of some milestone

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The Role of Public Relations

Corporate Public Relations Corporate Image building

Advocacy

Crisis Management

Reputation Management

Continued…

The role of public relations is varied but generally falls into six key areas:

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The Role of Public Relations (cont.)

Community Relations & Public Affairs Lobbying Fund Raising

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Page 10: Copyright © 2012 Pearson Canada Inc. CHAPTER 14 Public Relations and Event Marketing and Sponsorships 14-1

Copyright © 2012 Pearson Canada Inc.

Public Relations Planning

A PR plan is dictated by the situation. It can:

Be proactive and carefully set out in advance and be implemented with precision or

Be reactive and only undertaken because of some unforeseen circumstance occurring

The success or failure of a PR plan can impact on the bottom line

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Public Relations Planning

PR planning usually involves five steps:

EvaluateEffectiveness

EvaluateEffectiveness

SituationAnalysisSituationAnalysis

EstablishObjectives

EstablishObjectives

Develop thePR StrategyDevelop thePR Strategy

Execute PlanExecute Plan

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Handling Crisis Situations

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The Tools of Public RelationsDiverse tools exist to execute public relations

programs. Some are used routinely, others periodically.

Media Release Media Conference Websites Social Media Annual Reports (and other publications) Blogs

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Advantages & Disadvantages of Public Relations

Advantages

Credible source of information

Helps to build relationships

Can influence long term sales positively

Disadvantages

Lack of control

Impact not always proportional to cost, effort

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Page 15: Copyright © 2012 Pearson Canada Inc. CHAPTER 14 Public Relations and Event Marketing and Sponsorships 14-1

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Experiential Marketing Creates an emotional connection with a

consumer in personal and memorable ways:

A free sample distributed at an event Event where the brand is the centrepiece of the event

Grey Cup train across Canada last year to promote CFL

A good fit for social media, where consumers willingly allow brands into their worlds

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Event Marketing

Integrating a variety of communication elements to support an event theme.

Financial support of an event in return for advertising privileges.

EventMarketing

EventSponsorship

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Primary Types of Sponsorship

Culture& the Arts

Culture& the Arts

Cultural sponsorships are aimed at a “class” target audience.

SportsSports The largest sponsorship segment (70%), sports reaches a “mass” target audience.

EntertainmentEntertainmentMusic plays a major role in entertainment sponsorships.

Cause-RelatedCause-RelatedPartnership between a company and a non-profit entity for mutual benefit

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Sports Sponsorship

Tend to be dominated by certain industries and manufacturers

Organizations choose between spending locally (inexpensive) or nationally/ internationally (more expensive).

Involvement in sports sponsorship need not be extravagant or conspicuous

Commitment depends on the organization’s marketing objectives.

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Sport Marketing StrategiesSports marketing is extremely competitive so companies look for advantage by any means. Some recent strategies include:

Venue Marketing and Sponsorship

Athlete Sponsorship

“Ambush Marketing”

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Entertainment Sponsorship

Sponsoring concerts and securing famous endorsements, corporations establish a celebrity-company association. Coca-Cola uses entertainment sponsorships to

develop pop-music and youth-lifestyle marketing strategies.

Festivals (film, comedy, music) offer opportunities to reach a cross-section of adult target audiences. Montréal International Jazz Festival attracts GM, TD

Canada Trust, Loto Quebec, and Bell.

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Cultural and Arts Sponsorships

Art and cultural event opportunities embrace dance, film, literature, music, painting, sculpture, and theatre. Effective for companies who prefer to reach a more

selective and upscale audience (e.g., Mercedes). Primary benefit that companies gain from sponsoring

the arts is goodwill from the public.

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Cause Marketing Sponsorship

Partnership between company and a non-profit entity for mutual benefit The relationship between the parties has

significant meaning to consumers CIBC Run fro the Cure (partners are Canadian

Breast Cancer Foundation and CIBC both trying to raise funds to help find a cure for breast cancer

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Strategic Considerations for Event Marketing

“Fit” between the event and the sponsor is essential. It is important to:

Establish selection criteria

Select successful events reaching relevant target

Require category exclusivity

Use sponsorships to complement other promotional activity

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Measuring Event Marketing and Sponsorship Benefits

The following indicators are used to measure the benefits of sponsorship: Awareness Image New Clients Sales Specific Target Reach Media Coverage

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Advantages of Event Marketing & Sponsorship

Target marketing capability

Face-to-face access to customers

Public image enhancement

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Disadvantages of Event Marketing & Sponsorship

Cost of big events

Advertising clutter at events

Ambush marketing (potentially)

Effectiveness hard to measure

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