Marketing-Oriented Public Relations and Sponsorships Chapter Twenty Chapter Twenty Objectives Appreciate the nature and role of marketing public relations (MPR) Understand the differences between proactive and reactive MPR Understand the types of commercial rumors and how to control them Chapter Twenty Objectives Be aware of event sponsorship and how to select appropriate events Recognize the nature and role of cause- oriented marketing Is It Time to Say Goodbye to Advertising? Probably Not! The role that PR (or MPR) should play in a firms 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 companys marketing objectives Offensively oriented and opportunity seeking Proactive MPRReactive MPR The conduct of public relations in response to outside influences Attempt to repair companys 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 publicity cases 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 publicity cases Bridgestone/Firestone Rumors and Urban Legends * Combat a rumor to put it out! * Sponsorship Marketing Involve investments in events or causes for the purpose of achieving various corporate objective 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 Event Sponsorships Ambushing Events When companies that are not official sponsors undertake marketing efforts to convey the impression that they are Cause-Related Marketing (CRM) Cause-Related Marketing Based on the idea that a company will contribute to a cause every time the customer undertakes some action 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 Cause- Related Marketing Yoplaits Save Lids to Save Lives CRM Program Georgia Pacifics Quilts of Inspiration CRM Program for Quilted Northern Ultra 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.