Public Relations, Sponsorship and Corporate Advertising


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Public Relations, Sponsorship and Corporate Advertising

  1. 1. Public Relations, Sponsorship and Corporate Advertising Business 6210, Winter 2008 Deanne Fisher
  2. 2. Objectives <ul><li>To provide an overview of public relations </li></ul><ul><li>To explore corporate communications </li></ul><ul><li>To examine crisis communications </li></ul><ul><li>To understand marketing public relations </li></ul>
  3. 3. Definition <ul><li>Traditional Definition of PR </li></ul><ul><ul><li>The management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance. </li></ul></ul><ul><ul><li>( Definition by the Public Relation News) </li></ul></ul>
  4. 4. Advantages and Disadvantages <ul><li>Advantages </li></ul><ul><ul><li>Credibility </li></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Avoidance of clutter </li></ul></ul><ul><ul><li>Ability to reach specific groups </li></ul></ul><ul><li>Disadvantages </li></ul><ul><ul><li>Potential for not completing the communications process </li></ul></ul><ul><ul><li>Potential for lack of communication with rest of IMC program </li></ul></ul><ul><ul><li>Timing not completely controllable </li></ul></ul><ul><ul><li>Inaccuracies, omissions, etc. </li></ul></ul>
  5. 5. Overview of Public Relations <ul><li>Public relations </li></ul><ul><ul><li>Important in relationship marketing </li></ul></ul><ul><ul><li>Credibility builder </li></ul></ul><ul><ul><li>Can be focused on corporate brand or product brand </li></ul></ul><ul><li>Types of public relations </li></ul><ul><ul><li>Corporate relations  </li></ul></ul><ul><ul><li>Crisis management  </li></ul></ul><ul><ul><li>Marketing public relations  </li></ul></ul><ul><ul><li>Media relations </li></ul></ul><ul><ul><li>Employee relations </li></ul></ul><ul><ul><li>Financial or investor relations </li></ul></ul>
  6. 6. PR Strategy and Planning <ul><li>Situation Analysis: </li></ul><ul><ul><ul><li>Determine and evaluate public attitudes </li></ul></ul></ul><ul><li>Establish a PR plan </li></ul><ul><ul><li>Define PR problems (based on SA) </li></ul></ul><ul><ul><li>Determine relevant PR audiences </li></ul></ul><ul><ul><ul><li>Internal & External </li></ul></ul></ul><ul><ul><li>Define messages (worthy of public interest) </li></ul></ul><ul><ul><li>Choose PR tools </li></ul></ul><ul><li>Implement the plan </li></ul><ul><li>Evaluate </li></ul><ul><ul><li>Measures of actual PR activities undertaken </li></ul></ul><ul><ul><li>Measures of audience reception and understanding </li></ul></ul><ul><ul><li>Measures of perceptual and behavioral changes </li></ul></ul>
  7. 7. Corporate Relations <ul><li>Corporate advertising = is designed to promote the firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something </li></ul><ul><li>Types </li></ul><ul><ul><ul><li>Corporate identity advertising </li></ul></ul></ul><ul><ul><ul><li>Advocacy advertising </li></ul></ul></ul><ul><ul><ul><li>Social issue advertising </li></ul></ul></ul><ul><ul><ul><li>Cause-related advertising </li></ul></ul></ul><ul><ul><ul><li>Event sponsorships </li></ul></ul></ul><ul><li>Corporate mission and vision </li></ul><ul><li>Corporate image and reputation </li></ul><ul><ul><li>Image is created </li></ul></ul><ul><ul><li>Reputation is earned </li></ul></ul>
  8. 8. Event Sponsorship <ul><li>Objectives </li></ul><ul><li>Criteria </li></ul><ul><ul><li>Consistency with brand image </li></ul></ul><ul><ul><li>Access to target audience </li></ul></ul><ul><ul><li>Low risk of sponsor misidentification </li></ul></ul><ul><ul><li>Low clutter </li></ul></ul><ul><ul><li>Fit with other sponsorships, marcoms </li></ul></ul><ul><ul><li>Economically viable </li></ul></ul><ul><li>Ambush marketing </li></ul><ul><li>Evaluation </li></ul>
  9. 9. Crisis Management <ul><li>Crises we can learn from: </li></ul><ul><ul><li>Tylenol (1982) </li></ul></ul><ul><ul><li>Exxon Valdez (1989) </li></ul></ul><ul><ul><li>NYC 9/11 (2001) </li></ul></ul>
  10. 10. Crisis Management <ul><li>Advice from the experts </li></ul><ul><ul><li>Be realistic. Crises happen. Plan for them. </li></ul></ul><ul><ul><li>Only designated executives should talk to the media </li></ul></ul><ul><ul><li>Explain what happened as you understand it </li></ul></ul><ul><ul><li>Tell what the company is doing to minimize the damage </li></ul></ul><ul><ul><li>Express sympathy and concern for injured parties and their families </li></ul></ul><ul><ul><li>Do not admit liability without knowing all the facts (which can take weeks or months to gather) </li></ul></ul>
  11. 11. Marketing Public Relations <ul><li>Involves an organization’s interactions with consumers </li></ul><ul><li>Proactive MPR </li></ul><ul><li>Reactive MPR </li></ul>
  12. 12. Proactive MPR <ul><li>MPR adds value to IMC by: </li></ul><ul><ul><li>Building excitement before media advertising breaks </li></ul></ul><ul><ul><li>Creating advertising news when there is no product news </li></ul></ul><ul><ul><li>Introducing a product with little or no advertising </li></ul></ul><ul><ul><li>Providing value-added customer service </li></ul></ul><ul><ul><li>Building brand-to-customer bonds </li></ul></ul><ul><ul><li>Influencing opinion leaders </li></ul></ul><ul><ul><li>Defending products at risk and giving consumers a reason to buy </li></ul></ul>
  13. 13. Reactive MPR <ul><li>Negative product publicity </li></ul><ul><ul><li>Product defects and failures </li></ul></ul><ul><ul><li>Product tampering </li></ul></ul><ul><ul><li>Rumors </li></ul></ul><ul><ul><ul><li>Conspiracy rumors </li></ul></ul></ul><ul><ul><ul><li>Contamination rumors </li></ul></ul></ul><ul><ul><li>Persistent rumors (all false) </li></ul></ul><ul><ul><ul><li>Procter & Gamble </li></ul></ul></ul><ul><ul><ul><li>Kentucky Fried Chicken </li></ul></ul></ul><ul><ul><ul><li>Corona </li></ul></ul></ul>
  14. 14. Rumors and Rumor Control <ul><li>Dealing with rumors: Don’t overreact </li></ul><ul><ul><li>Alert procedure </li></ul></ul><ul><ul><li>Evaluation </li></ul></ul><ul><ul><li>Decide whether to go public – judgment call </li></ul></ul><ul><ul><li>Media campaign (if necessary) </li></ul></ul>
  15. 15. Corporate Hate Sites <ul><li>Get there first </li></ul><ul><ul><li>Buy the URLs for the company name followed by the word &quot;; </li></ul></ul><ul><li>Fix the problem </li></ul><ul><li>Tell your side of the story </li></ul><ul><li>Sue? </li></ul><ul><ul><li>Does not usually work </li></ul></ul>
  16. 16. Summary <ul><li>PR is highly credible, but not very controllable, and, as its name indicates, is focused on building and maintaining relationships, an essential aspect of IMC </li></ul><ul><li>Corporate advertising is controversial area –questionably effective – but corporate relations in general is very important in IMC </li></ul><ul><li>A crisis management plan is important and can have huge effects on organizational reputation </li></ul><ul><li>MPR can be both proactive and reactive, and is focused on the brand, rather than the organization </li></ul>