m

1. 13-1
Public Relations, Regulations
and Sponsorship Programs
13
•Public relations
–Role of public relations
–Social responsibility
•Regulating marketing
communication
–Federal Trade Commission
–Industry regulations
•Sponsorship marketing
Chapter Overview

2. 13-2
Sponsorships and
Causes
• What do you think about the WWF
and the companies that sponsor it?
• Should companies be involved in
sponsoring sporting events, rodeos
and music events?
• Should companies contribute or
participate in social causes such as
the American Cancer Society?
• Would you switch brands based on
causes the company or brand
supports?
• How do you feel about the naming
of sports stadiums by companies?
13
Discussion Slide

3. 13-3
• Monitor internal and external publics.
• Provide positive information to each
public that reinforces the IMC plan.
• React quickly to any shift by any of the
publics from the desired position.
F I G U R E 1 3 . 1
Public Relations Functions

4. 13-4
• Employees
• Unions
• Management
• Shareholders
• Channel
members
• Customers
• Media
• Local community
• Financial community
• Special-interest
groups
• Government
F I G U R E 1 3 . 2
Stakeholders of Public Relations

5. 13-5
Employees need to be
aware of what is being
said in advertisements
and on the Internet.
Motorola’s Web site
Http://www.motorola.com

6. 13-6
Public Relations Events
• Altruistic activities
• Cause-related marketing
• Benefits of supporting causes
• Additional customers
• Increased profits
• Goodwill
• Better relations with governmental
agencies
• Green marketing

7. 13-7
Cause-Related Marketing
• Support of a social cause through financial
transactions with the firm’s customers.
• Cause-related marketing studies:
• 83% of consumers have a more positive image of
companies that support causes the customer cares
about.
• Most Americans believe companies should have a
positive impact on environment and community.
• 76% willing to switch to a brand that supports a cause
they believe in if price and quality perceived equal.
• National vs local causes
• Impact greater if the firm can utilize its products
in the social cause.

8. 13-8
YWCA Web site:
http://www.ywca.org
• Improve public schools (52%)
• Dropout prevention (34%)
• Scholarships (28%)
• Cleanup environment (27%)
• Community health education (25%)
F I G U R E 1 3 . 3
Causes Consumers Prefer

9. 13-9
McDonald’s reminded the public of its
support for the Olympics with a series of
advertisements.

10. 13-10
• Corporate newsletters
• Internal communications
• Media news releases
• Stockholder correspondence
• Annual reports
• Special events
F I G U R E 1 3 . 6
Public Relations Tools

11. 13-11
Regulating Marketing
Communications
• Unfair and deceptive marketing practices
• Lanham Act (1947)
• An advertisement or communication is
deceptive or misleading if:
• A substantial number of people or “typical
person” is left with false impression or
misrepresentation.
• The misrepresentation induces people or the
“typical person” to make a purchase.
• Deception vs puffery

12. 13-12
• Federal Trade Commission (FTC)
• Food & Drug Administration (FDA)
• Federal Communications Commission (FCC)
• US Postal Service (USPS)
• Bureau of Alcohol, Tobacco and Firearms
(BATF)
F I G U R E 1 3 . 7
Governmental Regulatory Agencies

13. 13-13
Federal Trade Commission
(FTC)
• Created in 1914 by passage of Federal Trade
Commission Act.
• Original intent was to enforce anti-trust laws.
• FTC authority expanded in 1938 with Wheeler-Lea
Amendment.
• Given power to stop unfair and deceptive
advertising practices.
• Granted FTC access to courts to enforce their
decisions.

14. 13-14
How an FTC investigation begins
• Consumers
• Businesses
• Congress
• Media
Complaints can be lodged by any of the following

15. 13-15
FTC Actions
• Consent order
• Administrative complaint
• Cease and desist order
• Full commission hearing
• Appeal to U.S. Court of
Appeals
• Corrective advertising order
• Trade regulation ruling

16. 13-16
FTC Criteria
• Is the typical person misled by the
marketing communication?
• Does the marketing communication lead
the typical person to make a purchase or
pursue some other type of activity?
• Is the claim mere puffery or does it have
to be substantiated?
• Is the claim substantiated by competent
or reliable evidence?

17. 13-17
To substantiate its claim
that Kleenex is softer the
company conducted touch
tests involving consumers.
Substantiating that Kleenex
is “made with 24% more
cottony, soft fiber,” as the
ad claims, would require
some type of lab test.
Click image to enlarge.

18. 13-18
• Better Business Bureau
• National Advertising Division
(NAD)
• National Advertising Review
Board (NARB)
F I G U R E 1 3 . 8
Industry Regulation

19. 13-19
Sponsorship Marketing
Objectives
• Enhance company image.
• Increase firm visibility.
• Differentiate a company or brand.
• Showcase specific goods or
services.
• Develop a closer relationship with
current and prospective
customers.

20. 13-20
Event Marketing and Sponsorships
United States
Source: “Event Marketing/Sponsorships,” Public Relations Society of America
Sports Marketing
$3.84 billion
65%
Entertainment Tours
$650 million (11%)
Festivals & Fairs
$558 million (9%)
Causes
$535 million (9%)
Arts & Cultural Events
$354 million (6%)

21. 13-21
Event Marketing and Sponsorships
Canada
Source: “How Big is the Canadian Sponsorship Pie?” The Sponsorship Report
(Http://www.sponsorship.ca/p-issues-howbig.html)
Sports (45%)
Cultural Events (20%)
Education (10%)
Health (10%)
Humanitarian (10%)
Environment (2.5%)

22. 13-22
What is the likelihood that a fan will
buy a sponsor’s product?
• NASCAR 72%
• Tennis 52%
• Golf 47%
• NBA 38%
• NFL 36%
Source: “Event Marketing/Sponsorships,” Public Relations Society of America
(Http://www.prsa.org/ppc/68022.html)

23. 13-23
INTEGRATED LEARNING EXPERIENCESTOP
• Performance Research
• Http://www.performanceresearch.com
• IEG Sponsorship
• Http://www.sponsorship.com
• BDS Sponsorships, Ltd. (Europe)
• Http://www.sponsorship.co.uk
Firms specializing in helping businesses maximize their
sponsorship investments.

24. 13-24
Sponsoring Individuals
• Name recognition 68%
• Current popularity 56%
• Overall image 53%
• Character 51%
Source: “Event Marketing/Sponsorships,” Public Relations Society of America
What attributes do sponsors look for in
endorsing an individual such as Tiger Woods?

25. 13-25
To Maximize Event Marketing
• Determine objective.
• Match event with customers,
vendors and employees.
• Cross-promote event.
• Include company in all event
advertising and brochures.
• Track results.
• Evaluate the investment following
the event.

26. 13-26
Event Marketing