Public Relations, Regulations

1. Public Relations, Regulations ad
Sponsorship Programs
Chapter 13 with Duane Weaver

2. Public Relations (PR) Definitions
• PR Department: unit in the firm that manages
items related to publicity and communications
with all the groups that make contact with a
company.
• PR focuses on stakeholders whereas typical
marketing functions primary focus is usually on
customers.
• PR firms often focus on getting “hits” (exposure
count)

3. Types of PR Stakeholders
• Stakeholder: person or group that has a
vested interest in the organization’s well-
being, such as:
– Profits paid as stock dividends
– Loan repayments received by a lending
institution
– Sales to the company or purchases made by
the company
– Community well being
– Special Interest topic

4. PR: Internal Stakeholders
• Employees
• Unions
• Shareholders

5. PR: External Stakeholders
• Channel Members
• Customers
• Media
• Local Community
• Financial Community
• Government
• Special-interest Groups

6. PR Events
• Altruistic
– Things provided to employees and other internal stakeholders,
e.g.: flowers, fruit baskets, employee rehab programs, child
care, purchase discounts…
• Cause-Related
– When marketing program is tied into some form of charity work
so as to gain:
• Additional customers
• Increased profits
• Build consumer goodwill
• Better relations with government
• Reduced chances of lawsuits (risk mitigation)
• Green
– Development and promotion of products that are
environmentally safe

7. PR: DAMAGE CONTROL
• Reactive
– Crisis management (accept blame and apologize or
refute)
– Apology
– Response to Negative Publicity (impression
management)
• Proactive
– Entitlings – attempts to claim responsibility for
positive outcome events.
– Enhancements – attempt to increase the desirable
outcome of an event in the eyes of the public.

8. REGULATIONS
• Unfair and Deceptive Marketing Practices
(when):
– A substantial number of people or the “reasonable
person” is left with a false impression or
misrepresentation related to the product
– The misrepresentation induces the “reasonable
person(s)” to make a purchase
• Puffery
– Exaggerated claim without overt attempt to decieve
• Gov. Agencies – CRTC and Health Canada

9. Sponsorship Marketing
• When a company pays money to sponsor
someone or some group that is participating in
an activity.
• Used to:
– Enhance a company’s image
– Increase visibility (exposure)
– Differentiate
– Showcase specific goods or services (Buzz
marketing)
– Develop closer relationships with prospective or
current customers
– Unload excess inventory

10. Event Marketing
• Similar to sponsorship except that rather
than supporting any one person, group or
team, an entire specific event is
sponsored.

11. Thank You
Have a great day!