This document summarizes key aspects of public relations and sponsorship programs. It discusses identifying stakeholders, assessing corporate reputation, conducting social responsibility audits, engaging in image-building and damage control activities. It also covers cause-related marketing, green marketing, pro-environmental activities, and using sponsorships and event marketing to enhance corporate image and visibility. Specific examples are provided of companies' PR strategies and sponsorship programs.

1. 20
Prof. (Dr.) Kao Kveng Hong, Ph.D. D. Litt
Chapter -20
Public Relations
and
Sponsorship Programs

2. Harry Potter
• Deathly Hollows – July 21, 2007
• Buzz about book
• 10 days  11.5 million
• Harry Potter series – 350 million
• Word-of-mouth
• Free publicity
13

3. Public Relations and
Sponsorship Programs
13 •Public relations
–Public relations functions
–Stakeholders
–Assessing corporate reputation
–Social responsibility
–Damage control
•Sponsorships
•Event marketing
Chapter Overview

4. • Identify internal and external stakeholders
• Assess the corporate reputation
• Audit corporate social responsibility
• Create positive image-building activities
• Prevent or reduce image damage
F I G U R E 1 3 . 1
Public Relations Functions

5. • Employees
• Unions
• Shareholders
• Channel
members
• Customers
• Media
• Local community
• Financial community
• Government
• Special-interest
groups
F I G U R E 1 3 . 2
Stakeholders

6. Public Relations
• Public relations department
• Separate entity
• Part of marketing department
• Department of Communications
• Internal versus external agency
• Public relations tools
• Goal  hits
• Develop PR strategy that fits with IMC
• Monitor actions and opinions

7. Stakeholders
• Internal
• Employees powerful channel
• Receive constant communications
• Work with HR department
• External
• Company has little or no influence
• Contact points
• Unplanned contact points

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

9. Assessing
Corporate Reputation
• Reputation is fragile, but valuable
• Negative view of businesses
• Assess reputation
• Monitor corporate reputation
• Less than half have someone assigned

10. Corporate Social
Responsibility Audit
• Undertaken by management
• Organizations need
• Ethical guidelines for all employees
• Code of ethics
• Ethical hotline

11. Image Destroying
Activities
oDiscrimination
oHarassment o
Pollution
oMisleading communications o
Deceptive communications
o Offensive communications
Image Building
Activities
oEmpowerment of
employees
oCharitable contributions o
Sponsoring local events o
Selling environmentally
safe products
o Outplacement programs
o Support community events
F I G U R E 1 3 . 3
Examples of Activities that Affect a Company’s Image
Corporate Social Responsibility Audit

12. Creating a Positive Image
• Cause-related marketing
• Green marketing
• Pro-environment

13. Cause-Related Marketing
• Businesses pay over $600 million in
cause-related marketing
• Consumer studies:
• Nearly 50% switch brands, increase usage,
try new brand
• 46% felt better about using product when
company supported a particular cause
• Cause liked by one – disliked by another

14. Salvation Army
Click here to play ad.
A radio advertisement
encouraging support of the
Salvation Army.

15. YWCA Web site: http://www.ywca.org
• Improve public schools (52%)
• Dropout prevention (34%)
• Scholarships (28%)
• Clean-up environment (27%)
• Community health education (25%)
F I G U R E 13 . 4
Causes Consumers Prefer

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

17. Cause-Related Marketing
• Cause should relate to firm’s business
• Good fit important
• Benefits not-for-profit organization
• Not-for-profit organizations compete for
dollars
• Publicizing causes
• Public recognizes companies need to benefit
• Should publicize, but not significant amount

18. Green Marketing
• Survey concerning green marketing
• Try to save electricity (58%)
• Recycle newspapers (46%)
• Return bottles and cans (45%)
• Buy products –recycled materials (23%)
• Consumers not willing to sacrifice
• Price
• Quality
• Convenience
• Availability
• Performance

19. F I G U R E 1 3 . 5
S. Consumer’s Segmented on Their Attitudes
Toward Support of Green Marketing
• True Blue Green (9%) – Have strong environmental
values and are politically active in environmental issues. Heavy
users of green products.
• Greenback Greens (6%) – Have strong environmental
values, but are not politically active. Heavy users of green
products.
• Sprouts (31%) – Believe in green products in theory, but not
in practice. Will buy green products, but only if equal to or
superior to non-green products.
• Grousers (19%) – Are uneducated about environmental
issues and cynical about their ability to effect change. Believe
green products are too expensive and inferior.
• Basic Browns (33%) – Do not care about environmental
issues or social issues.
Source: Jill Meredith Ginsberg and Paul N. Bloom, “Choosing the Right Green Marketing Strategy,” MIT Sloan
Management Review, Vol. 46, No. 1 (Fall 2004), pp. 79-84.

20. Green Marketing Strategy?
1) What percentage of customers fits into
green segments?
2) Can brand or company be differentiated
based on green lines and become a
competitive advantage?
3) Will current target market be alienated
with green marketing approach?

21. Pro-Environment Activities
• Low-key approach
• Coca-Cola
• Publicize product first, pro-environment second
• Prius
• Promote pro-environment
• The Body Shop
• Patagonia
• Honest Tea

22. Damage-Control Strategies
• Proactive Strategies
• Entitling
• Enhancements
• Reactive Strategies
• Internet interventions
• Crisis management programs
• Impression management techniques
F I G U R E 1 3 . 6

23. Elements of an Apology Strategy
1. An expression of guilt, embarrassment, or
regret.
2. Statement recognizing inappropriate behavior
and acceptance of sanctions because of
wrong behavior.
3. Rejection of the inappropriate behavior.
4. Approval of the appropriate behavior and a
promise not to engage in the inappropriate
behavior again.
5. An offer of compensation or penance to
correct the wrong.
F I G U R E 1 3 . 7
A Crisis Management Technique

24. Impression Management
• Conscious or unconscious attempt
to control image
• Remedial tactics
• Expression of innocence
• Excuses
• Justifications
• Other explanations

25. Intel’s Response to a Crisis
In 1994, a glitch in Intel’s
microprocessors was made
public. Not only did Intel
avoid a crisis, they actually
benefited from the glitch.
Click icon for video.
After listening to Dennis
Carter, discuss why you
think Intel was able to
benefit from this crises
rather than suffer damage
to their brand.

26. Sponsorships and Event Marketing
United States
Source: “Events & Sponsorships,” Marketing News, Vol. 38, No. 2 (July 15, 2004), p. 18.
Causes, 8.9%
Sports, 68.8%
Arts, 5.4%
Festivals, fairs and
annual events, 7.1%
Entertainment, tours,
and attractions, 9.8%

27. 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%)

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

29. 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
• Unload excess inventory
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall

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

31. 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