Integrated Advertising, Promotion,

and Marketing Communications

Eighth Edition, Global Edition

Chapter 13
Public Relations
and Sponsorship
Programs

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Chapter Objectives (1 of 2)
1. What relationships exist between public relations and the
marketing activities performed by the company?
2. How can public relations functions help to build better
relationships with all internal and external stakeholders?
3. What types of positive, image-building programs can be
used by companies as part of a public relations program?
4. What steps can companies take to prevent or reduce
image damage when negative events occur?

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Chapter Objectives (2 of 2)
5. How can marketers tie sponsorships to public relations
efforts to strengthen a customer base?
6. What role can event marketing play in creating customer
excitement and brand loyalty?
7. Can public relations programs, sponsorships, and event
marketing be adapted to international settings?

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Lipton
• Presence in over 150 countries
• Especially susceptible to
negative publicity
• Alleged high pesticide levels
• Lipton Green Tea bags
controversy
• Swift responses to allegations

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Chapter Overview
• Public relations
– Public relations functions
– Stakeholders
 Assessing reputation
 Social responsibility
 Damage control

• Sponsorships
• Event marketing

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 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
– Strengthen company voice

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 13.1 Public Relations
Functions
• Identify internal and external stakeholders
• Assess the corporate reputation
• Audit corporate social responsibility
• Create positive image-building activities
• Prevent or reduce image damage

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Identifying Stakeholders
• Have a vested interest
• Internal stakeholders
– Employees powerful channel
– Receive constant communications
– Work with HR department
• External stakeholders
– Company has little or no influence
– Unplanned contact points

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 13.2 Stakeholders
• Employees • Media
• Unions • Local community
• Shareholders • Financial community
• Channel members • Government
• Customers • Special-interest
groups

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

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

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 13.3 Activities that Affect a
Company’s Image
Image Destroying Image Building Activities
Activities • Empowerment of
• Discrimination employees
• Harassment • Charitable contributions
• Pollution • Sponsoring local events
• Misleading • Selling environmentally
communications safe products
• Deceptive • Outplacement programs
communications • Supporting community
• Offensive events
communications

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Corporate Social Responsibility
• Obligation to be ethical
• Corporate transparency
• Fight injustice
• Drive positive social change
• Purpose marketing (Pro-social marketing)

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Creating a Positive Image
• Cause-related
marketing
• Green
marketing

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Cause-Related Marketing (1 of 3)
• Partnership with charity
• Businesses invest $1.5 billion annually
• Brand parity
• Supporting cause can create bond
• In past, just gave money
• Companies need a benefit
• Benefit should relate to business
• Cause liked by one – disliked by another
Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Cause-Related Marketing (2 of 3)
• Benefits to company
– Additional customers
– Increased profits
– Consumer goodwill for the future
– Better relations with government agencies
– Reduced negative public opinion
• Benefits to non-profit organizations
– Provides funds
– Positive publicity

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Cause-Related Marketing (3 of 3)
Companies must be
careful in how they
handle publicizing
support of a cause.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Green Marketing and
Pro-environmental Activities
• Products environmentally safe
• Survey concerning green marketing
– Try to save electricity (58%)
– Recycle newspapers (46%)
– Return bottles and cans (45%)
– Buy products – recycled materials (23%)
• Consumers support, but only when equal
• Green products seen as inferior

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 U.S. Consumers Segmented on Their
Attitudes and 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.

Bonus Source: Adapted from Jill Meredith Ginsberg and Paul N. Bloom, “Choosing the Right Green
Slide Marketing Strategy,” MIT Sloan Management Review, Vol. 46, No. 1 (Fall 2004), pp. 79-84.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Should a firm engage in green
marketing?
• What percentage of
customers fits into green
segments?
• Can the brand or company
be differentiated based on
green lines and it become
a competitive advantage?
• Will current target market
be alienated with green
marketing approach?

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Promoting Green Activities
• Promotion of green efforts varies widely
• Low-key approach
– Coca-Cola

• Promote product first, pro-environment second

– Prius

• Green products within brand line

– Nike’s “FlyKnit” shoes

• Promote pro-environment
– Honest Tea
– Seventh Generation

Greenwashing
Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Preventing or Reducing Image
Damage
• Damage control
• Negative publicity and events
• Bad news travels fast
• Two situations
– Firm has made an error
– Unjustified or exaggerated negative press
• Two strategies
– Proactive prevention strategies
– Reactive damage-control strategies
Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Figure 13.4 Damage-Control
Strategies
• Proactive Strategies
– Entitling
– Enhancements
• Reactive Strategies
– Internet interventions
– Crisis management programs
– Apology strategy
– Impression management techniques

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Proactive Prevention Strategies
• Entitlings
– claim responsibility for
positive outcomes
• Enhancements
– increase desirable
outcome

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Reactive Damage-Control Strategies
• Internet interventions
• Crisis management
• Apology strategies
• Impression management

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Internet Interventions
• Use Internet to react
• Consumers can spread bad news
quickly
• Assign employees to monitor online
communications
– Involves hundreds of post per day
– Watch for trends, increased chatter
– Must choose which warrant a
reaction
• Provides information on what people
are thinking
Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Crisis Management
• Problem or opportunity
• Pepsi – hypodermic needles
• Toyota – quality control
– Denied problems
– Launched full-scale PR campaign
– Social media PR

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Apology Strategies
• Reactive form of crisis management
• Firm at fault
• Apology should be offered
• Used when violation is minor
• Firm cannot deny responsibility
• Effective for creating emotional bond
• Must be sincere

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 13.6 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

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Impression Management
• Conscious or unconscious
• Control image others have
• Try to reduce negative impact on image
– Expressions of innocence
– Excuses
– Justifications
– Other explanations

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Sponsorships (1 of 2)
• Build brand equity
• Positive feelings
transferred to brand

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 13.7 Expenditures on
Sponsorships & Events

Source: “Events & Sponsorships,” Marketing News, Vol. 38, No. 2 (July 15, 2004), p. 18.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Sponsorships (2 of 2)
• North America – $16.3
billion per year
• Over 70% spent on sports
• Part of IMC efforts
• Build customer loyalty
• Sponsoring cultural events
• Sponsoring television
shows

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Social Media and Blogs
• Sponsorship of bloggers
• Classymommy
• Lucrative business for
some bloggers

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Sponsorship 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 © 2018 Pearson Education Ltd. All Rights Reserved

 Event Marketing
• Sponsor of specific event
• Closely related to lifestyle marketing
• Brand-name recognition
• Closer ties with customers and vendors
• Boost to employee morale

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 13.8 Steps in Selecting a
Sponsorship or Event
1. Determine objectives
2. Match audience to
company’s target
market
3. Promote the
sponsorship or event
4. Advertise at the event
5. Track results

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 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)

Bonus
Slide
Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Cross Promotions
• Cross promote with
event
• Cross promote with
other sponsors
• Camp eBay
• Potential to reach
consumers one-on-one

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 International Implications
• Important in international arena
– Growing number of international firms
– Impact of terrorism
– Cultural differences
• Corporate social responsibility has no boundaries
• Many sponsorships contain international flavor
• Sports important in international sponsorships

Copyright © 2018 Pearson Education Ltd. All Rights Reserved