Campaign Critique

BUS302

Marketing public relations and sponsorship marketing

Learning objectives

• Understand how marketing, public relations and sponsorship marketing are inter-related.

• Understand how public relations and sponsorship marketing works and how they are different from ‘above the line’ promotion.

PR vs MPR

• Public relations (PR) is concerned with the development of positive relationships between the organisation and its stakeholders (i.e. customers, employees, shareholders, governments etc.).

• PR comprises two main strategies:

1. proactive

2. reactive.

• Marketing PR (MPR) is an active form of PR activities designed to maximise opportunities that will improve an organisation’s marketing communication objectives and outcomes (e.g. product sales).

MPR

• MPR has a greater focus on customers and products.

• Rising costs and increased cynicism from customers has given MPR a greater role in marketing communications.

• It is argued that MPR offers a more credible and cost- effective way of facilitating marketing success.

• The internet has increased consumers’ desire for ‘authentic’ information.

• MPR messages are seen as more credible than PR because they are reported by journalists.

Proactive MPR

• The main role of proactive MPR is in the areas of product launches and product enhancements.

• Proactive MPR is dictated by a company’s marketing objectives.

• It is designed to be controversial and create buzz.

• Publicity is the main tool of proactive MPR.

• Companies obtain publicity using a range of tools, including:

• press releases • product releases • executive-statement releases • sponsored events, sporting events and charity events.

Reactive MPR

• The public relations response to a crisis management type situation is called reactive MPR.

• It aims to repair the company’s reputation, prevent market erosion and regain lost sales.

• Quick and positive responses are imperative:

e.g. the recall of Mars and Snickers products by Masterfoods Australia following an attempt at extortion.

• Corporate response and crisis management

• Not all consumers are equally influenced by negative publicity.

• However, a quick and effective response is always required.

Avoids clutter inherent in advertising media

Helps companies respond to customers’ changing

media habits

Helps gain approval from stakeholders

Enhances brand equity through association

Aids in targeting communications to specific geographic regions and/or demographic or lifestyle

groups

Sponsorship marketing growth

Is the event consistent with the brand image?

Does the event reach the target audience?

Is this event one that the competition has previously sponsored? Is there a risk that consumers will forget the actual sponsor?

Is there a risk of a clutter of sponsors and/or ambush marketing?

Does the event complement existing brand sponsorships?

Does the budget support the sponsorship costs and potential by two to three times what it cost in advertising, point-of-sale, promotions etc.?

Event sponsorship Selecting events

Event sponsorship

• Creating customised events This provides a brand with total control over locations, venues,

scheduling, content, marketing, and sanctioning of the event.

It removes the problem of ‘clutter’ from too many other sponsors:

e.g. Red Bull’s flying and snowboarding events.

• Sponsorship of a location or team Etihad Airlines sponsors Etihad Stadium (formerly the Telstra Dome).

This type of sponsorship can be difficult to measure.

• Ambushing Ambushing occurs when companies create a false impression

of sponsorship:

e.g. Holden flew a red blimp over the MCG during the 2006 Toyota AFL Grand Final.

Cause-related marketing (CRM)

• CRM involves giving support, often in the form of funds, to charities or causes.

• CRM is an amalgam of PR, sales promotion and corporate philanthropy:

e.g. when a company pledges to contribute to a designated cause every time the customer undertakes some action that supports the company and its brands.

Enhances corporate or brand

image

Combats negative publicity

Generates incremental sales

Increases brand awareness

Broadens customer base

Reaches new market segments

Increases a brand’s retail

merchandising activity

Benefits of CRM

Corporate image advertising

• In the advertisement there is little focus, if any, on the products and services of the organisation:

e.g. an organisation may develop a positive corporate image by informing the audience of its philanthropic activities.

• To attract a positive reaction, an organisation’s claims must be genuine.