Public Relations and Sponsorship Ing. Veronika Kopřivová, Ph.D. Marketing Communication 1 Public Relations – PR definitions, tasks and activities 2 PR target groups, tools 3 CSR, publicity, lobbying, crisis management 4 Sponsorship Content 2 • A management function that establishes and maintains relationships between company and various groups of the public. • A broad range of activities that promote positive public opinion on the company. • The public is a group of people who have some influence on the company. 1 Public Relations - PR 3 • PR departments are responsible for a variety of activities. • All of marketing communication is interconnected in a company. • PR is responsible for selling the company's reputation, inspire confidence. • The managerial function of the whole marketing communications. PR - simplified 4 • Press relations • Product publicity • Corporate communication • Lobbying • Advice Current PR activities 5 • Press agencies/Publicity model • Public information • Two-way asymmetric model • Two-way symmetric model PR Models 6 Press agencies/Publicity model 7 • P.T Barnum model. • One-way communication. • Experts create a positive image of their brand in the minds of target audiences by simply imposing their ideas, thoughts. Public information 8 • True, correct and timely information to the public. • Public relations experts depend on press release, news release, video release or any other recorded communication. • Experts need to be really good at putting their thoughts into meaningful words. • Public information model also revolves around one-way communication. Two-way asymmetric model 9 • The bidirectional communication of two groups, namely a company and the general public. • PR experts position their organization and brand on the whole in the minds of their target audiences through manipulation. • Organizations do not utilize much of their manpower and resources to find out the reaction of the stakeholders. Two-way symmetric model 10 • Two-way communication. • Mutual discussions and communication. • The feedback is obtained from the public continuously. • An ideal way of enhancing an organization’s reputation among the target audience. • PR experts depend on two-way communication to position their brand among end-users. • Build relationships. • Generate information. • Pass information to the media. • Promote awareness. • Gain publicity. • Lobbying. PR tasks 11 • PR is about creating image, not making sales. • PR is a long-term activity, with long-term pay offs. • PR doesn´t require any immediate response from the „viewer“. • True PR is only done in large companies. SMEs usually only do certain parts. Conclusion of PR tasks and activities 12 • Internal – human relations – employees. • External – customers, suppliers, competition, financial institutions, media. 2 Target groups of PR 13 Target groups of PR 14 Internal External Public relations Financial Media Marketing Employees Families Unions Shareholders Public Local communities Government Interest groups Investors Bankers Consultants Stock exchange TV Radio Press Suppliers Distributors Competition Wholesalers Retail PR tools according to target audience 15 Internal External Public Relations Financial Media Marketing Consulting Open Days Internal presentation Training programs Team projects Team meetings Social activities Business bulletin Internal direct mail Annual reports Mailboxes for suggestions Advertising Annual reports Company events Sponsoring Brochures Advertising Annual reports Meetings Events Brochures Press releases Press conferences Interviews Product Meetings Sponsoring • An integral part of general PR. • Positive harmony is needed. • Internal communications should work properly. • Long term, not just in times of crisis. • The means by which the company communicates within itself. Internal PR – human relations 16 • The information. • Various forms of direct contact. • Boards, letters, periodical newspapers, brochures, catalogs, reports to shareholders, and annual reports. HR tools 17 • complete and true information flowing freely up, down and sideways, • credibility and trust between employer and employee, • healthy and safe working conditions, • fair and equitable remuneration, • conflict-free workflow, • job satisfaction of each employee most of the time, • pride in the organization and optimistic view of the future. 7 rules for harmony at the workplace 18 • Examples of CSR include: – Community services. – Social inclusion program. – Employee help. – Environmental responsibility. – Quality-enhancement activities. – Ethical overseas operations. 3 Corporate Social Responsibility (CSR) 19 • Example of CSR – Starbucks. Corporate Social Responsibility (CSR) 20 • Publicity ≠ Public Relations • Publicity is a tool and target of PR. Publicity 21 • Press releases. • Common promotional materials. • Kits for journalists. • Internet. • Informational e-mails and newsletters. • Press conferences. • Lectures and seminars. • Interviews. • Inviting journalists to domestic or foreign trips. • Receptions for journalists. Publicity tools 22 • Influencing decisions made by government. • The essence – lobbying deals with the interests of subjects. • The technique of individual action. • Done by the lobbyists. • Influence the development or decision of public interest. Lobbying 23 • PepsiCo lobbied focusing on these issues: – Childhood obesity. – Food and beverage labeling. – Marketing and advertising issues in response to Interagency Working Group on Food Marketed to Children (IWG). – Restrictions on use of supplemental nutrition assistance program. – Implementation of S. 3307-healthy, Hunger-Free Kids Act of 2010. – Biofuels policy generally. PepsiCo Fights Guidelines for Marketing to Kids (Atlantic) 24 • The goal – to determine possible conflicts, prepare for them and communication control when the crisis is already underway. • PR has in crisis an extremely important role. • Multiple causes: toxic substances, sunken ship poisons water, new car model fails, executives find themselves in a public scandal... • PR must be prepared. Communication in the crisis period 25 • Sudden event or a long-term problem. • Conflict => Crisis => Disaster. • known – unknowns: chemical industry, air-transport, etc. • unknown – unknowns: fires, explosions, natural disasters, workplace violence, insolvency of debtors, etc. Types of crisis 1 26 • Image crisis • Malicious attacks • The crisis in conjunction with natural hazards • Business crisis Types of crisis 2 27 • Analysis of potential problems. • Preparation of the plan. • Circumstances and personnel of the crisis plan. • Means of communication. • Training. • Simulation exercise. Emergency plan 28 • Battery started spontaneously combusting. • Samsung responded quickly on all fronts. • The company acted too quickly. • Many of its initial statements had to be retracted. Samsung Galaxy Note 7 (CommuniquePR) 29 Corporate identity and image CORPORATE IDENTITY Base Philosophy of company Tools Corporate Design Corporate Communication Corporate Culture Other characteristics of company Result Corporate Image (CD + CC + CI)* CCom = CIm 30 • Manifestation of the organization. • Visual means of identification. Corporate identity 31 • It includes the corporate logo, the style, interior and exterior design, staff uniforms and fleet, and packaging and products, … • The rating of the company by external and internal public. • Corporate image can arise in these four sections: – Quality of products and other services. – Social accounting, participation in public life, … – Physical evidence. – Marketing communication. Corporate image 32 • Sponsorship is the financial or material support. • Funds are made available to the recipient of the sponsorship deal. • Service for service. 4 Sponsorship 33 • Sponsorship of events (institutions) must match the sponsor´s brand. • Sponsored event (institutions) must reach the target audiences. • Sponsorship should be strengthened by the presentations in other communication activities of the sponsor. • Partnership with the event (institutions) should be long-term. Basic principles of sponsorship 34 • Exposure. • Lack of clutter. • Opportunity to build image. • Differentiation. • Exclusion of competition. • Opportunity to sell goods or services. • CSR. Benefits for the sponsor 35 Sponsorship alternatives Matters Sport Art Broadcasting Reasons Ambush marketing Social marketing Transactional marketing Culture Entertainment 36 • Using marketing activities of its competitors for its own advertising purposes. • Variety of forms. • It is not legal (unfair competition). Ambush marketing 37 Ambush marketing 38 Thank you for your attention!☺ 39