Transcript Chapter Fifteen

Chapter Sixteen
The Communications Mix: Sales
Promotions, Merchandising,
Public Relations, and Publicity
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Principles and Practices of
Sales Promotions
 Purpose:
a short-term stimulation of
sales
 Should be tied to something positive
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Guidelines for Sales Promotions
What specifically do you want to promote?
 What is the best way to promote it?
 Make sure you can fill the demand
 Make sure reality meets expectations
 Communicate your promotion and all
related aspects to the market
 Communicate it to your employees
 Measure the results

Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Developing Sales Promotions
 Centers
on creation of demand
 Two types:
– An established event
– A created event
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Designing the Successful Sales
Promotion
Identify the gap
 Design the sales
promotion
 Analyze the
competition
 Allocate the
resources
 Establish goals
 Research the
promotion

Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
Test ideas with
potential
customers
 Understand the
break-even point
 Execute the sales
promotion
 Evaluate

© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Basic Form of Pre-Promotion with Control
Group
Code
Group
Number
of
Visits
01
Pre-Promotion Test Group (e.g., receives promotion)
5.3
02
Post-Promotion Test Group (e.g., receives promotion)
7.8
03
Pre-Promotion Control Group (e.g., does not receive promotion)
5.4
04
Post-Promotion Control Group (e.g., does not receive promotion)
5.6
Effect of the Promotion = (02—01)—(04—03)
(7.8—5.3)—(5.6—5.4)
(2.5—0.2)
2.3 increase in number of visits because of promotion
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
They Would Have Come Anyway Analysis
% Who Would Have
Come Anyway
Total Sales of Those
Who Would Have
Come Anyway
Incremental Revenue Less Cost
of Program
5%
$69,720
(.05 * 1,394,408)
$1,263,688
(.95 * 1,394,408)—$61,000
10%
$139,441
$1,193,967
15%
$209,161
$1,124,247
20%
$278,882
$1,054,526
25%
$348,602
$984,806
$697,204
$636,204
$1,045,806
$287,602
90%
$1,254,967
$78,441
95%
$1,324,688
$8,720
100%
$1,394,408
-61,000
:
50%
:
75%
:
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Principles and Practices of
Merchandising
 Merchandising
is marketing to the
“captive customer” or one that has
already arrived at the business
– Increase sales
– Increase customer satisfaction
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
The Basic Rules of
Merchandising
 Purpose
 Compatibility
and consistency
 Practicality
 Visibility
 Simplicity
 Knowledgeable
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
employees
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Examples of Good Merchandising
 Business
centers
 “Guaranteed”
 Mini-bars
time for lunch
in hotel rooms
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Public Relations
 Positively
presenting the product to
increase publicity
 Public
relations
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Public Relations (cont.)
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Undertaking public relations
150-180 days before opening
Hold meeting to define objectives and to coordinate public relations effort
with advertising; establish timetable in accordance with scheduled completion
date. Prepare press kit (printed and electronic form). Order photographs and
renderings. Begin preparation of mailings and develop media lists. Contact all
prospective beneficiaries of opening events. Reserve dates for press
conferences at off-site facilities. Create a special “press room” on the
website.
120-150 days before opening
Send announcement with photograph or rendering to all media. Send first
progress bulletin to agents and media (as well as corporate clients, if
desired). Begin production of permanent brochure. Make final plans for
opening events, including commitment to beneficiaries.
90-120 days before opening
Launch publicity campaign to national media. Send mailings to media. Send
second progress bulletin. Arrange exclusive trade interviews and features in
conjunction with ongoing trade campaign. Begin trade announcement. Post
all press releases in the online press room.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Public Relations (cont.)
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Undertaking public relations
60-90 days before opening
Launch campaign to local media and other media with a short
lead time; emphasize hotels’ contribution to the community,
announcement of donations and beneficiaries, etc. Send third
and final progress bulletin with finished brochure. Commence
“behind-the-scenes” public tours. Hold “hard hat” luncheons
for travel writers. Set up model unit for tours.
30-60 days before opening
Send pre-opening newsletter (to be continued on a quarterly
basis). Hold soft opening and ribbon cutting ceremony. Hold
press event to announce opening. Establish final plans for
opening gala.
The month of opening
Begin broadside mailing to agents. Hold openings festivities.
Conduct orientation press trips.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Public Relations (cont.)

Planning public relations rules include:
– Purpose
– Target market (in this case it may not be the
customer at all, but might be the press, the
financial community, the industry, employees,
and intermediaries)
– Setting of tactics
– Integration with the product service
– Integration with the firm’s overall marketing
efforts
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Public Relations (cont.)
Developing tactics
 Measuring success
 Guidelines
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Need to spend money for good PR
Use reputable firms
Have a written plan
PR must understand your marketing plan
Make it consistent and ongoing
Be innovative
Have creative management
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Publicity
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Specifically aimed at
the media to create
more PR
Invite editors, radio
and TV managers
Orchestrate a flawless
event
Press releases
available to the press
with background
information
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
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PR professional will
“work the event”
Follow-up and
program evaluation
Prepare for the
unexpected
Handle negative
publicity with truth
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.