Transcript Public Relations and Sales Promotion.

Chapter 15
Promoting
Products:
Public
Relations and
Sales
Promotion
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
“There are many misconceptions
about public relations. One of the
most widespread is that it’s easy”
-Peter Celliers
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
and Tourism,
and Tourism,
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4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Understand the different public relations
activities
• Understand the public relations process
• Know how the different PR tools are
used
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Implement a crisis management
program in a hospitality business
• Discuss the growth and purpose of
sales promotion, setting objectives, and
selecting consumer promotion tools
©2006 Pearson Education, Inc.
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Marketing
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and Tourism,
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Kotler,
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andMakens
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Public Relations
• Creating a positive image and customer
preference through third-party endorsement
• PR is experiencing explosive growth
• Offers a way to distinguish your company’s
products from another
• Marketing and PR are becoming increasingly
linked
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
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for Hospitality
and Tourism,
and Tourism,
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Kotler,
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Bowen,and
andMakens
Makens
Major PR Activates
• Press Relations
• Product Publicity
• Corporate Communications
• Lobbying
• Counseling
©2006 Pearson Education, Inc.
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and Tourism,
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Kotler,
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Press Relations
• The aim of press relations is to place
newsworthy information into the news
media to attract attention to a person,
product, or service
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
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Product Publicity
• Various efforts to publicize specific products
• Assists in new product launch
• Assists in product repositioning
• Creates interest in a product category
©2006 Pearson Education, Inc.
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Corporate Communications
• Involves communications with internal and
external customers
• Promotes understanding of the organization
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Lobbying
• Dealing with legislators and government
officials to promote or defeat legislation and
regulation
• Large companies employ their own lobbyists
• Small companies lobby through local trade
associations
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
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and Tourism,
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Kotler,
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Counseling
• Advising management about public issues
and company positions and image
• Important when involving special interests
• Example: Water scarcity and the mirage in
Las Vegas
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
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Publicity
• Secures editorial space, as opposed to paid
space, in print and broadcast media to
promote a product or a service
• Influences specific target groups
• Defends products against public problems
• Builds the corporate image
©2006 Pearson Education, Inc.
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Marketing
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The Public Relations Process
1. Research
2. Establishing marketing objectives
• Builds awareness
• Builds credibility
• Stimulates the sales force and channel
intermediaries
• Lowers promotional costs
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
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The Public Relations Process
3. Defining the Target Audience
4. Choosing the PR Message and
Vehicles
5. Implementing the Marketing PR Plan
©2006 Pearson Education, Inc.
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The Public Relations Process
6. Evaluating PR Results
•
Exposures
•
Awareness/Comprehension/Attitude
Change
•
Sales-and-Profit Contribution
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
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and Tourism,
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Bowen,and
andMakens
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Major Tools in Marketing PR
• Publications
• Speeches
• Events
• Public Service
Activities
• News
• Identity Media
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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and Tourism,
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Bowen,and
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PR Opportunities for the
Hospitality Industry
• Individual Properties
– Single hotels, tour operators, B&Bs
– They can seldom afford advertising
• Build PR around the Owner/Operator
– Owner sometimes is the face of the
product
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
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and Tourism,
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Bowen,and
andMakens
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PR Opportunities for the
Hospitality Industry
• Build PR around Location
– Turn poor locations into advantages
– Isolation and obscurity can be a PR
tactic
• Build PR around a Product or Service
– Emphasize unique services
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
and Tourism,
and Tourism,
4th edition
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Kotler,
Kotler,Bowen,
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Crisis Management
•
Take all precautions to prevent
negative events from occurring
•
When a crisis does occur
– Appoint a spokesperson
– Contact the firm’s PR agency
– Notify the press and keep them updated
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
and Tourism,
and Tourism,
4th edition
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Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Sales-Promotion Objectives
• Increase short-term sales
• Help build long-term market share
• Entice consumers to try a new product
• Lure consumers away from competitors
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
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and Tourism,
4th edition
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Bowen,and
andMakens
Makens
Sales-Promotion Objectives
• Hold and reward loyal customers
• Building stronger customer relations
• Obtaining new accounts
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Sales-Promotion Tools
• Samples
• Premiums
• Coupons
• Point-of-Purchase
Displays
• Packages
• Patronage Rewards
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
• Contests,
Sweepstakes, and
Games
Marketing
Marketing
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for Hospitality
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and Tourism,
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Kotler,
Kotler,Bowen,
Bowen,and
andMakens
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Developing the Sales
Promotion Program
1.
2.
3.
4.
5.
Decide on the size of the incentive
Set the conditions for participation
Decide how to promote and distribute
Set promotion dates
Decide on the sales promotion budget
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Kotler,
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Bowen,and
andMakens
Makens
Before and After
• Pre-test to determine if they are
appropriate and of the right incentive
size
• Evaluate the results against the
objectives of the program
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Local Store Marketing
• Also called “area” or “neighborhood”
marketing
• A low-cost, hands-on effort to take advantage
of all opportunities in immediate training area
• School tours, product tastings, coupons
• Cause-related marketing/charities
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Best Practices
• Creative Publicity by Taco Bell
– Liberty Bell April Fools Purchase
– “Nothing ordinary about it” campaign
– Image promotion of a hip, rebellious
restaurant chain
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Key Terms
• Contests, sweepstakes, and games
• Corporate communications
• Coupons
• Counseling
• Event creation
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Key Terms
• Lobbying
• Patronage rewards
• Point-of-purchase (POP) promotions
• Premiums
• Press relations
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Key Terms
• Press release
• Product publicity
• Public relations
• Sales promotion
• Samples
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens