Transcript 15 Public relt. ppt

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.
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Chapter Objectives
• Understand the different public relations
activities
• Understand the public relations process
• Know how the different PR tools are
used
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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
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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
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Major PR Activates
• Press Relations
• Product Publicity
• Corporate Communications
• Lobbying
• Counseling
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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
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Product Publicity
•
•
•
•
It is the direct function of public relations.
Publicity is the task of securing editorial
space, as opposed to paid space, in print and
broadcast media to promote a product or a
service. Some popular uses of publicity are
as follows:
Various efforts to publicize specific products
Assists in new product launch
Assists in product repositioning
Creates interest in a product category
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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
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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
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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
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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
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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
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The Public Relations Process
6. Evaluating PR Results
•
Exposures
•
Awareness/Comprehension/Attitude
Change
•
Sales-and-Profit Contribution
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Major Tools in Marketing PR
• Publications
• Speeches
• Events
• Public Service
Activities
• News
• Identity Media
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Major Tools in Marketing PR
• Publications: Companies can reach and influence their
target market via annual reports, brochures, cards,
articles, audiovisual materials and company newsletters
and magazines.
• Events: Companies can draw attention to new products or
other company activities by arranging special events.
• News: PR professionals cultivate the press to increase
better coverage to the company.
• Speeches: Speeches create product and company
publicity.The possibility is accomplished by printing copies
of the speech or excerpts for distribution to the press,
stockholders, employees, and other publics.
• Public service activities: Companies can improve public
goodwill by contributing money and time to good causes,
such as supporting community affairs.
• Identity media: Companies can create a visual identity
that the public immediately recognizes, such as with
business
cards,
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building, uniforms, dress code and rolling stock.
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
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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
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Crisis Management
An important area of public relations is crisis
management. Not all publicity is good. There are times
when things go wrong (guests fall asleep while smoking,
poisoned by restaurant food,earthquakes), sometimes it
is management’s fault and sometimes it is beyond
managements control. A crisis management program
will reduce the negative effects of these events.
•
•
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.
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Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and 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
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Sales-Promotion Objectives
• Hold and reward loyal customers
• Building stronger customer relations
• Obtaining new accounts
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Sales-Promotion Tools
• Samples
• Premiums
• Coupons
• Point-of-Purchase
Displays
• Packages
• Patronage Rewards
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• Contests,
Sweepstakes, and
Games
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Sales-Promotion Tools
• Samples: are offers of a trial amount of a
product. Some samples are free or the
company charges a small amount to offset its
cost.
• Coupons: are certificates that offer buyers
savings when they purchase specified
products.
• Packages: Promotions often involve packages
of a number of the company’s products.
Particularly popular with hotels and resorts that
have a number of products to offer.
©2006 Pearson Education, Inc.
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Marketing for Hospitality and Tourism, 4th edition
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Sales-Promotion Tools
• Premiums: Premiums are goods either free or at low
cost as an incentive to buy a product. (Mc Donald’s
offered Batman figures for 95 cents with the purchase
of a hamburger)
• Patronage rewards: are cash or other awards for
regular use of a company’s products or services.
(Frequent flier programs)
• Point-of-Purchase Displays: POP promotions include
displays and demonstrations, that take place at the
point of purchase or sale. For ex. A representative of
Kavaklıdere wines might offer a taste of their wines in
Kipa. Hospitality firms have discovered that POP may
be used to 1)disseminate information about the
company’s products or services and 2) to sell additional
products and services, thus adding to gross revenue.
©2006 Pearson Education, Inc.
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Marketing for Hospitality and Tourism, 4th edition
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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
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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
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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
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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
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Key Terms
• Contests, sweepstakes, and games
• Corporate communications
• Coupons
• Counseling
• Event creation
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Marketing
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Key Terms
• Lobbying
• Patronage rewards
• Point-of-purchase (POP) promotions
• Premiums
• Press relations
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Marketing
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Key Terms
• Press release
• Product publicity
• Public relations
• Sales promotion
• Samples
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Marketing
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