Chapter 15 Promotion Products Public Relations and Sales

Chapter 15 Promotion Products: Public Relations and Sales Promotion Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 1

What is Public Relations? Public Relations Involves Building Good Relations With the Company’s Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events. Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 2

Public Relations Publics Financial Community Customers Suppliers Government Citizen Action Group Media Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 3

Public Relations Cont. • Local Publics - Community – Local Area Marketing • General Public – Corporate Citizen • Internal Publics – Employees – Board of Directors – Stockholders Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 4

Major Activities of PR Departments • Press Relations • Product Publicity • Corporate Communication • Lobbying • Counseling Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 5

Publicity • Product Related Publicity – Assist in the Launch of New Products. – Assist in Repositioning a Mature Product – Build Up Interest in a Product Category Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 6

Corporate Communication • Influence Specific Target Groups • Defend Products That Have Encountered Public Problems • Build the Corporate Image in a Way That Projects Favorably on Its Products. Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 7

The Public Relations Process • Research • Establishing the Marketing Objective – Build Awareness – Build Credibility – Stimulate the Sales Force and Channel Intermediaries – Hold Down Promotion Costs Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 8

The Public Relations Process -Continued • Defining the Target Audience • Choosing the PR Message and Vehicles – Event Creation Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 9

Implementing the Marketing PR Plan • Evaluating PR Results – Exposures – Awareness/Comprehension/Attitude Change – Sales-and-Profit Contribution Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 10

Major Tools in Marketing PR Identity Media News Events Speeches Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens Publications Public Service Activities © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 11

Public Relations Opportunities for the Hospitality Industry • Public Relations Opportunities for Individual Properties • Build PR Around the Owner/operator • Build PR Around Location • Build PR Around a Product or Service Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 12

Crisis Management Do’s • Do Have a Crisis Plan That Includes Natural Disasters, Security Breaches, Safety Issues and Strikes • Do Update Your Plan Often • Do Have One Spokesperson Available at All Times to Discuss the Crisis, Usually the G. M. • Do Say When You Are Unable to Answer a Question and Give a Reason, Such As, “I Do Not Have That Information Yet” Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 13

Crisis Management Do’s • Do Speak Truthfully and Authoritatively • Do Increase Security If Necessary; Make Security Highly Visible to Guests • Do Initiate Information Updates or Hold a Press Conference • Do Create a Positive Follow-up Campaign Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 14

Crisis Communication Dont’s • • • Don’t Wait for a Crisis to Design a Plan Don’t Wait for a Crisis to Train Employees Don’t Speak off the Record to Anyone Don’t Release Names of Victims Don’t Answer Reporters by Saying, “No Comment” Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 15

What is Sales Promotion ? Sales Promotion consists of shortterm incentives to encourage the purchase or sales of a product. Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 16

Sales Promotion Objectives • Increase short-term sales or help build long-term market share. • Get consumers to try a new product • Lure customers away from a competitor • In general, sales promotion should focus on consumer relationship building. Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 17

Major Consumer Sales Promotion Tools Sample Trial amount of a product Coupons Savings when purchasing specified products Packages Bundling products, for example a room and dinner Premiums Products offered free or low cost as an incentive to buy a product Displays or demonstrations Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 18

Major Consumer Sales Promotion Tools Point-of-Purchase Cash or other rewards for the use of a certain product Displays and demonstrations that take place at the point of sale Contests Consumers submit an entry to be judged Sweepstakes Consumers submit their names for a drawing Presents consumers with something every time they buy Patronage Rewards Game Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 19

Local Store Marketing • Cross Promotions – Coupons/free Goods Distributed by Another Organization – Consumer Goods--use High Traffic Retailers- Look for Synergy With Your Product – Professional Services--other Professional Services Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 20