chapter Chapter 21:Public Relations and Sales Promotions

Public Relations The element in the promotional mix that: evaluates public attitudes identifies issues of public concern executes programs to gain public acceptance

Public Relations Press relations Product publicity Corporate communication Public affairs Lobbying Employee and investor relations Crisis management Product placement Consumer education Event sponsorship Issue sponsorship Internet Web sites New product publicity FunctionsTools Council of Public Relations BBH Ads: Visa Philip Morris

Eye-catching Publicity Tylenol hired runners to run on treadmills above Times Square to promote their sponsorship of the NY City Marathon The Weinermobile. Enough said.

Product Placement

Talladega Nights Wonder Bread officials gave Sony Pictures the rights to use its logo For them to have gone out, if they could buy this level of media, I mean what would that be?" said Tom Meyer, President of Davie- Brown Entertainment. "Im going to guess tens of millions of dollars if not $100 million of media value. Then when you add on top of that, the relevance that you get from being connected to such a popular guy like Will Ferrell, the value is almost limitless." Logo clear and in focus for 11m 32s onscreen Wonder Bread put Ferrell on the front of its Web site, and awarded one lucky winner the fire suit and hat worn in the movie Another received a trip to the NASCAR race at Talladega this fall. NASCAR.com pedaled collectibles as if Ricky Bobby were an actual driver: title sponsorship that in the real world costs $15 million.

Publicity A news story type of communication transmitted through a mass medium at no charge –News release A short piece of copy publicizing an event or a product –Feature article A manuscript of up to 3,000 words prepared for a specific publication –Captioned photograph A photo with a brief description of its contents –Press conference A meeting used to announce major news events

Sample Press Release Publicity Insider

Managing Unfavorable Publicity A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.CrisisManagement Ogilvy Crisis Management

Crisis Management Tiger Woods Crisis Management

Sales Promotion Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.

Sales Promotion vs. Advertising AdvertisingReason to buy Sales PromotionIncentive to buy

Sales Promotion Pull Strategy Push Strategy Consumer Sales Promotion Trade Sales Promotion Trade Sales Promotion Consumer market Marketing channel Goal = Drive immediate purchase = Influence Behavior

Factors Affecting the Promotional Mix Pull Strategy ManufacturerRetailerConsumer Push Strategy ManufacturerRetailerConsumer Manufacturer markets to the consumer through advertising, sales promotions, etc. Consumer demands product from the retailer (pulls) Retailer demands product from the manufacturer (pulls) Push and Pull strategies can be used separately or together Retailer passes along (pushes) these incentives in some way to the consumer Manufacturer offers promotions to the retailer (discounts, increased personal selling, etc.)

Uses of Sales Promotion Immediate purchases Increase trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Encourage brand loyalty

Objectives of Sales Promotion Type of Buyer Loyal Customers Competitors Customers Brand Switchers Price Buyers Desired Results Reinforce behavior Increase consumption Change timing Break loyalty Persuade to switch Persuade to buy your brand more often Appeal with low prices Supply added value Sales Promotion Examples Loyalty marketing Sampling Sweepstakes, contests, premiums Price-lowering promotion Trade deals Coupons, price-off packages, refunds Trade deals

Consumer Sales Promotions Price-based consumer sales promotion –Coupons –Price deals, refunds, and rebates –Frequency (loyalty/continuity) programs –Special/bonus packs –Sampling –Premiums –Contests/Sweepstakes –Point-of-purchase promotions –Packaging SmartSource

Consumer Sales Promotions Sampling A promotional program that allows the consumer the opportunity to try a product or service for free. Levitra Challenge 1 Levitra Challenge 2 FreeSamples.com

Packaging for POP Attention

Online Packaging for POP Attention

Trade Sales Promotions Allowances, discounts, and deals –Merchandising allowances –Case allowances Co-op advertising Push money Increasing industry visibility –Trade shows –Promotional products –Point-of-purchase (POP) –Incentive programs Online

Push Money Spiff Money offered to channel intermediaries to encourage them to push products--that is, to encourage other members of the channel to sell the products.

Trade Shows Trade shows are a great place to introduce new products, meet potential customers, and take orders

Home Builders Show 60,000 attendance 1,600 exhibitors 250 Info sessions 850,000 sq. ft. of exhibitions (Football field = 57,600 sq. ft.)