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

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

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

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

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

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Implementing the Marketing PR Plan Evaluating PR Results –Exposures –Awareness/co mprehension/at titude Change –Sales-and-profit Contribution

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

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

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

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

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ 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