Chapter Copyright © 2009 by Nelson Education Limited. MARKETING COMMUNICATIONS: Public Relations, Personal Selling, and Word of Mouth Prepared by Simon Hudson, Haskayne School of Business University of Calgary and Marion Joppe, University of Guelph

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-2 Roles and functions of public relations Public relations techniques Roles and objectives of personal selling Sales process and the staffing of sales personnel Difference between direct marketing and direct response advertising Key direct response advertising tools Importance of word of mouth in the promotional mix Topics

Chapter Copyright © 2009 by Nelson Education Limited. Public Relations Public Relations (PR)Public Relations (PR) –the activities that a tourism or hospitality organization uses to maintain or improve its relationship with other organizations or individuals PublicityPublicity –attention received through news media coverage Role of Advertising and Sales Promotions

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-4 Various Publics in the Tourism and Hospitality Industry

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-5 Establishing corporate identity Government relations Crisis management Internal communications Customer relations Marketing publicity Functions of PR Departments

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-6 Public Relations Techniques

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-7 Press release (news release)Press release (news release) –short article about an organization or event written to attract media attention and intended to lead to media coverage –most popular and widespread PR activity –must be as carefully targeted as an advertising media schedule to be effective –see Figure 9.3, Example of a Press Release Public Relations Techniques

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-8 Feature storiesFeature stories –articles of human interest that entertain, inform, or educate readers, viewers, or listeners –longer and have less immediate news value than news releases Public Relations Techniques

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-9 Travel Exhibitions and Road showsTravel Exhibitions and Road shows –bring together all parts of the industry (suppliers, carriers, intermediaries, and destination marketing organizations) Event sponsorshipEvent sponsorship –financial support of an event (e.g., a car race, a theatre performance, or a marathon) by a sponsor in return for advertising privileges associated with the event Public Relations Techniques

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-10 Sponsorship of causesSponsorship of causes –this is part of the wider activity of cause-related marketing, a technique whereby organizations associate themselves with support for a good cause PublicationsPublications –annual reports, brochures, newsletters, and magazines can draw attention to an organization and its products and services, and can help build its image and convey news to target market Public Relations Techniques

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-11 Winning or sponsoring awardsWinning or sponsoring awards –an example is automotive awards presented in magazines such as Motor Trends Celebrity visitsCelebrity visits –encouraging celebrities to use tourism and hospitality products or service Product placementProduct placement –insertion of brand logos or branded products into movies and television shows Public Relations Techniques

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-12 Personal SellingPersonal Selling –a personalized form of communication in which a seller presents the features and benefits of a product to a buyer for the purpose of making a sale Personal Selling

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-13 Roles of Personal Selling –Gathering marketing intelligence –Locating and maintaining customers –Promoting to the travel trade –Generating sales at point of purchase –Relationship marketing –Provide detailed and up-to-date information to the travel trade Personal Selling

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-14 Objectives of Personal selling –Sales volume –Cross-selling, Up-selling, and Second- chance selling –Marketing share –Product-specific objectives Personal Selling

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-15 Cross-sellingCross-selling –offering a customer the opportunity to purchase allied products that go beyond the obvious core products Personal Selling

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-16 Up-sellingUp-selling –upgrading price and profit margins by selling higher-priced products Second-chance sellingSecond-chance selling –trying to sell additional services to a customer who has already booked services Personal Selling

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-17 The Sales Process

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-18 ProspectingProspecting –the process of searching for new accounts Cognitive DissonanceCognitive Dissonance –Following up after closing reduces buyer’s level of cognitive dissonance (uncertainty after making a purchase) The Sales Process

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-19 Sales managementSales management –the management of the sales force and personal selling efforts to achieve desired sales objectives –roles include: recruiting training motivating/rewarding sales planning evaluating sales performance Sales Management

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-20 Direct marketingDirect marketing –form of marketing that sends messages directly to consumers, using addressable media, such as mail Direct response advertisingDirect response advertising –Advertising designed to generate a response by any means that is measurable Direct Marketing and Direct Response Advertising

Chapter Copyright © 2009 by Nelson Education Limited. Key advantages of direct marketing Table Public Relations, Personal Selling, and Word of Mouth 9-21

Chapter Copyright © 2009 by Nelson Education Limited. Strategic Considerations for Major Forms of Direct Response Advertising Public Relations, Personal Selling, and Word of Mouth

Chapter Copyright © 2009 by Nelson Education Limited Solo direct mailSolo direct mail –a direct mail piece sent out by one company and delivered by the company itself Cooperative direct mailCooperative direct mail –a direct mail offer delivered as part of a package that includes offers from other companies Direct Mail 9 Public Relations, Personal Selling, and Word of Mouth

Chapter Copyright © 2009 by Nelson Education Limited TelemarketingTelemarketing –using the telephone to reach customers or prospective customers Call centreCall centre –a central operation from which a company operates its inbound and outbound telemarketing programs Telemarketing 9 Public Relations, Personal Selling, and Word of Mouth

Chapter Copyright © 2009 by Nelson Education Limited InfomercialInfomercial –a commercial, usually 30 minutes long, that presents in great detail the benefits of a product or service on the television Direct Response Television 9 Public Relations, Personal Selling, and Word of Mouth

Chapter Copyright © 2009 by Nelson Education Limited Word of mouthWord of mouth –communication about products and services between people who are perceived to be independent of the company that is producing or providing the product –tool that works particularly well for the tourism and hospitality industry Word of Mouth 9 Public Relations, Personal Selling, and Word of Mouth

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-27 Independent credibility Experience delivery More relevant and complete The most honest medium Customer driven It feeds on itself Expert power Experts like to influence Saves time and money Illusory force Power of Word of Mouth

Chapter Copyright © 2009 by Nelson Education Limited. 9 Public Relations, Personal Selling, and Word of Mouth 9-28 What Causes Sales? Illusion versus Reality Figure 9.6