Role of Sales Promotions n To increase customer awareness n To introduce new products and services n To increase sales volume and revenue n To combat competition n To encourage current customers to purchase more n To stimulate demand in non-peak periods Chapter 12.1

Types of Sales Promotions n Push Techniques –Point-of-sale displays –Cooperative advertising –Advertising materials –Traditional and electronic collateral materials –Meetings and conventions n Pull Techniques –Sampling –Price reduction promotions –Price reduction coupons –Bundling/packaging –Premiums –Contests and sweepstakes Chapter 12.2

Coupons n Advantages –Tangible inducement –Limited time for discount –Can focus on specific objectives –Can calculate the maximum cost in advance n Disadvantages –Possible fraud –Redemption rates are not easily predicted Chapter 12.3

Sampling n Advantages –Gets consumers to try the product –Represents real value to the consumer –May produce referrals; word-of- mouth n Disadvantages –Can be expensive if done for too long –Food needs to be fresh; may be unattractive –May displace paying customers Chapter 12.4

Premiums n Advantages –Consumers like to get things free or at a good price –Positive word-of- mouth if unique n Disadvantages –Storing and handling the premium –Employee theft –Must match or exceed quality image of firm –Forecasting demand for premium is difficult Chapter 12.5

Contests n Advantages –Consumers are involved in the process because of skill/talent –Creates interest in product –May induce trial; could be required to participate n Disadvantages –May be difficult to judge; select winner(s) –Rules may be too lengthy or complicated and turn off customers Chapter 12.6

Sweepstakes n Advantages –Entry is easy; no purchase is necessary –Rules simple; focus is on prizes –May create more interest since entry is easy –Selection of winner is easy n Disadvantages –Entry box may be stuffed; rules not followed –Chance of winning good price is small; may discourage consumers from participating Chapter 12.7

Steps to a Successful Promotion n Select the target market n Establish specific objectives n Select the promotional technique n Brainstorm about potential offer n Create the promotional theme n Develop the promotional budget n Select the media to promote the offer n Develop a timetable n Conduct internal training of staff n Implement the plan n Monitor results Chapter 12.8

Evaluating the Impact of Sales Promotions n Administrative costs associated with conducting the sales promotion n Cost of displaced sales among existing customers n Additional revenue from new customers Chapter 12.9

Suggestive Selling n Develop a positive attitude n Do not try to manipulate the guest n Suggest favorite items or items that you are knowledgeable about n Use props to support suggestive selling n Always make positive suggestions n Be attentive to guests’ needs n Don’t make excuses for why suggestive selling will not work Chapter 12.10

Training Guest-Contact Personnel n Product-service Knowledge – cognitive aspect n Physical Skills – psychomotor aspect n Attitude – affective aspect n Reassurance – affective aspect Chapter 12.11

Brochures n Identify the facility, including logo n Provide descriptive facts on the facility n Map and directions to the facility n Basic information about the facility n Contact person for more information n Amenities offered by the facility n Area attractions and things to do n Transportation information Chapter 12.12

Components of a Press Kit n Fact sheet n Description of the local trading area n Special features of the product-service mix n Specific details about the product n Photographs n Biographical sketch of the general manager Chapter 12.13

Public Relations Techniques n News releases n Photographs n Letters, inserts, and enclosures n House organs and newsletters n Speeches and public appearances n Posters, bulletin boards, and exhibits n Audiovisual materials n Open houses and tours Chapter 12.14

Guidelines for Public Relations n Identify photographs when submitted n Do not damage or mutilate photos by folding, stapling, or writing too hard on the back n Qualify the publications that you send to n Provide contact information n Do not send too many releases at one time n Be brief and provide a summary of release n Be careful when placing logo on photos n Synchronize with the timing of the publication n Do not threaten to pull advertising if not covered Chapter 12.15

Evaluating Public Relations n Personal Observation n Public Opinion Surveys n Use Objective Measures Chapter 12.16