1. Chapter 15 Promoting Products: Public Relations and Sales Promotion

2. “There are many misconceptions about public relations
“There are many misconceptions about public relations. One of the most widespread is that it’s easy” -Peter Celliers
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

3. Chapter Objectives
Understand the different public relations activities
Understand the public relations process
Know how the different PR tools are used
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

4. Chapter Objectives
Implement a crisis management program in a hospitality business
Discuss the growth and purpose of sales promotion, setting objectives, and selecting consumer promotion tools
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

5. Public Relations
Creating a positive image and customer preference through third-party endorsement
PR is experiencing explosive growth
Offers a way to distinguish your company’s products from another
Marketing and PR are becoming increasingly linked
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

6. Major PR Activates Press Relations Product Publicity
Corporate Communications
Lobbying
Counseling
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

7. Press Relations
The aim of press relations is to place newsworthy information into the news media to attract attention to a person, product, or service
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

8. Product Publicity
It is the direct function of public relations. Publicity is the task of securing editorial space, as opposed to paid space, in print and broadcast media to promote a product or a service. Some popular uses of publicity are as follows:
Various efforts to publicize specific products
Assists in new product launch
Assists in product repositioning
Creates interest in a product category
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

9. Corporate Communications
Involves communications with internal and external customers
Promotes understanding of the organization
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

10. Lobbying
Dealing with legislators and government officials to promote or defeat legislation and regulation
Large companies employ their own lobbyists
Small companies lobby through local trade associations
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

11. Counseling
Advising management about public issues and company positions and image
Important when involving special interests
Example: Water scarcity and the mirage in Las Vegas
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

12. Publicity
Secures editorial space, as opposed to paid space, in print and broadcast media to promote a product or a service
Influences specific target groups
Defends products against public problems
Builds the corporate image
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

13. The Public Relations Process
Research
Establishing marketing objectives
Builds awareness
Builds credibility
Stimulates the sales force and channel intermediaries
Lowers promotional costs
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

14. The Public Relations Process
Defining the Target Audience
Choosing the PR Message and Vehicles
Implementing the Marketing PR Plan
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

15. The Public Relations Process
Evaluating PR Results
Exposures
Awareness/Comprehension/Attitude Change
Sales-and-Profit Contribution
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

16. Major Tools in Marketing PR
Publications
Events
News
Speeches
Public Service Activities
Identity Media
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

17. Major Tools in Marketing PR
Publications: Companies can reach and influence their target market via annual reports, brochures, cards, articles, audiovisual materials and company newsletters and magazines.
Events: Companies can draw attention to new products or other company activities by arranging special events.
News: PR professionals cultivate the press to increase better coverage to the company.
Speeches: Speeches create product and company publicity.The possibility is accomplished by printing copies of the speech or excerpts for distribution to the press, stockholders, employees, and other publics.
Public service activities: Companies can improve public goodwill by contributing money and time to good causes, such as supporting community affairs.
Identity media: Companies can create a visual identity that the public immediately recognizes, such as with company’s logos, stationery, signs, business cards, building, uniforms, dress code and rolling stock.

18. PR Opportunities for the Hospitality Industry
Individual Properties
Single hotels, tour operators, B&Bs
They can seldom afford advertising
Build PR around the Owner/Operator
Owner sometimes is the face of the product
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

19. PR Opportunities for the Hospitality Industry
Build PR around Location
Turn poor locations into advantages
Isolation and obscurity can be a PR tactic
Build PR around a Product or Service
Emphasize unique services
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

20. Crisis Management
An important area of public relations is crisis management. Not all publicity is good. There are times when things go wrong (guests fall asleep while smoking, poisoned by restaurant food,earthquakes), sometimes it is management’s fault and sometimes it is beyond managements control. A crisis management program will reduce the negative effects of these events.
Take all precautions to prevent negative events from occurring
When a crisis does occur
Appoint a spokesperson
Contact the firm’s PR agency
Notify the press and keep them updated

21. Sales-Promotion Objectives
Increase short-term sales
Help build long-term market share
Entice consumers to try a new product
Lure consumers away from competitors
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

22. Sales-Promotion Objectives
Hold and reward loyal customers
Building stronger customer relations
Obtaining new accounts
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

23. Sales-Promotion Tools
Samples
Coupons
Packages
Patronage Rewards
Premiums
Point-of-Purchase Displays
Contests, Sweepstakes, and Games
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

24. Sales-Promotion Tools
Samples: are offers of a trial amount of a product. Some samples are free or the company charges a small amount to offset its cost.
Coupons: are certificates that offer buyers savings when they purchase specified products.
Packages: Promotions often involve packages of a number of the company’s products. Particularly popular with hotels and resorts that have a number of products to offer.

25. Sales-Promotion Tools
Premiums: Premiums are goods either free or at low cost as an incentive to buy a product. (Mc Donald’s offered Batman figures for 95 cents with the purchase of a hamburger)
Patronage rewards: are cash or other awards for regular use of a company’s products or services. (Frequent flier programs)
Point-of-Purchase Displays: POP promotions include displays and demonstrations, that take place at the point of purchase or sale. For ex. A representative of Kavaklıdere wines might offer a taste of their wines in Kipa. Hospitality firms have discovered that POP may be used to 1)disseminate information about the company’s products or services and 2) to sell additional products and services, thus adding to gross revenue.

26. Developing the Sales Promotion Program
Decide on the size of the incentive
Set the conditions for participation
Decide how to promote and distribute
Set promotion dates
Decide on the sales promotion budget
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

27. Before and After
Pre-test to determine if they are appropriate and of the right incentive size
Evaluate the results against the objectives of the program
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

28. Local Store Marketing Also called “area” or “neighborhood” marketing
A low-cost, hands-on effort to take advantage of all opportunities in immediate training area
School tours, product tastings, coupons
Cause-related marketing/charities
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

29. Best Practices Creative Publicity by Taco Bell
Liberty Bell April Fools Purchase
“Nothing ordinary about it” campaign
Image promotion of a hip, rebellious restaurant chain
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

30. Key Terms Contests, sweepstakes, and games Corporate communications
Coupons
Counseling
Event creation
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

31. Key Terms Lobbying Patronage rewards
Point-of-purchase (POP) promotions
Premiums
Press relations
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

32. Key Terms Press release Product publicity Public relations
Sales promotion
Samples
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens