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Chapter Chapter 21:Public Relations and Sales Promotions.

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chapter Chapter 21:Public Relations and Sales Promotions
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Page 1: Chapter Chapter 21:Public Relations and Sales Promotions.

chap

ter

Chapter 21:Public Relations and Sales Promotions

Page 2: Chapter Chapter 21:Public Relations and Sales Promotions.

Public Relations

Public RelationsPublic Relations The element in the

promotional mix that: evaluates public attitudes identifies issues of public concern executes programs to gain public

acceptance

Page 3: Chapter Chapter 21:Public Relations and Sales Promotions.

Public Relations

Press relations Press relations

Product publicityProduct publicity

Corporate communicationCorporate communication

Public affairsPublic affairs

LobbyingLobbying

Employee and investor relationsEmployee and investor relations

Crisis managementCrisis management

Product placement

Consumer education

Event sponsorship

Issue sponsorship

Internet Web sites

New product publicity

Functions Tools

Council of Public RelationsBBH

Ads:VisaPhilip Morris

Page 4: Chapter Chapter 21:Public Relations and Sales Promotions.

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.

Page 5: Chapter Chapter 21:Public Relations and Sales Promotions.

Product Placement

Page 6: Chapter Chapter 21:Public Relations and Sales Promotions.

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. "I’m 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.

http://www.msnbc.msn.com/id/14151755/

Page 7: Chapter Chapter 21:Public Relations and Sales Promotions.
Page 8: Chapter Chapter 21:Public Relations and Sales Promotions.

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

Page 9: Chapter Chapter 21:Public Relations and Sales Promotions.

Sample Press

Release

Publicity Insider

Page 10: Chapter Chapter 21:Public Relations and Sales Promotions.

Managing Unfavorable Publicity

A coordinated effort to

handle the effects of

unfavorable publicity or of

an unfavorable event.

Crisis

Management

Ogilvy Crisis Management

Page 11: Chapter Chapter 21:Public Relations and Sales Promotions.

Crisis Management

Tiger Woods Crisis Management

Page 12: Chapter Chapter 21:Public Relations and Sales Promotions.

Sales Promotion

Marketing communication

activities, other than advertising,

personal selling, and public

relations, in which a

short-term incentive motivates a

purchase.

Page 13: Chapter Chapter 21:Public Relations and Sales Promotions.

Sales Promotion vs. Advertising

Advertising Reason to buy

Sales Promotion Incentive to buy

Page 14: Chapter Chapter 21:Public Relations and Sales Promotions.

Sales Promotion

Pull Strategy

Push Strategy

ConsumerSales

Promotion

ConsumerSales

Promotion

Trade Sales

Promotion

Trade Sales

Promotion

Consumer market

Marketing channel

Goal = Drive immediate purchase= Influence Behavior

Page 15: Chapter Chapter 21:Public Relations and Sales Promotions.

Factors Affecting the Promotional Mix

Pull Strategy

Manufacturer

Retailer

Consumer

Push Strategy

Manufacturer

Retailer

Consumer

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.)

Page 16: Chapter Chapter 21:Public Relations and Sales Promotions.

Uses of Sales Promotion

Immediate purchasesImmediate purchases

Increase trialIncrease trial

Boost consumer inventoryBoost consumer inventory

Encourage repurchaseEncourage repurchase

Increase ad effectivenessIncrease ad effectiveness

Encourage brand loyaltyEncourage brand loyalty

Page 17: Chapter Chapter 21:Public Relations and Sales Promotions.

Objectives of Sales Promotion

Type of Buyer

Loyal Customers

Competitor’sCustomers

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 PromotionExamples

•Loyalty marketing

•Sampling•Sweepstakes, contests, premiums

•Price-lowering promotion

•Trade deals

•Coupons, price-offpackages, refunds

•Trade deals

Page 18: Chapter Chapter 21:Public Relations and Sales Promotions.

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

Page 19: Chapter Chapter 21:Public Relations and Sales Promotions.

Consumer Sales Promotions

SamplingSampling A promotional program that allows the consumer the opportunity to try a

product or service for free.

A promotional program that allows the consumer the opportunity to try a

product or service for free.

Levitra Challenge 1Levitra Challenge 2

FreeSamples.com

Page 21: Chapter Chapter 21:Public Relations and Sales Promotions.

Onlinehttp://www.levesquedesign.comwww.design4packaging.com

Packaging for POP

Attention

Page 22: Chapter Chapter 21:Public Relations and Sales Promotions.

Packaging for POP

Attention

Page 23: Chapter Chapter 21:Public Relations and Sales Promotions.

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

Onlinewww.nahb.org

Page 24: Chapter Chapter 21:Public Relations and Sales Promotions.

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.

Page 25: Chapter Chapter 21:Public Relations and Sales Promotions.

Trade Shows

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

Page 26: Chapter Chapter 21:Public Relations and Sales Promotions.

Home Builders Show

• 60,000 attendance

• 1,600 exhibitors• 250 Info sessions

• 850,000 sq. ft. of

exhibitions (Football field = 57,600

sq. ft.)


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