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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
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
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.
Product Placement
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/
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
Managing Unfavorable Publicity
A coordinated effort to
handle the effects of
unfavorable publicity or of
an unfavorable event.
Crisis
Management
Ogilvy Crisis Management
Crisis Management
Tiger Woods Crisis Management
Sales Promotion
Marketing communication
activities, other than advertising,
personal selling, and public
relations, in which a
short-term incentive motivates a
purchase.
Sales Promotion vs. Advertising
Advertising Reason to buy
Sales Promotion Incentive to buy
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
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.)
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
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
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
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
Packaging for POP
Attention
Onlinehttp://www.levesquedesign.comwww.design4packaging.com
Packaging for POP
Attention
Packaging for POP
Attention
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
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.
Trade Shows
Trade shows are a great place to introduce new products, meet potential customers, and take orders
Home Builders Show
• 60,000 attendance
• 1,600 exhibitors• 250 Info sessions
• 850,000 sq. ft. of
exhibitions (Football field = 57,600
sq. ft.)