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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 1

Chapter 15

Promotion Products: Public

Relations and Sales

Promotion

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 2

What is Public Relations?

Public Relations Involves Building Good

Relations With the Companys VariousPublics by Obtaining FavorablePublicity, Building Up a Good Corporate

Image, and Handling or Heading Off

Unfavorable Rumors, Stories, andEvents.

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 3

Public Relations

Citizen Action Group

Suppliers

Customers

Government

Media

Financial Community

Publics

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 5

Major Activities of PR Departments

Press Relations

Product Publicity

Corporate

Communication

Lobbying

Counseling

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 6

Publicity

Product Related Publicity

Assist in the Launch of New Products.

Assist in Repositioning a Mature

Product

Build Up Interest in a Product

Category

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 7

Corporate Communication

Influence Specific Target Groups

Defend Products That HaveEncountered Public Problems

Build the Corporate Image in a Way

That Projects Favorably on ItsProducts.

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 8

The Public Relations Process Research

Establishing theMarketing Objective

Build Awareness

Build Credibility

Stimulate the SalesForce and Channel

Intermediaries Hold Down

Promotion Costs

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 9

The Public Relations Process

-Continued

Defining the

Target Audience

Choosing the PR

Message and

Vehicles

Event Creation

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 10

Implementing the Marketing

PR Plan Evaluating PR

Results

Exposures

Awareness/Com-prehension/Attitude

ChangeSales-and-Profit

Contribution

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 11

Major Tools in Marketing PR

Public ServiceActivities

Identity

Media

Speeches

Publications

News

Events

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 12

Public Relations Opportunities for the

Hospitality Industry

Public Relations Opportunities for

Individual Properties

Build PR Around the Owner/operator

Build PR Around Location

Build PR Around a Product or Service

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 13

Crisis Management Dos

Do Have a Crisis Plan That Includes Natural

Disasters, Security Breaches, Safety Issues

and Strikes

Do Update Your Plan Often

Do Have One Spokesperson Available at All

Times to Discuss the Crisis, Usually the G.M.

Do Say When You Are Unable to Answer a

Question and Give a Reason, Such As, I DoNot Have That Information Yet

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 14

Crisis Management Dos

Do Speak Truthfully and Authoritatively

Do Increase Security If Necessary; Make

Security Highly Visible to Guests

Do Initiate Information Updates or Hold a

Press Conference

Do Create a Positive Follow-up Campaign

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 15

Crisis Communication Donts

Dont Wait for a Crisis to Design a Plan

Dont Wait for a Crisis to Train Employees

Dont Speak off the Record to Anyone

Dont Release Names of Victims

Dont Answer Reporters by Saying, No

Comment

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 16

What is Sales Promotion ?

Sales Promotion consists of short-term incentives to encourage thepurchase or sales of a product.

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 17

Sales Promotion Objectives Increase short-term sales or help build

long-term market share.

Get consumers to try a new product

Lure customers away from a competitor

In general, sales promotion should focus

on consumer relationship building.

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 18

SampleSample

CouponsCoupons

PackagesPackages

PremiumsPremiums

Trial amount of a productTrial amount of a product

Savings when purchasing specifiedproducts

Savings when purchasing specifiedproducts

Bundling products, for example a room anddinner

Bundling products, for example a room anddinner

Products offered free or low cost as anincentive to buy a product

Products offered free or low cost as anincentive to buy a product

Major Consumer Sales Promotion

Tools

Displays or demonstrations

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 19

Patronage RewardsPatronage Rewards

Point-of-PurchasePoint-of-Purchase

ContestsContests

SweepstakesSweepstakes

GameGame

Cash or other rewards for the use of acertain product

Cash or other rewards for the use of acertain product

Displays and demonstrations that take

place at the point of sale

Displays and demonstrations that take

place at the point of saleConsumers submit an entry to be judgedConsumers submit an entry to be judged

Consumers submit their names for adrawing

Consumers submit their names for adrawing

Presents consumers with something every

time they buy

Presents consumers with something every

time they buy

Major Consumer Sales

Promotion Tools

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Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 20

Local Store Marketing

Cross Promotions

Coupons/free Goods Distributed by Another

Organization ConsumerGoods--use High Traffic Retailers-

- Look for Synergy With Your Product

Professional Services--other Professional

Services