Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Chapter 9 MARKETING COMMUNICATIONS: Public Relations, Personal Selling, and Word of Mouth Prepared by Simon Hudson, Haskayne School of Business University of Calgary and Marion Joppe, University of Guelph 9-1 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Topics • • • • • Roles and functions of public relations Public relations techniques Roles and objectives of personal selling Sales process and the staffing of sales personnel Difference between direct marketing and direct response advertising • Key direct response advertising tools • Importance of word of mouth in the promotional mix 9-2 Copyright © 2009 by Nelson Education Limited. Role of Advertising and Sales Promotions Chapter 9 Public Relations • Public Relations (PR) – the activities that a tourism or hospitality organization uses to maintain or improve its relationship with other organizations or individuals • Publicity – attention received through news media coverage 9-3 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Various Publics in the Tourism and Hospitality Industry 9-4 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Functions of PR Departments • • • • • • Establishing corporate identity Government relations Crisis management Internal communications Customer relations Marketing publicity 9-5 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Public Relations Techniques 9-6 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Public Relations Techniques • Press release (news release) – short article about an organization or event written to attract media attention and intended to lead to media coverage – most popular and widespread PR activity – must be as carefully targeted as an advertising media schedule to be effective – see Figure 9.3, Example of a Press Release 9-7 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Public Relations Techniques • Feature stories – articles of human interest that entertain, inform, or educate readers, viewers, or listeners – longer and have less immediate news value than news releases 9-8 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Public Relations Techniques • Travel Exhibitions and Road shows – bring together all parts of the industry (suppliers, carriers, intermediaries, and destination marketing organizations) • Event sponsorship – financial support of an event (e.g., a car race, a theatre performance, or a marathon) by a sponsor in return for advertising privileges associated with the event 9-9 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Public Relations Techniques • Sponsorship of causes – this is part of the wider activity of cause-related marketing, a technique whereby organizations associate themselves with support for a good cause • Publications – annual reports, brochures, newsletters, and magazines can draw attention to an organization and its products and services, and can help build its image and convey news to target market 9-10 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Public Relations Techniques • Winning or sponsoring awards – an example is automotive awards presented in magazines such as Motor Trends • Celebrity visits – encouraging celebrities to use tourism and hospitality products or service • Product placement – insertion of brand logos or branded products into movies and television shows 9-11 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Personal Selling • Personal Selling – a personalized form of communication in which a seller presents the features and benefits of a product to a buyer for the purpose of making a sale 9-12 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Personal Selling • Roles of Personal Selling – Gathering marketing intelligence – Locating and maintaining customers – Promoting to the travel trade – Generating sales at point of purchase – Relationship marketing – Provide detailed and up-to-date information to the travel trade 9-13 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Personal Selling • Objectives of Personal selling – Sales volume – Cross-selling, Up-selling, and Secondchance selling – Marketing share – Product-specific objectives 9-14 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Personal Selling • Cross-selling – offering a customer the opportunity to purchase allied products that go beyond the obvious core products 9-15 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Personal Selling • Up-selling – upgrading price and profit margins by selling higher-priced products • Second-chance selling – trying to sell additional services to a customer who has already booked services 9-16 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 The Sales Process 9-17 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 The Sales Process • Prospecting – the process of searching for new accounts • Cognitive Dissonance – Following up after closing reduces buyer’s level of cognitive dissonance (uncertainty after making a purchase) 9-18 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Sales Management • Sales management – the management of the sales force and personal selling efforts to achieve desired sales objectives – roles include: • • • • • recruiting training motivating/rewarding sales planning evaluating sales performance 9-19 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Direct Marketing and Direct Response Advertising • Direct marketing – form of marketing that sends messages directly to consumers, using addressable media, such as mail • Direct response advertising – Advertising designed to generate a response by any means that is measurable 9-20 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Key advantages of direct marketing Table 9.1 9-21 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Strategic Considerations for Major Forms of Direct Response Advertising 9-22 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Direct Mail • Solo direct mail – a direct mail piece sent out by one company and delivered by the company itself • Cooperative direct mail – a direct mail offer delivered as part of a package that includes offers from other companies 10-23 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Telemarketing • Telemarketing – using the telephone to reach customers or prospective customers • Call centre – a central operation from which a company operates its inbound and outbound telemarketing programs 10-24 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Direct Response Television • Infomercial – a commercial, usually 30 minutes long, that presents in great detail the benefits of a product or service on the television 10-25 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Word of Mouth • Word of mouth – communication about products and services between people who are perceived to be independent of the company that is producing or providing the product – tool that works particularly well for the tourism and hospitality industry 9-26 Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 Power of Word of Mouth • Independent credibility • Experience delivery • More relevant and complete • The most honest medium • Customer driven • It feeds on itself • Expert power • Experts like to influence • Saves time and money 9-27 • Illusory force Copyright © 2009 by Nelson Education Limited. Public Relations, Personal Selling, and Word of Mouth Chapter 9 What Causes Sales? Illusion versus Reality 9-28 Figure 9.6 Copyright © 2009 by Nelson Education Limited.