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Chapter 15
Promotion Products: Public
Relations and Sales
Promotion
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
1
What is Public Relations?
Public Relations Involves Building Good
Relations With the Company’s Various
Publics by Obtaining Favorable Publicity,
Building Up a Good Corporate Image,
and Handling or Heading Off
Unfavorable Rumors, Stories, and
Events.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
2
Public Relations
Publics
Financial Community
Customers
Suppliers
Government
Citizen Action Group
Media
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
3
Public Relations Cont.
• Local Publics - Community
– Local Area Marketing
• General Public
– Corporate Citizen
• Internal Publics
– Employees
– Board of Directors
– Stockholders
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
4
Major Activities of PR Departments
• Press Relations
• Product Publicity
• Corporate
Communication
• Lobbying
• Counseling
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
5
Publicity
• Product Related Publicity
– Assist in the Launch of New Products.
– Assist in Repositioning a Mature
Product
– Build Up Interest in a Product
Category
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
6
Corporate Communication
• Influence Specific Target Groups
• Defend Products That Have
Encountered Public Problems
• Build the Corporate Image in a Way
That Projects Favorably on Its
Products.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
7
The Public Relations Process
• Research
• Establishing the
Marketing Objective
– Build Awareness
– Build Credibility
– Stimulate the Sales
Force and Channel
Intermediaries
– Hold Down
Promotion Costs
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
8
The Public Relations Process
-Continued
• Defining the
Target Audience
• Choosing the PR
Message and
Vehicles
– Event Creation
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
9
Implementing the Marketing
PR Plan
• Evaluating PR
Results
– Exposures
– Awareness/com
prehension/attit
ude Change
– Sales-and-profit
Contribution
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
10
Major Tools in Marketing PR
Identity
Media
News
Events
Speeches
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
Publications
Public Service
Activities
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
11
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
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
12
Crisis Management Do’s
• 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 Do
Not Have That Information Yet”
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
13
Crisis Management Do’s
• 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
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
14
Crisis Communication Dont’s
•
•
•
•
•
Don’t Wait for a Crisis to Design a Plan
Don’t Wait for a Crisis to Train Employees
Don’t Speak off the Record to Anyone
Don’t Release Names of Victims
Don’t Answer Reporters by Saying, “No
Comment”
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
15
What is Sales Promotion ?
Sales Promotion consists of shortterm incentives to encourage the
purchase or sales of a product.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
16
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.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
17
Major Consumer Sales Promotion
Tools
Sample
Trial amount of a product
Coupons
Savings when purchasing specified
products
Packages
Bundling products, for example a room and
dinner
Premiums
Products offered free or low cost as an
incentive to buy a product
Displays or demonstrations
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
18
Major Consumer Sales
Promotion Tools
Point-of-Purchase
Cash or other rewards for the use of a
certain product
Displays and demonstrations that take
place at the point of sale
Contests
Consumers submit an entry to be judged
Sweepstakes
Consumers submit their names for a
drawing
Presents consumers with something every
time they buy
Patronage Rewards
Game
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
19
Local Store Marketing
• Cross Promotions
– Coupons/free Goods Distributed by Another
Organization
– Consumer Goods--use High Traffic Retailers- Look for Synergy With Your Product
– Professional Services--other Professional
Services
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
20