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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/Comprehension/Attitude 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