Chapter EighteenChapter Eighteen

Sales Promotion, Publicity, & Sales Promotion, Publicity, & Public RelationsPublic Relations

ObjectivesObjectives

Explain purposes of sales promotionIdentify retail & wholesale sales

promotion toolsIdentify consumer sales promotion toolsIntroduce public relationsOverview publicityIntroduce crises management

Sales Promotion Sales Promotion

Growth in United StatesExceeds $250 billion dollars a

yearIncreasing percentage of

promotional dollarsConsumer goods companies

spend more on sales promotions than advertising

Sales PromotionSales Promotion

Objective: Bolster/complement other promotional mix elements during a specific time period

Targeted toward:Sales forceWholesalers and retailersConsumers

Trade PromotionsTrade Promotions

Objective:Motivate for special effortsIncrease number of distributors

Major Forms of Trade Major Forms of Trade PromotionPromotion

Trade showsContestsDisplay equipment and P-O-P materialsCooperative advertising & promotions

Vertical - channel membersHorizontal - group of retailers

Allowances

Consumer PromotionConsumer Promotion

Rebates

Contest & sweepstakes

Product sampling

Coupons

Consumer PromotionConsumer Promotion

Multiple purchase offers

P-O-P material

Product placements/tie-ins

Premiums

Public Relations & Public Relations & PublicityPublicity

Public Relations:Identify, establish, and maintain

beneficial relationships between a company and its stakeholders

Publicity:Means of accomplishing public relations

Involves third partyFreeLimited control over content

The Uses of PublicityThe Uses of Publicity

Attract public’s attentionMaintain public visibilityProvide informationChange attitudesCombat negative publicity

from another source

Publicity: News ReleasePublicity: News Release

Brief statement sent to the press or others describing:

A new productProduct improvementA price changeOther interesting

news

Publicity: Press Publicity: Press ConferenceConference

Meeting called by an organization to announce a newsworthy event to the press.

Appearances in public to promote, including:

TV talk showsBook signingsRadio talk showsOther events

Publicity: AppearancesPublicity: Appearances

Product information

Organization history

Investor relationsCustomer service

Publicity: Web SitePublicity: Web Site

Scope of Public Scope of Public RelationsRelations

PurposePurpose

CorporateCorporatevisibility &visibility &

imageimage

CorporateCorporatevisibility &visibility &

imageimage

ProductProductinformationinformation

ProductProductinformationinformation

Target audienceTarget audience

Consumers Consumers Consumers Consumers

General public General public General public General public

Employees Employees Employees Employees

Govt officials Govt officials Govt officials Govt officials

Stockholders Stockholders Stockholders Stockholders

MeansMeans

News releases News releases News releases News releases

Press conferencesPress conferencesPress conferencesPress conferences

Lobbying Lobbying Lobbying Lobbying

Annual reports Annual reports Annual reports Annual reports

Event Event sponsorship sponsorship

Event Event sponsorship sponsorship

Web site Web site Web site Web site

Event SponsorshipEvent Sponsorship

Title sponsor creates event and activity

Sports sponsorshipsCharity sponsorships

Crisis ManagementCrisis Management

Emergency information disseminationRumor centerFact-basedPress conferencesOutside expertsLocalize

Evaluating & Monitoring Evaluating & Monitoring Public RelationsPublic Relations

SystematicCompare with

competitorsMonitor media &

“chatrooms”

ReviewReview

Explain purposes of sales promotionIdentify retail & wholesale sales

promotion toolsIdentify consumer sales promotion toolsIntroduce public relationsOverview publicityIntroduce crises management