PROMOTING PRODUCTS: PUBLIC RELATIONS AND SALES PROMOTIONSChapter 14

COMMUNICATIONS MIX Five Major Promotion Tools

AdvertisingPublic Relations*: create a positive image

and customer preference through third-party endorsements

Sales Promotions*: short term incentives to encourage the purchase or sale of a product or service

Personal SellingDirect Marketing

FIVE MAJOR ACTIVITIES OF PR DEPARTMENTS1. Press relations- place newsworthy information into the

news media to attract attention1. Ex. Food review write up in newspaper

2. Product Publicity- special events1. Ex. Food festivals, newly renovated hotel

3. Corporate Communication- internal and external1. Ex. Employee newsletter

4. Lobbying- dealing with legislators and government officials to promote or defeat legislation

1. SC Hospitality Day http://www.schospitality.org/displaycommon.cfm?an=1&subarticlenbr=629

2. Ex. SCHA- What have they lobbied for in SC?5. Counseling- advising management about public issues

and company positions and image (sensitive issues)1. Ex. Mirage’s water fountains

PUBLICITY Positive and Negative Examples

Sponsor events (Mud Run, 5Ks, McDonald’s sponsors neighborhood events in Hispanic and A-A communities, etc.)

Dirty Holiday Inn & Sheraton- Downtown ATL Natural disasters- Joplin, MO tornadoes What are other examples?

PR IN THE HOSPITALITY INDUSTRY Individual Property Level- train employees to look for

stories Build PR around Owner/Operator

Ex. Chef Jules mustaches Build PR around Location

What is around you that you can sell? Alaska Northern Lights http://www.anchorage.net/articles/alaska-northern-lights Remote locations Downtown locations

Build PR around a Product or Service Peabody Ducks http://www.youtube.com/watch?v=p10YyBuzicQ Pizza Hut in China http://siuyeh.files.wordpress.com/2008/10/pizza-hut-salad-bar-17.jpg http://www.youtube.com/watch?v=1eEYoa1RK7Y Examples?

CRISIS MANAGEMENT http://

myprfeed.wordpress.com/2010/01/04/dominos-rogue-employee-scandal-of-2009-how-the-pizza-company-addressed-its-biggest-crisis-of-the-year

Focus on communication not on the crisis Sudden crisis comes without warning Smoldering crisis can be prevented

Sexual harassment, food poisoning Good communication can reduce the impact Appoint a spokesperson

Reports the FACTS Timely statements Notify press if there is a crisis-don’t wait Feed the media

What crisis plans do you/should you have in place?

Employees wrongly handled customer luggage No one took responsibility for breaking their luggage Denied allegations and claim due to delayed report Denied money and $1,200 in flight vouchers Customer then made a video that went viral regarding

how he was wrongly treated

NEGATIVE PR: UNITED AIRLINES

https://www.youtube.com/watch?v=5YGc4zOqozo

Rob Bradford, United's managing director of customer solutions, called to personally apologize

Now they use this video as a training tool to ensure employees learn from the mistake

Guitar company, Taylored Guitars, gave Dave a new guitar

Offered information on how to travel safely with guitars

HOW TO FIX IT

Inappropriate and accidental tweet Didn’t notice mistake for over an hour PR Damage-Control: Apologizing nationally on twitter

NEGATIVE PR: US AIRWAYS

1) Restrict access to social media accounts 2) Set up a secure profile 3) Use automatic filters 4) Track changes in message volume 5) Train employees on social media

HOW TO PREVENT IT

Following incident, US Airways had more twitter followers and reached a wider variety of people

Opportunity to create sales US Airways offers fresh dining, WIFI for a good price,

and wide variety of in-flight movies

PR FOCUSED ON SALES

SALES PROMOTIONS Why use promotions?

Boost sales during slow periods Increase traffic at your location vs. competitors Collective promotions Ex. Restaurant Week http://restaurantweeksouthcarolina.com/

May Result in publicity Ex. Pizza Hut- good grades http://www.pizzahutpizza.com/kids/

Most effective with advertising or personal selling Must have either:

Decrease in price Increase in perceived value

Phrasing Hurry In Limited Time Only Only two more days… Special Offer

5 Steps

5 STEPS FOR SALES PROMOTIONS1. Set sales promotion objective2. Select sales promotion tools

1. Samples, coupons, wine tasting, etc. 2. Avoid over couponing/black out times3. Texts and emails4. Premiums

1. Drink of the Day5. Patronage rewards

1. Frequent Flyer6. Point of purchase promo

1. Bruegger’s Bagels http://www.brueggers.com/7. Contests and games

1. Pawley’s3. Find creative ideas

1. Grand opening2. Harry Potter

5 STEPS FOR SALES PROMOTIONS4. Develop the sales promotion program

Who is eligible? Length Distribution Budget Ex. Percent Nights

5. Pretest and Implement the Plan1. Lead time- time to prepare the plan2. Sell time- launch and end date

6. Evaluate Many people fail to evaluate!!!

GROUP WORK In your groups:

Develop a grand opening of a hotel/resort, restaurant, theme park, etc.

Give the specific details of: Advertising Who is invited? What is special about the opening? What else?

VIDEO DISCUSSION NFL

Relate what the NFL does for the community, what a restaurant, hotel, or other hospitality organization could do for the community in which it operates?

What are benefits of this type of charity?

Nudie What sales efforts/tactics Nudie has used?

Evaluate their usefulness.