chapter 18 public relations and sales promotions
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Principles of Marketing
Chapter 18- Public Relations and
Sales Promotions
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Terms
• Publicity- Publicized information such as nes
stories about products and ser!ices" people"
and organizations
• Public Relations #PR$- Process of creating a
positi!e image for a company" an offering" or a
person !ia publicity%
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Terms
• Sales promotion- &ther forms of promotions
#coupons" contests" rebates" mail-in offers$ not
included as a component of a communication
mi'%
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PR
• (n place to build or manage the rapport ith
indi!iduals #customers or not$%
• )ithout a good rapport" then issues ill
present themsel!es%
• Most firms ha!e PR departments in-house" but
often hire specialty firms if the PR mess is
large enough
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)ays to *andle PR
• Press Releases- +es story ritten by an
organization to promote a product"
organization or person%
• This should sound as though it comes from an
ob,ecti!e third-party" but it comes from the
organization%
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PR
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PR
• Most people are familiar ith PR from a
damage control perspecti!e here the negati!e
effects of an action are managed in order to
lessen the damage of negati!e e!ents%
• Can be difficult% Sometimes people ,ust ant
to see someone punished%
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Sponsorship
• Sponsorships- Paying a fee to ha!e a name
associated ith a particular !enue" e!ent" or
person%
– enue- .ed/' .orum
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Sponsorship
• (ndi!idual-
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Sponsorship
• /!ent-
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Sponsorship
• Cause-
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Product Placement
• 0etting a companys product included as a part
of a tele!ision sho" mo!ie" !ideo game or
special e!ent%
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Product placement
• Michael 2ay #3anguage arning$
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Sales Promotion
• Supplemental to ad!ertising" PR" and personal
selling%
• (deally" sales promotions are in place to
stimulate a purchase or alter purchase
decisions based on the promotion%
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Types of Sales Promotions
• Samples- small amount of a product gi!en to a
consumer to try%
• 0enerally beneficial for food%
• &ften ill be paired ith a coupon to try and
coa' a decision%
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Types of Sales Promotions
• Coupon- (mmediate price reduction off an
item
• 4oesnt ha!e to be a clipped coupon
– Mobile coupons
– (nstant coupons
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Types of Sales Promotions
• Point-of-Purchase 4isplays
• (n-store displays designed to encourage
consumers to buy products immediately%
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Types of Sales Promotions
• Premium- Something consumers get for free or
a small charge ith a proof of purchase%
• 0reatest of all time- Cereal toys
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Types of Sales Promotions
• Contests- People enter or participate to in%
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Types of Sales Promotions
• 3oyalty Programs- Reards for fre5uent
purchases
– *otel points" shopping cards #6roger fuel points$"
Credit Card reards" etc%
• /'cellent source for cooperati!e ad!ertising
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Types of Sales Promotions
• Rebates- part of a purchase is refunded after
the completion of a form and proof of
purchase
• Stimulate demand ithout much cost
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Trade Promotions
• 272 Sales promotion is generally called Trade
Promotions
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Types of Trade Promotions
• Trade Shos- /!ent in hich firms in a
particular industry display and demonstrate
their offerings to other organizations they hope
ill buy them%
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Types of Trade Promotions
• 2enefits
– Can see hat other competitors are doing
– 0ain leads from participants
– 0et information to the public
– 0ain #hopefully positi!e$ PR
• 4rabacks
– Costly – Competitors can see hat you are doing
– Can be duds if there is a lull in the industry
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Types of Trade Promotions
• Con!entions- Meetings of groups of
professionals that pro!ide a ay for sellers to
sho potential customers different products%
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Types of Trade Promotions
• Sales contests- Contests designed to moti!ate
salespeople to increase sales of particular
products%
– 0ood for mo!ing products" stimulating demand"
and employee moral
– 2ad if unethical practices occur
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Types of Trade Promotions
• Trade alloances- 4iscounts to different
channel partners for performing different
functions
– 9d!ertising alloance- 9lloance a manufacturer
pro!ides retailers to ad!ertise in local nespapers
#economies of scale$
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Types of Trade Promotions
• Training- 9ssistance offered to channel
partners salespeople to entice an action%
• 4emonstrations- Shoing customers ho
products ork and anser 5uestions%
– 4emo 4ays
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Types of Trade Promotions
• .ree merchandise- product or ser!ice a seller
offers retailers in order to get them to push it
toard consumers%
– (f you sell : number of units of product ;" you
#the salesperson$ gets one product ;
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Types of Trade Promotions
• Push money- Cash incenti!e a manufacturer
pro!ides its channel partners to sell particular
items
– Can be to clear in!entory" ne product launch" etc%
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