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Principles of Marketing Chapter 18- Public Relations and Sales Promotions 1

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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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