SALES PROMOTION & PUBLICITY

73 Explain public relations

74 Identify public relations tools

75 Explain the internal and external aspects of public relations

76 Explain sales promotion as related to the SER industries

77 Describe the elements of an SER sales promotion campaign

A. Trade Promotion

Activities designed to gain manufacturers and retailers support for a product

1. Slotting allowances - Cash paid by the manufacturer to a retailer for all costs involved in placing a new on its shelves

2. Buying allowances - A price discount given by manufacturers to retailers to encourage buying a new product or a larger quantity of a new products

3. Trade shows/conventions - Shows to demonstrate and introduce new products and increase sales of existing products

4. Sales incentives - Awards given to managers and employees who successfully meet or exceed a set sales quota

B. Consumer Sales Promotion

Activities designed to encourage customers to buy products

1. Licensing - License a logo, trademark, trade character, names, likenesses and personal endorsements to another business

2. Promotional tie-in - When 2 companies combine resources to share the costs of promoting (ex. Disney and Toys R Us)

3. Visual merchandising & displays - Coordination of all physical elements (window, floor, counter, shelves, ceiling, etc.) to project an image to customers

Consumer Sales Promotion cont.

4. Premium - Low cost items given away free to consumers as a condition of purchase

a. Coupon - Certificates entitling customers to cash discounts

b. Factory pack - Free gifts placed in product packages

c. Traffic builder - Pens, key chains, calendars etc., given away free for visiting store or special event

d. Coupon plan - Ongoing programs offering a variety of premiums (ex. MVP cards, Koolaid points)

Consumer Sales Promotion cont.5. Product sample - A free trial size of a product6. Incentive - Use to create excitement and interest

about products and therefore increase salesa. Contest - Games or activities that require

participant to demonstrate a skill (ex. Essay, name a new product, picture, collect pieces – like Monopoly etc.)

b. Sweepstakes - Games of chance (ex. Scratch off tickets, peel off tickets)

c. Rebate - Discounts offered when purchasing during a given time period (ex. Printer at Xmas)

PublicityInvolves placing newsworthy information about a company,

product, or person in the media

Public Relations - Activity designed to create goodwill toward a business

Audiences - Different targets for public relations Employees - Newsletters, employee suggestion

programs, recognition programs Customers - Customer advisory boards, customer

feedback forms, sponsor special events , provide: In-store restaurants, child care, gift wrap, fax, copy, free delivery

Community - Sponsoring teams, awarding scholarships, donating to charities, encouraging employees to join civic organizations

Publicity cont.

News release - A pre-written story about a company that is sent to various media

Press kit - A folder containing articles, news releases, feature stories, and photographs about a company – often given to media to assist in writing a story

Press conference - A meeting in which media members are invited to hear an announcement about a newsworthy event