Managing Perceived Risk

1. Managing Perceived Risk • Alleviate customer anxiety due to inability to experience the product beforehand • Familiarization trips encourage clients to experience the enterprise in a low-risk situation ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

2. Public Relations • Creating a positive image and customer preference through third-party endorsement • PR is experiencing explosive growth • Offers a way to distinguish your company’s products from another • Marketing and PR are becoming increasingly linked ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

3. Major PR Activates • Press Relations • Product Publicity • Corporate Communications • Lobbying • Counseling ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

4. Press Relations • The aim of press relations is to place newsworthy information into the news media to attract attention to a person, product, or service ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

5. Product Publicity • Various efforts to publicize specific products • Assists in new product launch • Assists in product repositioning • Creates interest in a product category ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

6. Corporate Communications • Involves communications with internal and external customers • Promotes understanding of the organization ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

7. Lobbying • Dealing with legislators and government officials to promote or defeat legislation and regulation • Large companies employ their own lobbyists • Small companies lobby through local trade associations ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

8. Counseling • Advising management about public issues and company positions and image • Important when involving special interests • Example: Water scarcity and the mirage in Las Vegas ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

9. Publicity • Secures editorial space, as opposed to paid space, in print and broadcast media to promote a product or a service • Influences specific target groups • Defends products against public problems • Builds the corporate image ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

10. The Public Relations Process • Research • Establishing marketing objectives • Builds awareness • Builds credibility • Stimulates the sales force and channel intermediaries • Lowers promotional costs ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

11. The Public Relations Process • Defining the Target Audience • Choosing the PR Message and Vehicles • Implementing the Marketing PR Plan ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

12. The Public Relations Process • Evaluating PR Results • Exposures • Awareness/Comprehension/Attitude Change • Sales-and-Profit Contribution ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

13. Publications Events News Speeches Public Service Activities Identity Media Major Tools in Marketing PR ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

14. PR Opportunities for the Hospitality Industry • Individual Properties • Single hotels, tour operators, B&Bs • They can seldom afford advertising • Build PR around the Owner/Operator • Owner sometimes is the face of the product ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

15. PR Opportunities for the Hospitality Industry • Build PR around Location • Turn poor locations into advantages • Isolation and obscurity can be a PR tactic • Build PR around a Product or Service • Emphasize unique services ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

16. Crisis Management • Take all precautions to prevent negative events from occurring • When a crisis does occur • Appoint a spokesperson • Contact the firm’s PR agency • Notify the press and keep them updated ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

17. Sales-Promotion Objectives • Increase short-term sales • Help build long-term market share • Entice consumers to try a new product • Lure consumers away from competitors ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

18. Sales-Promotion Objectives • Hold and reward loyal customers • Building stronger customer relations • Obtaining new accounts ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

19. Samples Coupons Packages Patronage Rewards Premiums Point-of-Purchase Displays Contests, Sweepstakes, and Games Sales-Promotion Tools ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

20. Developing the Sales Promotion Program • Decide on the size of the incentive • Set the conditions for participation • Decide how to promote and distribute • Set promotion dates • Decide on the sales promotion budget ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

21. Before and After • Pre-test to determine if they are appropriate and of the right incentive size • Evaluate the results against the objectives of the program ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

22. Local Store Marketing • Also called “area” or “neighborhood” marketing • A low-cost, hands-on effort to take advantage of all opportunities in immediate training area • School tours, product tastings, coupons • Cause-related marketing/charities ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

23. Best Practices • Creative Publicity by Taco Bell • Liberty Bell April Fools Purchase • “Nothing ordinary about it” campaign • Image promotion of a hip, rebellious restaurant chain ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

24. Key Terms • Contests, sweepstakes, and games • Corporate communications • Coupons • Counseling • Event creation ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

25. Key Terms • Lobbying • Patronage rewards • Point-of-purchase (POP) promotions • Premiums • Press relations ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

26. Key Terms • Press release • Product publicity • Public relations • Sales promotion • Samples ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens