Chapter Eighteen

1. Chapter Eighteen Sales Promotion, Publicity, & Public Relations

2. Objectives • Explain purposes of sales promotion • Identify retail & wholesale sales promotion tools • Identify consumer sales promotion tools • Introduce public relations • Overview publicity • Introduce crises management

3. Growth in United States Exceeds $250 billion dollars a year Increasing percentage of promotional dollars Consumer goods companies spend more on sales promotions than advertising Sales Promotion

4. Sales Promotion Objective: Bolster/complement other promotional mix elements during a specific time period Targeted toward: • Sales force • Wholesalers and retailers • Consumers

5. Trade Promotions Objective: • Motivate for special efforts • Increase number of distributors

6. Major Forms of Trade Promotion • Trade shows • Contests • Display equipment and P-O-P materials • Cooperative advertising & promotions • Vertical - channel members • Horizontal - group of retailers • Allowances

7. Product sampling Coupons Rebates Contest & sweepstakes Consumer Promotion

8. Premiums Multiple purchase offers P-O-P material Product placements/tie-ins Consumer Promotion

9. Public Relations & Publicity Public Relations: • Identify, establish, and maintain beneficial relationships between a company and its stakeholders Publicity: • Means of accomplishing public relations • Involves third party • Free • Limited control over content

10. The Uses of Publicity • Attract public’s attention • Maintain public visibility • Provide information • Change attitudes • Combat negative publicity from another source

11. Publicity: News Release Brief statement sent to the press or others describing: • A new product • Product improvement • A price change • Other interesting news

12. Publicity: Press Conference Meeting called by an organization to announce a newsworthy event to the press.

13. Appearances in public to promote, including: TV talk shows Book signings Radio talk shows Other events Publicity: Appearances

14. Product information Organization history Investor relations Customer service Publicity: Web Site

15. Purpose Means Target audience News releases Consumers Corporate visibility & image Press conferences General public Lobbying Employees Annual reports Product information Govt officials Event sponsorship Stockholders Web site Scope of Public Relations

16. Event Sponsorship Title sponsor creates event and activity • Sports sponsorships • Charity sponsorships

17. Crisis Management Emergency information dissemination • Rumor center • Fact-based • Press conferences • Outside experts • Localize

18. Evaluating & Monitoring Public Relations • Systematic • Compare with competitors • Monitor media & “chatrooms”

19. Review • Explain purposes of sales promotion • Identify retail & wholesale sales promotion tools • Identify consumer sales promotion tools • Introduce public relations • Overview publicity • Introduce crises management