Chapter 21:Public Relations and Sales Promotions

1. Chapter 21:Public Relations and Sales Promotions chapter

2. Public Relations Public Relations The element in the promotional mix that: • evaluates public attitudes • identifies issues of public concern • executes programs to gain public acceptance

3. Press relations New product publicity Product placement Product publicity Consumer education Corporate communication Event sponsorship Public affairs Issue sponsorship Lobbying Internet Web sites Employee and investor relations Crisis management Council of Public Relations BBH Ads: Visa Philip Morris Public Relations Functions Tools

4. Eye-catching Publicity Tylenol hired runners to run on treadmills above Times Square to promote their sponsorship of the NY City Marathon The Weinermobile. Enough said.

5. Product Placement

6. Wonder Bread officials gave Sony Pictures the rights to use its logo “For them to have gone out, if they could buy this level of media, I mean what would that be?" said Tom Meyer, President of Davie-Brown Entertainment. "I’m going to guess tens of millions of dollars if not $100 million of media value. Then when you add on top of that, the relevance that you get from being connected to such a popular guy like Will Ferrell, the value is almost limitless." Logo clear and in focus for 11m 32s onscreen Wonder Bread put Ferrell on the front of its Web site, and awarded one lucky winner the fire suit and hat worn in the movie Another received a trip to the NASCAR race at Talladega this fall. NASCAR.com pedaled collectibles as if Ricky Bobby were an actual driver: title sponsorship that in the real world costs $15 million. http://www.msnbc.msn.com/id/14151755/ Talladega Nights

8. Publicity • A news story type of communication transmitted through a mass medium at no charge • News release • A short piece of copy publicizing an event or a product • Feature article • A manuscript of up to 3,000 words prepared for a specific publication • Captioned photograph • A photo with a brief description of its contents • Press conference • A meeting used to announce major news events

9. Sample Press Release Publicity Insider

10. Managing Unfavorable Publicity Crisis Management A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event. Ogilvy Crisis Management

11. Crisis Management Tiger Woods Crisis Management

12. Sales Promotion Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.

13. Sales Promotion vs. Advertising Advertising Reason to buy Sales Promotion Incentive to buy

14. ConsumerSales Promotion Consumer market Goal = Drive immediate purchase = Influence Behavior Trade Sales Promotion Marketing channel Sales Promotion Pull Strategy Push Strategy

15. Factors Affecting the Promotional Mix Pull Strategy Push Strategy Manufacturer offers promotions to the retailer (discounts, increased personal selling, etc.) Retailer demands product from the manufacturer (pulls) Manufacturer markets to the consumer through advertising, sales promotions, etc. Consumer demands product from the retailer (pulls) Retailer passes along (pushes) these incentives in some way to the consumer Push and Pull strategies can be used separately or together

16. Immediate purchases Increase trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Encourage brand loyalty Uses of Sales Promotion

17. Type of Buyer Desired Results Sales PromotionExamples Loyal Customers • Reinforce behavior • Increase consumption • Change timing • Loyalty marketing Competitor’s Customers • Break loyalty • Persuade to switch • Sampling • Sweepstakes, contests, premiums Brand Switchers • Persuade to buy your brand more often • Price-lowering promotion • Trade deals Price Buyers • Appeal with low prices • Supply added value • Coupons, price-offpackages, refunds • Trade deals Objectives of Sales Promotion

18. Consumer Sales Promotions • Price-based consumer sales promotion • Coupons • Price deals, refunds, and rebates • Frequency (loyalty/continuity) programs • Special/bonus packs • Sampling • Premiums • Contests/Sweepstakes • Point-of-purchase promotions • Packaging SmartSource

19. Sampling A promotional program that allows the consumer the opportunity to try a product or service for free. Consumer Sales Promotions Levitra Challenge 1 Levitra Challenge 2 FreeSamples.com

20. Packaging for POP Attention

21. Packaging for POP Attention Online http://www.levesquedesign.com www.design4packaging.com

22. Packaging for POP Attention

23. Trade Sales Promotions • Allowances, discounts, and deals • Merchandising allowances • Case allowances • Co-op advertising • Push money • Increasing industry visibility • Trade shows • Promotional products • Point-of-purchase (POP) • Incentive programs Online www.nahb.org

24. Push Money “Spiff” Money offered to channel intermediaries to encourage them to “push” products--that is, to encourage other members of the channel to sell the products.

25. Trade Shows Trade shows are a great place to introduce new products, meet potential customers, and take orders

26. Home Builders Show • 60,000 attendance • 1,600 exhibitors • 250 Info sessions • 850,000 sq. ft. of exhibitions (Football field = 57,600 sq. ft.)