chapter
Chapter 21:Public Relations
and Sales Promotions
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
Council of Public Relations
BBH
Public Relations
Functions
Ads:
Visa
Philip Morris
Tools
Press relations
New product publicity
Product publicity
Product placement
Corporate communication
Consumer education
Public affairs
Event sponsorship
Lobbying
Issue sponsorship
Employee and investor relations
Internet Web sites
Crisis management
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.
Product
Placement
Talladega Nights

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 DavieBrown 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/
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
Sample
Press
Release
Publicity Insider
Managing Unfavorable Publicity
Crisis
Management
A coordinated effort to
handle the effects of
unfavorable publicity or of
an unfavorable event.
Ogilvy Crisis Management
Crisis Management
Tiger Woods Crisis Management
Sales Promotion
Marketing communication
activities, other than advertising,
personal selling, and public
relations, in which a
short-term incentive motivates a
purchase.
Sales Promotion vs. Advertising
Advertising
Reason to buy
Sales Promotion
Incentive to buy
Sales Promotion
Consumer
Sales
Promotion
Consumer market
Pull Strategy
Goal = Drive immediate purchase
= Influence Behavior
Trade
Sales
Promotion
Marketing channel
Push Strategy
Factors Affecting the Promotional Mix
Pull Strategy
Push Strategy
Manufacturer
Manufacturer
Retailer demands
product from the
manufacturer
(pulls)
Retailer
Consumer
demands product
from the retailer
(pulls)
Consumer
Manufacturer
markets to the
consumer
through
advertising,
sales
promotions, etc.
Retailer
Manufacturer
offers promotions
to the retailer
(discounts,
increased
personal selling,
etc.)
Retailer passes
along (pushes)
these incentives in
some way to the
consumer
Consumer
Push and Pull strategies can be
used separately or together
Uses of Sales Promotion
Immediate purchases
Increase trial
Boost consumer inventory
Encourage repurchase
Increase ad effectiveness
Encourage brand loyalty
Objectives of Sales Promotion
Type of Buyer
Desired Results
Sales Promotion
Examples
Loyal
Customers
•Reinforce behavior
•Increase consumption •Loyalty marketing
•Change timing
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-off
packages, refunds
•Trade deals
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
Consumer Sales Promotions
Sampling
A promotional program that allows
the consumer the opportunity to try a
product or service for free.
Levitra Challenge 1
Levitra Challenge 2
FreeSamples.com
Packaging for
POP
Attention
Packaging for
POP
Attention
Online
http://www.levesquedesign.com
www.design4packaging.com
Packaging for
POP
Attention
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
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.
Trade Shows
Trade shows are a great place to introduce new
products, meet potential customers, and take orders
Home Builders Show
•60,000
attendance
•1,600
exhibitors
•250 Info
sessions
•850,000 sq.
ft. of
exhibitions
(Football field = 57,600
sq. ft.)