Principles of Marketing
Session 17
Sales Promotion and
Public Relations
Text: Chapter 15
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17－1
Outline
I. Sales Promotion
II. Public Relations
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Sales Promotion
Promotion
I.I. Sales
I-1 Sales Promotion Defined
A mass communication
technique that offers short-term
incentives to encourage
purchase or sales of a product
or service.
Offers reasons to buy now.
-- Kotler & Armstrong
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I-2 Sales Promotion Areas
Business
Business
Promotion
Promotion
Sales Promotion
Areas
Trade
Trade
Promotion
Promotion
Consumer
Consumer
Promotion
Promotion
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I-3 Sales Promotion Tools
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¾ Contests and games of skill and chance
¾
¾
¾
¾
¾
¾
¾
¾
Point-of-Purchase
Patronage Rewards
Advertising Specialties
Premiums
Cents-off deals or Price Packs
Cash-back offers
Redeemable coupons
Samples
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I-4 Developing Sales Promotion Programs
Developing
Implementing
Evaluating
1-5 Objectives of Consumer Promotion
¾
Obtaining trial and repurchase
¾
Increasing consumption of an
established brand
¾
Defending current customers
¾
Targeting a specific market
¾
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Enhancing advertising and marketing
efforts
I-6 Consumer Promotions
¾
¾
¾
¾
¾
¾
¾
¾
Samples
Coupons
Premiums
Contests/sweepstakes
Refunds/rebates
Bonus packs
Price-offs
Event sponsorship
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I-7 Objectives of Trade Promotions
z Obtain
distribution for new products
z Maintain
trade support for established
brands
z Encourage
retailers to display
established brands
z Build
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retail inventories
1-8 Trade Promotion Tools
z
z
z
z
z
z
Contests and dealer incentives
Trade allowances
Point-of-purchase displays
Training programs
Trade shows
Cooperative advertising
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1-9 The Sales Promotion Trap
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Our Firm
All Other
Firms
Cut back promotions Maintain
promotions
Cut back
Higher profits for all
promotions
Market share
goes to our firm
Maintain
Market share goes to Market share
promotions all other firms
stays constant;
profits stay low
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II. Public
Public Relations
Relations
II.
II-1 Public Relations Defined
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PR involves building good relations
with the company’s various publics
by obtaining favorable publicity,
building up a good corporate image,
and handling or heading off
unfavorable rumors, stories, and
events.
-- Kotler & Armstrong
II-2 Value Added by
Marketing Public Relations (MPR)
¾
¾
¾
¾
¾
¾
¾
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Building marketplace excitement before
media advertising breaks
Creating advertising news where there is
no product news
Introducing a product with little or no
advertising
Providing a value-added customer service
Building brand-to-customer bonds
Influencing the influentials
Defending products at risk and giving
consumers a reason to buy
II-3 Advantages and Disadvantages
of PR
Advantages:
¾ credibility
¾ low
cost
¾ less clutter
¾ lead generation
¾ ability to reach
specific groups
¾ image building
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Disadvantages:
¾ not
completing the
communication
process
¾ redundancies
the marketing
effort
with
II-4 Public Relations Tools
Tools of Public Relations
¾
¾
¾
¾
¾
¾
¾
Product Publicity
Special Events
Public Service Activities
Materials
Lobbying
Corporate
Communications
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I-10 Breakdown of Spending
on Event Sponsorship
Where they spend
$6
$5
6%
$4
8%
9%
$3
$2
$1
67%
10%
Sports
Cause Mktg.
Music
Arts
Festivals
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How much they spend (in
billions)
5.00
4.70
4.20
3.70
3.30
2.80
2.50
2.10
1.75
$0
88 89
90
91
92
93
94
95
96
II-5 Public Relations Decisions
Key Public Relations Decisions
¾ Objectives
¾ Messages
¾ Implementation
¾ Evaluation
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II-6 Additional Means for Measuring
PR’s Effectiveness
¾ Personal
observation and reaction
¾ Matching
objectives and results
¾ The
team approach
¾ Management
¾ Public
¾ Audits
by objectives
opinion and surveys
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Questions
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1.What promotional tools have been
taken in the following cases?
2.To bring high ROI for each, what
efforts are usually required?
¾ 海尔加盟体育营销,聘请篮坛巨星作形象
代言人
¾ 中石化成为2004-2006年F1中国站的独家
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