Principles of Marketing

Chapter 18- Public Relations and

Sales Promotions

Terms
Publicity- Publicized information such as news
stories about products and services, people,
and organizations
Public Relations (PR)- Process of creating a
positive image for a company, an offering, or a
person via publicity.

Terms
Sales promotion- Other forms of promotions
(coupons, contests, rebates, mail-in offers) not
included as a component of a communication
mix.

PR
In place to build or manage the rapport with
individuals (customers or not).
Without a good rapport, then issues will
present themselves.
Most firms have PR departments in-house, but
often hire specialty firms if the PR mess is
large enough

Ways to Handle PR
Press Releases- News story written by an
organization to promote a product,
organization or person.
This should sound as though it comes from an
objective third-party, but it comes from the
organization.

PR

PR
Most people are familiar with PR from a
damage control perspective where the negative
effects of an action are managed in order to
lessen the damage of negative events.
Can be difficult. Sometimes people just want
to see someone punished.

Sponsorship
Sponsorships- Paying a fee to have a name
associated with a particular venue, event, or
person.
Venue- FedEx Forum

Sponsorship
Individual-

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Sponsorship
Event-

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Sponsorship
Cause-

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Product Placement
Getting a companys product included as a part
of a television show, movie, video game or
special event.

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Product placement
Michael Bay (Language warning)

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Sales Promotion
Supplemental to advertising, PR, and personal
selling.
Ideally, sales promotions are in place to
stimulate a purchase or alter purchase
decisions based on the promotion.

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Types of Sales Promotions

Samples- small amount of a product given to a
consumer to try.
Generally beneficial for food.
Often will be paired with a coupon to try and
coax a decision.

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Types of Sales Promotions

Coupon- Immediate price reduction off an
item
Doesnt have to be a clipped coupon
Mobile coupons
Instant coupons

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Types of Sales Promotions

Point-of-Purchase Displays
In-store displays designed to encourage
consumers to buy products immediately.

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Types of Sales Promotions

Premium- Something consumers get for free or
a small charge with a proof of purchase.
Greatest of all time- Cereal toys

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Types of Sales Promotions

Contests- People enter or participate to win.

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Types of Sales Promotions

Loyalty Programs- Rewards for frequent
purchases
Hotel points, shopping cards (Kroger fuel points),
Credit Card rewards, etc.

Excellent source for cooperative advertising

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Types of Sales Promotions

Rebates- part of a purchase is refunded after
the completion of a form and proof of
purchase
Stimulate demand without much cost

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Trade Promotions
B2B Sales promotion is generally called Trade
Promotions

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Types of Trade Promotions

Trade Shows- Event in which firms in a
particular industry display and demonstrate
their offerings to other organizations they hope
will buy them.

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Types of Trade Promotions

Benefits:
Can see what other competitors are doing
Gain leads from participants
Get information to the public
Gain (hopefully positive) PR

Drawbacks
Costly
Competitors can see what you are doing
Can be duds if there is a lull in the industry
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Types of Trade Promotions

Conventions- Meetings of groups of
professionals that provide a way for sellers to
show potential customers different products.

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Types of Trade Promotions

Sales contests- Contests designed to motivate
salespeople to increase sales of particular
products.
Good for moving products, stimulating demand,
and employee moral
Bad if unethical practices occur

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Types of Trade Promotions

Trade allowances- Discounts to different
channel partners for performing different
functions
Advertising allowance- Allowance a manufacturer
provides retailers to advertise in local newspapers
(economies of scale)

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Types of Trade Promotions

Training- Assistance offered to channel
partners salespeople to entice an action.
Demonstrations- Showing customers how
products work and answer questions.
Demo Days

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Types of Trade Promotions

Free merchandise- product or service a seller
offers retailers in order to get them to push it
toward consumers.
If you sell Y number of units of product X, you
(the salesperson) gets one product X

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Types of Trade Promotions

Push money- Cash incentive a manufacturer
provides its channel partners to sell particular
items
Can be to clear inventory, new product launch, etc.

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