Chapter 14: Promoting Products (Part 2)

1. Public relations (PR) is an important tool that until recently was treated
as a marketing stepchild.
2. Companies are realizing that mass marketing is no longer the answer
to some of their communication needs.
3. Advertising costs continue to rise, audience reach continues to decline,
and clutter reduces ad impact.
4. In this environment, public relations holds promise as a cost-effective
promotional tool.
5. PR departments perform five activities, not all of which feed into direct
product support:
a. Press Relations - placing newsworthy information in the media to
attract attention to a person, product, or service
b. Product Publicity - efforts to publicize specific products
c. Corporate Communication - internal & external communications
and promoting understanding of the organization
d. Lobbying - dealing with legislators and government officials to
promote or defeat legislation & regulation
e. Counseling - advising management about public issues and
company positions and image
6. Publicity is the task of securing editorial and news space, as opposed
to paid space, in print & broadcast media to promote a product or a
service.
7. Publicity builds corporate image in a way congruent with the
organizations communication strategy.
8. Public relations are the most important promotional tool available to
entrepreneurs & individual properties.
9. An important area of public relations is crisis management, because
not all publicity is good.
10.
The first step in crisis management is taking all precautions to
prevent occurrence of negative events.
11.
Smoldering crises give warning before they occur, and can often
be eliminated with good management.

12.
Sales promotion consists of short-term incentives to encourage
purchase or sale of a product or service.
13.
Sales promotion includes a variety of promotional tools designed
to stimulate earlier or stronger market response:
a. consumer promotion (samples, coupons, rebates, premiums,
contests, demonstrations)
b. trade promotion-buying allowances (free goods, cooperative
advertising, and push money)
c. sales force promotion (bonuses and contests)
14.
Sales promotions are most effective when they are used with
advertising or personal selling.
15.
Cause-related promotions are another local area marketing
tactic, bring business to the hotel or restaurant and help the
community.
16. A good local campaign creates community goodwill and exposure for
the establishment.