Chapter 15

Promoting
Products:
Public
Relations and
Sales
Promotion
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
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 “There are many misconceptions
about public relations. One of the
most widespread is that it’s easy”

-Peter Celliers

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Chapter Objectives
• Understand the different public relations
activities

• Understand the public relations process

• Know how the different PR tools are

used

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Chapter Objectives
• Implement a crisis management
program in a hospitality business

• Discuss the growth and purpose of

sales promotion, setting objectives, and
selecting consumer promotion tools

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Public Relations
• Creating a positive image and customer
preference through third-party endorsement

• PR is experiencing explosive growth

• Offers a way to distinguish your company’s

products from another

• Marketing and PR are becoming increasingly

linked
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Major PR Activates
• Press Relations

• Product Publicity

• Corporate Communications

• Lobbying

• Counseling
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Press Relations
• The aim of press relations is to place
newsworthy information into the news
media to attract attention to a person,
product, or service

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Product Publicity
• Various efforts to publicize specific products

• Assists in new product launch

• Assists in product repositioning

• Creates interest in a product category

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Corporate Communications
• Involves communications with internal and
external customers

• Promotes understanding of the organization

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Lobbying
• Dealing with legislators and government
officials to promote or defeat legislation and
regulation

• Large companies employ their own lobbyists

• Small companies lobby through local trade

associations

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Counseling
• Advising management about public issues
and company positions and image

• Important when involving special interests

• Example: Water scarcity and the mirage in

Las Vegas

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Publicity
• Secures editorial space, as opposed to paid
space, in print and broadcast media to
promote a product or a service

• Influences specific target groups

• Defends products against public problems

• Builds the corporate image

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 The Public Relations Process
1. Research

2. Establishing marketing objectives

• Builds awareness
• Builds credibility
• Stimulates the sales force and channel
intermediaries
• Lowers promotional costs

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 The Public Relations Process
3. Defining the Target Audience

4. Choosing the PR Message and

Vehicles

5. Implementing the Marketing PR Plan

©2006 Pearson Education, Inc. Marketing

Marketing
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for Hospitality
and Tourism,
and Tourism,
4th edition
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Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 The Public Relations Process
6. Evaluating PR Results

• Exposures

• Awareness/Comprehension/Attitude
Change

• Sales-and-Profit Contribution
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Major Tools in Marketing PR
• Publications • Speeches

• Events • Public Service

Activities
• News
• Identity Media

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 PR Opportunities for the
Hospitality Industry
• Individual Properties

– Single hotels, tour operators, B&Bs

– They can seldom afford advertising

• Build PR around the Owner/Operator

– Owner sometimes is the face of the

product
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 PR Opportunities for the
Hospitality Industry
• Build PR around Location

– Turn poor locations into advantages

– Isolation and obscurity can be a PR
tactic

• Build PR around a Product or Service

– Emphasize unique services

©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Crisis Management
• Take all precautions to prevent
negative events from occurring

• When a crisis does occur

– Appoint a spokesperson
– Contact the firm’s PR agency
– Notify the press and keep them updated

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Sales-Promotion Objectives

• Increase short-term sales

• Help build long-term market share

• Entice consumers to try a new product

• Lure consumers away from competitors

©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Sales-Promotion Objectives

• Hold and reward loyal customers

• Building stronger customer relations

• Obtaining new accounts

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Sales-Promotion Tools
• Samples • Premiums

• Coupons • Point-of-Purchase
Displays
• Packages
• Contests,
• Patronage Rewards Sweepstakes, and
Games

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Developing the Sales
Promotion Program
1. Decide on the size of the incentive
2. Set the conditions for participation
3. Decide how to promote and distribute
4. Set promotion dates
5. Decide on the sales promotion budget

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Before and After
• Pre-test to determine if they are
appropriate and of the right incentive
size

• Evaluate the results against the

objectives of the program

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Local Store Marketing
• Also called “area” or “neighborhood”
marketing

• A low-cost, hands-on effort to take advantage

of all opportunities in immediate training area

• School tours, product tastings, coupons

• Cause-related marketing/charities
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Best Practices
• Creative Publicity by Taco Bell

– Liberty Bell April Fools Purchase

– “Nothing ordinary about it” campaign

– Image promotion of a hip, rebellious

restaurant chain

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Key Terms
• Contests, sweepstakes, and games

• Corporate communications

• Coupons

• Counseling

• Event creation
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Key Terms
• Lobbying

• Patronage rewards

• Point-of-purchase (POP) promotions

• Premiums

• Press relations
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Key Terms
• Press release

• Product publicity

• Public relations

• Sales promotion

• Samples
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens