Chapter 15 :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 1 Chapter 15 Promotion Products: Public Relations and Sales Promotion


What is Public Relations? :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 2 What is Public Relations? Public Relations 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.


Public Relations :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 3 Public Relations Citizen Action Group Suppliers Customers Government Media Financial Community Publics


Slide 4:Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 4 Local Publics - Community Local Area Marketing General Public Corporate Citizen Internal Publics Employees Board of Directors Stockholders Public Relations Cont.


Major Activities of PR Departments :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 5 Major Activities of PR Departments Press Relations Product Publicity Corporate Communication Lobbying Counseling


Publicity :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 6 Publicity Product Related Publicity Assist in the Launch of New Products. Assist in Repositioning a Mature Product Build Up Interest in a Product Category


Corporate Communication :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 7 Corporate Communication Influence Specific Target Groups Defend Products That Have Encountered Public Problems Build the Corporate Image in a Way That Projects Favorably on Its Products.


The Public Relations Process :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 8 The Public Relations Process Research Establishing the Marketing Objective Build Awareness Build Credibility Stimulate the Sales Force and Channel Intermediaries Hold Down Promotion Costs


The Public Relations Process -Continued :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 9 The Public Relations Process -Continued Defining the Target Audience Choosing the PR Message and Vehicles Event Creation


Implementing the Marketing PR Plan :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 10 Implementing the Marketing PR Plan Evaluating PR Results Exposures Awareness/Com-prehension/Attitude Change Sales-and-Profit Contribution


Major Tools in Marketing PR :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 11 Major Tools in Marketing PR Public Service Activities Identity Media Speeches Publications News Events


Public Relations Opportunities for the Hospitality Industry :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 12 Public Relations Opportunities for the Hospitality Industry Public Relations Opportunities for Individual Properties Build PR Around the Owner/operator Build PR Around Location Build PR Around a Product or Service


Crisis Management Do’s :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 13 Crisis Management Do’s Do Have a Crisis Plan That Includes Natural Disasters, Security Breaches, Safety Issues and Strikes Do Update Your Plan Often Do Have One Spokesperson Available at All Times to Discuss the Crisis, Usually the G.M. Do Say When You Are Unable to Answer a Question and Give a Reason, Such As, “I Do Not Have That Information Yet”


Crisis Management Do’s :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 14 Crisis Management Do’s Do Speak Truthfully and Authoritatively Do Increase Security If Necessary; Make Security Highly Visible to Guests Do Initiate Information Updates or Hold a Press Conference Do Create a Positive Follow-up Campaign


Crisis Communication Dont’s :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 15 Crisis Communication Dont’s Don’t Wait for a Crisis to Design a Plan Don’t Wait for a Crisis to Train Employees Don’t Speak off the Record to Anyone Don’t Release Names of Victims Don’t Answer Reporters by Saying, “No Comment”


What is Sales Promotion ? :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 16 What is Sales Promotion ? Sales Promotion consists of short-term incentives to encourage the purchase or sales of a product.


Sales Promotion Objectives :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 17 Sales Promotion Objectives Increase short-term sales or help build long-term market share. Get consumers to try a new product Lure customers away from a competitor In general, sales promotion should focus on consumer relationship building.


Major Consumer Sales Promotion Tools :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 18 Sample Coupons Packages Premiums Trial amount of a product Savings when purchasing specified products Bundling products, for example a room and dinner Products offered free or low cost as an incentive to buy a product Major Consumer Sales Promotion Tools Displays or demonstrations


Major Consumer Sales Promotion Tools :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 19 Major Consumer Sales Promotion Tools


Local Store Marketing :Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 20 Local Store Marketing Cross Promotions Coupons/free Goods Distributed by Another Organization Consumer Goods--use High Traffic Retailers-- Look for Synergy With Your Product Professional Services--other Professional Services