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Transcript of Chapter 14.complete
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PROMOTING PRODUCTS: PUBLIC RELATIONS AND SALES PROMOTIONSChapter 14
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COMMUNICATIONS MIX Five Major Promotion Tools
AdvertisingPublic Relations*: create a positive image
and customer preference through third-party endorsements
Sales Promotions*: short term incentives to encourage the purchase or sale of a product or service
Personal SellingDirect Marketing
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FIVE MAJOR ACTIVITIES OF PR DEPARTMENTS1. Press relations- place newsworthy information into the
news media to attract attention1. Ex. Food review write up in newspaper
2. Product Publicity- special events1. Ex. Food festivals, newly renovated hotel
3. Corporate Communication- internal and external1. Ex. Employee newsletter
4. Lobbying- dealing with legislators and government officials to promote or defeat legislation
1. SC Hospitality Day http://www.schospitality.org/displaycommon.cfm?an=1&subarticlenbr=629
2. Ex. SCHA- What have they lobbied for in SC?5. Counseling- advising management about public issues
and company positions and image (sensitive issues)1. Ex. Mirage’s water fountains
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PUBLICITY Positive and Negative Examples
Sponsor events (Mud Run, 5Ks, McDonald’s sponsors neighborhood events in Hispanic and A-A communities, etc.)
Dirty Holiday Inn & Sheraton- Downtown ATL Natural disasters- Joplin, MO tornadoes What are other examples?
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PR IN THE HOSPITALITY INDUSTRY Individual Property Level- train employees to look for
stories Build PR around Owner/Operator
Ex. Chef Jules mustaches Build PR around Location
What is around you that you can sell? Alaska Northern Lights http://www.anchorage.net/articles/alaska-northern-lights Remote locations Downtown locations
Build PR around a Product or Service Peabody Ducks http://www.youtube.com/watch?v=p10YyBuzicQ Pizza Hut in China http://siuyeh.files.wordpress.com/2008/10/pizza-hut-salad-bar-17.jpg http://www.youtube.com/watch?v=1eEYoa1RK7Y Examples?
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CRISIS MANAGEMENT http://
myprfeed.wordpress.com/2010/01/04/dominos-rogue-employee-scandal-of-2009-how-the-pizza-company-addressed-its-biggest-crisis-of-the-year
Focus on communication not on the crisis Sudden crisis comes without warning Smoldering crisis can be prevented
Sexual harassment, food poisoning Good communication can reduce the impact Appoint a spokesperson
Reports the FACTS Timely statements Notify press if there is a crisis-don’t wait Feed the media
What crisis plans do you/should you have in place?
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Employees wrongly handled customer luggage No one took responsibility for breaking their luggage Denied allegations and claim due to delayed report Denied money and $1,200 in flight vouchers Customer then made a video that went viral regarding
how he was wrongly treated
NEGATIVE PR: UNITED AIRLINES
https://www.youtube.com/watch?v=5YGc4zOqozo
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Rob Bradford, United's managing director of customer solutions, called to personally apologize
Now they use this video as a training tool to ensure employees learn from the mistake
Guitar company, Taylored Guitars, gave Dave a new guitar
Offered information on how to travel safely with guitars
HOW TO FIX IT
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Inappropriate and accidental tweet Didn’t notice mistake for over an hour PR Damage-Control: Apologizing nationally on twitter
NEGATIVE PR: US AIRWAYS
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1) Restrict access to social media accounts 2) Set up a secure profile 3) Use automatic filters 4) Track changes in message volume 5) Train employees on social media
HOW TO PREVENT IT
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Following incident, US Airways had more twitter followers and reached a wider variety of people
Opportunity to create sales US Airways offers fresh dining, WIFI for a good price,
and wide variety of in-flight movies
PR FOCUSED ON SALES
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SALES PROMOTIONS Why use promotions?
Boost sales during slow periods Increase traffic at your location vs. competitors Collective promotions Ex. Restaurant Week http://restaurantweeksouthcarolina.com/
May Result in publicity Ex. Pizza Hut- good grades http://www.pizzahutpizza.com/kids/
Most effective with advertising or personal selling Must have either:
Decrease in price Increase in perceived value
Phrasing Hurry In Limited Time Only Only two more days… Special Offer
5 Steps
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5 STEPS FOR SALES PROMOTIONS1. Set sales promotion objective2. Select sales promotion tools
1. Samples, coupons, wine tasting, etc. 2. Avoid over couponing/black out times3. Texts and emails4. Premiums
1. Drink of the Day5. Patronage rewards
1. Frequent Flyer6. Point of purchase promo
1. Bruegger’s Bagels http://www.brueggers.com/7. Contests and games
1. Pawley’s3. Find creative ideas
1. Grand opening2. Harry Potter
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5 STEPS FOR SALES PROMOTIONS4. Develop the sales promotion program
Who is eligible? Length Distribution Budget Ex. Percent Nights
5. Pretest and Implement the Plan1. Lead time- time to prepare the plan2. Sell time- launch and end date
6. Evaluate Many people fail to evaluate!!!
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GROUP WORK In your groups:
Develop a grand opening of a hotel/resort, restaurant, theme park, etc.
Give the specific details of: Advertising Who is invited? What is special about the opening? What else?
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VIDEO DISCUSSION NFL
Relate what the NFL does for the community, what a restaurant, hotel, or other hospitality organization could do for the community in which it operates?
What are benefits of this type of charity?
Nudie What sales efforts/tactics Nudie has used?
Evaluate their usefulness.