Public Relations

Public Relations • Pick a PR triumph or disaster (not a case from your book--JetBlue): • Toyota (recent) • Coke Europe (1999) • Dominos (recent) • Tylenol (1982) • Carnival (recent) • BP (recent) • Cadbury Europe (2006)

Assignment • Describe the issues and what they did or should have done based on your understanding of the goals of PR in the chapter. • Grade is based on how you apply what you read • Classic 5-paragraph essay—2page • Due by end of class time next Thursday. • Important for Final Exam

Creative Assignment

Advertising Principles and Practices Sales Promotion, Events, and Sponsorships

What is sales promotion? Principle: Sales promotion is primarily designed to motivate people to act by offering incentives.

Changes in the Promotion Industry • Consumer and trade promotions now account for more than ½ of budget. • Online promotions are growing at a rate of about 27% annually.

Reasons for Sales Promotion Growth • Pressure for short-term profits • Rising cost of mass (traditional) media • Need for accountability • Sales promotions are easy to track and evaluate • Escalation of traditional media costs • Promotions cost less and deliver tangible results • Easier and quicker to determine if objectives have been met • Usually, there’s an immediate response Principle: Sales promotion reduces the risk of trying a new product by giving something of added value to motivate action.

Reasons for Promotion GrowthBased on Marketplace Changes • Consumer behavior • Shoppers switch more easily • Pricing • Consumers expect coupons, sales, discounting • Market share • Increased switching leads to increased market share • Parity products • Promotions can distinguish between similar products • Power of the retailer • Wal-Mart, Home Depot, Toys “R” Us and others demand promotional incentives

Categories of Sales Promotion • Consumer • Targeted to consumer: people like you and me • Trade • Targeted to people/companies in the distribution channel such as buyers, distributors, wholesales, dealers, franchisees, retailers, etc. • Sales Force • Directed at the firm’s salespeople to motivate them to increase their sales including training, incentives, performance bonuses, contests

Types of Consumer Promotions • Price Deals—contemporary price reduction or sale • Cents-off deal • Price-pack deals (prize in cereal box) • Bonus packs (25% more) • Banded packs (toothpaste and brush) • Free shipping! • Coupon • Retailer: redeemable only at their outlet • Manufacturer: at any outlet carrying the product

Visit the Site Types of Consumer Promotions • Refunds and Rebates • Offer to return a certain amount of money to the consumer who purchases the product (or coupon to encourage repeat use) • Sampling • Allowing the consumer to try the product or service (in-store, mailed, dentist office, newspaper)

Types of Consumer Promotions • Contests and Sweepstakes • Create excitement by promising “something for nothing” and offering impressive prizes • Contests based on skill/ ability; you compete for prizes • Sweepstakes based on luck; send in your name for a drawing • Premiums • Tangible reward for a particular act • Work by adding value to the product • Self-liquidating • Specialties • Presents the brand’s name on something that is given away as a reminder

Monetary Value • Saved by Zero • Little Caeser’s “Stretch”

Emotional Value • Frontier wanted to encourage customers to book online to save money and build their database. • The results: 4,000 blog entries, a million votes, a 50% increase in Web traffic, and a 400% increase in qualified email addresses. 16-3

In-store Promotion • 1st moment of truth • Hand out

Emerging Field • Shopper Marketing

Sponsorship • Sponsorship or Event Marketing? • http://www.youtube.com/watch?v=1V22PebTiik

Volvo Ocean Race • http://www.youtube.com/watch?v=LGUVWZnzHgI • What does it say about Volvo? • Why do this?

Event Sponsorship as an integrated brand platform

Evaluations

Public Relations