Public Relations


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Public Relations

  1. 1. Sales Promotion and Public Relations
  2. 2. Objectives 1. Define and state the objectives of sales promotion. 2. Discuss the most common forms of consumer sales promotion. 3. List the most common forms of trade sales promotion. 4. Discuss the role of public relations in the promotional mix.
  3. 3. Sales Promotion  Provides Incentive Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchases of particular products or services by consumers or the trade.
  4. 4. Increasing Importance of Sales Promotion  Number of brands has increased  Competitors use promotions frequently  Many brands are seen as similar  Consumers are more price-oriented  The trade has demanded more deals from manufacturers  Advertising efficiency has declined Increasing Promotion Clutter
  5. 5. Sales Promotion Increase Trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Objectives of Encourage brand switching Sales Promotion: Immediate Purchase Encourage brand loyalty
  6. 6. Sales Promotion Sales Promotion Targets Consumer Trade Sales Promotion Sales Promotion
  7. 7. Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Popular Tools for Sampling Consumer Sales Promotion Point-of-Purchase Promotion
  8. 8. Consumers & Sales Promotion Goals Sales Promotion Type of Buyer Desired Results Examples •Reinforce behavior •Loyalty marketing Loyal Customers •Increase consumption •Bonus packs Competitor’s •Sampling •Break loyalty •Sweepstakes, Customers •Persuade to switch contests, premiums •Persuade to buy your •Price-lowering Brand Switchers brand more often promotion •Appeal with low •Coupons, price-off Price Buyers prices packages •Supply added value
  9. 9. Tools for Trade Sales Promotion Trade Allowances Push Money Training Free Merchandise Unique Tools for Store Demonstration Trade Sales Promotion Conventions & Trade Shows
  10. 10. Consumer vs. Trade promotions Trade promotions use a push strategy Manufacturer Wholesaler Retailer Consumer promotes to promotes to promotes to buys from wholesaler retailer consumer retailer Orders to manufacturer Consumer promotion uses pull strategy Consumer Retailer Wholesaler Manufacturer demands demands demands promotes to product product product from consumer from retailer from wholesaler manufacturer Orders to manufacturer
  11. 11. Price vs. Added-Value Promotions Types of sales promotion may enhance brand image:  Pine-Sol ran a “Pine-Sol in Pine Valley” sweepstakes • Association of ordinary cleaning agent with stars  Toro Snow Insurance: $50 to each Sept. buyer if it didn’t snow before January.  Häagen-Dazs ran cents-off sales promotion “Sweet Charity” where price savings would be contributed to support public TV
  12. 12. Public Relations A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives Public Relations (PR) involves a variety of programs designed to promote or protect a company’s image or its individual products.
  13. 13. Functions of Public Relations Press Relations Corporate Communication Public Affairs Lobbying Employee and Investor Relations Crisis Management
  14. 14. Major Public Relations Tools New Product Publicity Product Placement Tools Used By Consumer Education PR Professionals Event Sponsorship Issue Sponsorship Internet Web Sites