Create the Public Relations and Promotions portion of the Marketing Communications Plan using the business and information presented in the Case Study. Meet the following requirements: In 200 words, explain the Public Relations plan for the organization. Create two sales promotions for the restaurant. Identify the challenge and solution for each promotion. Include budgetary considerations. Using feedback, update and make changes to the previous section of the plan. Please adhere to the Publication Manual of the American Psychological Association, (6th ed., 2nd printing) when writing and assignment Text: Ethics, Regulation, and Assessment The American Marketing Association (AMA) defines  sales promotion  as "media and non media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality" (AMA, 2013, p.1). However, according to Manuere, Gwangwa, & Gutu (2012), an addition needs to be made to the definition, "One should add that effective sales promotion increases the basic value of a product for a limited time and directly stimulates consumer purchasing, selling effectiveness, or the effort of the sales force" (p. 1157). A  promotion  can be an incentive from manufactures or retailers to encourage trade (wholesalers or retailers) or consumers to buy the product or service. They can include coupons, rebates, contests, displays, samples, and others. Sales  promotions  can accomplish many objectives including introducing a new brand, introducing a repositioned brand, attracting new buyers, and increasing repeat purchases from current customers. Sales promotions offer the opportunity of free trials, cents off coupons, and other chances for the consumer to try the product. Marketing and advertising work to create brand awareness while promotions are created to have the consumer buy now, buy more frequently, and buy over the competition.  Both manufacturers and providers of services and the consumer benefit from sales promotions.  Obviously, companies gain sales by customers purchasing the product for the first time or as a repeat customer. The promotion might reward consumers for multiple purchases and encourage brand loyalty. Promotions can also help the firm  liquidate  excess  inventory ,  increase motivation  for purchase of a product that is a luxury item when economic conditions lower discretionary incomes, and boost brand awareness when faced with increased competition. The  consumers are rewarded  by receiving a free sample or item, money off the purchase price, or even a larger prize as part of a sweepstakes. Let's not forget about the sense of satisfaction of using a coupon or redeeming a rebate! We will look at two of the most common sales promotions:  samples and coupons. Sampling  is another sales promotion that delivers the product to the consumer (either a trial size or full version) usually at no cost to the consumer. The samples are deliv.

1. Create the Public Relations and Promotions portion of the
Marketing Communications Plan using the business and
information presented in the Case Study. Meet the following
requirements:
In 200 words, explain the Public Relations plan for the
organization.
Create two sales promotions for the restaurant. Identify the
challenge and solution for each promotion. Include budgetary
considerations.
Using feedback, update and make changes to the previous
section of the plan.
Please adhere to the Publication Manual of the American
Psychological Association, (6th ed., 2nd printing) when writing
and assignment
Text:
Ethics, Regulation, and Assessment
The American Marketing Association (AMA) defines
sales promotion
as "media and non media marketing pressure applied for a
predetermined, limited period of time in order to stimulate
trial, increase consumer demand, or improve product quality"
(AMA, 2013, p.1).
However, according to Manuere, Gwangwa, & Gutu (2012), an
addition needs to be made to the definition,
"One should add that effective sales promotion increases the
basic value of a product for a limited time and directly
stimulates consumer purchasing, selling effectiveness, or the
effort of the sales force" (p. 1157).
A
promotion
can be an incentive from manufactures or retailers to
encourage trade (wholesalers or retailers) or consumers to buy

2. the product or service.
They can include coupons, rebates, contests, displays, samples,
and others.
Sales
promotions
can accomplish many objectives including introducing a new
brand, introducing a repositioned brand, attracting new buyers,
and increasing repeat purchases from current customers.
Sales promotions offer the opportunity of free trials, cents off
coupons, and other chances for the consumer to try the product.
Marketing and advertising work to create brand awareness while
promotions are created to have the consumer buy now, buy
more frequently, and buy over the competition.
Both manufacturers and providers of services and the consumer
benefit from sales promotions.
Obviously, companies gain sales by customers purchasing the
product for the first time or as a repeat customer.
The promotion might reward consumers for multiple purchases
and encourage brand loyalty.
Promotions can also help the firm
liquidate
excess
inventory
,
increase motivation
for purchase of a product that is a luxury item when economic
conditions lower discretionary incomes, and boost brand
awareness when faced with increased competition.
The
consumers are rewarded
by receiving a free sample or item, money off the purchase
price, or even a larger prize as part of a sweepstakes.
Let's not forget about the sense of satisfaction of using a
coupon or redeeming a rebate!
We will look at two of the most common sales promotions:
samples and coupons.

3. Sampling
is another sales promotion that delivers the product to the
consumer (either a trial size or full version) usually at no cost
to the consumer.
The samples are delivered through a variety of channels
including direct mail, attached to newspapers and magazines
(often shampoo), at the actual retail location or another
location, attached to another package, or even on door hangers.
Often when walking through the grocery stores (especially
warehouse stores), consumers are bombarded with free samples
of food.
Sampling does not fit every marketing budget as it is expensive.
There are
three general instances when marketing managers should use
sampling
.
First, when it is difficult to communicate the products benefits
through advertising. In this case, the samples speak
for themselves.
Second, when the product has superior and/or distinct
advantages over the competition--remember sampling is
expensive so it needs to be justified.
Finally, when the promotion needs to generate quick action for
purchase, sampling is used. When combined with couponing,
sampling has an even greater punch.
Couponing
has even hit such extremes where people are rummaging
through dumpsters to find coupons that have been discarded,
while others simply wait for the Sunday paper to arrive.
For some, it is a competition to reduce the grocery bill to the
point of paying $3 for $300 worth of food!
While I have not managed to accomplish that task, I do use
coupons and feel a sense of satisfaction when I can reduce the
final expenditure by $20!
Coupons are rewards for purchasing the product by giving the
customer money off the price.

4. As mentioned previously, probably the most popular place to
find coupons is the
Sunday
paper
.
However, they are also distributed through channels such as
direct-mailings, in packages or on boxes, at the store, and
online.
One important consideration to remember is the
cost of the coupon
.
Depending on the delivery method, it could be close to the "face
value" (the value on the coupon) or much higher.
If you are a small business, the cost might simply be the "cents
off" and the cost of printing and distribution.
If you are a major manufacturer, you have those same costs as
well as various handling fees such as to the retailer for the
inconvenience of taking the coupon.
While sales promotions seem like a fantastic way to increase
sales and brand awareness, there are some potential effects.
First, they are expensive and can eat up much of
the advertising/marketing budget.
Second, sales will often lag after a promotion when the
consumers who bought the product for only the promotion move
on.
Third, at times excessive use of promotions can hurt the brand
image by affecting the perception of the product's value.
References
AMA. (2013). Resource dictionary. Retrieved from
http://www.marketingpower.com/_layouts/dictionary.aspx?dLett
er=S
Manuere, F., Gwangwava, E., & Gutu, K. (2012). SALES
PROMOTION AS A CRITICAL COMPONENT OF A SMALL
BUSINESS MARKETING STRATEGY.

5. _____________________________________________________
____________________________
Trade Promotion and Marketing Communications
As mentioned in the previous lecture, the
American Marketing Association
(AMA) defines
sales promotion
as
"media and non media marketing pressure applied for a
predetermined, limited period of time in order to stimulate trial,
increase consumer demand, or improve product quality" (AMA,
2013, p.1).
There are two types of promotions:
sales promotions to consumers
(discussed previously) and
trade
promotions
. This lecture will focus on trade promotions.
Trade promotions
are marketing activities such as rebates, allowances, free gifts
and other incentives directed at the retailers rather than the
consumers.
Trade promotions represent a large portion of the advertising
dollars spent (could be more than 50%) and companies use these
to ensure that their product is seen on the shelves of the
retailers.
The producers of the product use
trade promotions for a couple of reasons:
to convince the retailer to carry the brand, carry more stock of
the brand, promote the brand (displays, sales, shelf-space), and
push or recommend the product.
The
major types of trade promotions include

6. off-invoice allowances, bill-back allowances, and free goods.
Off-invoice allowances
are simply discounts or price reductions to the retailer on
the brand during certain time frames. The hope is that the
retailer will order (and sell!) more of the product or try a new
brand during this special period.
For example, a manufacturer might offer the retailer 10% off for
every case of product purchased during the month of June.
The retailer can then use the discount to offer a sale price to the
consumer, increase profit, or help pay for advertising.
Bill-back allowances
provide the retailer with the opportunity to invoice the
manufacturer (bill back) for performing special services such as
creating a special display or including the product in
advertising.
Manufacturers might offer free goods to retailers that buy a
certain quantity of a product or highlight the product in the
store. Another option is to give the retailer items for use in the
store or as giveaways such as t-shirts, pens, mouse pads, or
calendars.
Keep in mind that it costs retailers money to stock a new brand.
They must include the product in its distribution center, ship the
product to the stores, enter the barcode into the system for its
SKU (stock-keeping unit)
. Because of this, retailers do not offer their shelf-space for
free.
Slotting
allowances
are the fees that manufactures pay to retailers for the slot, or
location, on the shelf.
According to the Federal Trade Commission, "Slotting
allowances are one-time payments a supplier makes to a retailer
as a condition for the initial placement of the supplier’s product
on the retailer’s store shelves or for initial access to the
retailer’s warehouse space" (2003, p.5).
This is the one area that the manufacturer is not necessarily

7. providing an incentive, but rather
paying a required fee
.
Slotting allowances or fees are not an industry standard. Rather,
they are used if the product is a risk for the retailer to carry.
This could be because it is a high-priced item or a new product
from a smaller, not well-known manufacturer.
Slotting fees could also be charged if the manufacturer requests
preferred positioning in the store such as a special display or
the much sought-after shelves on the ends of the aisles or near
the register.
Finally, we will look at the
challenges of trade promotions
.
First, often the manufacturers have to
trust the retailers
that they are providing the service promised such as the "sale
price" of the item, specific positioning in the store, or including
the product in displays and advertising.
Second, when the manufacturer offers
off-invoice pricing
, the retailers could stock up on the product and not use it all
during the promotional period.
This is called forward buying or bridge buying because if the
retailer purchases enough product, it can bridge the gap between
sales promotions and not pay full price for the items.
The final challenge is when retailers engage in
diverting
.
This happens when the manufacturer restricts a promotion to a
certain group or stores or geographic region. The retailer will
order additional goods at the promotion price in the area where
the deal is being offered and then ship those goods to other
stores that are not being targeted.
References
AMA. (2013). Resource dictionary. Retrieved from

8. http://www.marketingpower.com/_layouts/dictionary.aspx?dLett
er=S
Federal Trade Commission. (2003, November). Slotting
allowances in the retail grocery industry: Selected case studies
in five product categories. Retrieved from
http://www.ftc.gov/os/2003/11/slottingallowancerpt031114.pdf