Chapter 8
TOURISM
PROMOTIONS
Objectives:
At the end of the chapter, the students should be able to:
1. Describe public relations and the major PR
activities.
2. Apply public relations concepts in promoting
products and service.
3. Define sales promotions and the factors that
led to its growth.
4. Apply the different sales promotional tools to
appropriate scenarios.
5. Explain the PR and sales promotion process.
Introduction
Public relations and sales promotions are two
promotional tools that have risen to great importance
in recent years. With fragmentation of traditional
media such as radio, television, and print, public
relations and sales promotions have gained
prominence. In this chapter we are going to discuss the
features of these two promotional tools.
PUBLIC RELATIONS
Public Relations (PR) is the process of Internal Audience – includes
creating a positive image and customer employees and investors. Employees
preference through third party should maintain a positive
endorsement. This can be done using outlook for the company that they
various activities all aimed to generate a work for. They should the primary
positive image through what others say believers of the benefits of the
about one’s establishment. company’s product and must show
excitement towards it.
PR banks on the idea that if a credible
person – not related to your business – External market – on the other hand,
says something good about your product includes guests, potential guests, media,
or service, then consumers may be more local community and
certain that it is really good. the government. Maintaining good PR
Communicating to yhe company's public with this audience will definitely help
includes both its internal and external improve the brand’s image
audience. and future business dealings.
Major Public Relations Acrivities
01 Press/Media Relations. Utilize mass media to reach broad audiences,
though control over messaging is limited.
Product Publicity. Promote new products and events through
02
endorsements and mentions in various channels.
Corporate Communications. Manage internal and external
03
communication using tools like newsletters and emails to inform
employees, shareholders, and clients.
Lobbying. Build relations with the public sector, including local
04
government and legislators, to influence policies that impact the
business.
Counselling: Provide guidance on public issues and act as the official
05
spokesperson during crises.
Contribution of Public Relations to Marketing
1. Assist in the launch of new product;
2. Assist in repositioning a mature product;
3. Build up interest in a product category;
4. Influence specific target groups; and
5. Defend products that have encountered problems.
Public Relations Process
Understanding the
Setting of Defining the
firm’s mission, culture,
and target market
objectives target market
Evaluating PR Implementing Designing the
results the PR plan PR message
Public Relations Tools and Audiences
REGULAR AUDIENCE
Audience Tools
Regularly produced printed or online newsletter
Emails
Employees
Webcasts
Bulletin boards
Printed in-room collateral
Personal letters from the General Manager
Guests
Newsletters
In-room TV programming
Participation in local civic areas and charitable
endeavors
Community Groups Sponsorship of educational and recreational activities
for community members
Employee contributions to local charity fund drives.
Press conference and events
Media/Press Media visits
Press releases
Public Relations Tools and Audiences
SPECIAL AUDIENCE
Audience Tools
Detailed press releases
Creative email pitches to encourage writers to visit and
Travel Writers
write about the property
Good selection of photos in CD
Sponsorship of trade fairs
Convention and Visitor Bureaus
Detailed sales kit
Personal meeting between PR manager and media
Trade Shows representatives
Media coverage during the trade show
Important Points to Remember
1. Effective public relations begin with top management.
2. No amount of PR can overcome a flawed product
Public Relations Opportunities
1. The Owner / Operator
If the owner or operator has potential “star” appeal, of has already built a positive reputation,
building PR messages around him may be the best option.
2. The Location
One’s location can also be used to position a product positively. A well-received business
location can help bring awareness to one’s product or service. A unique location can become a
pull factor to ensure that potential customers will take notice of your brand.
3. The Product / Service
The product and service itself can be an opportunity to create good public relations. It can be
used as the trademark of a business.
CRISIS MANAGEMENT AND CRISIS COMMUNICATION
Marketing Nuggets: 10 Steps to Crisis Communication
Pre-Crisis Post-Crisis
1. Be proactive and anticipate crises 8. Assess the crisis situation
2. Identify your crisis communication team 9. Finalize and adapt the key messages
3. Identify and train your spokesperson 10. Post-crisis assessment
4. Conduct training for spokesperson
5. Establish notification and monitoring systems
6. Identify and know your stakeholders
7. Develop holding statements
SALES PROMOTIONS
Sales promotion is a direct inducement that offers an extra value or incentive for the product
to the sales force, distributors, or the ultimate consumer, with the primary objective of creating
an immediate sale (Belch & Belch 2007). It consists of short-term incentives to encourage the
purchase or sale of a product or service (Kotler et el. 2010). It involves a variety of techniques
that serves to accelerate purchase of products or services.
The growth of sales promotions was mainly due to changes in the marketing environment. Belch
and Belch (2007) identified the following factors:
1. Growing power of retailers 6. Short term focus of the consumer market
2. Declining brand loyalty 7. Increased accountability
3. Increased promotional sensitivity 8. Competition
4. Brand proliferation 9. Clutter
5. Fragmentation of the consumer market
Sales promotion can be targeted to different Trade promotion is targeted at intermediaries
levels of the sales process: (1) consumer, (2) within the distribution channel and is aimed at
trade intermediaries, and (3) sales force. incentivizing them to promote and sell the
products or services to end consumers
Consumer-Oriented Promotional Tools
Include; Trade Promotions Include:
Allowances
Samples Contest and games Free goods
Coupons Refunds Cooperative advertising
Packages Bonus packs and Contest and dealer incentives
Rebates Demonstration Point of purchase displays
Price-offs Patronage reward Training programs
Premiums
Kotler et al. (2010) spell out some factors to consider in setting up a sales promotional plan:
1. Objectives of the campaign. Clearly define the purpose of your sales promotion.
2. Type of market to be tapped. Understand your target market.
3. Competition. Analyze your competitors’ promotional activities. Identify gaps or
opportunities where your campaign can stand out.
4. Cost and effectiveness of each tool. Evaluate the costs associated with different
promotional tools (e.g., discounts, coupons, contests, loyalty programs).
Sales Promotional Tools
1. Samples are offers to consumers of
2. Coupons are certificates that give
a trial amount of a product. Sampling
buyers a saving when they purchase
is the most effective way to
specified products. Coupons can
introduce a new product. Although,
stimulate sales of a mature brand or
in some cases, sampling may be
promote early trial of a new brand.
expensive.
3. Packages involve 4. Premiums are goods 5. Patronage rewards are
putting together a set of offered either for free bonuses in the form of
complementing products or at a low cost to cash or items of value
to come up with one provide incentive for that can be redeemed for
bundle at a special price. consumers to buy a a regular purchases
product. made.
7. Contests and games are
6. Point-of-purchase
promotional events that give
(POR) promotions are
consumers the chance to win
displays and
something-such as cash, trips, or
demonstrations at the
goods-by luck or through extra
point of purchase or sale.
effort.
Sales Promotions Process
1. Deciding whether a sales promotion is necessary.
2. Setting of objectives for the sales promotions.
3. Selecting which promotional tools to use.
4. Developing the sales promotion program, considering the following:
a. size of the program based on the type of incentive
b. target market of the program
c. distribution method to be used
d. duration of the program
5. Implementing the program.
6. Evaluating the program.
Preparing the Promotional Plan
1. Decide on what promotional tools to use.
2. Decide on which media channels to use.
3. Identify when the promotional tool will be released and in which channel.
4. Evaluate the media results.
Preparing the Promotional Plan
Step 1: Decide on What
Step 2: Decide on which Step 3: Timing the Media Step 4: Evaluate the
Promotional Tools to
Media Channels to Use Release Media Results
Use
Advertising Television Consider the Monitor key
Direct Marketing Radio product launch performance
Sales Promotion Internet date, seasonal indicators (KPIs).
Public Relations telephone trends, and special Use analytics tools
Personal Selling Newspapers occasions. to track the
Internet Magazines Align promotional effectiveness of
Marketing Newsletters efforts with each channel.
Brochures significant events Adjust your
or holidays. strategy based on
Audience Turnover real-time data and
feedback.
THANK YOU!
BSHM 2F
Tool Chaeacteristics Uses Stregths Weaknesses
Public Promotes to a large Efficient way to reach Requires a large budget
Pervasive heterogenous market numerous geographically Requires creativity for ads
Advertising
Dramatic Helps build up long- dispersed markets to stand out
Impersonal term image Low cost per exposure Lacks feedback
Targeting efficiency Niche markets
Message customization Highend markets Superior targeting Higher costs per person
Direct Marketing
Interactive quality Availability of database Effects are measurable than any other tool
Response measurement Builds relationships
Communication Provides Effects are short-term
Induce immediate sales
Sales Promotions incentives Invitation to Facilitates quicker response Does not build lasting place
Boost declining sales
engage preference
Builds good relation
Third-party endorsement
Builds good public
Indirect promotion Highly credible
image
Public Relations Dramatic Creates memorable impact Uncontrollable
Manages unfavorable
Not directly paid for but is Greater impact at less cost
stories, rumors, and
not cost-free
events
Builds up preference &
Interactive relationship Facilitates relationship High cost of maintaining a
Personal Selling conviction toward
between buyer and seller building sales force
product
Personal yet public Wide reach
Pervasive Cultivates relationships Easy access Selective audience
Internet Marketing
Ubiquitous Informative Interactive Passive medium
24/7 Immediate feedback
Table 8.3 Comparison of Promotional Tools’ Characteristics, Uses, Strengths, and Weaknesses
