There are many misconceptions about public relations'

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There are many misconceptions about public
relations. One of the most widespreadis that
its easy. PETER CELLIERS
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OBJECTIVES
After reading this chapter, you should be able to

• Understand the different public relations
  activities press relations, product
  publicity,corporate communications,lobbying, and
  counseling.

• Understand the public relations process
  research, establishing marketing objectives,
  defining thetarget audience, choosing the PR
  message and vehicles, and evaluating PR results.
• Explain how companies use public relations to
  communicate and influence important publics.

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OBJECTIVES
After reading this chapter, you should be able to

• Explain how sales promotion campaigns are
  developed and implemented.

• Implement a crisis management program in a
  hospitality business.

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Public Relations and Sales Promotion
The Space Race

• The launch of Sputnik I in 1957 started a series
  of successes for the Soviet Unions space
  program.
• which became propaganda vehicles promoting the
  achievements and advantages of communism
• President Kennedy used the space gap between
  the US and the Soviet Union to claim that
  Republicans had let the Soviet Union pass the
  United States.
• after Kennedys 1960 election, the US program had
  short-lived success with Shepard Grissoms
  suborbital flights
• Soviet Gherman Titovs July 1961, 17-orbit
  mission made suborbital flights look like childs
  play.

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Public Relations and Sales Promotion
The Space Race

• Eager to build US pride, NASA announced that John
  Glenn would be Americas first person to orbit
  Earth.
• he was well known to most Americans as a pilot in
  WWII Korea, and a 1957 cross-continent flying
  speed record
• As a result, Glenn was invited to appear on two
  TV shows, and was the most publicized US
  astronaut.
• It was Americas first attempt at an orbital
  flight with Americas most publicized astronaut,
  and NASAs publicity machine set the stage for
  the event.
• Over 100 million people were expected to watch
  the televised launch of Friendship 7, a result of
  the hype.

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Public Relations and Sales Promotion
The Space Race Marriott

• Bud Grice, a Marriott sales manager, thought
  about all the people expected to watch the
  launch.
• what a great way to expose Americans to Marriott
• Grice knew that Marriott could not afford
  television ads, but the idea intrigued him.
• if only Marriott could communicate with an
  audience of that size!
• On February 20, 1962, 135 million Americans
  watched Glenn take off on his five-hour flight.
• Grice was one of them, still thinking about
  opportunities created by so many people watching
  a single event

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Public Relations and Sales Promotion
The Space Race Marriott

• Once the flight was off, cameras switched to
  Glenns residence in the D.C. suburb of
  Arlington, Virginia.
• not too far from Marriotts corporate
  headquarters
• There were scores of reporters there, the area
  was a beehive of activity, and Grice saw his
  opportunity.
• he put buckets of fried chicken with large
  Marriott labels in a station wagon and had them
  delivered to Mrs. Glenn
• The Marriott vehicle pulled up in front of the
  home, and the Marriott containers were soon seen
  by an estimated 100 million Americans still
  watching television.

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Public Relations and Sales Promotion
The Space Race Marriott

• After the flight, Glenn stated he was looking to
  time with his family would like to stay at a
  Marriott hotel because they were so good to his
  wife.
• Marriott had another PR opportunity, inviting
  Glenn to stay in a complimentary Marriott suite.
• and received additional publicity when the
  pressfollowed Glenn into the Marriott

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Public Relations and Sales Promotion
The Space Race Marriott

• This story illustrates several uses of public
  relations.
• First, we are shown how governments use events to
  promote their ideologies
• Second, we see how public relations can be
  plannedto take advantage of opportunities
• Grice created an event, serving lunch to Mrs.
  Glenn, to expose millions of viewers to the
  Marriott name.
• By being aware of Glenns desire to stay in a
  Marriott hotel, Marriott gained additional
  publicity from the event.

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Public Relations
Defined

• Definitions for public relations differ widely,
  but the definition by Hilton International may
  best fit the hospitality industry.
• The process by which we create a positive image
  and customer preference through third-party
  endorsement.
• Public relations (PR) is an important tool that
  until recently was treated as a marketing
  stepchild.
• PR is moving into an explosive growth stage
• Companies are realizing that mass marketing is no
  longer the answer to some of their communication
  needs.

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Public Relations
Promise

• Advertising costs continue to rise, audience
  reach continues to decline, and clutter reduces
  ad impact.
• Sales promotion costs have increased as channel
  intermediaries demand lower prices and better
  commissions deals.
• Personal selling can cost over 500 a call.
• In this environment, public relations holds
  promiseas a cost-effective promotional tool.
• creative use of news events, publications, social
  events, and other PR techniques offer a way to
  distinguish companies and their products from
  their competitors

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Public Relations
Introduction

• The PR department is typically located at
  corporate headquarters, with staff is so busy
  dealing with various publics that PR support for
  marketing objectives tends to be neglected.
• many chains have corrected this by hiring local
  PR managers
• In the past it was common for the marketing
  function and PR function to be handled by two
  different departments within the firm.
• today these two functions are increasingly
  integrated

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Major Activities of PR Departments
Activities

• PR departments perform five activities, not all
  of which feed into direct product support.

• Press Relations - placing newsworthy information
  in the media to attract attention to a person,
  product, or service
• Product Publicity - efforts to publicize specific
  products
• Corporate Communication - internal external
  communications and promoting understanding of the
  organization
• Lobbying - dealing with legislators and
  government officials to promote or defeat
  legislation regulation
• Counseling - advising management about public
  issues and company positions and image

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See this feature on page 397 of your textbook.
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Publicity
Description

• Publicity is the task of securing editorial and
  news space, as opposed to paid space, in print
  broadcast media to promote a product or a
  service.
• a direct function of public relations
• One use is to assist in the launch of new
  products.
• Publicity is also used with special events.
• Companies can use publicity to build a positive
  image with specific target markets or
  stakeholders.
• Publicity is also used to defend products that
  have encountered public problems.

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The Public Relations Process
Introduction

• Publicity builds corporate image in a way
  congruent with the organizations communication
  strategy.
• effective PR is the result of a process
  integrated with the firms marketing strategy
• A misconception about PR and publicity is that
  quantity is more important than quality.
• some firms measure success by the number of
  articles placed in media
• As in other marketing efforts, public
  relationsshould be meaningful to the target
  market.

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The Public Relations Process
Steps

• The PR process consists of familiar steps

• research
• establishing the market objectives
• defining the target audience
• choosing the PR messages and vehicles
• implementing the PR plan
• evaluating the results

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See this feature on page 400 of your textbook.
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PR Opportunities for the Hospitality Industry
Individual Properties

• Public relations are the most important
  promotional tool available to entrepreneurs
  individual properties.
• Employees should be trained to look for PR
  opportunities.

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PR Opportunities for the Hospitality Industry
The Owner/Operator

• The owner/operator and the enterprise itself
  often become one and the same in the minds of
  customers.
• this strategy holds dangers, such as the death of
  the owners, but benefits usually exceed risks
• Individuals successful at promoting themselves
  often use theatrical costumery.
• such as Ken Hamblin, an African American
  columnist talk show host, who is never seen
  without a hat
• Dozens of personal characteristics have been used
  successfully to build memorable personalities.

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PR Opportunities for the Hospitality Industry
Location

• Some restaurants and BBs are almost impossible
  to find, normally the kiss of death in
  hospitality.
• hundreds of owners/operators of these enterprises
  have used isolation obscurity as a PR tactic
• A San Francisco restaurant directly under a
  freeway that collapsed during an earthquake was
  featured on national TV as the little restaurant
  that refused to succumb to an earthquake.

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PR Opportunities for the Hospitality Industry
A Product or Service

• Wall Drug Store is a major tourist stop and
  tourist attraction for the state of South Dakota.
  
• in a town of less than a thousand residents, it
  attracts 15,000 or more visitors daily during
  tourist season
• Before the days of air-conditioned cars, Mr. and
  Mrs. Ted Hustead, the owners, saw thirsty-looking
  tourists passing by on their way to the Black
  Hills.
• Ted hand-painted a few signs reading Free Ice
  WaterWall Drug and placed them along the
  highway
• Before Ted returned from planting these signs,
  tourists had already found their way to Wall Drug.

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PR Opportunities for the Hospitality Industry
A Product or Service

• Unique service also serves as a PR focal point.
• usually meaning exceptionally fine service,
  butsometimes the reverse is true
• A Dallas bar and grill popular with the lunchtime
  business crowd was notorious for its surly staff.
  
• those familiar with the place loved to take
  unsuspecting newcomers to see how badly their
  companion could be insulted

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Crisis Management
Description

• An important area of public relations is crisis
  management, because not all publicity is good.
• Hotels are open twenty-four hours, airlines have
  thousands of flights a day fast-food companies
  serve millions of customers each day.
• There are times when things go wrong
• sometimes it is managements fault
• sometimes it is beyond managements control
• A crisis management program will reduce negative
  effects of these events, as show in Table 142 on
  page 409.

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Crisis Management
Categories Steps

• Robert Irvine divides crises into two categories
  a sudden crisis and a smoldering crisis.
• a sudden crisis comes without any warning, such
  as earthquakes floods, violence, food
  poisonings fires
• smoldering crises can include sexual harassment
  by supervisors or safety, health and fire code
  violations
• Crisis management is a series of ongoing,
  interrelated assessments or audits of kinds of
  crises and forces that can pose a major problem
  to a company.
• The first step in crisis management is taking all
  precautions to prevent occurrence of negative
  events.

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Crisis Management
Categories Steps

• Companies need to determine those crises that can
  occur, and develop plans in case they do occur.
• hotels should have fire plans, and employees
  shouldknow what to do in case of a fire
• Smoldering crises give warning before they occur,
  and can often be eliminated with good management.
• good sanitation practices reduce risk of food
  poisoning
• strict policies will create a climate where
  sexual harassment is not tolerated
• A well-managed property is the best form of
  crisis management.

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Crisis Management
The Internet

• A damaging message about your organization (true
  or not) can spread via Internet to millions of
  people.
• Since the stakes of crisis management have been
  raised, it is very important to reduce the risk
  of a crisis occurring.
• Managers should monitor Internet chat groups
  tofind out what is being said about their
  organization.
• a Miami hotel should monitor groups for Miami
  tourists

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Crisis Management
Good Communications

• When a crisis does occur, good communication with
  the press can reduce the impact of negative
  publicity.
• a fire in a guest room with no injuries could
  result in negative or positive publicity
• If the hotel provides no information to the
  press, anegative headline might read Regal
  Hotel Fire Forces Evacuation of 360 Guests.
• By contacting the press, the hotel has a chance
  to tell their story, and the positive headline
  from this story might read Well-Trained
  Employees Quickly Move Guests to Safety.

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Crisis Management
Good Communications

• The company should appoint a spokesperson, and
  employees instructed to refer media to this
  person.
• This person should gather the facts and speak
  only from facts, which ensures the company is
  giving a consistent story based on facts.
• Timely statements keep the press updated and
  helps prevent them from trying to gain
  information from other employees.
• The term no comment raises suspicion,
  whereasI dont know at this time is a better
  response.

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Crisis Management
Good Communications

• In a major crisis, it is a good idea to seek the
  helpof a public relations firm.
• The company should notify the press when a crisis
  does occur keep them updated.
• the media will learn about the event, so it is
  best thatthey find out from the company
• Every company should have a crisis management
  plan instruct employees in as part of their
  initial training.
• It is no longer a question of if a major crisis
  will strike an organization, but only when.

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Sales Promotion
Introduction

• Sales promotion consists of short-term incentives
  to encourage purchase or sale of a product or
  service.
• It includes a variety of promotional tools
  designedto stimulate earlier or stronger market
  response.

• consumer promotion (samples, coupons, rebates,
  premiums, contests, demonstrations)
• trade promotion-buying allowances (free goods,
  cooperative advertising, and push money)
• sales force promotion (bonuses and contests)

• Often a well-planned sales promotion can result
  in publicity.

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Sales Promotion
Description

• Used by most organizations, estimates of annual
  sales-promotion spending run as high as 100
  billion.
• Formerly, the ratio of advertising to sales
  promotion spending was about 6040, today that is
  reversed.
• Sales promotions are most effective when they are
  used with advertising or personal selling.
• Consumer promotions must normally be advertised
  and can add excitement and pulling power to ads.
• Trade and sales force promotions support the
  firms personal selling process.

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Sales Promotion
Steps

• Sales Promotion consists of by-now-familiar steps

• setting the objectives
• selecting the tools
• developing the best program
• pretesting and implementing the plan
• evaluating the results

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Local Store Marketing
Introduction

• Local store marketing, also called local area
  marketing or neighborhood marketing, is a
  low-cost, hands-on effort to promote and market a
  business.
• using all opportunities within the immediate
  trading area
• Although all areas of the promotional mix are
  used, PR is the heart of any local area marketing
  program.
• It is an area in which small companies can
  compete just as effectively as large companies.
• Independently owned businesses have an advantage
  over large companies because the owners become
  permanent fixtures of the community.

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Local Store Marketing
Description

• Research has shown that 75 of a restaurants
  customers come from within a ten-minute drive.
• with fast-food, the radius shrinks to 3-5 minutes
• Primary schools look for places to take their
  students on field trips, and a restaurant or
  hotel can be an exciting venue.
• Many suburban areas have weekly papers providing
  a weekly or monthly article on travel, food, or
  wine is a good way to gain exposure.
• Being a speaker at meetings of local social
  service clubs is another way to gain exposure.

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Local Store Marketing
Ideas

• During the holidays, a business can be a
  depository for charities collecting gifts for the
  disadvantaged.
• but dont accept this task passively
• If local firefighters ask you to collect toys,
  suggest the campaign be started with a kickoff
  drive, including fire engines, sirens, and
  firefighters.
• call the local news station and get some TV
  coverage
• The school band, girl scouts, and the local
  little league team are always looking for
  fundraisers.
• many restaurants will give a portion of their
  proceedsto these groups if they refer business

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Local Store Marketing
Involvement

• Cause-related promotions are another local area
  marketing tactic, bring business to the hotel or
  restaurant and help the community.
• A good campaign creates community goodwill and
  exposure for the restaurant.
• which means increased business customer loyalty
  
• Successful local marketers do not give products
  or money away freely they evaluate every
  opportunity and make sure the effort will be
  worthwhile.
• by being creative, managers can ensure their
  local marketing efforts will be noticed

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KEY TERMS

• Contests, sweepstakes, and games. Give consumers
  a chance to win something, such ascash or a
  trip.
• Corporate communications. This activity covers
  internal and external communications and promotes
  understanding of an organization.
• Counseling. Involves advising management about
  public issues and company positions and image.
• Coupons. Certificates that offer buyers savings
  when they purchase specified products.

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KEY TERMS

• Lobbying. Dealing with legislators and government
  officials to promote or defeat legislation and
  regulation.
• Patronage rewards. Cash or other awards for
  regular use ofa companys products or services.
• Point of purchase (POP) promotions. Includes
  displays and demonstrations that take place at
  the time of sale.
• Premiums. Goods offered either free or at low
  cost as an incentive to buy a product.

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KEY TERMS

• Press relations. Placing newsworthy information
  into the news media to attract attention.
• Press release. Information released to the media
  about certain new products or services.
• Product publicity. Various efforts to publicize
  specific products.
• Public relations. The process by which a positive
  image and customer preference is created through
  third party endorsement.

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KEY TERMS

• Sales promotion. Consists of short term
  incentives to encourage the purchase or sale of a
  product or service.
• Samples. Offers of a trial amount of a product.

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EXPERIENTIAL EXERCISES
Try This !

• Find a good example of publicity in a print
  medium
• Copy the article and explain why you think the
  publicity is effective.

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INTERNET EXERCISES
Try This !

• Support for this exercise can be found on the
  Web site for Marketing for Hospitality and
  Tourism, www.prenhall.com/kotler

• Find two Web sites of hospitality/travel
  organizations that offer PR support. This could
  be corporate announcements, a press room
  section, or a gallery of photos that one can
  download for publicity purposes.
• Report on the sites you found and the support
  they offered for persons wanting to write a story
  aboutthe organization.

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END
CHAPTER END