© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Chapter Sixteen The Communications Mix: Sales Promotions, Merchandising, Public Relations, and Publicity

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Principles and Practices of Sales Promotions  Purpose: a short-term stimulation of sales  Should be tied to something positive

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Guidelines for Sales Promotions  What specifically do you want to promote?  What is the best way to promote it?  Make sure you can fill the demand  Make sure reality meets expectations  Communicate your promotion and all related aspects to the market  Communicate it to your employees  Measure the results

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Developing Sales Promotions  Centers on creation of demand  Two types: –An established event –A created event

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Designing the Successful Sales Promotion  Identify the gap  Design the sales promotion  Analyze the competition  Allocate the resources  Establish goals  Research the promotion  Test ideas with potential customers  Understand the break-even point  Execute the sales promotion  Evaluate

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition CodeGroupNumber of Visits 01Pre-Promotion Test Group (e.g., receives promotion)5.3 02Post-Promotion Test Group (e.g., receives promotion)7.8 03Pre-Promotion Control Group (e.g., does not receive promotion)5.4 04Post-Promotion Control Group (e.g., does not receive promotion)5.6 Effect of the Promotion = (02—01)—(04—03) (7.8—5.3)—(5.6—5.4) (2.5—0.2) 2.3 increase in number of visits because of promotion Basic Form of Pre-Promotion with Control Group

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition % Who Would Have Come Anyway Total Sales of Those Who Would Have Come Anyway Incremental Revenue Less Cost of Program 5%$69,720 (.05 * 1,394,408) $1,263,688 (.95 * 1,394,408)—$61,000 10%$139,441$1,193,967 15%$209,161$1,124,247 20%$278,882$1,054,526 25%$348,602$984,806 : 50%$697,204$636,204 : 75%$1,045,806$287,602 : 90%$1,254,967$78,441 95%$1,324,688$8, %$1,394,408-61,000 They Would Have Come Anyway Analysis

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Principles and Practices of Merchandising  Merchandising is marketing to the “captive customer” or one that has already arrived at the business –Increase sales –Increase customer satisfaction

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Basic Rules of Merchandising  Purpose  Compatibility and consistency  Practicality  Visibility  Simplicity  Knowledgeable employees

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Examples of Good Merchandising  Business centers  “Guaranteed” time for lunch  Mini-bars in hotel rooms

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Public Relations  Positively presenting the product to increase publicity  Public relations

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Public Relations (cont.)  Undertaking public relations  days before opening  Hold meeting to define objectives and to coordinate public relations effort with advertising; establish timetable in accordance with scheduled completion date. Prepare press kit (printed and electronic form). Order photographs and renderings. Begin preparation of mailings and develop media lists. Contact all prospective beneficiaries of opening events. Reserve dates for press conferences at off-site facilities. Create a special “press room” on the website.  days before opening  Send announcement with photograph or rendering to all media. Send first progress bulletin to agents and media (as well as corporate clients, if desired). Begin production of permanent brochure. Make final plans for opening events, including commitment to beneficiaries.  days before opening  Launch publicity campaign to national media. Send mailings to media. Send second progress bulletin. Arrange exclusive trade interviews and features in conjunction with ongoing trade campaign. Begin trade announcement. Post all press releases in the online press room.

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Public Relations (cont.)  Undertaking public relations  days before opening  Launch campaign to local media and other media with a short lead time; emphasize hotels’ contribution to the community, announcement of donations and beneficiaries, etc. Send third and final progress bulletin with finished brochure. Commence “behind-the-scenes” public tours. Hold “hard hat” luncheons for travel writers. Set up model unit for tours.  days before opening  Send pre-opening newsletter (to be continued on a quarterly basis). Hold soft opening and ribbon cutting ceremony. Hold press event to announce opening. Establish final plans for opening gala.  The month of opening  Begin broadside mailing to agents. Hold openings festivities. Conduct orientation press trips.

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Public Relations (cont.)  Planning public relations rules include: –Purpose –Target market (in this case it may not be the customer at all, but might be the press, the financial community, the industry, employees, and intermediaries) –Setting of tactics –Integration with the product service –Integration with the firm’s overall marketing efforts

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Public Relations (cont.)  Developing tactics  Measuring success  Guidelines –Need to spend money for good PR –Use reputable firms –Have a written plan –PR must understand your marketing plan –Make it consistent and ongoing –Be innovative –Have creative management

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Publicity  Specifically aimed at the media to create more PR  Invite editors, radio and TV managers  Orchestrate a flawless event  Press releases available to the press with background information  PR professional will “work the event”  Follow-up and program evaluation  Prepare for the unexpected  Handle negative publicity with truth

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition