Role of Sales Promotions To increase customer awareness To introduce new products and services To increase sales volume and revenue To combat competition To encourage current customers to purchase more To stimulate demand in non-peak periods

Types of Sales Promotions Push Techniques –Point-of-sale displays –Cooperative advertising –Advertising materials –Traditional and electronic collateral materials –Meetings and conventions Pull Techniques –Sampling –Price reduction promotions –Coupons –Combination offers or bundling –Premiums –Contests and sweepstakes

Coupons Advantages –Tangible inducement –Limited time for discount –Can focus on specific objectives –Can calculate the maximum cost in advance Disadvantages –Possible fraud –Redemption rates are not easily predicted

Sampling Advantages –Gets consumers to try the product –Represents real value to the consumer –May produce referrals; word-of-mouth Disadvantages –Can be expensive if done for too long –Food needs to be fresh; may be unattractive –May displace paying customers

Premiums Advantages –Consumers like to get things free or at a good price –Positive word-of- mouth if unique Disadvantages –Storing and handling the premium –Employee theft –Must match or exceed quality image of firm –Forecasting demand for premium is difficult

Contests Advantages –Consumers are involved in the process because of skill/talent –Creates interest in product Disadvantages –May be difficult to judge; select winner(s) –Rules may be too lengthy or complicated and turn off customers

Sweepstakes Advantages –Entry is easy; no purchase is necessary –Rules simple; focus is on prizes –May create more interest since entry is easy –Selection of winner is easy Disadvantages –Entry box may be stuffed; rules not followed –Chance of winning good price is small; may discourage consumers from participating

Steps to a Successful Promotion Select the target market Establish specific objectives Select the promotional technique Brainstorm about potential offer Create the promotional theme Develop the promotional budget Select the media to promote the offer Develop an implementation timetable Conduct internal training of staff Work the plan Monitor results

Evaluating the Impact of Sales Promotions Administrative costs associated with conducting the sales promotion Cost of displaced sales among existing customers Additional revenue from new customers

Suggestive Selling Develop a positive attitude Do not try to manipulate the guest Suggest favorite items or items that you are knowledgeable about Use props to support suggestive selling Always make positive suggestions Be attentive to guests’ needs Don’t make excuses for why suggestive selling will not work

Training Guest-Contact Personnel Product-service Knowledge – cognitive aspect Physical Skills – psychomotor aspect Attitude – affective aspect Reassurance – affective aspect

Components of a Press Kit Fact sheet Description of the local trading area Special features of the product-service mix Specific details about the product Photographs Biographical sketch of the general manager

Public Relations Techniques News releases Photographs Letters, inserts, and enclosures House organs and newsletters Speeches and public appearances Posters, bulletin boards, and exhibits Audiovisual materials Open houses and tours

Guidelines for Public Relations Identify photographs when submitted Do not damage or mutilate photos by folding, stapling, or writing too hard on the back Qualify the publications that you send to Provide contact information Do not send too many releases at one time Be brief and provide a summary of release Be careful when placing logo on photos Synchronize with the timing of the publication Do not threaten to pull advertising if not covered

Evaluating Public Relations Personal Observation Public Opinion Surveys Use Objective Measures © 2010 John Wiley & Sons, Inc.