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).

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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.

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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 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.

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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.

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.

1. First, they are expensive and can eat up much of the advertising/marketing budget.


2. Second, sales will often lag after a promotion when the consumers who bought the product for only the promotion move on.


3. 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?dLetter=S

Manuere, F., Gwangwava, E., & Gutu, K. (2012). SALES PROMOTION AS A CRITICAL COMPONENT OF A SMALL BUSINESS MARKETING STRATEGY.

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