292 CHAPTER15 DESIGNING ANDMANAGINGINTEGRATEDMARKETINGCOMMUNICATIONS
PUBLIC RELATIONS STRATEGIES
Not only must the company relate constructively to customers, suppliers, and dealers,
but it must also relate to a large number of interested publics. A publicis any group
that has an actual or potential interest in or impact on a company’s ability to achieve
its objectives. Public relations (PR)involves a variety of programs that are designed to
promote or protect a company’s image or its individual products.
The wise company takes concrete steps to manage successful relations with its
key publics. PR departments typically perform five functions: (1)press relations(pre-
senting news and information about the organization in the most positive light);
(2)product publicity(publicizing specific products); (3)corporate communication(pro-
moting understanding of the organization through internal and external communica-Price-Off (off-invoice or off-list):A straight discount off the list price on each case
purchased during a stated time period.The offer encourages dealers to buy a quantity or
carry a new item that they might not ordinarily buy.The dealers can use the buying
allowance for immediate profit, advertising, or price reductions.
Allowance:An amount offered in return for the retailer’s agreeing to feature the
manufacturer’s products in some way.An advertising allowancecompensates retailers for
advertising the manufacturer’s product.A display allowancecompensates them for carrying a
special product display.
Free Goods:Offers of extra cases of merchandise to intermediaries who buy a certain
quantity or who feature a certain flavor or size. Manufacturers might offer push money or
free specialty advertising items to retailers that carry the company’s name.Source.For more information, see Betty Spethman, “Trade Promotion Redefined,”Brandweek,
March 13, 1995, pp. 25–32.Table 5.4 Major Trade-Promotion Tools
Trade Shows and Conventions:Industry associations organize annual trade shows and
conventions where firms selling products and services to this industry buy space and set up
booths and displays to demonstrate their products. Participating vendors expect several
benefits, including generating new sales leads, maintaining customer contacts, introducing
new products, meeting new customers, selling more to present customers, and educating
customers with publications, videos, and other audiovisual materials.
Sales Contests:Asales contestaims at inducing the sales force or dealers to increase sales
over a stated period, with prizes going to those who succeed. Incentives work best when
they are tied to measurable and achievable sales objectives (such as finding new accounts or
reviving old accounts) for which employees feel they have an equal chance.
Specialty Advertising:Specialty advertising consists of useful, low-cost items (such as
calendars) bearing the company’s name and address, and sometimes an advertising message,
that salespeople give to prospects and customers.Table 5.5 Major Business and Sales Force Promotion Tools