204 CHAPTER 8 COMMUNICATINGTOMASSMARKETS
forFortWashington,PA-basedCDNowprovidesconsumerswitha sampleofdynamically
updatedcontenthousedonthemusicretailer'ssite.Whentheconsumerclicksanarrowon
thead, it expandstoshowthetop 10 songsinCDNow'stop 100 BillboardChartS
SalesPromotionandPublicRelations
Forseveralyears, salespromotionandpublicrelationshavebeenoftenmisunderstood,:nis-
measured,andlnisusedbya greatmanymarketers. Unlikeadvertisingandpersonalsell-
ingthatcanclaimfonnalstructuresandpointt';)obviousaccomplishments,sales promotion
andPRhaveneither.Althoughthissituationischangingsomewhat,thereisstilla great
dealofroomforimprovement.Inthecaseofsalespromotion, thereexists someconfusion
astowhichactivitiesactuallyfallunderthisheading.Arepackaging,couponing,andpoint-
of-purchasedisplaysallsalespromotion?Becausetheanswerto thisquestionvariesfrom
organizationtoorganizationandacrosssituations,salespromotionis oftenviewedasa catch-
allcategorythatincludeseverythingthatanorganizationdoesnotlabeladvertisingorpub-
licrelations.
Publicrelations,too,isdifficulttodefineasit dealswiththeultimateintangible-
creatinga positiveimageofthecompany.Notonlyisthisdifficulttoaccomplish,butit is
alsovirtuallyimpossibletoascertainif youhavesucceededandtowhatextent.Anorgan-
ization,forinstance,might sponsora freebarbecuefora FourthofJulycelebrationand
neverreallyknowif themoneyspent producedadditionalbusiness.Managementhas a dif-
ficulttimeappreciatinganactivitythatproducesindirectresults.
SalesPromotion:ALittleBitofEverything
Asthenewestmemberofthepromotionalteam,salespromotionhassllfferedfroma seri-
ousidentitycrisis.Forexample,initiallytheAmericanMarketingAssociationdefinessales
promotionas, "marketingactivities,otherthanpersonalselling,advertising,andpublicity,
thatstimulateconsumer purchasinganddealereffectiveness,suchasdisplays,showsand
exhibitions,demonstrations,andvariousnon-recurrentsellingeffortsnotintheordinary
routine."6IntheAMAview,salespromotionsupplements bothpersonalselling andadver-
tising,coordinatesthem,andhelpsmakethemmoreeffective.^6 However,thisdoesnotpro-
videanaccurateportrayaloftheroleplayedb y salespromotion.As:mpleway of viewing
salespromotionistosaythatit meansspecialoffers:specialinthesensethattheyareextra
aswellasspecificintimeorplace;offersinthesensethatthey aredirect propositions,the
acceptanceofwhichfonnsadeal.Simply, it increasestheperceivedvalueoftheproduct.
Asinmostaspectsofmarketing, therationaleofsalespromotionistoprovidea direct
stimulustoproducea desiredresponsebycustomers.Itis notalwaysclear,however,what
thedistinctionsarebetweensalespromotionandadvertising,personalselling andpublic
relations.Forexample,supposethatPillsburydecidestotapethreecansoftheirbuttennilk
cannedbiscuitstogetherandsellthemfora priceslightlycheaperthanthethreesoldindi-
vidually.Isthata brandedmultipackspecialofferandthereforepromotional?Or isitjust
anexampleofa giant-sizedeconomypack,andthereforea productorpackaging tactic?In
ordertosortoutwhichit is,thequestionhastobeasked,isit intendedtobea permanent
featureofthemanufacturer'sproductpolicytohavethefamilypackasa compor:entofthe
product?Ifit isnot,it isa salespromotionscheme.
Thesamesortofproblemcomesupwhenstudyingstrategiesrunby firmsinserv-
ic e industries.Ifa hotelofferscut-priceaccommodationsatoff-peaktimesoftheyear,is
it a featureof thehotelmanagement'spricingpolicyorisit a promotionaltactic?Ifthe
