Sales Promotion

Sales promotion refers to those direct promotional efforts, other than adver­tising or personal selling, that are aimed at increasing an item's sales. The primary purpose of sales promotion is getting the customer's attention, usually at about the time he or she is actually purchasing goods. However, some pro­motional efforts are intended to create an interest for some future purchases. One example of sales promotion is the cardboard⁶ displays of a special product found at the end of the grocery store or discount store aisles⁷. These displays, sometimes actually involving demonstrations, are called point of purchase (POP) advertising. The metal racks⁸ holding nothing but Coca-Cola products, the six-foot tall cardboard figure of Mr. Goodwrench by the service door at a GM dealer, and the distinctive L'eggs display stand are a few examples.

Coupons, redeemable in cash for future purchase of a product and premi­ums, or small gifts or bonus products, attached to a package are other examples of immediate sales promotion. Home shows, auto shows, sporting good shows and similar trade shows, are also intended to create a sales interest and a product awareness for the future. Contests, such as requiring the collector of bottle caps to complete a word or phrase, are also used to create customer interest in a product. Sometimes there is the promise of a prize in the package. In the case of Cracker Jack, "the box of candied corn with the toy inside," the prize eventually became part of the product. Free samples mailed to potential customers, handed out in the store, or attached to another item which must be purchased, are another device used by sales promoters. This is a favored tech­nique for introducing new products.

Another sales promotion technique is the giveaway item. Probably the old­est of the giveaways that are still used is the calendar with a firm's name or products printed on it. Once the calendar is hung on the consumer's wall, the firm gets a full year of product awareness in one stroke. Giveaways also include pens, ashtrays, and, most recently, t-shirts. Some firms have found the demand for the giveaways so great that they can in fact sell the promotional item to the public at a profit.

The modern salesperson is much more than an individual with an order book. Modem selling requires ready—perhaps instantaneous—knowledge of the prod­ucts being sold, their availability, and their delivery date. Increasingly, the sales representative carries computer hardware that instantly plugs into the home office.

2.Give the summary of the text Publicity and Public Relations1

Public relations (PR) is defined by the Public Relations News as the manage­ment function that evaluates public attitudes, identifies the policies and procedures of an individual or an organization with the public interest, and executes a program of action to earn public understanding and acceptance.

Notice that public relations starts with good marketing research (evaluates public attitudes). Public relations is one department in an organization that has explicit responsibility for listening to the public.

The second step in a good PR program, after listening, is the development of policies and procedures that are in the public interest. One does not earn under­standing by bombarding the public with propaganda; one earns understanding by having programs and practices in the public interest and letting people know that you have them. It is not enough to act in the public interest; you must also inform people of that fact. You might say that public relations is "good performance, publicly appreciated—with the emphasis on performance."

Publicity is one of the major functions of the public relations department. Here is how it works- Suppose that when we want to introduce our new Fiberrific cereal to consumers, we have very little money to promote it. We want to get some initial sales to generate funds. One effective way to reach the public is through publicity. Publicity is any information about an individual, a product, or an organization that is distributed to the public through the media, and that is not paid for, or controlled by, the sponsor. We might prepare a publicity release describing Fiber­rific and research findings supporting its benefits and send it to the various media.

When Dr. Edwin Land announces a press conference, the event draws national news coverage. Dr. Land (the title is from his dozen honorary degrees) is the inventor of the process that led to the instant camera. As the founder and for forty-three years head of Polaroid Corporation, Land is a national figure. At such a news conference in 1947, he announced the invention and perfection of his Model 95. The four-pound monster produced a blurry but identifiable brownish print in approximately 60 seconds. At a 1950 news conference, he introduced his first black and white camera. There followed news conferences announcing color pictures, single sheet (Land called them "no garbage") pictures, and even moving pictures (Polavision).

The publicity created by reports of Land's inventions are, of course, free public promotion of Polaroid's products. To ensure that the news media get all the facts which might stimulate a product's sales, the company's public relations office passes out press kits² which include photos, factsheets, biographical data, price lists, product specifications, and practically anything else that a newspaper might want.

Many large corporations use this type of media event to plug their goods. Some are rather lavish³ affairs with catered meals, drinks, and entertainment. Publicity is not limited, however, to the press conference. A company often sends out regular announcements of product changes and new products; many even report to local papers when a local woman or man is promoted by the firm. The object is simple: Keep the company name and products before the public.

Closely related to the publicity campaign efforts is the management of public relations. As we saw in our discussion of advertising, public relations advertisements are increasingly used by corporations. However, public relations goes well beyond political advertising and supporting public television broad­casts; it is a matter of creating and maintaining a broad public image as a socially responsible producer and employer. Obviously, a firm that is viewed as abusive⁴ to its workers and unconcerned for the public's well-being may encoun­ter sales resistance to its products. On the other hand, a socially responsible firm can actually see the value of its image in increased sales. No modern executive would ever make the statement attributable to William Vanderbilt, head of the New York Central Railroad in the 1890s, that "the public be damned." For instance, when a federal investigation linked toxic shock death to the use of tampons, Procter & Gamble quickly decided to remove its highly profitable "Rely" from the market, even before definitive proof of any connection had been established. Recalling the merchandise cost Procter & Gamble millions—but, market researchers reported, it saved the company name. Most of the buying public thought better of Procter & Gamble after the recall than before.

But can a company manufacture its own desired image? Probably not. A firm's reputation is not an invention of the public relations specialist, but a reflec­tion of what a company is actually like. Polaroid, the expert in publicity, also enjoys a favorable public image. However, it was well earned.

In Cambridge, Massachusetts, the company headquarters, Polaroid is known for providing money and land for community development. Nationally it is also recognized as one of the first large enterprises to voluntarily offset⁵ past discrimination by hiring large numbers of minorities⁶. Today more than 10 per­cent of its workers are black. In 1970 some militant⁷ black employees protested that Polaroid was supporting racism and apartheid by selling film and equip­ment to the South African government. The equipment, they claimed, was being used to print identification cards for black South Africans. Edwin Land responded by appointing an investigating committee of employees. He prom­ised to abide⁸ by their investigation and recommendation. They recommended no further sales to the South African government. Land agreed, losing millions of dollars in business. In 1977 when he discovered one of his South African dealers violating this policy, Land halted⁹ all Polaroid sales in South Africa.