The Influence of Product Publicity on Product Sales in a Noncompetitive Environment

ABSTRACT In an effort to More fully integrate publicity into the Marketing and promotion mix, the present study examines the influence of product-related newspaper, television, and radio publicity on Lotto sales in the state of Colorado. The results of the present study indicate that in addition to Jackpot size, television publicity has a statistically significant positive impact on Lotto sales, whereas newspaper and radio publicity do not. Consequently, in their efforts to generate favorable publicity, lottery Managers should emphasize the dissemination of jackpot size information via the television Medium. Moreover, considering the observed 90% duration interval of .8651 weeks for the influence of marketing variables on sales, a continuous Media placement schedule is suggested. The neat and tidy divisions separating Marketing and public relations are breaking down. It May be that the best way to solve a Marketing probleM would be through public relations activities (Kotler & Mindak 1978). INTRODUCTION Academics and practitioners have recently begun to expand the domain of marketing communications, effectively bringing the role of public relations to the fore in a marketing context. Known as integrated marketing communications, this trend has been described as one of the most important marketing developments of the 1990s (Shimp, 1997). Integrated Marketing Communications (IMC) may be defined as the process of strategically developing and controlling or influencing all messages used to build and nourish relationships with customers and other stakeholders (Hutton, 1996). Hutton (1996), however, views this definition as simply a description of what public relations is and has been doing for at least a half-century. According to Hutton (1996, p. 160), "public relations practitioners have long dealt with issues that marketing is now targeting for its own future- relationships, organizational equity (as well as brand equity), and a variety of issues pertaining to the organization's environment and its ability to function efficiently in that environment." Because of its increasing effectiveness and importance as a component of the marketing mix, the public relations industry has also begun to think in marketing terms by considering the contribution of publicity to marketing objectives (Hartman & Brokaw, 1988; Humer, 1989; Oliver, 1988). As such, it has been suggested that the measure of success for any particular public relations campaign should be related to specific marketing objectives, such as an increase in sales or market share (Hartman & Brokaw, 1988; Nakra, 1991; Oliver, 1988; Wyatt, 1991). Unfortunately, there have been few studies which empirically demonstrate the influence of product publicity on product sales. Recognizing the need to more fully integrate publicity into the marketing mix, the present study is an attempt to bridge the gap between public relations and marketing research by directly examining the influence of product publicity on product sales. Specifically, the present study focuses on the unique influence of newspaper, television, and radio publicity on Lotto sales in the Denver area of dominant influence (ADI) in the state of Colorado. PUBLICITY According to Edward L, Bernays, the history of public relations can be traced as far back as ancient Babylonia, where image conscious kings frequently commissioned artists and historians to sculpt and paint favorable images of them (Kotier & Mindak, 1978). In the United States, public relations can be traced back to the revolutionary war period, when publicity stunts such as the Boston Tea Party were used to swell the ranks of patriots dedicated to the revolutionary war cause (O'Neill, 1991). Despite the historical significance of publicity, the value of product publicity, or "media coverage of a product or service that aids in reaching marketing goals," only gradually became recognized as a useful marketing tool by the business community as the effectiveness of mass media generated publicity began to increase in the latter part of the twentieth century (Williams, 1988). …